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RTX Q4 2024: Strong Growth in Aerospace & Defense Industry

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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.

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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

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Defense & Military

Trust Automation Wins $490M USAF Contract for Counter-Drone Systems

Trust Automation secures a $490 million USAF contract to develop and deliver counter-drone systems including SUADS and GAT jammer technologies through 2030.

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This article is based on official contracts announcements from the U.S. Department of Defense and Trust Automation, Inc.

Trust Automation Secures $490 Million USAF Contract for Counter-Drone Systems

The U.S. Air Force has awarded Trust Automation, Inc., a woman-owned small business based in San Luis Obispo, California, a significant $490 million Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. According to the Department of Defense announcement, the agreement focuses on the rapid research, development, and production of counter-unmanned aircraft systems (C-UAS), specifically designed to neutralize small to medium-sized drones threats.

The sole-source contract, issued by the Air-Forces Research Laboratory (AFRL) in Rome, New York, extends through August 20, 2030. It positions Trust Automation as a central partner in the military’s effort to defend bases and deployed personnel against the proliferation of Group 1 and Group 2 drones. As noted in the award details, approximately $20.3 million has been obligated immediately for the initial task order.

Contract Scope and Technical Specifications

The agreement tasks Trust Automation with the prototyping, demonstration, and transition of advanced C-UAS capabilities. According to company product information and contract specifications, the work centers on two primary technologies: the Small-Unmanned Air Defense System (SUADS) and the GAT UAS Jammer.

Small-Unmanned Air Defense System (SUADS)

Trust Automation describes SUADS as a layered, modular defense architecture. It is configurable for both fixed-site defense, such as protecting airfields, and rapid deployment in mobile combat units. The system targets Group 1 (hand-launched, under 20 lbs) and Group 2 (21–55 lbs) unmanned aerial systems.

Technical data indicates the system likely employs Radio Frequency (RF) detection and electronic warfare jamming to sever the connection between a drone and its operator. The design is described as “government collaborated,” suggesting it was developed in close partnership with Air Force laboratories to ensure seamless integration into existing command-and-control networks.

GAT (Ghoul-Tool Attachable Transmitter) Jammer

The contract also encompasses the GAT UAS Jammer, a tactical electronic warfare device designed for individual soldiers. According to technical specifications, the device is compact (6″ x 3.2″), weighs less than one pound, and mounts to standard NATO accessory rails on a rifle.

The GAT system provides immediate “point defense” capabilities by jamming command and control signals in the 2.4 GHz and 5.8 GHz bands. Additionally, it disrupts Global Navigation Satellite System (GNSS) signals, forcing hostile drones to hover, land, or return to their launch point. The system is powered by standard CR123 batteries and is effective beyond the operator’s line of sight.

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AirPro News Analysis

The Strategic Value of Sole-Source Acquisition
The designation of this award as a “sole source” contract is significant. In federal procurement, this typically indicates that the vendor possesses unique proprietary technology or is scaling a solution previously validated under programs like Small Business Innovation Research (SBIR) grants. By bypassing a lengthy open bidding process, the Air Force signals an urgent need to field these specific capabilities immediately.

Addressing the Asymmetric Threat
This contract directly addresses the “base defense gap” highlighted by recent conflicts in Ukraine and the Middle East. Cheap commercial drones, costing as little as $500, have proven capable of destroying multi-million dollar assets. The Air Force’s investment in Trust Automation’s electronic warfare solutions, rather than purely kinetic interceptors, reflects a shift toward cost-effective, low-collateral countermeasures suitable for populated areas or forward operating bases.

Market Positioning
While the C-UAS market includes major competitors like Anduril Industries and RTX (Raytheon), Trust Automation has carved out a specific niche in RF-based neutralization. Unlike kinetic systems that physically destroy drones and create debris hazards, the electronic warfare approach offered by SUADS and GAT allows for “silent” neutralization, a critical capability for defending sensitive infrastructure.

Sources

Sources: U.S. Department of Defense, Trust Automation, Inc., Defence Industry Europe

Photo Credit: Trust Automation

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Defense & Military

RTX Joins AIAA as Corporate Partner to Boost Aerospace Innovation

RTX elevates its partnership with AIAA to Corporate Partner level, enhancing industry collaboration and workforce development amid major contract wins.

