Defense & Military
RTX Reports $268 Billion Backlog and Strong 2025 Financial Results
RTX reports record $268B backlog and strong 2025 results with $88.6B sales, 10% growth, and positive 2026 outlook amid aerospace and defense demand.

This article is based on an official press release from RTX.
RTX Reports Record $268 Billion Backlog and Strong 2025 Results Amid Defense Sector Growth
RTX (formerly Raytheon Technologies) has reported robust financial results for the fourth quarter and full year of 2025, surpassing Wall Street expectations for both sales and earnings. According to the company’s official announcement released on January 27, 2026, RTX enters the new fiscal year with a record backlog of $268 billion. This surge is driven by sustained demand across commercial aerospace and global defense sectors.
Despite facing external political pressures regarding capital allocation and persistent supply chain constraints, the company has projected continued growth for 2026. Management highlighted significant progress in resolving the Pratt & Whitney powder metal engine issue, noting that aircraft-on-ground (AOG) rates have begun to decline from their 2025 peaks.
In a statement accompanying the results, RTX leadership emphasized their focus on balancing shareholder returns with the capital expenditures necessary to meet historic demand levels.
“We enter 2026 with great momentum and are well positioned to deliver our 2026 financial outlook. We remain focused on investing in new capabilities, expanding production capacity, and executing on our backlog to meet the growing needs of our customers.”
, Chris Calio, Chairman & CEO, RTX
2025 Financial-Results
RTX delivered strong growth across its primary metrics in 2025, driven by volume increases in both commercial original equipment (OE) and defense systems.
Fourth Quarter 2025
For the quarter ending December 31, 2025, RTX reported sales of $24.2 billion, marking a 12% increase on a reported basis and 14% organic growth year-over-year. Adjusted earnings per share (EPS) reached $1.55, a 1% increase compared to the previous year. The company also generated strong cash flow to close the year:
- Operating Cash Flow: $4.2 billion
- Free Cash Flow: $3.2 billion
- GAAP EPS: $1.19
Full Year 2025
For the full year, sales totaled $88.6 billion, up 10% from 2024. Adjusted EPS for the year rose 10% to $6.29. Notably, free cash flow for the year reached $7.9 billion, an increase of $3.4 billion year-over-year, demonstrating improved operational efficiency despite the costs associated with the GTF engine fleet management plan.
2026 Outlook and Guidance
Looking ahead, RTX has issued guidance for 2026 that suggests continued expansion. The company projects adjusted sales between $92.0 billion and $93.0 billion, representing organic sales growth of 5% to 6%. Adjusted EPS is expected to land in the range of $6.60 to $6.80.
The company also anticipates robust cash generation, forecasting free cash flow between $8.25 billion and $8.75 billion for 2026. This outlook assumes continued recovery in the commercial aerospace sector and sustained defense spending.
Segment Highlights and Operational Updates
Performance across RTX’s three main business segments in Q4 2025 reflected the broader industry trends of high demand and supply chain recovery.
- Pratt & Whitney: Sales jumped 25% to $9.50 billion, driven by commercial OE volume and the ramp-up of F135 engine production. Adjusted operating profit was $776 million.
- Collins Aerospace: Sales increased 3% to $7.74 billion. The segment saw strength in the commercial aftermarket (parts and repair), though this was partially offset by divestitures and the impact of higher tariffs.
- Raytheon: Sales rose 7% to $7.66 billion, fueled by high demand for Patriot missile systems, GEM-T missiles, and various naval programs.
GTF Engine Recovery
A critical operational focus for RTX has been the management of the “powder metal” manufacturing defect affecting Pratt & Whitney GTF engines. CEO Chris Calio provided an update on the recovery efforts, stating that the company is “turning the corner.”
“Our financial and technical outlooks remain on track… AOGs did come down in Q4, and they’re down over 20% from the highs of 2025. So making good progress there.”
, Chris Calio, Chairman & CEO, RTX
Financial documents indicate that compensation payments to Airlines, which peaked at approximately $1 billion in 2025, are expected to moderate to roughly $700 million in 2026.
Strategic Context: Defense Initiatives and Policy
While the earnings report focuses on financial metrics, recent government documents and industry reports highlight the external environment shaping RTX’s future.
According to reports on the Trump administration’s “Golden Dome” initiative (Executive Order 14186), the U.S. is pursuing a multi-layer missile defense project with an initial funding injection of $24.4 billion. As the Manufacturers of the Patriot system and a partner on the Iron Dome, RTX is positioned as a potential beneficiary of this initiative.
However, the company also faces political scrutiny. A recent executive order regarding defense contractor capital allocation has targeted companies prioritizing buybacks over production capacity. In response to questions regarding this pressure, RTX management affirmed their commitment to the dividend while noting they invested over $10 billion in CapEx and R&D in 2025 to expand capacity.
AirPro News Analysis
The tension between record-breaking demand and political pressure on capital allocation is likely to define RTX’s narrative in 2026. While the $268 billion backlog guarantees revenue visibility for years, the “Golden Dome” initiative suggests that capacity, rather than demand, will be the primary constraint. RTX’s ability to navigate the political landscape, balancing shareholder returns with the government’s demand for rapid production scaling, will be critical. The reduction in GTF AOG rates is a positive signal that operational bottlenecks are clearing, potentially freeing up resources for the defense ramp-up.
