The U.S. aerospace and defense giant behind Collins, Pratt & Whitney, and Raytheon
RTX
RTX is the largest U.S. aerospace and defense company, operating through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. FY2025 total net sales were $88.603 billion, up 9.7% from $80.738 billion, split as Collins $28.284B, Pratt & Whitney $28.066B, and Raytheon $26.713B. Sales to the U.S. government were $33.279 billion, or 38% of total net sales (excluding foreign military sales), making the U.S. government its single largest customer, while international sales were $41.312 billion, or 47%. Total backlog surged to $268 billion (commercial $161B, defense $107B) from $218 billion. In space, Raytheon supplies integrated space solutions including missile-warning and tracking satellites, sensors, and satellite control, and its smallsat subsidiary Blue Canyon Technologies builds Saturn-class spacecraft buses. However, in June 2026 RTX agreed to divest Blue Canyon to Canada's MDA Space for $620 million, with closing expected by the end of 2026.
RTX Updated Jul 12, 2026 3 AI consumers· 2 recurring
Per the valuechain.wiki graph, RTX is directly linked to 11 companies (6 supply, 4 revenue, 1 investment relationships) and reaches 21 companies within two hops; the links are backed by 19 dated sources, 3 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · FY2025 total net sales $88.603B (+9.7% YoY)
- Customer concentration · U.S. government 38% (excl. FMS), international 47%, backlog $268B
- Segments · Collins Aerospace (avionics and airframe systems) · Pratt & Whitney (commercial GTF and military F135 engines) · Raytheon (air/missile defense, missiles, sensors, space)
Revenue from
- Foreign governments (FMS) High confidence· Revenue share 47% · FY2025 · $41.312B international sales / $88.603B total net sales
Foreign governments are a major revenue source: FY2025 international sales were $41.312 billion, or 47% of total net sales, mostly foreign military sales (FMS) and direct commercial sales of air-defense systems like Patriot, NASAMS, and SM-3. RTX is a clear beneficiary of rising European defense spending, winning a $1.7 billion contract to supply Spain with four Patriot fire units in December 2025, with additional orders from Germany, the Netherlands, and Romania.Confirms EN RTX Published Dec 23, 2025: RTX's Raytheon awarded $1.7 billion contract to deliver four Patriot fire units to Spain - U.S. Government (DoD) High confidence· Revenue share 38% · FY2025 · $33.279B U.S. government sales / $88.603B total net sales (excl. FMS)
The U.S. government is RTX's single largest customer. FY2025 sales to the U.S. government were $33.279 billion, or 38% of total net sales (excluding FMS), and the DoD accounts for a substantial majority of defense sales. Key programs include Patriot, LTAMDS, SM-3, Tomahawk, AMRAAM, and the F135 engine. - Airbus High confidence· Revenue share 29% · FY2025 · Airbus sales / Pratt & Whitney segment sales (prior to discounts and incentives)
Airbus is Pratt & Whitney's largest commercial customer, representing 29% of P&W segment sales in 2025 (prior to discounts and incentives). P&W supplies the PW1000G GTF engine for the A320neo family and A220, and Collins also supplies avionics and airframe systems to Airbus.Confirms EN Aviation International News Published Feb 27, 2025: FAA Approves Pratt & Whitney's GTF Advantage Engine For A320neo Airliners - Boeing High confidence· Revenue share 16% · FY2025 · Boeing + Airbus combined sales / Collins segment sales (prior to discounts and incentives)
Boeing, together with Airbus, is Collins Aerospace's largest commercial customer. Their combined sales were 16% of total Collins segment sales in 2025 (prior to discounts and incentives). Collins supplies avionics and airframe systems for platforms such as the 787 and 737. - Leonardo S.p.A. Medium confidence
Leonardo's flagship AW139 helicopter is powered by two Pratt & Whitney Canada (an RTX unit) PT6C-67C engines.Confirms EN Leonardo Published Dec 7, 2023: Leonardo and Pratt & Whitney Canada achieve first 100% SAF flight with PT6C-67C-powered AW139 - US government space (SDA · Space Force · NASA) Medium confidence
