Company Overview - RTX is a leading aerospace and defense company with approximately $88 billion in sales last year [2] - The company operates through three main business segments: Collins Aerospace, Pratt & Whitney, and Raytheon [2] Financial Performance - RTX reported strong top-line growth for 2025, along with margin expansion and robust free cash flow generation [3] - The company ended the year with a substantial backlog of $268 billion, indicating strong and durable demand in both commercial aerospace and defense sectors [3] Strategic Focus - The primary focus for RTX is on executing the existing backlog while also innovating for future growth [3] - As a long-cycle business, RTX emphasizes the importance of having the necessary capacity and advanced manufacturing capabilities in place to fulfill its technology pipeline [3]

Summary of RTX (NYSE:RTX) 2026 Conference Call Company Overview - RTX is a leading aerospace and defense company with approximately $88 billion in sales last year and a backlog of $268 billion, reflecting strong demand in both commercial aerospace and defense sectors [2][11]. Key Business Segments - RTX operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon [2]. - The company reported top-line growth, margin expansion, and robust free cash flow generation in 2025 [2]. Macro Environment and Growth Opportunities - The commercial aerospace sector is recovering strongly post-pandemic, with RPK growth of 5% last year and projected 5% growth this year. There is a demand for 40,000 new aircraft over the next 20 years, exceeding the current installed base [7]. - On the defense side, global defense budgets are increasing, with NATO aiming for 3.5% of GDP and regions like APAC and MENA showing 3%-4% growth [7]. Segment-Specific Insights Collins Aerospace - Collins has $105 billion of out-of-warranty content generating significant aftermarket returns. It holds a leading position in 70% of its product segments [9]. - The segment is well-positioned to benefit from increased production rates from Boeing and Airbus, with an expected margin expansion of about 80 basis points in 2026 [59]. Pratt & Whitney - The GTF program has expanded significantly, with an 8,000 engine backlog and expected certification of the GTF Advantage this year [43]. - MRO output grew by 26% year-over-year, with a focus on reducing AOGs (Aircraft on Ground) [45]. Raytheon - Raytheon has a backlog of $75 billion, with new framework agreements with the Department of Defense aimed at ramping production over the next decade [18]. - The company is seeing strong demand for integrated air and missile defense systems, with a focus on replenishment opportunities in the U.S. and international markets [19][29]. International Demand - 47% of the backlog is international, with significant demand stemming from high-profile situations globally, such as in Ukraine and the Middle East [29][31]. - Over 30% of 2025 sales were international, indicating a strong growth trajectory in this area [32]. Supply Chain Management - RTX emphasizes a collaborative approach to supply chain management, integrating suppliers into their operations to ensure timely delivery and quality [78]. - Key areas of focus include castings, rocket motors, microelectronics, and critical minerals, with ongoing efforts to improve supply chain resilience [83][89]. Continuous Improvement and Technology Roadmap - The CORE operating system is being utilized to drive continuous improvement across all functions, with nearly 12,000 events conducted last year [94]. - RTX is focused on technology roadmaps in areas such as advanced materials, additive manufacturing, and AI, ensuring alignment across its businesses [121]. M&A and Portfolio Management - The focus is on maximizing the existing portfolio rather than adding new businesses, with a strong emphasis on executing the $268 billion backlog [112][115]. - RTX is open to bolt-on acquisitions that align with its core technology strategy, particularly in areas that enhance its existing capabilities [125]. Conclusion - RTX is well-positioned to capitalize on macro trends in aerospace and defense, with a strong backlog and ongoing investments in innovation and capacity expansion. The focus remains on executing current contracts and exploring future growth opportunities [133].

