RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

RTX Corporation

Key Points
President Trump promised in May to build a Golden Dome missile defense shield over America.
In December, 2,100 contractors were named to work on a contract worth $151 billion.
The news struck like a thunderbolt: 35 years after Ronald Reagan's "Strategic Defense Initiative" (a.k.a. "Star Wars") missile defense system quietly expired with the end of the Cold War, President Trump would revive the concept as a Golden Dome over America. Once complete, said the president, "the Golden Dome will be capable of intercepting missiles even if they are launched from other sides of the world."
Some pundits loved the idea. Others hated it. No one knew for certain much Golden Dome would cost.
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But now we know.
From $25 billion to $151 billion
When the president first announced Golden Dome in May 2025, we did get an idea of the down payment -- $25 billion would cover the cost of designing "an architecture for this state-of-the-art system." Actually building the thing, though, would cost tens of billions more, with estimates ranging as high as $175 billion.
How long will it take to go from $25 billion to $175 billion? This remains to be seen. But I can tell you one thing: It took barely six months to go from $25 billion to $151 billion! We know this because, on Dec. 2, the U.S. Department of Defense announced a $151 billion contract to something it called the "Scalable Homeland Innovative Enterprise Layered Defense (SHIELD)."
Agents of SHIELD
What is SHIELD, you ask? According to defense policy consulting firm Summit Strategy, SHIELD is "a major contract vehicle aimed at revolutionizing America's missile defense capabilities through next-generation technologies and innovative approaches." Not a company at all, SHIELD is just a receptacle for the tens of billions of dollars of defense contracts the Trump administration plans to pour into the Golden Dome project.
According to the U.S. Department of War website (Department of War is the working title of the Department of Defense under the current administration), SHIELD will be administered by the U.S. Missile Defense Agency, which is logical. And the $151 billion in funds on offer will take the form of a "multiple award, indefinite-delivery/indefinite-quantity contract."
What this usually means is that the number of specific subcontracts awarded, and their value -- and even their subject matter -- will be announced later on, and be funded under the initial umbrella contract that is SHIELD.
There are 2,100 separate companies that will share in this government largesse, with 1,014 awardees selected for the Dec. 2 contract, and another 1,086 picked two weeks later on Dec. 18. According to the DOW website, the initial $151 billion covers only "the first phase of staggered awards" to its defense contractors.
This appears to imply that additional funds will be awarded as Golden Dome takes shape, although it's not clear if such funds will be added during the course of the initial contract, which runs through 2035, or only afterwards.
Who won SHIELD contracts?
Curiously, the Pentagon did not specify which specific companies won awards in either of its contract announcements. Other sources, however, such as government contracts website govconwire.com, confirm that satellite companies, including Viasat (NASDAQ: VSAT) and Maxar Intelligence, won awards (apparently before Maxar changed its name to Vantor), as did Maxar's other half, the business now known as Lanteris Space Systems -- soon to become part of Intuitive Machines (NASDAQ: LUNR).
Large defense contractors and more general aerospace specialists also feature prominently among the awardees: Boeing (NYSE: BA), General Dynamics (NYSE: GD), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and RTX (NYSE: RTX), for example.
Of particular interest, SpaceX does not appear to have yet been awarded a SHIELD contract (or at least its participation has not yet been made public).
What happens next?
With SHIELD expected to spend the next 10 years funding and building Golden Dome, it's still early innings in this game, and the details of the program remain in flux. Indeed, DOW says it's still "conducting market research and drafting Fair Opportunity Proposal Requests" for its awardees, and it seems no specific task orders have yet been issued.
To be crystal clear, DOW notes that "no funds will be obligated on the base IDIQ award; funds will be obligated at the order level." This means that, even for the companies that we know have won awards, we don't know how much money they've won, or will win, or what work they must do to earn it. All of that remains to be determined.
What we do know is that a veritable torrent of money is en route. And we've got a list of at least some of the stocks that might benefit from it. As for the details... stay tuned.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Golden Dome Project Begins With a Massive $151 Billion Contract

The Pentagon has officially cleared a massive $8.6 billion contract for Boeing BA to provide the Israeli Air Force with advanced F-15IA fighter jets. While this multi-billion-dollar deal reinforces Boeing’s status as a critical defense titan, savvy investors might look past the individual stock.
