Chelsea Capan ‘26 pitched RTX Corporation (NYSE: RTX) on March 23, 2026. RTX Corporation is a global aerospace and defense leader operating through three core business segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The company serves government, commercial, and defense companies across more than 80 countries worldwide.
Chelsea’s investment thesis rested on three key pillars: a strong and growing backlog, the recovery of commercial aerospace, and a uniquely diversified business model.
RTX closed 2025 with a record $268 billion backlog — up 23% year over year and equivalent to approximately three times annual revenue. Backed by long-term government contracts and multi-decade engine service agreements, this is contracted, visible revenue that extends well into the next decade.
In terms of commercial aerospace recovery, RTX benefits on two fronts simultaneously. The company generates revenue from the sale of new engines and equipment to airlines modernizing their fleets, while also capturing high-margin aftermarket revenue from servicing existing ones. Once an airline operates RTX-powered aircraft it is effectively a locked-in customer for 20 to 30 years, creating a compounding revenue stream that will only grow as the GTF installed base expands.
RTX’s approximately 60/40 commercial-to-defense backlog split is a structural advantage that no peer can replicate. With each segment spanning multiple end markets, customer types, and geographies, RTX’s revenue streams are driven by uncorrelated demand cycles, making it structurally resilient in ways that single-market aerospace and defense companies are not.
SMIF voted to purchase roughly $38,696 of RTX Corporation, amounting to 200 shares, funded by the sale of 70 shares of GE Aerospace and 40 shares of Parker-Hannifin.
Leave a Reply