Frequently Asked Questions
What is RTX’s current backlog?
RTX reported a record backlog of $268 billion entering 2026.
How is the Pratt & Whitney engine issue affecting the company?
While the issue cost the company approximately $1 billion in airline compensation in 2025, aircraft-on-ground (AOG) rates are down 20% from their peak. Compensation costs are expected to drop to roughly $700 million in 2026.
What is the “Golden Dome” initiative?
It is a reported U.S. government missile defense project (Executive Order 14186) with $24.4 billion in initial funding, intended to protect the U.S. homeland. RTX, as a maker of Patriot and Iron Dome systems, is a key industry player in this domain.
Sources:
Photo Credit: Reuters – Benoit Tessier
Defense & Military
Vertex Aerospace Wins $500M USAF C-12 Logistics Contract
Vertex Aerospace secures a $500M IDIQ contract for global C-12 fleet logistics support across 23 locations through 2031.

Vertex Aerospace LLC has secured a firm-fixed-price, indefinite-delivery/indefinite-quantity contract with a ceiling of $500,000,000 to provide global contractor logistic support for the United States Air Force C-12 aircraft fleet.
Awarded on June 26, 2026, by the Air Force Life Cycle Management Center at Tinker Air Force Base (TIK), the agreement ensures operational readiness for the military variant of the Beechcraft King Air. According to the Department of Defense contract announcement, the C-12 fleet provides time-sensitive movement of personnel, cargo, and medical evacuation services.
Mission and command support
The logistics support contract covers a broad operational mandate. Beyond standard transport and medical evacuation, Vertex Aerospace will provide test support for several key defense entities. These include the Air Force Materiel Command (AFMC), the Defense Intelligence Agency (DIA), the Defense Security Cooperation Agency (DSCA), and Pacific Air Forces (PACAF).
The acquisition was conducted as a competitive process, with the Air Force receiving three offers. The contracts also involves Foreign Military Sales, reflecting the international footprint of C-12 operations and allied support requirements.
Global footprint and funding
Work under the contract will be distributed across 23 locations worldwide, supporting the highly dispersed nature of the C-12 fleet. Domestic work sites include Joint Base Elmendorf-Richardson in Alaska, Edwards Air Force Base in California, Joint Base Andrews in Maryland, Holloman Air Force Base in New Mexico, and Vertex Aerospace facilities in Madison, Mississippi.
International support locations span South America, Africa, Europe, and Asia-Pacific. Designated sites include Buenos Aires, Argentina; Gaborone, Botswana; Brasilia, Brazil; Bogota, Colombia; Cairo, Egypt; Accra, Ghana; Tegucigalpa, Honduras; Budapest, Hungary; Yokota Air Base, Japan; Nairobi, Kenya; Rabat, Morocco; Manila, Philippines; Riyadh, Saudi Arabia; Bangkok, Thailand; Ankara, Turkey; and Oslo, Norway.
Initial funding obligated at the time of the award includes $237,125 in fiscal 2026 operation and maintenance funds, $7,250 in research, development, test, and evaluation funds, and $5,659 in Foreign Military Sales funds. The Department of Defense expects all work to be completed by June 30, 2031.
AirPro News analysis
The C-12 Huron serves as a critical utility workhorse for the United States military-aircraft and allied nations. Because these twin-engine turboprops operate in small detachments across a vast geographic area rather than being concentrated at a few major hubs, maintaining fleet readiness requires a highly distributed logistics network. We view this $500,000,000 ceiling contract as a reflection of the logistical complexity involved in supporting a globally dispersed fleet. By consolidating support under a single indefinite-delivery/indefinite-quantity vehicle, the Air Force Life Cycle Management Center ensures consistent maintenance standards and parts availability from domestic test centers to remote international support locations.
Sources: U.S. Department of Defense
Photo Credit: Yokota Air Base – Air Force
Defense & Military
Airbus and Alta Ares Partner on AI Counter-Drone Integration
Airbus Defence and Space and Alta Ares signed an MOU to integrate AI-guided interceptors into Airbus air defense command systems.

Airbus Defence and Space and European defense technology company Alta Ares signed a memorandum of understanding on June 11, 2026, to integrate artificial intelligence-guided counter-drone interceptors into Airbus air defense command systems.
Announced during the ILA Berlin Air Show, the partnership aims to create a unified sensor-to-shooter chain capable of neutralizing mass-deployed, one-way attack drones. According to a press release issued by Airbus, the agreement will link Alta Ares interceptor hardware and targeting software directly into existing Airbus battle management networks.
Integration of AI and interceptor hardware
The technical integration focuses on connecting Alta Ares systems with Airbus command software. Alta Ares will integrate its Pixel Lock artificial intelligence platform, along with its Black Bird medium-range and X-Lock short-range interceptors, into the Airbus Fortion Integrated Battle Management Software (IBMS) and the Fortion Surface-to-Air Missile Operation Centre (SAMOC).