Core Insights - The Zacks Equity Research team has highlighted several stocks, including AbbVie Inc., RTX Corp., International Business Machines Corp., EVI Industries, Inc., and Rocky Mountain Chocolate Factory, Inc. in their Analyst Blog [1][2] AbbVie Inc. (ABBV) - AbbVie shares have increased by 13.8% over the past six months, while the Zacks Large Cap Pharmaceuticals industry has gained 29.5% [4] - The company exceeded fourth-quarter estimates for both earnings and sales, successfully managing the loss of exclusivity for Humira by launching new immunology drugs, Skyrizi and Rinvoq, which are performing well [4][5] - AbbVie's neuroscience portfolio is also contributing to revenue growth, with robust net sales growth reported in 2025, marking the second full year post-Humira's loss of exclusivity [5] RTX Corp. (RTX) - RTX shares have outperformed the Zacks Aerospace - Defense industry, gaining 29.2% compared to 11.7% over the past six months [6] - The company reported fourth-quarter earnings and revenues that surpassed estimates, benefiting from strong orders for defense products from the Pentagon and foreign allies [6][7] - RTX's backlog reached $268 billion as of December 31, 2025, supported by improving global commercial air traffic [8] International Business Machines Corp. (IBM) - IBM shares have risen by 10.8% over the past six months, while the Zacks Computer - Integrated Systems industry has gained 61.4% [9] - The company reported strong fourth-quarter results, with adjusted earnings and revenues exceeding estimates, driven by growth in hybrid cloud, AI-powered automation, and enterprise consulting [9][10] - IBM is focusing on its Watsonx platform for AI capabilities and quantum technology, although it faces challenges from traditional business weaknesses and high debt levels [11] EVI Industries, Inc. (EVI) - EVI shares have outperformed the Zacks Industrial Services industry, increasing by 24.4% over the past year [12] - The company reported a 24% revenue increase in the December quarter and a 20% rise for the first six months of FY26, with gross margin expanding to approximately 31% [12][13] - Despite solid revenue growth, net income has dipped due to rising SG&A expenses, and the company faces increased working capital demands [14] Rocky Mountain Chocolate Factory, Inc. (RMCF) - Rocky Mountain shares have outperformed the Zacks Retail - Restaurants industry, gaining 51.1% over the past year [15] - The company is focusing on margin improvement, with manufacturing gross margin rising to 21.4% from 10%, and EBITDA turning positive [15][16] - However, Rocky Mountain faces liquidity risks and high-cost debt, which could impact its operational stability [17]

Core Viewpoint - Trump's America First agenda is significantly boosting industrial ETFs like the Industrial Select Sector SPDR Fund (XLI), which has returned 28% over the past year compared to 12% for the S&P 500 [1] Group 1: Fund Performance - The Industrial Select Sector SPDR Fund (XLI) has a pure industrial focus with 81 holdings and an annual fee of 0.08% [1] - XLI's top holdings include GE Aerospace and RTX, with the top ten holdings representing 40% of the fund's assets [1] - The fund has generated significant alpha, with five-year gains of 108% and year-to-date 2026 returns of 12.3% [1] Group 2: Economic Context - The industrial sector benefits from GDP growth acceleration, infrastructure spending commitments, and defense budget increases, with current GDP growth at 4.4% [1] - Aerospace and defense companies are positioned to benefit from military modernization spending and the recovery of commercial aviation as travel demand normalizes [1] - Traditional cyclicals like Caterpillar are expected to gain from new construction projects and mining operations [1] Group 3: Risks and Constraints - The fund's performance is highly cyclical, and demand for industrial companies can evaporate quickly during economic slowdowns, as indicated by a 0.64% year-over-year decline in manufacturing employment [1] - XLI carries concentration risk, as a downturn in major holdings like Boeing or Caterpillar could significantly impact the entire portfolio [1]

RTX's Collins Aerospace named a Crystal Cabin Award finalist [Accessibility Statement] Skip NavigationThe SkyNook suite transforms unused space into a flexible, semi-private retreat at the aft of a widebody aircraftWINSTON-SALEM, N.C., Feb. 17, 2026 /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: RTX) business, has been named a finalist for a 2026 Crystal Cabin Award for its SkyNook suite. The Crystal Cabin Award is an international honor recognizing innovation, excellence and creativity in aircraft cabin ...

