RTX Corporation (RTX): A Bull Case Theory

Ricardo Pillai

Mon, Jun 9, 2025, 6:32 AM 3 min read

We came across a bullish thesis on RTX Corporation (RTX) on Business Model Mastery Substack. In this article, we will summarize the bulls’ thesis on RTX. RTX Corporation (RTX)'s share was trading at $137.50 as of 3^rd June. RTX’s trailing and forward P/E were 40.32 and 22.68 respectively according to Yahoo Finance.

Two fighter jets in flight, highlighting the technology and experience of the companies combat aircraft.

RTX is far more than an aerospace and defense contractor—it is a global industrial engine powered by deeply embedded ecosystems, unmatched technical infrastructure, and time-tested barriers that no startup can cross. At the heart of its commercial business is the Geared Turbofan (GTF) engine, which powers aircraft across multiple platforms and locks in airlines to long-term service cycles.

Shop visits surged 30% in 2024, not due to optional upgrades, but because RTX is the sole provider certified to service its own engines. This is not just a sale—it’s a 25+ year annuity. Services now account for 26.2% of RTX’s total revenue, underscoring its shift toward high-margin, recurring cash flows. The same model powers RTX’s defense business, where platforms like the F135 engine, AMRAAM missiles, and Patriot systems generate not only multi-billion-dollar contracts but also decades of lock-in, training, and upgrade cycles.

RTX’s real moat lies in time, not hype: over 1,000 active patents, exclusive certifications, and compliance-heavy relationships with the U.S. Department of Defense, NASA, and foreign governments make disruption almost impossible. Its global scale further fortifies its position. With 186,000 employees—57,000 of them engineers—across 52 countries and 230+ dual-use facilities, RTX can cross-pollinate innovation between commercial and defense sectors while reducing exposure to any single market.

In 2024, international markets contributed 43% of total business. The company’s $218 billion backlog, with 25% converting within a year, offers unmatched revenue visibility. RTX doesn’t rely on product cycles—it compounds strength over time. Each new platform it deploys feeds into a feedback loop of engineering, iteration, and customer retention. Where others chase quarterly wins, RTX builds geopolitical infrastructure—permanent, defensible, and rooted in systems that nations cannot afford to replace.

Previously, we have covered RTX Corporation (RTX) in Jan 2025 wherein we summarized a bullish thesis by Stock Picker’s Corner on Substack where in the thesis revolved around RTX having a defense tech edge amid U.S.-China tensions—validated by an 18.7% stock gain. The new thesis reframes RTX as a long-term industrial compounder with deep moats, recurring revenues, and global scale beyond just defense upside.