RTX Shares Rise on Potential Tomahawk Missile Supply to Ukraine
A report suggesting a Trump administration could arm Ukraine with Tomahawk cruise missiles signals a potential windfall for the defense contractor.
Shares of defense manufacturing giant RTX (NYSE: RTX) gained traction following a report that former President Donald Trump is considering a plan to supply Ukraine with Tomahawk cruise missiles in an effort to increase pressure on Russia.
The plan, , could represent a significant new stream of high-margin orders for RTX, the exclusive manufacturer of the sophisticated long-range weapon. Such a move would mark a major development in U.S. policy towards the conflict and directly benefit one of the Pentagon's largest contractors.
The Tomahawk is a cornerstone of the U.S. Navy's arsenal, a subsonic cruise missile capable of striking high-value targets with precision from over 1,000 miles away. , continually upgrading its guidance and payload systems. The weapon's effectiveness was recently demonstrated in strikes against Houthi targets in Yemen carried out by U.S. and U.K. naval forces.
A potential order for Ukraine would add to a growing international demand for the Tomahawk. The U.S. Department of Defense recently announced a $401.2 million contract with RTX for 131 Tomahawk Block V missiles. A significant portion of that order is designated for new international customers, including , signaling a widening market for the weapon system amid rising global tensions.
For RTX, formerly Raytheon Technologies, a large-scale order for Ukraine would provide a substantial boost to its Missiles & Defense division, which manufactures the weapon at its advanced facility in Tucson, Arizona. Investors are watching closely, as the execution of such a deal would reinforce the company's position as a critical supplier of advanced munitions to the U.S. and its allies, potentially leading to a re-evaluation of the company's growth prospects and stock valuation.