RTX Stock After Hours: RTX (NYSE: RTX) ticks up after Pentagon Patriot radar contract and defense bill signing — What to know before the Dec. 19, 2025 market open
News Summary
RTX Corporation (NYSE: RTX) stock saw a modest after-hours increase on Thursday, December 18, 2025, as investors processed new Pentagon contract activity and a significant policy catalyst for defense spending. The company was awarded a $168.1 million Patriot firing unit contract modification linked to Foreign Military Sales for Romania. Adding to the sector's momentum, US President Donald Trump signed the fiscal 2026 National Defense Authorization Act (NDAA) into law, authorizing $901 billion in annual military spending, including $800 million for Ukraine over two years. The NDAA sets top-line policy and spending priorities that typically support programs like missile defense and air defense. However, a looming risk is the Trump administration's reported consideration of an executive order to limit dividends, stock buybacks, and executive pay for defense contractors with over-budget or delayed projects. Analyst consensus price targets for RTX vary, but the stock is generally no longer considered "cheap" after a strong run. Upcoming earnings in late January 2026 will focus on Pratt & Whitney engine developments and capital return policy risks.
Background
RTX Corporation (formerly Raytheon Technologies) is an American multinational aerospace and defense conglomerate, one of the largest aerospace and defense manufacturers globally. The company operates through its Raytheon, Collins Aerospace, and Pratt & Whitney business segments, covering a wide range of areas including missile defense, aerospace systems, and aircraft engines. The Patriot system, a key product of RTX's Raytheon business, is a surface-to-air missile (SAM) system known for its role in integrated air and missile defense. The US National Defense Authorization Act (NDAA) is an annual federal law passed by Congress that specifies the budget and expenditures of the US Department of Defense, directly impacting the business outlook for defense contractors. Following his re-election in 2024, President Trump's administration policies, particularly regarding defense spending and potential restrictions on contractor capital returns, significantly influence the sector. Europe's ongoing rearmament and military aid to Ukraine are critical drivers of global air defense system demand.
In-Depth AI Insights
How might the Trump administration's potential restrictions on defense contractors' capital returns reshape industry valuations and long-term investment appeal? - While fundamental defense demand remains robust, an executive order limiting dividends and buybacks would directly challenge the traditional view of defense stocks as