By Mike Stone and Aishwarya Jain April 21 (Reuters) - Defense contractor RTX on Tuesday lifted its 2026 profit and revenue forecasts, betting on sustained aftermarket sales and growing demand for its
RTX lifts profit, revenue forecasts amid strong demand for weapons
RTX's Financial Performance and Industry Context
By Mike Stone and Aishwarya Jain
Rising Demand for Weapons and Aftermarket Sales
April 21 (Reuters) - Defense contractor RTX on Tuesday lifted its 2026 profit and revenue forecasts, betting on sustained aftermarket sales and growing demand for its missile systems and other weapons amid rising geopolitical tensions.
Pentagon Inventory and Geopolitical Tensions
The Pentagon has been seeking to replenish its weapons inventory, which has come under pressure due to the Iran war and other recent military operations.
The United States has used up billions of dollars worth of weapons, including artillery systems, ammunition and anti-tank missiles, since Russia invaded Ukraine in 2022, and during Israel's military operations in Gaza.
Opportunities for Defense Contractors
Defense contractors stand to benefit significantly from the Pentagon's rush to boost its stockpiles.
Key Contracts and Business Segments
Major Contracts and Sales Growth
In April, RTX secured a contract to supply Patriot GEM-T interceptor missiles worth $3.7 billion to Ukraine.
Its Raytheon business, which makes air and missile defense, sensors and radars, as well as space-based systems, reported a 10% jump in first-quarter sales to $6.95 billion.
Commercial Aftermarket and Aircraft Maintenance
RTX has also gained from robust demand for aircraft maintenance and repair, as delivery delays and supply-chain disruptions keep airlines flying older, more maintenance-heavy jets.
Commercial aftermarket sales rose 19% in its Pratt and Whitney segment, which has been in focus after Airbus alleged that the unit over-promised on engine shipments while diverting engines to repair shops.
The European planemaker is seeking potential damages, Reuters reported in March.
Financial Results and Outlook
Revenue and Profit Growth
RTX reported first-quarter revenue of $22.08 billion, rising 9% from a year earlier.
Its adjusted per-share profit rose 21% to $1.78.
Updated Forecasts
It now expects a full-year adjusted per-share profit of $6.7 to $6.9, up from $6.6 to $6.8 previously.
RTX lifted its 2026 revenue forecast to $92.5 billion to $93.5 billion from $92 billion to $93 billion previously.
IEEPA Tariffs and Refund Requests
During a post earnings conference call, company management said RTX has paid $500 million in International Emergency Economic Powers Act (IEEPA) tariffs and may submit requests for refunds.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Shinjini Ganguli and Nick Zieminski)
