RTX (RTX) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Macro environment and growth drivers

• Strong recovery in commercial aerospace with 5% RPK growth annually and demand for 40,000 aircraft over 20 years, exceeding current installed base.

• Defense sector benefits from global replenishment needs, rising NATO budgets, and 3%-4% growth in APAC and MENA.

• $268 billion backlog, up 23% since end of 2024, with robust demand in both commercial and defense segments.

• Focus on executing backlog, investing $10 billion in E&D and CapEx to support ramp-up and innovation.

• No changes to previously issued guidance.

Segment performance and opportunities

• Collins Aerospace leads in 70% of product segments, with $105 billion out-of-warranty content and 2x content on new platforms.

• Pratt & Whitney Canada operates 70,000 engines, with strong military and commercial portfolios, including an 8,000 engine GTF backlog.

• Raytheon systems operate in 50 countries, providing backbone for integrated air and missile defense.

• International backlog now 47%, up four points in two years, driving productivity and margin improvement.

• Golden Dome and other major defense programs not yet included in backlog, representing future upside.

Defense and munitions outlook

• Five new framework agreements with DoD aim to ramp munitions production 2-4x over the next decade.

• Frameworks based on firm long-term demand, enabling investment in capacity and supply chain.

• Raytheon’s $75 billion backlog excludes new frameworks, with focus on scaling production and qualifying new suppliers.

• Global demand for integrated air and missile defense, sensors, and counter-UAS systems remains high.

• Coyote counter-UAS system identified as a major growth engine.