Core Viewpoint - Raytheon, a business unit of RTX, has been awarded a contract to develop domestic production capabilities for thin film lithium niobate (TFLN) wafers, which are critical for high-speed communications and advanced sensing systems, aiming to reduce reliance on foreign sources [1] Group 1: Contract and Production - The contract is awarded by the Air Force Research Laboratory to establish a domestic supply of TFLN wafers, essential for both defense and commercial applications [1] - Raytheon will collaborate with US-based company G&H to develop the manufacturing process for high-quality TFLN wafers, with production expected to transition to G&H in early 2026 [1] Group 2: Supply Chain and Market Impact - The initiative aims to create a secure, independent U.S. supplier of TFLN, addressing vulnerabilities in the supply chain due to foreign market dominance [1] - The establishment of G&H as a domestic supplier is seen as crucial for enhancing supply chain resilience for both defense and commercial sectors [1] Group 3: Company Background - Raytheon has over 100 years of experience in developing defense solutions, including advanced technologies in air and missile defense, smart weapons, and sensors [1] - RTX employs more than 180,000 people globally and reported sales exceeding $88 billion in 2025, focusing on advancing technology and integrated defense systems [1]

Market Overview - The equity market experienced a positive period in 2025, with the S&P 500 Index returning 2.7% in Q4 and finishing the year up 17.9% [1] - The year began with potential disruptions and heightened volatility but ended with optimism driven by strong AI investment, clarity in policies, and U.S. Federal Reserve interest rate cuts [1] - The performance of the market was significantly influenced by the communication services and technology sectors, with earnings growth being a key driver of market expansion [1] Fund Performance - Carillon Eagle Growth & Income Fund holds net assets of $493.06 million across 48 holdings [1] - The Fund is optimistic about achieving another year of strong equity returns as it approaches 2026 [1] RTX Corporation Highlights - RTX Corporation (NYSE:RTX) was noted as a significant contributor to the Fund's performance, with a one-month return of -1.66% and a 52-week gain of 56.16% [2] - As of February 11, 2026, RTX Corporation's stock closed at $196.51 per share, with a market capitalization of $262 billion [2] - The positive performance of RTX Corporation was attributed to a strong third-quarter earnings report, showcasing improved revenue and earnings growth [3] - Key end markets such as commercial aerospace and global defense are expected to drive continued growth for RTX Corporation in the coming years [3] Financial Performance - RTX Corporation reported $24.2 billion in adjusted sales for Q4 2025, reflecting a 12% increase on an adjusted basis and a 14% organic growth [4] - Despite the potential of RTX Corporation as an investment, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Insights - The focus on 'Big Picture' investment ideas has intensified in recent weeks, with discussions occurring almost daily [1] Group 1: Investment Strategy - Leo Nelissen is identified as a long-term investor and macro-focused strategist, emphasizing dividend growth and high-quality compounders [2] - The investment approach combines macro analysis with bottom-up stock research to identify businesses with strong cash-flow potential [2] Group 2: Analyst Disclosure - The analyst has disclosed a beneficial long position in several companies, including CNQ, UNP, CP, ODFL, AM, RTX, TDG, and GE [3]

Core Viewpoint - Raytheon Technologies (RTX) is facing political pressure from former President Trump, who demands increased investment and warns that failure to comply may affect its defense contracts [1][2]. Industry Policy and Environment - In January 2026, Trump publicly criticized Raytheon Technologies for insufficient responsiveness to the Department of Defense's needs, urging the company to increase investments in facilities and equipment while halting stock buybacks, which could lead to strategic adjustments [2]. Institutional Views - On January 5, 2026, UBS downgraded Raytheon Technologies' rating to "Neutral" with a target price set at $199, reflecting a cautious outlook on the company's short-term prospects [3]. Recent Stock Performance - On February 4, 2026, Raytheon Technologies experienced a surge in trading volume to $2.25 billion, but the stock price fell by 3.32% to $196.74, indicating increased market volatility [4].

Core Insights - RTX Corporation has experienced a 9.8% increase since the last report, indicating strong performance in its Q4 earnings report with significant beats on both revenue and earnings [1] Group 1: Company Performance - RTX Corporation reported a strong performance in Q4, surpassing expectations on both top and bottom lines [1] - The company is recognized as a major player in the aerospace and defense sector, showcasing substantial growth prospects [1] Group 2: Analyst Background - The analysis is conducted by an experienced aerospace, defense, and airline analyst with a background in aerospace engineering, providing valuable insights into the industry [1] - The analyst runs The Aerospace Forum, which aims to identify investment opportunities within the aerospace, defense, and airline sectors [1]