While the rest of the market obsesses over AI multiples and meme stock volatility, RTX Corporation is quietly building one of the most predictable growth stories on Wall Street. The company just reported 2025 results that should make every investor who’s nervous about the macro picture take a closer look: $88.6 billion in sales, adjusted earnings per share of $6.29, and an order backlog that swelled to $268 billion. That’s not a typo. Two hundred and sixty-eight billion dollars in committed future revenue.
To put that in perspective, RTX’s backlog grew by $50 billion in a single year — from $218 billion at the end of 2024. The company’s own description of demand was telling: “unprecedented.” When a company the size of RTX uses that word, pay attention. Sales grew 11% organically in 2024 and accelerated in 2025, with the January earnings report beating guidance across the board. The stock popped nearly 4% on the results.
What makes RTX different from most defense plays is its diversification. The company operates three divisions of roughly comparable size. Collins Aerospace handles cockpit and cabin systems, avionics, and airport infrastructure. Pratt & Whitney is the world’s second-largest aero-engine manufacturer, powering everything from regional jets to military fighters. And Raytheon — the namesake division — builds the missiles, Patriot anti-missile systems, radars, and sensors that governments worldwide are scrambling to purchase.
All three divisions contribute to the F-35 stealth fighter, the most advanced combat aircraft on the planet. Pratt & Whitney provides the engine. Collins supplies the helmet-mounted display and thermal management system. Raytheon delivers the missiles and precision-guided munitions. When a single weapons platform ties together all three of your business units, you’ve built something competitors can’t easily replicate.
RTX has four structural growth drivers working simultaneously. First, the massive backlog provides years of revenue visibility — and as production scales up to work through it, costs come down and margins expand. Second, the post-Covid commercial aerospace aftermarket recovery is driving double-digit growth in high-margin spare parts and maintenance revenue. Third, global defense budgets are expanding sharply — NATO allies are finally spending toward 2% of GDP, and geopolitical tensions from Ukraine to Taiwan to the Middle East are accelerating procurement timelines. Fourth, RTX’s heavy R&D investment is positioning it in next-generation propulsion, advanced materials, and AI-enhanced defense systems.
The financial profile backs up the narrative. Free cash flow hit $7.9 billion in 2025. The company generated $10.85 billion in operating profit. And with earnings growing faster than sales thanks to operating leverage, RTX is compounding value in a way that most mega-cap industrials simply can’t match right now.
This isn’t a sexy stock. It won’t double overnight. But in a world where geopolitical risk is rising, defense budgets are expanding, and commercial aviation is still recovering, RTX is the kind of company that lets you sleep at night while your portfolio does the work. Sometimes the best trade is the boring one.