Raytheon supplies the U.S. government with integrated space solutions spanning sensors, mission orchestration, satellite control, and software. Its smallsat subsidiary Blue Canyon has provided Saturn-class satellite buses for SDA missile-tracking constellations and, in 2025, delivered a satellite for NASA's ARCSTONE lunar-calibration mission. Much of this space revenue falls within the 38% U.S. government share.Mentions EN RTX Published Jun 25, 2025: RTX provides Blue Canyon satellite to shape future space missions - 텍스트론 (P&WC 엔진) Medium confidence
Pratt & Whitney Canada sells turboprop engines for Cessna aircraft (SkyCourier, Caravan).Confirms EN GlobeNewswire (P&WC) Published Nov 28, 2017: P&WC to power Textron Aviation's SkyCourier
Pays to
- Raw materials · single-source basket (undisclosed) High confidence
RTX depends on a global supply chain and procures scarce raw materials including cobalt, tantalum, chromium, rhenium, nickel, and titanium. Some components rely on single-source and foreign suppliers, and some materials were historically sourced from sanctioned areas such as Russia, creating supply risk. Individual suppliers and amounts are undisclosed. - Hanwha Aerospace High confidence
Hanwha Aerospace has been a risk-and-revenue-sharing partner supplying engine components for Pratt & Whitney's GTF (PW1000G) engines since signing an RSP (Risk and Revenue Sharing Program) contract in 2015. Under an RSP, the partner shares both revenue and risk in proportion to its stake, making Hanwha a structural supplier and collaborator on the GTF commercial engine program.Confirms KO Dealsite Published Apr 30, 2025: Hanwha Aerospace expects GTF engine business to turn profitable by 2030Confirms EN Hanwha Published Mar 24, 2021: Hanwha Aerospace USA Earns 'Supplier Gold' Certification from Pratt & WhitneyConfirms EN Pratt & Whitney Published Jun 17, 2019: Pratt & Whitney and Hanwha Aerospace Sign GTF Engine Aftermarket Agreements - 머큐리시스템즈 High confidence
Procures radar signal-processing subsystems (incl. up to $96M LTAMDS subcontract for nine radars); RTX accounts for 13% of Mercury's FY2025 revenue.Confirms EN GlobeNewswire Published Feb 1, 2024: Mercury awarded subcontract for the US Army's LTAMDS radar - Howmet Aerospace High confidence
Engine castings/forgings supplier; RTX is ~11% of Howmet's 2025 third-party sales.Confirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K) - L3Harris Medium confidence· supply contract value $1B · 2020 (5-year strategic agreement) · Five-year $1 billion agreement for Standard Missile propulsion systems (then Aerojet Rocketdyne, now owned by L3Harris)
Raytheon depends heavily on L3Harris's Aerojet Rocketdyne subsidiary for solid rocket motors (SRMs) used in its missiles. In 2020 it signed a five-year, $1 billion agreement to buy propulsion systems for Standard Missile products, and L3Harris acquired Aerojet in 2023. As of 2024 the relationship remained so critical that Raytheon was seeking a third domestic SRM source beyond Aerojet and Northrop Grumman.Confirms EN Breaking Defense Published Apr 7, 2025: Raytheon awards Northrop, Nammo solid rocket motor development contractsConfirms EN Defense One Published Jul 23, 2024: Raytheon hunting for another US supplier of solid rocket motorsConfirms EN Military & Aerospace Electronics Published Mar 26, 2020: Raytheon, Aerojet Rocketdyne reach $1 billion propulsion system deal - Northrop Grumman Medium confidence
Raytheon's other solid rocket motor supplier is Northrop Grumman. The U.S. SRM market is a duopoly of L3Harris (Aerojet) and Northrop Grumman, and Raytheon relies on both to meet surging demand for missiles such as AMRAAM and Sidewinder.Confirms EN Breaking Defense Published Apr 7, 2025: Raytheon awards Northrop, Nammo solid rocket motor development contractsConfirms EN Defense One Published Jul 23, 2024: Raytheon hunting for another US supplier of solid rocket motors - Avio Medium confidence
RTX's Raytheon contracted Avio for defense solid rocket motor development (Jul 2024) and a U.S. facility MoU (Nov 2025) to diversify its SRM supply base.
Investors
- MDA Space High confidence· divestiture value $620M · 2026 (announced, closing expected end-2026) · Blue Canyon Technologies sale price of $620 million (all-cash)
On June 19, 2026, RTX signed a definitive agreement to divest Blue Canyon Technologies, its Raytheon smallsat manufacturer, to Canada's MDA Space for $620 million in an all-cash transaction. The deal is expected to close by the end of 2026 subject to regulatory approvals, transferring part of RTX's space portfolio to MDA. Blue Canyon is a Colorado-based space company that has launched more than 85 spacecraft.
