RTX's $289 Billion Backlog, Explained
RTX's growing backlog is a cornerstone of the investment case for the stock.
Overview
RTX's (NYSE: RTX) backlog is key to the investment case for the stock, because what's in the backlog and how it's growing are strong leading indicators of future growth. In a nutshell, investors want to see order growth feed into high-quality backlog growth, and then into higher-margin revenue growth through execution. As long as that's happening, investors can feel confident in the company's prospects.
I'll cut straight to the chase. RTX's backlog continues to grow amid surging orders, and this applies to both its commercial aerospace and defense businesses. To put the backlog into perspective, management's recently upgraded estimate for adjusted sales in 2026 is $95 billion to $96 billion.
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Originally published at www.fool.com.