RTX’s Raytheon‑Rafael Protection Systems joint venture announced a $1.25 billion agreement to supply Israel with Tamir surface‑to‑air missiles for the Iron Dome air‑defense system. The deal includes missiles, missile kits, and test equipment, and it expands the joint venture’s footprint in the Middle East while reinforcing RTX’s leadership in advanced missile technology.
The contract will be supported by a new production facility in East Camden, Arkansas, the first U.S. all‑up‑round plant for Tamir and its U.S. variant, SkyHunter. The facility will enable RTX to meet growing demand for both the Iron Dome program and the U.S. Marine Corps’ Multi‑Role Interceptor Capability (MRIC) program, positioning the company to capture a larger share of the global air‑defense market.
RTX’s Q3 2025 results reflected the strength of this contract. Adjusted revenue rose 12% year‑on‑year to $22.48 billion, and adjusted EPS of $1.70 beat consensus estimates of $1.41 by $0.29, a 21% lift. The beat was driven by disciplined cost management, a favorable product mix that favored higher‑margin missile and radar contracts, and robust demand across all segments. Operating margin expanded to 9.9% from 9.6% in the prior year, reflecting pricing power and operational leverage as production scales.
Segment performance underscored the company’s balanced growth. Collins Aerospace generated $7.62 billion in sales, up 8%; Pratt & Whitney delivered $8.4 billion, up 16%; and Raytheon reported $7 billion, up 10%. The record $251 billion backlog, largely driven by defense programs, provides strong revenue visibility and supports the company’s confidence in its guidance.
CEO Chris Calio highlighted the company’s “strong execution and robust global demand” as key drivers of the quarter’s performance. He noted that heightened geopolitical tensions and steady defense spending continue to support demand for RTX’s missile, radar, and command‑and‑control systems, and that the company is focused on increasing output to support critical programs while investing in next‑generation products.
Market analysts reacted positively to the earnings beat and the raised full‑year guidance. The beat on both revenue and EPS, combined with a record backlog and consistent margin expansion, reinforced confidence in RTX’s ability to navigate cost pressures and supply‑chain challenges while capitalizing on growing defense spending worldwide.
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