Great News for RTX Investors (Hint: It Relates to Its Record $289 Billion Backlog)
There's a strong possibility the defense and aerospace giant's backlog will grow even more in the near future.
Overview
RTX (NYSE: RTX) CEO Chris Calio's presentation at the Morgan Stanley 14th Annual Laguna Conference last week highlighted the importance of its remaining performance obligations (RPO), or backlog, of $289 billion, as well as the potential for future growth. It's clear that RTX isn't resting on the laurels of its existing RPO, and there's a good chance it could rise in line with the Wall Street consensus (according to Visible Alpha) to $460.5 billion by the end of 2028.
Calio said two things at the conference of particular note regarding the backlog. The first was the description of strength in orders (which add to RPO) across its three end markets: commercial aerospace original equipment (OE), commercial aerospace, and defense. He discussed ongoing strength in aftermarket orders. On the OE side, Calio noted that Boeing and Airbus have a "15,000 aircraft backlog" to execute on, and that demand exists for new, more fuel-efficient aircraft. Finally, on defense, he said demand was "more and faster. Integrated air and missile defense, not only here in the U.S. but internationally, is top of mind for every country around the world."
Image source: Getty Images.
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Originally published at www.fool.com.