RTX's $289 Billion Backlog, Explained

RTX posted $24.7 billion in Q2 revenue, up 14% year-over-year, and disclosed a $289 billion backlog that grew 22% from the prior year. The backlog splits 60% commercial aerospace and 40% defense, underscoring diversified demand across both segments.

The company recently locked in a $22.9 billion seven-year contract for Tomahawk cruise missiles, one of the largest defense awards in recent memory. Management reaffirmed guidance for $95 billion to $96 billion in full-year sales, reflecting confidence in converting the pipeline.

The 22% backlog expansion signals sustained order momentum heading into 2025, particularly as commercial aircraft production ramps and defense budgets remain elevated. RTX's balance of long-cycle defense programs and recovering commercial OEM demand positions it to capture growth on both fronts.