RTX · Earnings call · 2026Q3T · Full report

Defense Backlog Expansion

RTX Corp · 2026-10-20 · Importance 76 · Surprise 56 · Contradicted

RTX reported robust demand across commercial aerospace and defense, ending Q3 with a record $340 billion backlog, up 36% year over year and 18% sequentially. Defense bookings reached nearly $59 billion, while commercial orders exceeded $22 billion and grew more than 60% year over year across original equipment and aftermarket. Commercial demand was supported by higher production rates, a growing installed base, and strong aftermarket activity, while defense demand reflected increased requirements for munitions and integrated air and missile defense systems. International defense demand is rising across Europe, Asia-Pacific, and MENA, with Germany, Poland, and Japan identified as significant markets.

Key facts

• RTX stated the two converted framework agreements into undefinitized contracts represent about $70 billion in combined value and provide approximately a decade of demand visibility with target production rate increases of 2x to 4x.
• Raytheon's bookings in the quarter were $52.3 billion, resulting in a book-to-bill of 6.54x and a backlog of $130 billion; on a rolling 12-month basis, Raytheon's book-to-bill is 2.9x.
• RTX ended Q3 with a backlog of $340 billion, up 36% year over year and 18% sequentially.
• If you exclude the munitions contracts Tomahawk and AMRAAM, 52% of the backlog is international.
• 37% of the total backlog is international.

Impact estimates