RTX Stock in Focus on Report Trump May Send Tomahawk Missiles to Ukraine
A potential order for the company's signature cruise missile could significantly boost the defense contractor's future revenue and order backlog.
Shares of defense manufacturing giant RTX are on watch following a report that former President Donald Trump is considering a significant policy shift that could involve sending Tomahawk cruise missiles to Ukraine. The potential for a large-scale order of these long-range, precision-strike weapons has put a spotlight on the contractor, given the potential impact on its future revenue streams.
The consideration was highlighted in a detailing potential foreign policy moves should Trump return to office. As the sole manufacturer of the Tomahawk, a staple in the U.S. military's arsenal for decades, RTX would be the direct beneficiary of any such decision. An order of this magnitude would represent a substantial addition to the company's production pipeline and backlog, providing a multi-year revenue catalyst.
The conflict in Ukraine has already had a profound impact on the global defense industry. The sustained fighting has led to a surge in military spending as nations re-evaluate their defense capabilities and backfill stockpiles of munitions sent to aid Kyiv. This trend has , with investors anticipating a prolonged period of elevated government spending on military hardware.
RTX's Tomahawk program is already a key part of its portfolio, with the U.S. Department of Defense recently awarding the company a for the production of the latest Block V variant for the U.S. Navy and allied nations. The missile system is known for its range of up to 1,600 miles and its advanced capabilities, including in-flight retargeting. While a potential Trump administration and any subsequent policy changes are not yet certain, the report alone is enough to draw investor attention to RTX's strategic position as a critical supplier of advanced weaponry in a period of heightened geopolitical tension.