RTX Awarded $266.91M Contract Modification
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy RTX?
RTX was awarded a noncompetitive fixed-price-incentive-fee modification, definitizing two previously announced undefinitized contract actions for Standard Missile Block IB production. The value of this contract modification is $266.91M, increasing the previously announced value of $1.1B to a total value of $1.37B. The total definitized value of this award increases the total existing contract value from $1.95B by $1.37B to $3.31B. Under this modification, the contractor will procure and deliver an additional quantity of 23 SM-3 Block IB All-Up Rounds for a total of 78 SM-3 Block IB AURs. This contract includes one-time costs to restart the SM-3 IB production line. The work will be performed in Tucson, Arizona; and Huntsville, Alabama, with an expected completion date of May 2030. Fiscal 2024 and 2025 procurement funds are being used to fully fund this effort upon award. The Missile Defense Agency is the contracting activity.
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Analyst Views on RTX
Wall Street analysts forecast RTX stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 203.040
Low
168.00
Averages
195.77
High
215.00
Current: 203.040
Low
168.00
Averages
195.77
High
215.00
About RTX
RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. The Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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See More
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- Significant Contract Growth: Lockheed and RTX stocks have risen 40% and 57% respectively over the past year, continuing to secure new contracts, with Lockheed's FY26 EPS projected to increase by 29% to $29.87, reflecting strong profitability and market confidence.
- Production Capacity Enhancement: Lockheed plans to open a “munitions acceleration center” in Camden, Arkansas, increasing THAAD missile production from 96 to 400 units annually, demonstrating the company's proactive response to future defense needs and strategic investments.
- Robust Order Backlogs: As of 2026, Lockheed's backlog has increased by 8% YoY to $194 billion, while RTX's backlog has surged 23% to $268 billion, indicating sustained strong demand and market positioning for both companies in the defense sector.
See More
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- Limitations of the STOCK Act: Josephs points out that the STOCK Act, passed in 2011, has failed to significantly improve transparency, allowing Congress members to delay trade disclosures, which increases the potential for conflicts of interest, necessitating a change to restore public confidence.
- Controversy Over Family Member Trading Ban: The current proposal aims to prohibit trading of individual stocks by Congress members, their spouses, and children, but may allow exceptions for spouses under certain conditions, making this debate a critical hurdle for the legislation's passage and its ultimate implementation.
- Exclusion of Cryptocurrency: Josephs notes that existing proposals do not address cryptocurrency trading, likely due to its nature being more akin to gold and ETFs, and the support from figures like Trump could lead lawmakers to be more cautious, affecting the comprehensiveness of the congressional trading ban.
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