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Earlier this week, Raytheon, an RTX business, secured a US$1.70 billion foreign military sales contract to supply Spain with four Patriot air and missile defense systems, including radars, launchers, command-and-control stations and training equipment.
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This is Spain’s largest Patriot order to date, reinforcing RTX’s position as a key supplier of integrated air and missile defense capabilities to U.S. allies.
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Next, we’ll examine how Spain’s record Patriot order could influence RTX’s defense backlog, earnings visibility and overall investment narrative.
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To own RTX, you need to believe in its mix of defense and commercial aerospace, and in its ability to turn a large, long-duration contract book into consistent earnings and cash flow. Spain’s US$1.70 billion Patriot order adds visibility to defense revenues, but does not change the key near term swing factors: progress on Pratt & Whitney engine issues and any change in government defense budgets.
The Spain Patriot win sits alongside RTX’s US$1.72 billion U.S. Army fire units contract, both tied to Patriot production. Together they highlight how RTX’s missile defense backlog could offset pressure from commercial engine reliability risks and support the case that defense may remain the steadier pillar of the story if civil aviation demand becomes more volatile.
Yet in contrast to the headline contract wins, investors should also be aware of the ongoing risk that Pratt & Whitney engine reliability issues could…
Read the full narrative on RTX (it’s free!)
RTX’s narrative projects $97.7 billion revenue and $8.9 billion earnings by 2028. This requires 5.3% yearly revenue growth and about a $2.8 billion earnings increase from $6.1 billion today.
Uncover how RTX’s forecasts yield a $194.65 fair value, a 4% upside to its current price.
Seven fair value estimates from the Simply Wall St Community span roughly US$132 to US$195 per share, showing how far apart individual views can be. Against this backdrop, the scale of RTX’s new Patriot contracts and the continued dependence on government defense spending give you several different angles to explore on how durable its current performance may prove to be.
Explore 7 other fair value estimates on RTX – why the stock might be worth as much as $194.65!