RTX Corp

Strong Q3 results; broad-based growth - Adjusted sales: $25.0B, +12% organically (and +11% YoY adjusted). - Adjusted EPS: $2.26, +33% YoY (includes ~$0.25 from IEPA cost recovery). - Free cash flow (FCF): $2.1B in the quarter (includes ~$300M IEPA recovery and ~$165M related to powder metal compensation). - Operating momentum / backlog: Record backlog $340B, +36% YoY and +18% sequentially; underscores demand visibility and execution strength.

Defense surge: record bookings and major munition ramps - Defense bookings: ~$59B in Q3 with book-to-bill 4.57x. - Key conversions into production contracts: - Tomahawk (~$23B) and AMRAAM (~$14B) framework agreements converted to multiyear agreements. - Additional multiyear contracts signed for SM-6 and SM-3 IIA (per management commentary). - Execution/ramp plan: Expect production rates to increase ~2x to 4x over time as the supply chain/tools/testing capacity is expanded. - Margin expectation: Management believes these contracts can support margin expansion at Raytheon as scale efficiencies build, though near-term optics are impacted by ramp investments and accounting mechanics.

2026 outlook raised (earnings and cash), driven by defense + commercial strength - Adjusted sales outlook: raised to $97.0B–$97.5B (from $95.0B–$96.0B). - Implies ~10%–11% full-year organic growth (up from 8%–9% previously). - Adjusted EPS outlook: raised to $7.65–$7.75 (from $7.10–$7.25) - Increase attributed mainly to operational performance + IEPA cost recovery (midpoint impact discussed as roughly $28M operational and $25M IEPA—i.e., IEPA remains a meaningful contributor). - FCF outlook: raised to $9.0B–$9.2B (from $8.5B–$8.75B), driven primarily by EBITDA recovery. - Channel guidance nuance: commercial OE now expected high single digits, commercial aftermarket low double digits to low teens, defense low double digits.