Alta Ares Co-Founder and Chief Executive Officer Hadrien Canter stated that modern air defense requires both software and hardware operating simultaneously at scale.
“Integrating Pixel Lock and our interceptors into Fortion IBMS means operators get a single, coherent sensor to shooter chain from detection to neutralisation. That’s what theatre commanders are actually asking for,” Canter said.
François Lombard, Head of Connected Intelligence at Airbus Defence and Space, noted that defending against suicide drones is an urgent priority in current asymmetric conflict environments. He emphasized the need for cost-efficient solutions that fit within the broader air defense ecosystem to protect European airspace and allied forces.
Airbus expands counter-UAV portfolio
The Alta Ares agreement follows a series of rapid expansions in the Airbus counter-Uncrewed Aerial Systems (C-UAS) portfolio through collaborations with specialized defense startups. The prime contractor has utilized the ILA Berlin event to solidify multiple integration partnerships.
On June 10, 2026, Airbus Helicopters signed a cooperation agreement with German drone manufacturer Quantum Systems. That partnership will explore integrating C-UAS interceptors onto military helicopters, beginning with the multi-role H145M platform.
Earlier in the year, on March 30, 2026, Airbus demonstrated its own Bird of Prey interceptor drone. During that test, the autonomous system engaged a target using a Mark I missile developed by Estonian startup Frankenburg Technologies.
Alta Ares scales production
Founded in 2024, Alta Ares specializes in counter-drone systems and on-board artificial intelligence. The company saw its systems first operationally deployed in Ukraine during 2024 and has since expanded to meet military demand for defenses against autonomous drones.
On June 9, 2026, two days prior to the Airbus announcement, Alta Ares secured €50 million in a Series A funding round led by Air Street Capital. The company stated the funding will be used to scale the production of its X-Lock and Black Bird interceptor platforms.
AirPro News analysis
The rapid succession of Airbus partnerships at ILA Berlin highlights a strategic shift for the aerospace manufacturer. Rather than developing bespoke interceptor solutions entirely in-house, Airbus is positioning its Fortion software suite as the central nervous system for European air defense while plugging in specialized hardware from agile startups like Alta Ares, Quantum Systems, and Frankenburg Technologies. We view this modular approach as a direct response to the rapid iteration of drone warfare observed in recent conflicts, where traditional surface-to-air missiles are economically unviable against mass-deployed, low-cost autonomous threats. By securing integration rights with well-funded startups, Airbus ensures its command-and-control architecture remains indispensable to European defense ministries.
Sources: Airbus
Photo Credit: Airbus
Defense & Military
IAI and Berlin Sign MoU for Aerospace Innovation Center
Israel Aerospace Industries and the State of Berlin signed an MoU to establish an aerospace and defense innovation center in Berlin.

Israel Aerospace Industries (IAI) and the State of Berlin signed a strategic Memorandum of Understanding (MoU) on June 11, 2026, to establish a new aerospace and defense innovation center in the German capital.
Finalized during the ILA Berlin Air Show, the agreement aims to support startups in the aerospace, defense, security, and dual-use sectors through structured accelerator programs. According to a press release issued by IAI, the initiative is designed to expand the manufacturer’s industrial footprint in Germany, build local production capacity, and create highly skilled jobs in the Berlin region.
Structuring the innovation ecosystem
The new Berlin facility will be modeled after three existing international accelerator programs operated by IAI: Catalyst in the United States, NeuSPHERE in India, and ASTRA in Israel. By integrating into Berlin’s local technology sector, the center will connect emerging technologies with operational defense requirements and global market opportunities.
“This initiative reflects our long-term relationship and commitment to Germany and our vision of building deep, strategic partnerships that combine innovation, industry and operational expertise,” said Boaz Levy, Chairman of the Board at IAI.
Berlin Governing Mayor Kai Wegner noted that the agreement brings first-class aerospace and defense knowledge to the local ecosystem. Wegner stated that establishing such a center in the capital is critical in light of current global crises, supporting aerospace investment and encouraging ties between established companies and startups.
Deepening German-Israeli defense procurement
The MoU follows a period of significant defense procurement activity between IAI and the German government. IAI serves as the prime contractor for the Arrow-3 missile defense system, which was delivered to Germany in late 2025. The system recently became operational as a cornerstone of the country’s broader missile defense architecture.
Beyond the Arrow-3 system, IAI supplies Heron TP drones to the German Air Force and the BlueWhale autonomous submarine to the German Navy. Both the drone and submarine programs were developed in collaboration with German industrial partners.
AirPro News analysis
We view this innovation center as a logical progression of IAI’s strategy to embed itself within the domestic defense industrial bases of its major export customers. By establishing a physical research and development presence in Berlin, IAI transitions from a foreign supplier to a local stakeholder. For the State of Berlin, securing a major international defense contractor’s accelerator program aligns with regional efforts to pivot the local technology sector toward defense and dual-use applications, a trend accelerating across Europe following recent shifts in continental security postures.
Sources: Israel Aerospace Industries
Photo Credit: Israel Aerospace Industries
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