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This article is based on an official press release from AIAA.

RTX Elevates Engagement with AIAA to Corporate Partner Level

RTX, the world’s largest aerospace and defense company, has officially elevated its relationship with the American Institute of Aeronautics and Astronautics (AIAA) to the Corporate Partner level. The announcement was made today, January 15, 2026, at the AIAA SciTech Forum in Orlando, Florida, the world’s largest event for aerospace research and development.

By securing this designation, RTX joins an exclusive tier of engagement previously occupied only by Lockheed Martin and Northrop Grumman. The partnership unifies RTX’s three major business units, Collins Aerospace, Pratt & Whitney, and Raytheon, under a single strategic umbrella within the institute. According to the announcement, this move is designed to accelerate innovation and deepen the company’s connection with the aerospace engineering workforce.

Strategic Alignment and Industry Impact

The “Corporate Partner” status is the highest level of support within the AIAA, distinct from standard corporate membership. According to institute documentation, this tier grants RTX executive representation on the Corporate Member Strategic Advisory Committee. This position allows the company to help shape technical initiatives and engage directly with leadership from the Department of Defense (DoD), the Federal Aviation Administration (FAA), and NASA.

Clay Mowry, CEO of AIAA, emphasized the significance of RTX’s elevated role in a statement released today:

“We’re proud to welcome RTX to the ranks of our Corporate Partners… RTX is a world-class provider of transformational aerospace technologies… Their storied history of innovation… make us proud to elevate them to the Corporate Partner tier.”

The partnership also focuses heavily on workforce development. With access to AIAA’s network of over 33,000 professional and student members, RTX aims to leverage “Meet the Employer” events and priority branding at major forums to support its recruitment efforts.

Context: Production Ramps and R&D Focus

The timing of this partnership aligns with a period of significant expansion for RTX. Data from late 2025 indicates the company is managing a record backlog of approximately $236 billion. To meet these deliveries targets, the company is in a production ramp-up phase that requires a steady pipeline of engineering talent.

Juan de Bedout, Chief Technology Officer of RTX and an AIAA Fellow, highlighted the collaborative potential of the new agreement:

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“This collaboration will drive innovation, accelerate advancements in the aviation industry, and inspire the next generation of engineers by uniting the resources and expertise of the largest aerospace and defense company with the vast knowledge base and professional network of the largest aerospace professional organization.”

RTX is currently projecting an annual research and development spend of approximately $7.5 billion for the 2025/2026 period. The company is heavily investing in hypersonics, artificial intelligence, and sustainable aviation, areas where AIAA technical committees play a critical role in defining standards.

Recent Contract Awards

The push for technical talent follows a series of major contract wins for RTX in late 2025 and early 2026. These include:

  • A historic $1.7 billion contract to supply Patriot air and defense systems to Spain.
  • A $438 million contract from the FAA to modernize radar systems for the U.S. National Airspace System.
  • The successful launch of NASA’s Pandora mission in January 2026, utilizing a satellite from RTX subsidiary Blue Canyon Technologies.

AirPro News Analysis

We view this elevation as a strategic necessity for RTX rather than a mere sponsorship. As the aerospace labor market remains tight through 2026, major primes are competing aggressively for specialized engineering talent. By locking in “Corporate Partner” status, RTX ensures it has equal footing with Lockheed Martin and Northrop Grumman in accessing the AIAA’s talent pool.

Furthermore, with RTX’s massive R&D budget focused on emerging technologies like hypersonics and AI, having a seat on the AIAA Strategic Advisory Committee allows the company to influence the technical standards and regulatory frameworks that will govern these technologies in the coming decade.

Sources

Sources: AIAA Press Release, RTX Corporate Reports

Photo Credit: AIAA

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Denmark Retires F-16 Fleet After 46 Years, Transfers Jets to Ukraine and Argentina

Denmark retires its F-16 fleet after 46 years, transferring aircraft to Ukraine and Argentina as it transitions to the F-35A Lightning II.

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This article summarizes reporting by The War Zone.

