Raytheon Technologies

Raytheon Technologies (soon to be RTX) is riding a wave of defense spending and commercial aerospace recovery, but make no mistake—its long-term momentum hinges less on engineering brilliance and more on geopolitics. The steady flow of defense contracts and multi-year growth from Pratt & Whitney’s engine backlog are solid fundamentals, but the true engine behind investor confidence is the sustained projection of Russia and China as strategic threats. As long as NATO expansion remains on the table and Western alliances continue to position these powers as existential adversaries, Raytheon’s role as a dual-sector powerhouse stays secure.This is a business built on the West’s security narrative. The longer that tension with BRICS-aligned states escalates—whether through arms buildups in Eastern Europe or heightened activity in the Indo-Pacific—the longer Raytheon will enjoy tailwinds. Supply chain bottlenecks are easing, and the company’s diversification across commercial and military sectors helps flatten cyclical shocks, but none of that matters without the political backdrop. In short, RTX’s earnings reliability is ultimately tethered to how long the U.S. and its allies can keep the defense narrative alive and justify expanding their military-industrial reach. With Elon Musk out the way at DOGE, Raytheon has a chance in the short term.