RTX · Earnings call · 2026Q3T · Full report

Defense Contract Awards

RTX Corp · 2026-10-20 · Importance 64 · Surprise 42 · Contradicted

RTX booked nearly $59 billion of defense awards in the third quarter, producing a 4.57x defense book-to-bill ratio. The awards included approximately $23 billion for Tomahawk and more than $14 billion for AMRAAM, while multiyear SM-6 and SM-3 IIA contracts were also signed. Raytheon recorded $52.3 billion of quarterly bookings, including $3.1 billion for British Army training systems, $3 billion of classified awards, and $1.8 billion for SPY-6 production. The Tomahawk, AMRAAM, and other munitions agreements have approximately $70 billion of combined value, seven- to 10-year execution periods, and are expected to ramp toward full-rate production through 2030.

Key facts

• RTX said the undefinitized contracts will be accounted for on a cost-to-cost basis with CapEx and other investments to be made over the next two to three years as they capacitize and ramp to full-rate production over the multiyear terms.
• On the defense side, RTX booked nearly $59 billion of awards in the quarter with a book-to-bill of 4.57x.
• Approximately $23 billion of the defense bookings were for Tomahawk and over $14 billion were for AMRAAM.
• RTX signed multiyear contracts for SM-6 and SM-3 IIA earlier this month.
• RTX said the company expects to see UCA-related revenue and profit contributions over the next several years as it capacitize and then ramp to full-rate production over multiyear contract terms.
• Raytheon booked $9 billion worth of international orders during the third quarter.

Impact estimates