Denmark Officially Retires F-16 Fleet After 46 Years of Service

On Sunday, January 18, 2026, the Royal Danish Air Force (RDAF) marked the end of an era by officially retiring its F-16 Fighting Falcon fleet. The historic transition took place at Skrydstrup Air Base in southern Jutland, concluding 46 years of continuous operations for the fourth-generation fighter. While the jets have flown their final mission under the Danish flag, they are not destined for the scrapyard; instead, they are being transferred to Ukraine and Argentina to continue their operational lives.

According to reporting by The War Zone, the retirement ceremony featured a final formation flight and the symbolic transfer of air defense duties to the fifth-generation F-35A Lightning II. The event underscores a significant modernization effort within NATO, as member nations transition to stealth platforms while bolstering allies with their well-maintained legacy aircraft.

The Final Farewell at Skrydstrup

The retirement event was attended by thousands of spectators, including Danish Minister of Defense Troels Lund Poulsen and current Air Force Chief Major General Jan Dam. The final official RDAF F-16 landing occurred just before 2:00 PM local time, following a farewell flight by four aircraft that departed the runway in full afterburner.

The War Zone highlights the participation of General Christian Hvidt (Ret.), the former Danish Chief of Defense. Gen. Hvidt was the first Danish pilot to land an F-16 at Skrydstrup in January 1980. In a symbolic closing of the circle, he participated in the final ceremony, and his original 1980 helmet was placed in the cockpit of the last jet to mark the occasion.

A Legacy of Global Operations

Denmark originally acquired 58 F-16s, comprising 46 single-seat A models and 12 two-seat B models, as part of the “Sale of the Century,” a collaborative European procurement program involving Belgium, the Netherlands, and Norway. Over nearly half a century, these Military-Aircraft evolved from Cold War defenders of the Baltic Sea to active combatants in modern conflicts.

As detailed in the research data, the Danish F-16 fleet saw active combat deployments in:

  • Afghanistan (Operation Enduring Freedom)
  • Libya (Operation Odyssey Dawn/Unified Protector)
  • Iraq and Syria (Operation Inherent Resolve)

Additionally, the fleet regularly conducted NATO Baltic Air Policing missions, securing the airspace over Estonia and Lithuania.

A “Second Life” in Ukraine and Argentina

Unlike many military retirements where assets are scrapped or stored, the Danish F-16s remain operationally relevant. The fleet has been divided to support two distinct strategic objectives: the defense of Ukraine and the modernization of Argentine air power.

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Bolstering Ukraine’s Defense

Denmark has pledged 19 F-16 aircraft to the Ukrainian Air Force. According to Militarnyi and other defense sources, the majority of these aircraft have already been transferred as of January 2026. The first batch arrived in Ukraine in the summer of 2024 and is currently being used for air defense and combat missions against Russian forces. These jets provide a critical capability for contesting airspace and intercepting cruise missiles.

Modernizing Argentina’s Air Force

In a separate deal worth approximately $300–$320 million, Denmark sold 24 F-16s to Argentina. Defense News reported that this agreement was signed in April 2024, with the first aircraft arriving in Argentina in December 2025. This acquisition restores Argentina’s supersonic interceptor capability, a capacity the nation had lacked since retiring its Mirage fleet in 2015.

Transition to the F-35A Lightning II

The retirement of the F-16 coincides with the full operational integration of the Lockheed Martin F-35A Lightning II. Denmark plans to operate a total of 27 F-35s initially, with long-term plans to increase the fleet to 43 aircraft.

According to Flight Global, the F-35A officially assumed Quick Reaction Alert (QRA) duties immediately following the F-16’s retirement. While the first F-35s arrived on Danish soil in September 2023, a portion of the fleet remains at Luke Air Force Base in Arizona for ongoing pilot training.

AirPro News analysis

The retirement of the Danish F-16 fleet represents a masterclass in lifecycle management. It is rare for a fighter jet to serve for 46 years and still be sought after for active combat duties in high-threat environments like Ukraine. This speaks volumes about the maintenance standards of the Royal Danish Air Force ground crews.

Strategically, this move allows Denmark to leap into the fifth-generation era with the F-35 while simultaneously strengthening NATO’s eastern flank via Ukraine and solidifying diplomatic ties with South America. By transferring these assets rather than scrapping them, Denmark has maximized the geopolitical value of its hardware down to the very last flight hour.

Sources

Photo Credit: Danish Armed Forces

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