Category: 3. Business

This article first appeared on GuruFocus.

RTX Corporation (formerly Raytheon Technologies) is one of the world’s largest aerospace and defense companies, created through the merger of Raytheon and United Technologies. The company operates through three major segments: Collins Aerospace, which supplies aircraft systems, avionics, and interiors; Pratt & Whitney, known for its advanced jet engines and geared-turbofan technology; and Raytheon, a global leader in defense electronics, missile systems, radar, and intelligence solutions.

This dual-engine structure, balancing commercial aerospace with defense and government programs, gives RTX a uniquely diversified revenue base. The commercial side captures cyclical growth tied to global air travel and fleet modernization, while the defense portfolio provides steady, long-term cash flows supported by government budgets and multi-year contracts. This blend offers resilience through market cycles and positions RTX as a rare large-cap player with both growth and stability within the aerospace-defense sector.

RTX posted another strong quarter, with adjusted revenue of US$22.48 billion, up roughly 12 % year-on-year and ahead of consensus estimates of about US$21.3 billion. Organic growth stood at approximately 13 %, reflecting broad-based momentum even after accounting for divestitures. Adjusted EPS rose 17 % to US$1.70 versus US$1.45 in Q3 2024, while GAAP EPS came in at US$1.41, including about US$0.29 in acquisition-related adjustments. Free cash flow more than doubled to US$4.0 billion, underscoring improved execution and working-capital efficiency.

The company’s backlog climbed to a record US$251 billion, of which US$148 billion is from commercial programs and US$103 billion from defense, providing multi-year revenue visibility. Collins Aerospace delivered US$7.62 billion in sales (+8 %) and US$1.19 billion in operating profit (+9 %), supported by strong commercial OE (+16 %) and aftermarket (+13 %) growth. Pratt & Whitney reported US$8.42 billion in sales (+16 %) and US$751 million in profit (+26 %), led by a 23% surge in aftermarket and 15% military growth. Raytheon posted US$7.05 billion in sales (+10%) and US$859 million in profit (+30%), driven by robust demand across land, air, and naval defense programs.

Reflecting this performance, management raised full-year 2025 guidance. Adjusted sales are now expected to be between US$86.5 and 87.0 billion (up from US$84.7585.5 billion), and adjusted EPS to be between US$6.10 and 6.20 (up from US$5.805.95), while maintaining free cash flow guidance at US$7.07.5 billion.

RTX’s growth momentum remains strong across both commercial and defense segments. Collins Aerospace posted 16% OE and 13% aftermarket growth, reflecting a sustained aviation rebound, rising MRO activity, and airlines’ push for fuel-efficient upgrades. On the defense side, Raytheon secured about US$37 billion in new awards, lifting the total backlog to a record US$251 billion. Heightened global tensions and steady defense spending continue to support demand for RTX’s missile, radar, and command-and-control systems. With smoother production, supply-chain normalization, and stronger backlog conversion, management’s raised sales and EPS guidance underscores improving execution and free-cash-flow visibility through 2026.

That said, RTX still faces margin and execution risks. Input-cost inflation, especially in metals and electronics, could pressure profitability, while Pratt & Whitney’s rapid ramp-up in engine programs raises supply-chain and quality-control challenges. The commercial aviation rebound also remains cyclical and exposed to macro volatility. Even so, RTX enters the next phase from a position of strength, supported by solid demand, rising efficiency, and consistent FCF generation. If it sustains this operational rhythm, the premium valuation appears warranted, cementing RTX’s place among the most balanced and resilient aerospace and defense players globally.

Global defense spending continues to rise, giving RTX a durable structural tailwind and long-term earnings visibility. With defense budgets expanding across the U.S., Europe, and Asia, RTX’s Raytheon division stands to benefit from its leadership in missile defense, radar, and command-and-control systems. The company’s US$37 billion in new awards during Q3 and a record US$251 billion backlog highlight its deep integration in next-generation defense platforms and multi-year contracts that enhance revenue predictability and cash-flow resilience. On the commercial side, the aviation recovery is led by fleet modernization in Asia and India is driving sustained growth for Pratt & Whitney’s GTF engines and Collins Aerospace’s avionics and systems. This blend of cyclical commercial exposure and steady defense revenues gives RTX rare diversification and stability among aerospace peers.

