Great News for RTX Investors (Hint: It Relates to Its Record $289 Billion Backlog)

RTX CEO Chris Calio expects the company's $289 billion backlog to surge to $460.5 billion by 2028, driven by accelerating demand across commercial aerospace and defense. The defense giant recently secured a $22.9 billion Tomahawk cruise missile order and signed five framework agreements with the Department of Defense that could expand volumes two to four times current levels.

Forty-five percent of RTX's remaining performance obligations are tied to long-term maintenance contracts, providing revenue visibility that competitors lack. These recurring contracts carry lower execution risk than new-build programs, a competitive advantage as defense spending scales up.

The backlog expansion reflects both commercial aviation recovery and heightened defense procurement. The framework agreements structure provides the Pentagon with flexible ordering capacity while locking in RTX as the supplier across multiple platforms.