NEW YORK, February 4, 2026, 15:17 EST — Regular session
RTX Corp (NYSE: RTX) shares dipped roughly 3% to $197.33 in afternoon trading Wednesday. The stock opened at $205.26, fluctuating between a low of $194.34 and a high of $208.81.
The drop came after RTX announced its Raytheon unit secured a seven-year deal with the Pentagon to ramp up production of Tomahawk cruise missiles, AMRAAM air-to-air missiles, and SM-series interceptors. The agreement aims to increase Tomahawk output from around 60 units annually to 1,000, and push AMRAAM production to at least 1,900 per year, as part of a wider effort to rebuild stockpiles. Lockheed Martin inked comparable multi-year interceptor deals last month. Meanwhile, Trump has introduced changes tying dividends, buybacks, and executive pay to delivery targets, a move investors are still digesting.
RTX described the framework agreements as a “collaborative funding approach” designed to protect upfront free cash flow while boosting production capacity. CEO Chris Calio said these deals “redefine how government and industry can partner to speed the delivery of critical technologies.” RTX
Contracts jumped into a market already on edge over pricey tech names. U.S. stocks dipped as investors wondered if the AI-fueled surge had stretched too quickly and shifted toward more affordable sectors.
Vietjet Air has chosen Pratt & Whitney’s geared turbofan (GTF) engines for 44 more Airbus A320neo-family jets, pushing its total GTF-powered aircraft orders to 137. Deliveries will kick off in July. Alongside the engines, Pratt & Whitney will supply a 12-year EngineWise Comprehensive agreement, covering long-term maintenance. “Vietjet values our relationship with Pratt & Whitney and its latest generation technology,” said managing director Nguyen Thanh Son. RTX
RTX announced plans to pour over $139 million into Singapore, following new memoranda of understanding with the Singapore Economic Development Board. The move will boost manufacturing and maintenance, repair, and overhaul operations at Collins Aerospace and Pratt & Whitney. “RTX is Singapore’s largest foreign aerospace and defense employer,” noted Chris Haave, a vice president overseeing international operations and government relations. Pratt & Whitney aims to enhance its ability to service the GTF engine’s fan drive gear system and ramp up parts-coating capacity to meet growing production demands. RTX
Wednesday’s dip came after a solid streak earlier in the week. RTX closed Tuesday at $203.50, marking its fourth day in a row of gains and hovering just under 1% from its 52-week peak. Trading volume was notably higher than the 50-day average, MarketWatch reported.
The production targets remain aggressive. Any hiccups from suppliers or rising costs as output scales up could quickly squeeze margins and cash flow, despite having multi-year demand locked in.
Investors are focused on how the Pentagon plans to handle payments and incentives within the framework agreements, and if other programs will adopt this extended contracting approach. They’ll also keep an eye out for signs that capacity spending might be rising beyond initial forecasts.
Calio is set to speak at Citi’s Global Industrial Tech and Mobility Conference on Feb. 18 at 8:50 a.m. Eastern. The event is expected to shed new light on production increases and cash management strategies.
