RTX (RTX) is giving investors fresh reasons for optimism as CEO Chris Calio outlined the company’s commanding backlog position at a high-profile industry conference.
Calio presented at the Morgan Stanley 14th Annual Laguna Conference, where he highlighted RTX’s remaining performance obligations, known as RPO, currently standing at a record $289 billion.
The defense and aerospace giant’s backlog represents long-term, lower-risk revenue compared to many of its competitors in the sector.
Calio made two particularly notable remarks at the conference, each pointing toward significant future growth potential for the company’s order book.
Raytheon, RTX’s defense division, secured five major U.S. Department of War agreements covering key munitions programs that management described as providing “firm demand signals.”
Management also characterized those agreements as representing “good long-term business” for RTX, signaling confidence in sustained government procurement activity going forward.
International demand is also accelerating, with approximately 48% of Raytheon’s backlog now coming from overseas customers, a figure that has risen four percentage points in just one year.
Calio walked through an extensive installed base that reliably locks in follow-on orders, noting that nine European countries fly Patriot, seven use NASAMS, and 20 use RTX effectors.
A comparable footprint exists across the Middle East, further diversifying the company’s geographic revenue base and reducing dependence on any single market.
According to the Wall Street consensus compiled by Visible Alpha, RTX’s RPO could climb to $460.5 billion by the end of 2028, reflecting the combined strength of its commercial aerospace and defense pipelines.
The five major framework agreements secured by Raytheon have not yet been fully reflected in the current backlog figures, suggesting additional upside remains as those contracts are formally recorded.
The combination of a long-duration commercial aerospace backlog and a rapidly expanding defense order book positions RTX as a compelling investment in two of the market’s most active sectors right now.
