Last month, the Pentagon handed Raytheon a $22.9 billion contract to build more Tomahawk missiles. It’s the largest single weapons deal in company history - and it exists because the US fired over 850 of them into Iran in the first month of Operation Epic Fury.
RTX hit an all-time high of $226.88 in August - up over 50% in twelve months as Iran tensions escalated into war. Q2 revenue of $24.7 billion beat estimates by nearly $2 billion. The backlog hit $289 billion. The proposed FY2027 defense budget is $1.5 trillion - the biggest increase since the Korean War.
The stock has pulled back 11% from its high to ~$201. This week, the US launched a new wave of strikes against Iran, and Iran retaliated across the region.
Record contracts. Record backlog. The biggest defense budget since the Korean War. The stock just dropped 11% from its high.