Defense & Military
RTX Q4 2024: Strong Growth in Aerospace & Defense Industry

Introduction
Raytheon Technologies (RTX) has emerged as a dominant force in the aerospace and defense industry following the merger of Raytheon Company and United Technologies Corporation in 2020. The company’s Q4 2024 performance underscores its ability to leverage its diverse portfolio, which includes Collins Aerospace, Pratt & Whitney, Raytheon Missiles & Defense, and Raytheon Intelligence & Space. With a 9% year-over-year (Y/Y) increase in sales and a 19% rise in adjusted EPS, RTX has demonstrated resilience and strategic growth in a competitive market.
The aerospace and defense sector has been shaped by global trends such as the recovery of commercial aviation and heightened demand for defense systems. RTX’s strong performance in Q4 2024 reflects these dynamics, with significant contributions from its commercial aftermarket and defense segments. The company’s $218 billion backlog further highlights its robust position in the industry, signaling sustained growth potential in the years ahead.
Q4 2024 Performance Breakdown
Sales and Earnings Growth
RTX reported Q4 2024 sales of $21.623 billion, a 9% increase Y/Y, surpassing consensus estimates of $20.535 billion. Adjusted EPS grew 19% Y/Y to $1.54, exceeding the street view of $1.38. This performance was driven by strong demand across its segments, particularly in defense and commercial aftermarket. The company’s operating cash flow for the quarter totaled $1.6 billion, with free cash flow at $0.5 billion.
RTX’s ability to exceed expectations reflects its strategic focus on innovation and operational efficiency. The company returned $3.7 billion of capital to shareholders in Q4, bringing the total capital returned since the merger to over $33 billion. This commitment to shareholder value has bolstered investor confidence, as evidenced by the 4.49% premarket rise in RTX shares.
Segment Performance
Collins Aerospace reported sales of $7.537 billion, up 6% Y/Y, driven by a 13% Y/Y increase in defense and 12% Y/Y growth in commercial aftermarket. Adjusted operating profit surged 17% Y/Y to $1.207 billion, aided by higher commercial aftermarket and defense volume. Pratt & Whitney saw sales rise 18% Y/Y to $7.569 billion, with adjusted operating profit escalating 77% Y/Y to $717 million.
Raytheon’s sales increased 4% Y/Y to $7.157 billion, supported by higher volume in land and air defense systems, including Global Patriot, NASAMS, and counter-UAS programs. Excluding the divestiture of the Cybersecurity, Intelligence and Services business, sales rose 10% Y/Y. The segment’s adjusted operating profit grew 18% Y/Y to $728 million, reflecting strong execution and demand for its products.
“RTX delivered a very strong year of performance in 2024 with 11 percent organic sales growth and 13 percent adjusted EPS growth, including segment margin expansion in all three businesses.” – Chris Calio, RTX President and CEO
2025 Outlook and Strategic Priorities
Financial Projections
For 2025, RTX expects adjusted sales of $83.0 billion to $84.0 billion, with adjusted EPS projected at $6.00 to $6.15. The company anticipates free cash flow of $7.0 billion to $7.5 billion, reflecting its confidence in sustained growth and operational efficiency. These projections are supported by a $218 billion backlog, with $125 billion from commercial aerospace and $93 billion from defense.
RTX’s outlook is underpinned by strong demand for its products and solutions, driven by the recovery in commercial aviation and increased defense spending globally. The company’s focus on innovation and strategic execution positions it well to capitalize on these trends and deliver value to shareholders.
Industry Trends and Opportunities
The aerospace and defense industry is experiencing a period of transformation, with consolidation and strategic reorganization becoming key themes. RTX’s performance reflects its ability to navigate these trends effectively, leveraging its scale and expertise to drive growth. The company’s emphasis on advancing its strategic priorities—executing on commitments, innovating for growth, and harnessing its breadth and scale—provides a solid foundation for future success.
As global defense spending continues to rise and commercial aviation rebounds, RTX is well-positioned to benefit from these tailwinds. The company’s diverse portfolio and strong backlog ensure that it can meet the evolving needs of its customers while maintaining its leadership in the industry.
Conclusion
RTX’s Q4 2024 performance highlights its resilience and strategic growth in a dynamic market. With strong sales and earnings growth, robust segment performance, and a $218 billion backlog, the company has demonstrated its ability to navigate industry challenges and capitalize on opportunities. RTX’s 2025 outlook reflects its confidence in sustained growth, driven by demand for its products and solutions.
Looking ahead, RTX’s focus on innovation, operational efficiency, and strategic execution positions it well to maintain its leadership in the aerospace and defense industry. As global trends continue to shape the sector, RTX is poised to deliver value to its shareholders and contribute to advancements in aerospace and defense technologies.
FAQ
Question: What were RTX’s Q4 2024 sales and EPS?
Answer: RTX reported Q4 2024 sales of $21.623 billion, a 9% increase Y/Y, and adjusted EPS of $1.54, up 19% Y/Y.
Question: What is RTX’s 2025 outlook?
Answer: RTX expects 2025 adjusted sales of $83.0 billion to $84.0 billion, adjusted EPS of $6.00 to $6.15, and free cash flow of $7.0 billion to $7.5 billion.
