RTX: Fighting The Wall Of Reality
Summary
RTX issued weaker full-year EPS guidance, citing tariff impacts and tax law changes, despite a strong Q2 and a surge in ...
RTX issued weaker full-year EPS guidance, citing tariff impacts and tax law changes, despite a strong Q2 and a surge in commercial backlog. The company reported a flat defense sector backlog at $92 million, and organic sales growth is expected to slow, with no clear path to accelerated future growth. The stock's valuation has become stretched, trading at over 26x 2026 EPS estimates, while capital returns are now limited by high debt and valuation concerns.