RTX’s 90% Munitions Surge — Is A Defense Supercycle Taking Shape?

Raytheon Technologies Corporation reported strong third-quarter fiscal 2026 results across commercial aerospace and defense. Adjusted sales reached $25 billion, representing 12% organic growth year-over-year, driven by commercial original equipment (OE), aftermarket, and defense demand. Adjusted earnings per share rose 33% to $2.26, including a $0.25 benefit from U.S. government sanctions-related cost recoveries (IEEPA). Free cash flow totaled $2.1 billion. The company reported a record $340 billion backlog, increasing 36% year-over-year. Defense book-to-bill reached 4.57, supported by multiyear Tomahawk and AMRAAM contracts alongside SM-6 and SM-3 IB missile orders. Commercial aerospace bookings increased over 60%, including Pratt & Whitney GTF engine commitments covering up to 63 British Airways aircraft. Pratt & Whitney’s engine services and aftermarket sales grew 21%, supported by maintenance, repair, and overhaul (MRO) demand, while large commercial OE sales declined 5%.