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
NSPA Issues RFP for NATO Next Generation Rotorcraft Program
NSPA formally launches the NGRC Concept Design RFP, with four manufacturers competing for a six-nation helicopter replacement program.

The NATO Support and Procurement Agency (NSPA) has formally issued a Request for Proposal for the Concept Design phase of the Next Generation Rotorcraft Capability program, advancing a six-nation effort to replace aging medium multi-role Helicopters fleets.
Announced in a press release on August 10, 2026, the procurement targets a service entry between 2035 and 2040. The NSPA is managing the process on behalf of Canada, France, Germany, Italy, the Netherlands, and the United Kingdom. Four pre-qualified Manufacturers will compete in this phase: Airbus Helicopters, Leonardo Helicopters, The Boeing Company, and Sikorsky.
Advancing the concept design phase
The Request for Proposal (RFP) officially opened on July 31, 2026, and requires the four bidders to submit their concept design proposals by August 31, 2027, at 12:00 Paris Time. Under the procurement guidelines, each manufacturer can propose a maximum of two concept design solutions.
Maxime Martinez, Principal Procurement Officer for the Next Generation Rotorcraft Capability (NGRC) Programme at NSPA, confirmed the launch of the new phase.
I am pleased to announce that the NATO Support and Procurement Agency (NSPA) has launched the next phase of the Next Generation Rotorcraft Capability (NGRC) Programme: a formal Request for Proposals (RFP) to qualified bidders linked to the competition for the Concept Design phase of NGRC.
The NSPA is utilizing a procurement mechanism called Acquisition by Qualified Options. This framework allows the participating nations to evaluate digital trials within an in-house modeling and simulation environment before committing to physical prototypes. The agency plans to complete the bid evaluation process by the end of 2027, at which point it will deliver an evaluation summary report to the participating nations.
Industry positioning and proposals
The four pre-qualified bidders, selected following a Pre-Qualification Assessment that closed in October 2025, have already begun positioning their offerings for the multi-national replacement program.
In February 2026, Airbus Helicopters revealed two distinct concepts for the NGRC study. The European manufacturer is developing both a high-performance conventional helicopter and a high-speed compound rotorcraft that leverages technology from its Racer demonstrator program. Sikorsky, a Lockheed Martin company, announced in July 2026 that it would establish helicopter production facilities in Europe if the partner nations select its proposal.
The NSPA is encouraging broader industry participation through the primary bidders rather than direct submissions. Martinez stated that potential suppliers, technology providers, and industrial partners should engage directly with Airbus Helicopters, The Boeing Company, Leonardo Helicopters, or Sikorsky to contribute to the program.
AirPro News analysis
We view the NSPA decision to utilize the Acquisition by Qualified Options mechanism as a critical step in mitigating the technical and financial risks historically associated with clean-sheet rotorcraft development. By mandating digital trials in a simulated environment before advancing to physical prototypes, the participating nations can rigorously evaluate the aerodynamic and operational viability of complex designs, such as the compound concept proposed by Airbus Helicopters.
Sikorsky’s preemptive commitment to European production highlights the intense political and economic stakes of the NGRC program. With five European nations and Canada funding the development, North American bidders like Sikorsky and The Boeing Company will likely need to guarantee substantial industrial offsets and local manufacturing to remain competitive against indigenous European prime contractors like Airbus and Leonardo. The requirement for up to two concepts per bidder also provides the NSPA with a broad spectrum of conventional and advanced high-speed rotorcraft options to evaluate against the harmonized operational baseline.
Photo Credit: Airbus
Defense & Military
HAL and Safran Sign Aravalli Engine Co-Development Contract
HAL and Safran finalize the Aravalli engine contract via SAFHAL JV to power India’s IMRH and DBMRH helicopters by 2032-2033.

