RTX Corporation stock leans on USD 340 billion backlog for 2027

RTX Corporation's management used the Baird 2026 Global Industrial Conference on Tuesday, November 10, to reaffirm its full-year targets and outline a constructive direction for 2027. Investing.com, citing the conference transcript, reported that Chief Financial Officer Neil Mitchill described execution against a USD 340 billion backlog as the company's immediate priority.

RTX kept its 2026 sales outlook at USD 97.0 billion to USD 97.5 billion, adjusted earnings per share at USD 7.65 to USD 7.75 and free cash flow at USD 9.0 billion to USD 9.2 billion. Organic sales growth is expected at 10% to 11%. Mitchill said the company remained on track with 51 days left in the fiscal year and that demand across its aerospace and defense businesses remained strong.

Defense backlog gains visibility

Raytheon's defense business is entering 2027 with substantial order visibility. Management said four munitions framework agreements had moved into roughly USD 70 billion of undefinitized contracts covering Tomahawk, AMRAAM, SM-6 and SM-3 programs. The contracts are binding and are expected to provide visibility for about 10 years, while production is expected to build toward the latter part of the decade.

International demand is another important growth lever. Raytheon booked USD 9 billion of international awards in the third quarter, while international bookings through September were 2.5 times higher than in the same period of 2025. Excluding the munitions framework agreements, 52% of Raytheon's backlog is international, according to the conference discussion.

Commercial demand remains resilient

RTX also pointed to continued strength in commercial aerospace. Commercial original-equipment sales rose 10% year over year in the third quarter, while commercial aftermarket sales increased 16% organically over the first nine months. Geared Turbofan shop visits are sold out through 2027, and the company expects its V2500 engine program to generate about 800 shop visits in both 2026 and 2027.

Pratt & Whitney's maintenance output for the PW1100 Geared Turbofan rose more than 35% in the third quarter and about 30% year to date. Management expects aircraft-on-ground levels to improve in the fourth quarter and into 2027, although materials remain a constraint in parts of the business.

2027 growth comes with headwinds

RTX did not issue formal 2027 guidance, but management expects sales and operating profit to rise across all three segments, with margin expansion and higher free cash flow. Collins Aerospace is targeting a long-term operating margin of 19% to 20%, while Pratt & Whitney is working toward low- to mid-teens margins and Raytheon sees potential to move above its current mid-12% range.

The comparison will include several one-time effects. A USD 0.25 per-share IEEPA benefit will not repeat in 2027, while a pension-related headwind is expected to reduce adjusted earnings by USD 0.30 to USD 0.35 per share. A roughly USD 500 million reduction in powder-metal payments should provide an offsetting cash-flow benefit. Formal 2027 guidance is expected with RTX's January earnings release.

RTX stock traded at 182.63 euros on Lang & Schwarz at 14:07 CET on Thursday, November 12. The quote places investor attention on whether the company's backlog can translate into sustained cash generation and margin gains, rather than on a single contract award.

Broader market conditions remain relevant for aerospace and defense shares; investors can follow the S&P 500 market environment.

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