While everyone argues about whether AI is in a bubble, RTX Corporation is quietly stacking the kind of numbers that make value investors salivate. The defense and aerospace giant just reported 2025 revenue of $88.6 billion — up from $80.7 billion the year before — with an order backlog that swelled to $268 billion. In RTX’s own words, they’re seeing “unprecedented demand.” Adjusted earnings per share came in at $6.29, beating the high end of their own guidance, and the stock popped nearly 4% on the results.
The $268 billion backlog is the number that matters most. That’s more than three years of revenue already locked in, giving RTX the kind of visibility most companies would kill for. And the backlog isn’t just sitting there — it’s growing. A year ago it was $218 billion. The company added $50 billion in new orders while simultaneously ramping production to fill existing ones. That’s the flywheel: as they scale up to work through the backlog, unit costs drop, margins expand, and earnings grow faster than revenue.
RTX operates three divisions of roughly equal size, and that’s a feature, not a bug. Collins Aerospace handles cockpit systems, cabin interiors, and flight management tech. Pratt & Whitney makes engines for commercial aircraft and fighter jets. Raytheon builds the missiles, radar systems, and Patriot anti-missile batteries that have become essential to global defense. All three divisions contribute to the F-35 stealth fighter — Pratt makes the engine, Collins provides the helmet display and power management, and Raytheon supplies the missiles and precision bombs.
The growth drivers are stacking in RTX’s favor from every angle. Global defense budgets are expanding rapidly — European NATO members are scrambling to rearm, Middle East tensions keep missile orders flowing, and the Pacific theater is driving next-gen weapons development. Meanwhile, the commercial aerospace aftermarket is booming post-Covid, with airlines spending heavily on spare parts, maintenance, and retrofit work. That aftermarket business carries higher margins and has been growing at double-digit rates. Add heavy R&D investment in next-generation propulsion systems and AI-powered data analytics, and you’ve got a company building tomorrow’s competitive moats today.
Here’s what’s surprising: despite all of this, RTX doesn’t trade like a high-flier. The stock has appreciated nicely but doesn’t carry the frothy multiples you see in tech. Free cash flow hit $7.9 billion in 2025, the dividend is well-covered, and the company has been buying back shares. In a world full of uncertainty — tariffs, AI bubbles, geopolitical flashpoints — RTX is the rare company that actually benefits from instability. When the world gets scarier, defense budgets get bigger. And RTX has already locked in $268 billion worth of that fear.