In particular, investors who seek to capitalize on such high-stakes military expansions without being exposed to the volatility of Boeing-specific headwinds may consider defense exchange-traded funds (ETFs), which hold this jet giant alongside other prime contractors and thus offer a diversified gateway to the sector’s tailwinds.
A Detailed Snapshot of the Deal
The recently won contract by Boeing, managed through the Foreign Military Sales (FMS) program, involves the production and delivery of 25 new F-15IA aircraft, with an option for 25 more. These "Eagle II" variants are tailored for Israel, featuring long-range strike capabilities and the ability to carry up to 14 tons of munitions.
The timing is highly strategic; the contract was finalized shortly after a high-profile meeting between President Trump and Prime Minister Benjamin Netanyahu in Florida. Geopolitically, the sale underscores the U.S. commitment to Israel's air superiority amid ongoing regional tensions with Iran and its proxies. With the project slated for completion by Dec. 31, 2035, Boeing’s St. Louis facility is secured with a decade-long production runway.
Financially, this contract should bolster the Boeing Defense, Space & Security (“BDS”) segment, which engages in the research, development, production, and modification of manned and unmanned military aircraft. Notably, the BDS unit registered a solid year-over-year revenue increase of nearly 25% in the last reported quarter and is expected to continue delivering such robust performance, supported by contract wins like the $8 billion deal mentioned above.
Defense ETFs Outshine Boeing Stock
While the $8.6 billion F-15IA contract is a massive win for Boeing’s backlog, it comes amid a persistent dilemma for investors. Notably, despite reporting a 25% revenue surge, the BDS unit’s operating profit margin remained razor-thin at just 1.7% during the third quarter of 2025. This follows a brutal 2024, where the segment lost nearly $5 billion due to cost overruns on older fixed-price contracts like the KC-46 tanker and Air Force One.
Amid this backdrop, some investors might still categorize Boeing as a high-risk bet.
In contrast, Defense ETFs offer a more strategic and "profitable" alternative. These funds will allow you to capture the upside of the recent F-15 contract win through exposure to Boeing while also balancing it with industry peers like RTX Corp. RTX or Lockheed Martin LMT who currently boast much healthier margins. It’s a way to bet on the "Trillion-Dollar Shield" of global defense spending without being weighed down by Boeing-specific hurdles.
Defense ETFs for Your Watchlist
Given the discussion above, the following defense ETFs may be worth adding to your watchlist if you’re looking to benefit from the global defense sector’s steady tailwinds, along with Boeing’s latest contract win.
State Street SPDR S&P Aerospace & Defense ETF XAR
This fund, with assets under management (AUM) worth $4.72 billion, provides exposure to 40 large, mid and small cap aerospace and defense stocks. Its top four holdings include prominent defense contractors Rocket Lab RKLB (4.07%), Karman Holdings KRMN (3.69%), ATI Inc. (ATI) (3.69%) and BA (3.66%).
XAR has surged 43% over the past year. The fund charges 35 basis points (bps) as fees.
iShares U.S. Aerospace & Defense ETF ITA
This fund, with assets worth $12.83 billion, offers exposure to 41 U.S. companies that manufacture commercial and military aircraft and other defense equipment. Its top four holdings include prominent defense contractors: GE Aerospace GE (21.50%), RTX (16.27%), Boeing (8.20%) and Howmet Aerospace HWM (4.56%).
ITA has soared 47.8% over the past year. The fund charges 38 bps as fees.
Invesco Aerospace & Defense ETF PPA
This fund, with a market value worth $6.85 billion, offers exposure to 60 companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. Its top four holdings include renowned defense contractors, BA (9.00%), RTX (8.88%), GE (8.81%) and LMT (7.71%).
PPA has surged 38.6% year to date. The fund charges 58 bps as fees.