Question: How did RTX’s segments perform in Q4 2024?
Answer: Collins Aerospace sales grew 6% Y/Y, Pratt & Whitney sales rose 18% Y/Y, and Raytheon sales increased 4% Y/Y, driven by higher volume in defense systems and commercial aftermarket.
Sources: Benzinga, PR Newswire
Defense & Military
2026 Northrop Grumman Technology Accelerator Cohort Named
Eight startups including Whisper Aero and Zulu Pods selected for Northrop Grumman’s 2026 accelerator from 300+ applicants.

This is original reporting and analysis by AirPro News.
Eight aerospace and defense startups, including Whisper Aero and Zulu Pods, Inc., have been selected from a pool of over 300 applicants for the 2026 Northrop Grumman Technology Accelerator. The 11-week virtual program, powered by FedTech, provides emerging deep-tech companies a direct pathway to collaborate with a major prime contractor on next-generation aircraft propulsion, advanced materials, and defense technologies.
The accelerator is designed to integrate external technology innovation into the supply chain and product lines of Northrop Grumman Corporation. Selected companies receive mentorship from Northrop Grumman experts, participate in technology integration strategy sessions, and gain access to venture capitalists and Department of Defense (DOD) connections to pursue funded pilots and strategic partnerships. Applications for the 2026 cohort closed on July 1, 2026.
2026 cohort and technological focus
The 2026 cohort represents a diverse cross-section of aerospace innovation, focusing on sectors such as artificial intelligence, quantum technology, and advanced manufacturing. Whisper Aero announced its selection on August 17, 2026, publishing the full list of participating companies:
- Whisper Aero
- Zulu Pods, Inc.
- Coronal Technologies
- ICOMAT
- InfinitForm
- Kilsar
- PanOptimization
- Raven Space Systems
Participants are targeting specific legacy challenges within aerospace manufacturing and design. In an August 12, 2026 statement, Zulu Pods outlined its objective for the program.
“We’re here to replace legacy fluid delivery with something lighter, faster, and built to scale.”
Whisper Aero emphasized the rapid development timeline the accelerator enables for early-stage aerospace hardware.
“We’re proud to work directly with Northrop Grumman Corporation and FedTech on next-generation propulsion that future aircraft will run on. As one of eight companies selected out of over 300, we’re grateful for the opportunity to manufacture and demonstrate capability rapidly.”
Integration into defense supply chains
The Northrop Grumman Technology Accelerator functions as a bridge between agile startups and the heavily regulated defense procurement environment. By partnering with FedTech, Northrop Grumman can evaluate unproven but high-potential technologies without absorbing the initial research and development costs typically associated with internal incubation.
AirPro News analysis
We view the structure of the 2026 cohort as a clear indicator of where prime contractors are identifying supply chain vulnerabilities and technological gaps. The inclusion of companies focused on fluid delivery systems, advanced materials, and next-generation propulsion suggests Northrop Grumman is prioritizing component-level innovations that can be rapidly scaled and integrated into existing platforms. For startups like Whisper Aero and Zulu Pods, the 11-week program offers critical exposure to DOD acquisition pathways, which often present insurmountable barriers to entry for independent firms lacking prime contractor sponsorship.
Sources: Whisper Aero
Photo Credit: Whisper Aero
Defense & Military
Lockheed Martin Targets 2028 Quantum Navigation Fielding
Lockheed Martin leads DIU quantum sensor program with Q-CTRL and AOSense, targeting GPS-independent navigation by 2028.

Lockheed Martin is advancing quantum sensing technology from laboratory environments to operational aerospace and defense platforms, targeting a 2028 federal timeline for fielding GPS-independent Navigation systems.
In a feature article published on August 17, 2026, the defense manufacturer detailed its role as the prime contractor for the Defense Innovation Unit (DIU) Transition of Quantum Sensors program. Working alongside quantum industry specialists Q-CTRL and AOSense, Lockheed Martin is developing a Quantum Inertial Navigation System (QuINS) designed to operate in contested environments where traditional satellite navigation signals are degraded or denied.
Engineering for Contested Environments
The QuINS architecture utilizes individual atoms to detect motion and orientation with unprecedented precision. This technology provides a critical alternative to the Global Positioning System (GPS), which remains vulnerable to jamming and spoofing tactics in modern electronic warfare.
Transitioning these highly sensitive instruments from controlled laboratories to the harsh conditions of military aviation and ground platforms requires strict management of size, weight, and power (SWaP) constraints. The hardware must withstand the extreme vibration, temperature fluctuations, and electromagnetic interference inherent to aerospace operations.
“It takes a lot of clever engineering to package the complicated quantum system into a device that can be used in the real world, outside of a lab,” said Gwen Leifer, Senior Quantum Systems Engineer and Lead for Quantum Workforce Development at Lockheed Martin. “But once you do, you have a device that may be more precise, uses less power or works in ways conventional sensors cannot.”