Hindustan Aeronautics Limited (HAL) and Safran Helicopter Engines have finalized a contract to co-develop the new-generation Aravalli engine, marking a definitive shift in Indian aerospace manufacturing from licensed production to indigenous propulsion design.
The agreement, signed on August 26, 2026, in Bengaluru, India, formalizes the design, development, manufacture, and lifecycle support of the engine through SAFHAL Helicopter Engines Pvt. Ltd. SAFHAL is a 50:50 joint venture between the two aerospace manufacturers. The Aravalli engine is slated to power India’s future 13-ton Indian Multi-Role Helicopter (IMRH) and its naval variant, the Deck-Based Multi-Role Helicopter (DBMRH).
Technical specifications and manufacturing
The Aravalli engine will operate in the 3,500 to 4,000 shaft horsepower (shp) class. Under the terms of the agreement, HAL will gain access to core engine technologies, including the high-pressure compressor, power turbine, and accessory gearbox. This technology transfer is designed to build domestic intellectual property and expertise in high-power engine design.
Manufacturing operations for the Aravalli program will be based at HAL’s facility in Tumakuru, Karnataka. Safran Helicopter Engines Chief Executive Officer Cédric Goubet noted the precedent set by the agreement in a press release issued by HAL.
“This is the first time Safran HE has taken up such a class of engine as co-development. The Aravalli engine programme represents a new chapter in the strategic relationship between France and India, combining the expertise of our teams to develop propulsion systems for future Indian rotorcraft.”
Development timeline and strategic shift
The final contract follows a multi-year negotiation and planning phase. HAL and Safran initially signed a Memorandum of Understanding for the project in July 2022, followed by detailed workshare discussions at Aero India in February 2023. The companies executed an airframer contract on August 30, 2024, to commence joint design work.
The design and development phase is targeted for completion between 2032 and 2033. Once operational, the IMRH platform is intended to replace the Indian Air Force’s aging fleet of Mil Mi-17 Helicopters. HAL Chairman and Managing Director Ravi K emphasized the domestic industrial impact of the program.
“The signing of this contract marks a significant step forward in India’s pursuit of self-reliance in aero-engine technologies. Through this collaborative programme with SAFHAL and Safran Helicopter Engines, we are creating a strong foundation for powering next-generation Indian helicopter platforms.”
AirPro News analysis
The Aravalli engine contract represents a critical maturation point for India’s defense aviation sector. Historically, Indian aerospace manufacturing has relied heavily on licensed production of foreign designs, which limits domestic engineering capability and intellectual property ownership. By securing a 50:50 co-development structure that includes core engine components like the high-pressure compressor and power turbine, we view this agreement as a foundational step toward true Propulsion independence for the Indian military. If the 2032 to 2033 development timeline holds, HAL will be positioned not just as an assembler, but as a primary original equipment Manufacturers (OEMs) for high-power rotorcraft engines.
Sources: Hindustan Aeronautics Limited
Photo Credit: Hindustan Aeronautics Limited
Defense & Military
Raytheon Wins $603M Contract for B-52H Radar Modernization
Raytheon secures $603M USAF contract to produce the AN/APQ-188 AESA radar for the B-52H fleet under the B-52 Radar Modernization Program.

This is a developing story. Information may change as official details are released.
Raytheon has secured a $603,000,000 sole-source contract from the U.S. Air Force (USAF) to produce and sustain the new AN/APQ-188 radar for the Boeing B-52H Stratofortress fleet, advancing a critical modernization effort despite the recent loss of the program’s primary test aircraft.
The U.S. Department of Defense announced the indefinite-delivery/indefinite-quantity (IDIQ) contract on August 25, 2026, following the official award on August 21, 2026. The agreement establishes the ceiling value for the production phase of the B-52 Radar Modernization Program (RMP). The Air Force Life Cycle Management Center (AFLCMC) at Wright-Patterson Air Force Base (FFO) in Ohio is the contracting activity, obligating $46,008,396 in fiscal 2026 aircraft procurement funds with the initial delivery order.
Upgrading the B-52 radar capabilities
The RMP replaces the bomber’s 1960s-era mechanically scanned AN/APQ-166 radar with the Raytheon AN/APQ-188, an Active Electronically Scanned Array (AESA) system. The new Radar-Systems is a derivative of the AN/APG-79 used on the F/A-18 and forms a cornerstone of the broader B-52J upgrade package designed to keep the fleet operational into the 2050s.
According to the Department of Defense, Raytheon will perform the contract work across multiple facilities, including Forrest, Mississippi; El Segundo, California; McKinney, Texas; and Warner Robins, Georgia. The contract is expected to be completed by August 20, 2031.
Program continuity following testbed loss
The production contract award follows a major setback for the RMP during the flight testing phase. On June 15, 2026, the sole B-52 radar testbed aircraft crashed shortly after takeoff at Edwards Air Force Base (EDW) in California. The USAF confirmed the accident resulted in the deaths of all eight crew members on board, which included military personnel, government civilians, and contractors. The official cause of the accident remains under Investigation by the USAF.
Despite the loss of the initial testbed, military officials have confirmed the modernization program will proceed. According to reporting by DefenseScoop, Col. Spencer Turner, the B-52 System Program Manager, stated that the original acquisition strategy always included two test aircraft.
Turner confirmed that work on the second aircraft is actively underway at The Boeing Company facility in San Antonio, Texas. He noted that the service expects to “complete the full modification and put the full radar suite onto the aircraft this year and proceed with testing.” Following the June 15, 2026 accident, the active USAF fleet stands at 75 B-52H bombers.
AirPro News analysis
The decision to award a $603,000,000 production contract just two months after the loss of the primary testbed underscores the firm commitment of the USAF to the B-52J upgrade timeline. Because the AN/APQ-188 is heavily derived from an existing, mature AESA system, the service likely views the radar technology itself as low-risk, separating the radar’s production readiness from the ongoing investigation into the June 15 accident. We note that delaying the production contract until a second testbed completes flight trials would have likely pushed the B-52J initial operational capability timeline to the right, a delay the USAF appears unwilling to accept as it plans to operate the airframe for another three decades.
Sources: U.S. Department of Defense
Photo Credit: US Air Force
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