RTX’s Collins Aerospace Gets US Navy Contract With $904M Earnings Potential: Retail Gets More Optimistic

synopsis

Shares of RTX Corp (RTX) traded marginally in the green on Wednesday after the company disclosed that Collins Aerospace, an RTX business, has been awarded a follow-on contract with a potential value of up to $904 million over five years to continue developing the U.S. Navy's Cooperative Engagement Capability.

This system integrates sensors across surface, land, and air platforms to enable Integrated Fire Controls.

RTX has been the sole provider of the Cooperative Engagement Capability (CEC) since 1985, and the new sole source contract follows an existing five-year Design Agent contract.

Ryan Bunge, vice president and general manager of C4I & Autonomy Solutions at Collins Aerospace, said the Cooperative Engagement Capability is a key enabler for supporting the Navy's expanding distributed maritime operations.

"The capabilities we've been developing for years are time-tested solutions that enable integrated fire controls across the Joint Services,” he said.

Recently, RTX reported a 9% growth in its fourth-quarter sales to $21.6 billion and a 19% surge in its adjusted earnings per share (EPS) of $1.54.

For 2025, RTX expects adjusted sales of $83 billion - $84 billion, including 4% to 6% organic growth and adjusted EPS of $6.00-$6.15.

On Stocktwits, retail sentiment continued to trend in the ‘bullish’ territory (60/100) accompanied by high message volume.

RTX’s Sentiment Meter and Message Volume as of 10:07 a.m. ET on Jan. 29, 2025 | Source: Stocktwits

Retail users on Stocktwits expect the shares to hit the $150 mark.

RTX shares have risen over 10% year-to-date and have surged nearly 42% over the past year.

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