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Boeing Wins $8B Israel F-15 Deal: Defense ETFs to Watch for Gains

Huntington Ingalls Industries Inc.’s HII business unit, Newport News Shipbuilding, recently won a contract valued at nearly $97.7 million for additional long-lead materials to support the refueling and complex overhaul of the USS Harry S. Truman (CVN 75) aircraft carrier.
The work will be carried out in Newport News, VA, with completion anticipated by September 2026. The deal has been provided by the Naval Sea Systems Command in Washington, D.C.
HII’s Expertise in Aircraft Carrier Development
Aircraft carriers play a crucial role in a nation’s ability to command, control and coordinate naval operations while protecting its coastlines. As the United States continues to lead the global naval defense sector, Huntington Ingalls’ position as one of the key suppliers of U.S. aircraft carriers remains highly significant.
Huntington Ingalls’ Newport News unit has built more than 31 aircraft carriers for the U.S. Navy since 1933, including all 10 Nimitz-class aircraft carriers currently in active service and the first ship of the next-generation Gerald R. Ford-class (CVN 78) aircraft carriers.
To reinforce its leadership in U.S. naval defense, HII is currently developing the next-generation Gerald R. Ford-class aircraft carriers. With decades of experience in naval shipbuilding, Huntington Ingalls benefits from a steady stream of contracts, supporting strong revenue growth prospects.
Growth Outlook & Opportunities for Other Defense Stocks
Rising tensions between nations have led governments worldwide to enhance their naval capabilities by investing more in naval vessels, including aircraft carriers, to strengthen their maritime warfare readiness.
To this end, the Mordor Intelligence firm projects the aircraft carrier ship market to witness a CAGR of 12.75% during 2025-2030. This growth outlook is expected to favor Huntington Ingalls, the United States’ largest shipbuilder and its sole manufacturer of aircraft carriers.
Other defense players that can gain from the expanding aircraft carrier ship market are discussed below:
RTX Corporation RTX: Its Raytheon business unit provides the SPY-6 radar family, which is deployed on U.S. Navy aircraft carriers. These radars offer advanced air and missile defense capabilities across seven different classes of warships.
RTX has a long-term (three to five years) earnings growth rate of 10.21%. The Zacks Consensus Estimate for 2025 sales stands at $87.07 billion, which calls for an increase of 7.8%.
BAE Systems plc BAESY: The company designs, commissions, builds, repairs and maintains a broad spectrum of complex naval vessels, including aircraft carriers. Its Queen Elizabeth-class aircraft carriers are the largest warships ever built in the United Kingdom.
BAESY boasts a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pinned at $40.79 billion, which implies a rise of 63.3%.
Lockheed Martin Corp. LMT: The company’s AN/SLQ-32 electronic warfare systems are installed on all U.S. aircraft carriers, offering early detection, threat analysis, warning and defense against anti-ship missiles.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which calls for an increase of 4.8%.
HII Stock Price Movement
In the past six months, HII shares have climbed 38% compared with the industry’s growth of 14.1%.
Image Source: Zacks Investment Research
HII’s Zacks Rank
HII currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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HII Secures Contract to Support USS Harry S. Truman Aircraft Carrier

Investors interested in stocks from the Aerospace - Defense sector have probably already heard of Textron (TXT) and RTX (RTX). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Textron and RTX are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TXT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TXT currently has a forward P/E ratio of 14.42, while RTX has a forward P/E of 29.80. We also note that TXT has a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RTX currently has a PEG ratio of 2.92.
Another notable valuation metric for TXT is its P/B ratio of 2.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RTX has a P/B of 3.73.
These metrics, and several others, help TXT earn a Value grade of B, while RTX has been given a Value grade of D.
TXT stands above RTX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TXT is the superior value option right now.
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TXT vs. RTX: Which Stock Is the Better Value Option?

Defense stocks, particularly those with European exposure, fell sharply on Dec 15, 2025 (as reported by CNBC), after President Zelenskyy indicated that Ukraine is willing to forgo its long-term NATO membership bid in exchange for security guarantees.
This news, while sparking hopes of progress toward a peace framework, cooled near-term demand expectations for Europe’s arms makers, resulting in share price dips.