Strategic Partnerships and Federal Timelines
Lockheed Martin plans to conduct multiple platform demonstrations of the technology throughout 2026 and beyond, aligning with a federal target to field operational quantum capabilities by 2028. The company began applying quantum science to engineering challenges in 2008 and officially designated it a priority technology area in 2021, alongside hypersonics, autonomy, and directed energy.
The current DIU initiative builds on parallel defense sector investments. In August 2025, the Defense Advanced Research Projects Agency (DARPA) awarded Q-CTRL $24.4 million under the Robust Quantum Sensors (RoQS) program to develop next-generation navigation sensors, with Lockheed Martin serving as a subcontractor. Prior to that contract, Lockheed Martin Ventures participated in Q-CTRL’s Series B funding round in October 2024.
Lockheed Martin positions itself as the integration specialist bridging the gap between theoretical physics and deployable military hardware. Tom Loftus, Quantum Sensing and Position, Navigation, and Timing Lead, noted that the engineering teams focus on solving the practical hardware problems that stand between a laboratory prototype and useful equipment.
“In our work with our partner companies, we’re the engineers in the room,” stated Dani Couger, Quantum Technologies Lead at Lockheed Martin. “We know how to take something fragile, integrate it with complex systems and make it thrive in real environments.”
AirPro News analysis
While quantum computing often dominates public attention with promises of future cryptographic breakthroughs, quantum sensing represents the immediate, deployable edge of the technology. For the aerospace sector, the vulnerability of GPS is a recognized single point of failure in both military and commercial aviation. The push for alternative Position, Navigation, and Timing (PNT) solutions has accelerated as electronic warfare capabilities proliferate globally.
We view Lockheed Martin’s timeline for platform demonstrations in 2026 as a clear indicator that quantum inertial navigation is moving out of the experimental phase. By acting as the prime integrator for specialized firms like Q-CTRL and AOSense, the aerospace giant is leveraging commercial sector agility while applying its own expertise in ruggedizing hardware for flight. If the 2028 federal fielding target is met, quantum sensors could fundamentally alter how aircraft navigate in electronically contested airspace, providing a resilient backup that cannot be jammed from the ground.
Sources: Lockheed Martin, Q-CTRL
Photo Credit: Lockheed Martin
Defense & Military
E-2D Advanced Hawkeye Block II Critical Design Review Complete
Northrop Grumman and the U.S. Navy complete Block II critical design review, advancing the E-2D upgrade into integration and testing.

Northrop Grumman Corporation and the U.S. Navy have successfully completed the government-led critical design review for the E-2D Advanced Hawkeye Block II upgrade, transitioning the modernization program from the design phase into integration and testing.
The milestone, completed in May 2026 and publicly announced by the manufacturers on August 18, marks the most extensive platform overhaul in the history of the E-2D program. The Block II configuration is designed to future-proof the aircraft against emerging aerial threats by introducing an open mission systems architecture, a modernized cockpit, and significantly increased computing capacity.
Modernizing the airborne command node
The E-2D Advanced Hawkeye serves as the primary airborne command and control node for U.S. Navy carrier strike groups. To maintain this capability in increasingly complex electromagnetic environments, the Block II upgrade focuses heavily on digital infrastructure rather than aerodynamic changes.
According to a U.S. Navy statement, integrating an open mission systems architecture resolves current and future parts obsolescence while enabling rapid, non-proprietary technology insertion. This approach allows the military to upgrade software and hardware subsystems independently of the primary airframe manufacturer.
“Completing the Block II critical design review reflects the dedication and expertise of our team and partners. This upgrade strengthens the E-2D’s suite of capabilities, enhancing situational awareness, reducing crew workload and paving the way for future technology.”
Janice Zilch, vice president and program manager for the E-2D Advanced Hawkeye at Northrop Grumman, noted in a press release that the company continues to deliver unmatched capability at speed to the U.S. Navy and international partners.
Production timeline and fleet integration
The transition out of the design phase aligns with recent procurement actions. On July 22, 2026, the U.S. Department of Defense awarded Northrop Grumman a not-to-exceed $1.196 billion undefinitized contract for the production and delivery of three E-2D Advanced Hawkeye Block II aircraft.
Manufacturing will take place primarily in Melbourne and St. Augustine, Florida, as well as Liverpool, New York. The manufacturer noted that the broader E-2D program supports approximately 4,000 jobs across 411 companies in 40 U.S. states.
The Block II enhancements will be integrated directly into the active production line for new airframes, while the existing fleet will undergo retrofitting. Flight testing for the upgraded aircraft is scheduled to begin in fiscal year 2029, with the first overhauled Block II aircraft targeted for delivery by 2030.
AirPro News analysis
The shift toward an open mission systems architecture is a defining characteristic of modern military aviation procurement. By decoupling the mission systems from the proprietary hardware of the original equipment manufacturer (OEM), the U.S. Navy is positioning the E-2D to adapt to electronic warfare and sensor threats much faster than traditional upgrade cycles allow. We view the successful critical design review as a strong indicator that the Navy intends to keep the E-2D as the central node of its carrier strike group network well into the 2040s, rather than seeking a clean-sheet replacement in the near term.
Sources: Northrop Grumman
Photo Credit: Northrop Grumman
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