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Viasat | lead2 | +36.4 | -28.9 | -11.7 | -69.6 | +304.9 | +113.5 |
| Voyager Technologies | lead2 | · | · | · | · | · | +19.2 |
| SES S.A. | lead2 | +2.8 | +10.6 | -13 | -36 | +141.5 | +15.8 |
| Eutelsat Group | lead2 | +17.8 | -30.7 | -51.8 | -48.9 | +32.1 | +3.2 |
| Textron | lead1 | +59.9 | -8.2 | +13.7 | -4.8 | +14.1 | +4.3 |
| Airbus | lead1 | +34.8 | +3.9 | +30.5 | +15 | +18.3 | +3.9 |
| Boeing | lead1 | -6 | -5.4 | +36.8 | -32.1 | +22.7 | +2.4 |
| Leonardo S.p.A. | lead1 | +11.3 | +50.3 | +73.6 | +89.1 | +88.1 | -6.8 |
| RTX | node | +23.3 | +20 | -14.4 | +40.8 | +61.4 | +7.6 |
| MDA Space | benef1 | · | -32.6 | +80 | +156.3 | -9.8 | +80.8 |
| Mercury Systems | benef1 | -37.5 | -18.7 | -18.3 | +14.8 | +73.8 | +47.9 |
| Howmet Aerospace | benef1 | +11.7 | +24.2 | +37.8 | +102.7 | +88 | +32.2 |
| L3Harris | benef1 | +15 | -0.5 | +3.7 | +1.9 | +42.3 | -0.2 |
| Avio | benef1 | -9.9 | -4.7 | -17.1 | +98.4 | +117 | -10.8 |
| Hanwha Aerospace | benef1 | +19.3 | +70.4 | +74.3 | +163.6 | +227.6 | -25.6 |
| Intel | benef2 | +6.1 | -46.6 | +94.6 | -59.6 | +84 | +197.7 |
| Voyager Technologies | benef2 | · | · | · | · | · | +19.2 |
| Rocket Lab | benef2 | +21.5 | -69.3 | +46.7 | +360.6 | +173.9 | +16.2 |
| NVIDIA | benef2 | +125.5 | -50.3 | +239 | +171.2 | +38.9 | +13.3 |
| Firefly Aerospace | benef2 | · | · | · | · | · | +7.7 |
| Leonardo S.p.A. | benef2 | +11.3 | +50.3 | +73.6 | +89.1 | +88.1 | -6.8 |
| Hanwha Ocean | benef2 | -24.9 | +25.6 | +9.6 | +160.6 | +142.1 | -41.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
The largest U.S. aerospace-and-defense conglomerate behind Collins, Pratt & Whitney and Raytheon, with much of revenue tied to the U.S. (38%) and foreign (47%) governments, so demand tracks defense-budget and aviation cycles. The thesis is two-sided — commercial aero (Collins, P&W GTF) is levered to Airbus/Boeing production recovery, while defense (Raytheon) is levered to rising European defense spend and missile-stock replenishment. A $268B backlog effectively pre-commits several years of revenue, but the bottleneck is supply-side capacity: solid rocket motors (L3Harris/Northrop duopoly) and engine castings (Howmet). In graph terms, higher defense budgets ripple from RTX orders to suppliers like Howmet and Mercury, while the Blue Canyon divestiture signals a trimming of the space portfolio.
Analysis generated from returns as of 2026-07-10Analyst ratings
Consensus: Buy 3 · Hold 1 · Sell 0 · Avg. target $225 · Price $195.93 (07-10) · Upside +15%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| RBC Capital | Outperform | $230 | Jan 28, 2026 | Report ↗ |
| TD Cowen | Buy | $225 | Jan 28, 2026 | Report ↗ |
| UBS | Neutral | $208 | Jan 28, 2026 | Report ↗ |
| Morgan Stanley | Overweight | $235 | Jan 28, 2026 | Report ↗ |
RBC raised its target to $230 from $220 and kept Outperform, noting commercial sales drove quarterly strength (up ~17%) with defense momentum and the GTF fleet plan tracking expectations.
Analyses covering this node
- When budgets move, primes move: the European-Korean defense re-rating Jul 5, 2026
- The launch-tier paradox: even rocket companies are SpaceX customers Jul 4, 2026
- The prime tier runs on a budget clock: where the space re-rating stops Jul 4, 2026