For investors, this pullback opens a classic buy-the-dip window in diversified defense exchange-traded funds (ETFs) that spread risk across U.S. and European names instead of relying on a handful of single stock bets. Diversified ETFs allow exposure to structurally rising defense budgets, NATO’s higher spending targets, and ongoing geopolitical flashpoints while cushioning idiosyncratic drawdowns in individual stocks.
Understanding the Recent Slide in European Defense Stocks
The recent sell-off in European defense giants, such as Rheinmetall RNMBY, Leonardo DRS, and Saab SAABY, is a textbook example of market sentiment reacting to geopolitical optics.
Defense stocks, particularly in Europe, are highly sensitive to any news suggesting a possible reduction in conflict intensity or military urgency. President Zelenskyy's pivot on NATO membership, framed within ongoing peace discussions, introduced a narrative of potential conflict resolution. This directly challenged the "war footing" demand environment that has buoyed the sector since 2022, leading to a swift sell-off in pure-play defense names like RNMBY and SAABY.
What Lies Ahead for Defense?
A prudent investor knows that despite the current wobble, the long-term investment thesis for global defense remains robust and is supported by structural, rather than transitory, factors.
In fact, even without a NATO bid, Ukraine is negotiating for "NATO-style" security guarantees, which will require European nations to serve as permanent military guarantors. This necessitates sustained, high-level spending on equipment and readiness that far outlasts the current conflict.
Meanwhile, the war in Ukraine has fundamentally and permanently reshaped European security policy, acting as a powerful catalyst for sustained budget increases. To this end, it is imperative to mention that the total military expenditure of NATO members in 2024 reached $1.45 billion, which reflects an increase of 9.6% from 2023 when adjusted for inflation and represents the biggest annual increase in defense spending since 2014. This surely underpins multi year revenue visibility for the entire defense sector.
One must also consider the fact that the Ukraine conflict is just one facet of a world where geopolitical tensions are intensifying globally with each passing day. Concurrent pressures in the Indo-Pacific and the Middle East are driving allied nations like Japan, South Korea, and Gulf states to similarly bolster their military capabilities.
This creates a diversified global demand base for leading defense contractors, such as Lockheed Martin LMT, RTX Corp. RTX, and Northrop Grumman NOC, which rely on multi-year government contracts, providing strong revenue visibility and order backlogs that insulate them from short-term market fluctuations. Thus, the defense sector's long-term growth remains anchored in a structural, global demand for national security, rather than the headlines of any single conflict.
Defense ETFs to Watch
Given the ongoing negotiations and discussions on NATO-style security guarantees for Kyiv, investors may want to keep the following defense ETFs on their watchlist and consider investing if appropriate.
State Street SPDR S&P Aerospace & Defense ETF XAR
This fund, with assets under management (AUM) worth $4.75 billion, provides exposure to 40 large, mid and small cap aerospace and defense stocks. Its top three holdings include prominent defense contractors Rocket Lab RKLB (4.03%), Karman Holdings KRMN (3.78%) and ATI Inc. ATI (3.66%).
XAR has surged 48.3% year to date. The fund charges 35 basis points (bps) as fees.
iShares U.S. Aerospace & Defense ETF ITA
This fund, with assets worth $12.96 billion, offers exposure to 41 U.S. companies that manufacture commercial and military aircraft and other defense equipment. Its top three holdings include prominent defense contractors GE Aerospace GE (21.65%), RTX (16.17%) and Boeing BA (8.04%).
ITA has surged 50.2% year to date. The fund charges 38 bps as fees.
Invesco Aerospace & Defense ETF PPA
This fund, with market value worth $6.95 billion, offers exposure to 59 companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. Its top three holdings include renowned defense contractors RTX (8.71%), BA (8.16%) and GE (7.85%).
PPA has surged 38.6% year to date. The fund charges 58 bps as fees.
