RTX lifts profit, revenue forecasts amid strong demand for weapons

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 missile systems and other weapons amid rising 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.

Defense contractors stand to benefit significantly from the Pentagon's rush ⁠to boost its stockpiles.

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.

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.

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.

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.

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)

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