RTX Stock Eyes New Highs as Raytheon Drops $100M on Missile-Defense Expansion

TLDR

• Raytheon will invest $100M to expand its Portsmouth, Rhode Island facility, adding 150 high-tech jobs
• The expansion supports production of Patriot GEM-T missile components and LTAMDS radar testing
• RTX stock opened at $181.26 on Monday; Jefferies recently upgraded the stock to Buy with a $220 price target
• RTX reported Q1 EPS of $1.78, beating estimates of $1.52, with revenue of $22.08 billion
• RTX raised its quarterly dividend to $0.73 per share, up from $0.68

Raytheon, a business unit of RTX (RTX), announced Monday it will put $100 million into expanding its Portsmouth, Rhode Island facility. The project is set to boost production of missile-defense components and speed up testing of a key next-generation radar system.

RTX Corporation, RTX

RTX stock opened at $181.26 on Monday, giving the company a market cap of $244.10 billion. The stock sits below its 52-week high of $214.50 but well above its 52-week low of $135.43.

The $100 million investment will fund two main goals. First, it will ramp up production of components for the Patriot GEM-T interceptor missile. Second, it will expand testing capacity for the Lower Tier Air and Missile Defense Sensor, known as LTAMDS.

LTAMDS is a next-generation radar built to detect and track advanced threats, including hypersonic weapons. Raytheon is under contract to supply the system to both the U.S. Army and Poland.

The program recently completed its ninth flight test. During that test, multiple radar arrays were used to track and support the interception of a target simulating an airborne threat.

The GEM-T missile is a core part of the Patriot air and missile defense system. It’s designed to take down aircraft, cruise missiles, and tactical ballistic missiles.

The Portsmouth expansion is expected to create 150 high-tech jobs. RTX currently employs more than 850 people in Rhode Island, where it has operated for more than six decades.

Analyst Upgrades and Navy Contract

This announcement isn’t the only good news circling RTX right now. Jefferies recently upgraded the stock from Hold to Buy, lifting its price target from $210 to $220. The firm cited improving profit margins, defense business strength, and growth in commercial aerospace aftermarket revenue.

Morgan Stanley kept its Overweight rating but trimmed its target from $235 to $220. Deutsche Bank maintained its Buy rating with a $240 target. The average analyst consensus sits at “Moderate Buy” with a price target of $211.38.

RTX also recently won a $515 million U.S. Navy contract for its SPY-6 radar systems, adding to its growing defense electronics book.

Strong Q1 Earnings and Dividend Hike

RTX reported Q1 earnings of $1.78 per share, clearing the analyst estimate of $1.52 by $0.26. Revenue came in at $22.08 billion, above the expected $21.38 billion, and up 8.7% year-over-year.

The company guided full-year 2026 EPS to a range of $6.60 to $6.80. Analysts collectively expect $6.91 for the fiscal year.

RTX also raised its quarterly dividend to $0.73 from $0.68 per share. The increased dividend was paid June 11 to investors of record as of May 22.

This Rhode Island expansion follows a $53 million project Raytheon launched last year at its radar production facility in Andover, Massachusetts.

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