Select STOXX Europe Aerospace & Defense ETF EUAD
This fund, with $1.04 billion in assets, provides exposure to 13 European companies focused on the manufacture, service, supply, and distribution of civil and military aerospace equipment, systems, and technology, as well as defense and protective services equipment and solutions. Its top three holdings include renowned defense contractors Airbus EADSY (19.05%), Rolls-Royce RYCEY (18.42%) and Safran SAFRY (18.25%).
EUAD has rallied 72.7% year to date. The fund charges 50 bps as fees.
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Ukraine Ditches NATO Membership Bid: A Defense ETF Buying Opportunity?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Industrial Select Sector SPDR ETF (Symbol: XLI) where we have detected an approximate $243.7 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 163,476,000 to 165,026,000). Among the largest underlying components of XLI, in trading today GE Aerospace (Symbol: GE) is down about 0.9%, RTX Corp (Symbol: RTX) is off about 0.2%, and Boeing Co. (Symbol: BA) is lower by about 0.1%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $112.75 per share, with $158.46 as the 52 week high point — that compares with a last trade of $156.90. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
ETFs With Notable Outflows
Funds Holding RPLA
DOCT Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Inflows: XLI, GE, RTX, BA

RTX Corporation’s RTX business segment, Raytheon, recently secured a contract to provide technical and design agent engineering support for the Evolved SeaSparrow Missile (“ESSM”) and NATO SeaSparrow Missile Systems programs. The deal has been provided by the Naval Sea Systems Command, Washington, D.C.
The contract, worth nearly $104.1 million, is slated for completion by Dec. 31, 2026. A major portion of the work related to this deal will be carried out in Tucson, AZ, and Portsmouth, RI.
This contract combines purchases for the U.S. Navy along with the governments of many other countries.
An Overview of RTX’s ESSM Missiles
RTX’s ESSM missile has established itself as a benchmark international production and development program, meeting the requirements of both partner navies and third-party customers. The missile is deployed across multiple combat systems, radar, fire-control and launcher configurations at sea.
ESSM delivers dependable ship self-defense against agile, high-speed, low-altitude anti-ship cruise missiles, low-velocity aerial threats such as helicopters and fast, maneuverable surface threats. With more than 330 successful live firings at sea, ESSM is a proven and highly reliable defense solution against a broad and challenging threat spectrum. These strong capabilities are likely to keep boosting sustained demand for the missile.
Growth Potential for RTX
Rising regional conflicts worldwide are driving nations to bolster their defense capabilities. With missiles playing a vital role in modern military arsenals, countries are ramping up investments in advanced missile systems for both defensive and deterrence needs.
The Mordor Intelligence firm predicts that theglobal marketfor missiles and missile defense systems will witness a CAGR of 4.97% between 2025 and 2030. This outlook bodes well for RTX, which boasts a diverse portfolio of combat-proven missiles such as the SM-6, National Advanced Surface-to-Air Missile System, Tomahawk cruise missile, SM-2, AIM-9X Sidewinder, Naval Strike Missile and a few more.
Opportunities for Other Defense Companies
Other defense contractors poised to benefit from the growth opportunities in the missiles and missile defense systems market include the following:
Northrop Grumman Corp. NOC: The company provides high-speed, long-range strike weapons like the AARGM-ER, a supersonic, air-launched tactical missile. It also designs and manufactures warheads, fuses, advanced high-speed propulsion systems and other critical missile components.
NOC has a long-term (three to five years) earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which calls for an increase of 2.1%.
Lockheed Martin Corp. LMT: The company’s Missiles and Fire Control segment focuses on the development, production and sustainment of advanced missile and rocket systems. Its prominent offerings include the PAC-3 missile family, Spike NLOS, the Precision Strike Missile and the Terminal High Altitude Area Defense and a few more.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which calls for an increase of 4.9%.
The Boeing Company BA: The company provides air and missile defense solutions to the United States, allied nations and international partners, with a portfolio that includes advanced systems such as Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
BA boasts a long-term earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.26 billion, which implies a jump of 31.2%.
