NEW YORK, Jan 7, 2026, 15:34 EST
- RTX shares touched $193.73 in intraday trade as investors tracked new U.S. radar work and a swelling order book
- FAA is replacing aging air traffic control radars under a $12.5 billion overhaul, with 612 systems targeted by June 2028
- UBS cut RTX to Neutral, saying the stock is trading close to fair value, ahead of RTX’s Jan. 27 results
RTX shares were down 1.8% at $187.06 in afternoon New York trading on Wednesday after earlier touching $193.73, as investors pushed the aerospace and defense contractor to another new high in a choppy session.
The move matters now because RTX is tied into two big pipes of spending at once: a U.S. push to rebuild air traffic control infrastructure and a longer-running surge in defense orders. Those programs tend to stretch over years, the kind of work that can steady revenue even when the cycle turns.
It also lands just weeks before RTX reports earnings and sets out its next set of targets. The stock’s run has raised the stakes for any update on Pratt & Whitney’s geared turbofan engine inspections, which have hung over the shares and the company’s cash flow outlook.
RTX said its Collins Aerospace unit won a $438 million Federal Aviation Administration contract to deploy next-generation surveillance radars, including “cooperative” systems that use aircraft transponder signals and “non-cooperative” radars that track aircraft using reflected signals. “Collins is ready to rapidly deploy next-generation radar systems that replace outdated technology,” Nate Boelkins, president of Avionics at Collins Aerospace, said. Rtx
The FAA radar work is part of a wider $12.5 billion overhaul that also includes telecom upgrades, with the United States aiming to replace 612 radars by June 2028 and to prioritize high-traffic sites, Reuters reported. Transportation Secretary Sean Duffy called the current kit outdated: “most of our radars date back to the 1980s. It’s unacceptable,” he said. Reuters
Wall Street is not uniformly chasing the stock at these levels. UBS downgraded RTX to Neutral from Buy and cut its price target to $199, saying “the company’s fundamentals are strong, but the shares are trading close to fair value,” according to TheFly. Tipranks
RTX has pointed investors back to its backlog — the value of orders it has booked but not yet delivered — as a source of visibility. In its latest reported quarter, RTX said backlog stood at $251 billion, with $148 billion in commercial aerospace and $103 billion in defense, and it raised its 2025 adjusted earnings-per-share forecast to $6.10 to $6.20. Rtx
The debate has spilled into investor commentary too, with bulls leaning on “structural demand” and record backlogs while skeptics point to valuation after the rebound from the Pratt & Whitney engine shock. A Seeking Alpha analysis argued the backlog supports further upside, while an ad-hoc-news write-up framed the stock as a “quiet chart” with a loud argument behind it; Red94 highlighted the run to a Jan. 5 high and the next catalysts. Seekingalpha Ad Hoc News Red94
But the downside case is easy to sketch: infrastructure contracts can move slowly, and any stumble in delivery schedules or costs can dull the benefit for earnings. Defense demand can also lurch with budgets, while the geared turbofan inspection program still leaves RTX exposed to disruptions and cash calls if the timeline shifts again.
RTX said it will release fourth-quarter results on Jan. 27 and hold an investor conference call that day. Traders will look for 2026 guidance, a tighter read on engine inspection costs, and whether the new FAA work adds meaningfully to near-term cash flow. Rtx
