RTX Gets a Boost From a Rise in Air Travel Demand and Military Spending

RTX (RTX) shares rose about 6% in intraday trading Tuesday after the aerospace and defense contractor posted better-than-expected results, helped by a surge in air travel and military spending.

The company formerly known as Raytheon reported fourth quarter earnings per share (EPS) from $1.29, with revenue 10% more than the previous year to 19.9 billion dollars. Both exceeded expectations.

Collins Aerospace division sales rose 14% to $7.12 billion, boosted by a trade deal and a surge in demand for aftermarket products as airlines put more planes in the air amid the travel boom .

The Pratt & Whitney engine unit posted a 25% increase in revenue to $6.44 billion, recovering after 2023. removal and inspection of the engines used in the Airbus A320neo passenger aircraft due to an “unusual condition of the metal powder” used to manufacture them.

Revenue at RTX's defense arm, called Raytheon, rose 3% to $6.89 billion. The group produces AMRAAM rockets and the Patriot missile system.

CEO Greg Hayes said RTX "supported the continued recovery in the commercial aerospace sector and provided critical platforms and advanced technologies to our customers."

The company anticipates full-year earnings per share in the range of $5.25 to $5.40, compared to analyst projections of $5.28.

RTX shares rose 5.8% to $89.96 per share at around noon ET on Tuesday. Despite Tuesday's gains, RTX stock fell 6.5% year over year.