RTX Stock Price Movement
In the past six months, RTX shares have risen 26.8% compared with the industry’s growth of 13.1%.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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RTX Secures $104M ESSM Deal, Strengthens Global Missile Leadership

Geopolitical instability across the globe has been a major catalyst for the growth of defense giants such as Boeing BA and RTX Corporation RTX. In response to rising tensions—particularly recent conflicts in Europe and the Middle East—the United States and its allies have significantly increased their defense budgets.
This increase in budget represents a strategic move toward modernization and technical superiority rather than just boosting military capability. As a result, governments are allocating a greater share of their budgets to initiatives that enhance overall military readiness, invest in cutting-edge weapons platforms, modernize legacy systems, and accelerate the development of next-generation aircraft. These initiatives are creating favorable conditions for leading defense contractors whose capabilities closely align with long-term security objectives.
Both companies have big business segments built around military aircraft, defense systems, and government contracts. Their financial performance is closely linked to defense budgets and spending trends.
The Standpoint of BA
Boeing’s Defense, Space & Security (“BDS”) business is positioned for sustained growth as U.S. military and space-related expenditures continue to rise. The proposed fiscal 2026 defense budget under the Trump administration calls for a sizable 13.4% increase, raising the total defense spending to approximately $1.01 trillion, with a strong emphasis on advanced aircraft and space initiatives. The proposal includes $3.1 billion to support ongoing production of the F-15EX Eagle II fighter jet, along with $3.5 billion earmarked for the Air Force’s next-generation F-47 air dominance program. In addition, the Space Force is set to receive a substantial $40 billion allocation. Together, these funding priorities provide a favorable backdrop for Boeing’s BDS segment and reinforce its long-term growth prospects.
The company benefits from a diverse defense portfolio and steady contract wins, securing $9 billion in awards in the third quarter of 2025 and building a $76 billion backlog. With 25% year-over-year revenue growth in the quarter and continued investments in new mission-critical technologies, such as the delivery of its 100th KC-46 tanker, Boeing’s BDS unit is positioned for sustained momentum.
The Standpoint of RTX
RTX continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. Keeping up with its usual track record, the company won several notable defense awards during the third quarter, which resulted in solid bookings of $15.9 billion. Some significant ones among these awards are a contract worth $1.5 billion to produce the Lower Tier Air and Missile Defense Sensor. It also secured a $500 million contract to produce Stinger missiles.
RTX witnessed a solid defense backlog of $103 billion as of Sept. 30, 2025. Based on such solid bookings as well as backlog count, management continues to expect both domestic and international program growth to remain robust for its defense business in the coming days.
Let's compare the two stocks' fundamentals to determine which one is a better investment option at present.
How Do Zacks Estimates Compare for BA & RTX?
The Zacks Consensus Estimate for Boeing’s 2025 and 2026 earnings per share (EPS) has decreased 146.25% and 47.64%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2025 and 2026 EPS has increased 0.81% and 0.90%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Valuation for BA & RTX
BA shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.75X compared with RTX’s P/S F12M of 2.69X.
Debt Position of BA & RTX
Currently, Boeing’s total debt to capital is 118.3% compared with RTX’s 37.05%.
BA & RTX’s Price Performance
In the past six months, shares of Boeing have increased 1.6%, while those of RTX have risen 28.8%.
BA or RTX: Which Is a Better Choice Now?
Boeing’s Defense, Space & Security segment is well positioned for long-term growth. Strong funding for fighter jet programs and the Space Force, combined with a diversified defense portfolio, has driven solid contract wins and solid backlog, reinforcing the unit’s positive momentum. RTX continues to see strong demand for its combat-tested defense systems, securing $15.9 billion in defense bookings during the third quarter. Supported by a robust defense backlog, RTX expects sustained growth across both U.S. and international defense programs.
Our choice at the moment is RTX, given its better price performance, strong earnings growth and better debt management than Boeing. Both BA and RTX carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BA vs. RTX: Which Aerospace-Defense Stock Is a Smarter Option?

(RTTNews) - Aerospace and defense company RTX Corporation (RTX) on Tuesday said its Raytheon was awarded a $1.7 billion contract to supply Spain with four Patriot air and missile defense systems.
The foreign military sales contract includes radars, launchers, command and control stations, and training equipment.
RTX said Patriot is the only combat-proven, ground-based system that defends against long-range cruise missiles, ballistic missiles, and all air-breathing threats.
The contract follows recent orders for additional Patriot systems from Germany, the Netherlands, and Romania in 2025.
On Monday, RTX shares closed at $185.68, up 2.02%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RTX's Raytheon Wins $1.7 Billion Deal To Supply Spain With Four Patriot Systems

Textron Inc. TXT recently revealed that it has secured its first contract to supply the Beechcraft T-6JP Texan II integrated training system to the Japan Air Self-Defense Force in partnership with Kanematsu Corporation. The initial agreement covers two T-6JP Texan II aircraft, along with instructor pilot and aircraft maintenance training materials.
Deliveries of the first two aircraft are expected in 2029, with follow-on contracts likely to be awarded.
Overview of TXT’s Beechcraft T-6C Texan II
The Beechcraft T-6 Texan II is recognized as the world’s leading military flight training platform. With continuous and solid aircraft manufacturing expertise and a legacy of delivering more than 255,000 aircraft globally, the Texan II offers low acquisition, operating and sustainment costs, enabling air forces to accelerate pilot training efficiently. With an installed base more than four times larger than its nearest competitor, the T-6 Texan II family has remained the top integrated training system worldwide for more than two decades.
With more than 1,000 aircraft currently in service and more than 5 million flight hours accumulated, the T-6 Texan II is the most widely deployed integrated training system globally. Its reach now extends to Japan and includes pilot training programs across 15 nations.
TXT’s Growth Potential
The military training aircraft market is poised for strong growth, supported by rising global geopolitical tensions, technological advancements, higher spending on combat aircraft and the need for cost-efficient pilot training solutions. Per a report by the Mordor Intelligence firm, the military training aircraft market is projected to witness a CAGR of 10.63% between 2025 and 2030. These favorable industry dynamics are likely to create meaningful growth opportunities for Textron in the years ahead.
Textron’s business unit, TRU Simulation, specializes in delivering high-quality training solutions for the business aviation, helicopter and military markets. The unit designs, manufactures and supports advanced, high-fidelity flight training systems, ranging from classroom-based tools to flight training devices and full-motion simulators for defense aircraft.
These strong capabilities are likely to have helped Textron secure a steady flow of orders in the military aircraft simulation and training space, reinforcing its position in this growing segment.
Opportunities for Other Aerospace Stocks
Aerospace companies that are likely to reap the benefits of the rising military training aircraft market are as follows:
Lockheed Martin Corp. LMT: The company’s F-35 Full Mission Simulators are advanced, high-fidelity systems that accurately replicate the aircraft’s sophisticated avionics, stealth features and combat systems. It delivers Mission Rehearsal Training solutions and provides pilots with advanced instruction in fifth-generation tactics, techniques and procedures.
LMT’s long-term (three to five years) earnings growth rate is 11.94%. The Zacks Consensus Estimate for 2025 sales is pegged at $74.40 billion, which indicates a rise of 4.7%.
BAE Systems plc BAESY: Its Hawk advanced jet trainer, featuring advanced airborne simulation technology and a next-generation cockpit, enables a smoother and more cost-efficient transition to frontline aircraft. This capability helps ensure student pilots and Weapons Systems Officers are trained to the required proficiency levels and are fully prepared for frontline operational roles.
BAESY has a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pegged at $40.47 billion, which suggests an increase of 62%.
RTX Corporation RTX: Its Joint Secure Air Combat Training System delivers the first certified four-level Multiple Independent Levels of Security test and training solution across both airborne and ground platforms, enabling secure operations in both tethered and autonomous environments.
RTX has a long-term earnings growth rate of 10.21%. The Zacks Consensus Estimate for 2025 sales is pegged at $87.11 billion, which calls for a rise of 7.9%.
TXT Stock Price Movement
In the past six months, shares of Textron have risen 15.4% compared with the industry’s growth of 10.4%.
Image Source: Zacks Investment Research
TXT’s Zacks Rank
Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.