Looking ahead, RTX’s focus on technology innovationhybrid-electric propulsion, next-gen missile systems, and digital avionics, adds optional upside to its intrinsic value. The path forward hinges on flawless execution: timely backlog conversion, operational efficiency, and continued R&D leadership. RTX’s premium valuation reflects high confidence in its ability to deliver; maintaining that trust will depend on consistent performance and disciplined capital allocation in both its commercial and defense businesses.

Lockheed Martin (NYSE:LMT): Similar Scale, Lower Growth, Higher Cash Efficiency

Lockheed Martin remains RTX’s closest peer in scale and end-market exposure, though its revenue base leans more purely toward defense programs. In Q3 FY2025, Lockheed reported US$18.6 billion in sales (+9% YoY) and free cash flow of US$3.3 billion, representing an FCF margin near 17%. RTX outpaced Lockheed in both top-line growth (+12%) and cash generation (+104% YoY), signaling stronger post-pandemic commercial recovery leverage through Collins Aerospace and Pratt & Whitney. However, Lockheed’s backlog of US$179 billion remains highly defense-concentrated, offering steadier predictability and less exposure to commercial cyclicality. Its ROIC (~13%) is higher than RTX’s mid-single-digit level, indicating more efficient capital allocation. While RTX shows higher momentum in revenue and FCF efficient operator.

General Dynamics (GD): Stable Performer, Lower Growth but Leaner Valuation

General Dynamics is a diversified defense contractor spanning aerospace (Gulfstream), combat systems, marine systems, and IT services. For the same quarter, GD delivered ~US$11.5 billion in revenue (+6% YoY) with operating margins around 10%, roughly half of RTX’s growth rate. Its backlog stood near US$93 billion, materially smaller than RTX’s US$251 billion. The primary difference lies in exposure, GD’s business model is heavily defense-weighted with corporate aviation as the only cyclical leg. RTX’s mix gives it greater near-term growth potential but also higher volatility. In valuation terms, GD trades near 19 forward earnings, well below RTX’s 29, reflecting investor preference for RTX’s growth narrative but also GD’s stronger value case. Compared to GD, RTX offers superior organic expansion and margin recovery potential, though at a much higher multiple that assumes flawless execution.

Northrop Grumman (NOC): Margins Lead, Growth Lags

Northrop Grumman reported ~US$10.5 billion in Q3 sales (+7% YoY), with an operating margin of ~11% and a backlog near US$78 billion. Its growth pace trails RTX, but Northrop continues to lead in margin quality and contract profitability. The company’s exposure to classified programs and missile defense yields a steadier earnings base but limits growth acceleration in the near term. RTX, by contrast, enjoys both defense growth and a commercial aerospace rebound, giving it a broader runway for double-digit revenue expansion. However, that same dual exposure also brings higher cyclicality and integration risk. While Northrop’s FCF yield (~3.5%) is below RTX’s post-Q3 run-rate (~4.5%), its lower volatility and balanced contract structure keep it favored among conservative defense investors. Overall, RTX’s growth leadership comes at the expense of higher expectations and a premium valuation versus NOC’s steadier, more predictable model.

From a capital discipline standpoint, RTX’s return on invested capital (ROIC) of roughly 89% sits broadly in line with Lockheed Martin (~9%) and General Dynamics (~8%), indicating comparable cash efficiency rather than clear outperformance. This parity underscores that the current valuation premium is rooted more in growth expectations than in any structural capital-return advantage.

In relative terms, RTX is outgrowing all major U.S. defense peers, expanding its top line faster and showing stronger near-term free-cash-flow momentum. Its US$251 billion backlog also surpasses peers both in size and diversification. However, the company’s forward P/E of ~29 versus peer averages of 1921 reflects that the market already prices in superior execution, margin recovery, and steady cash conversion. The trade-off is clear: RTX’s commercial leverage offers cyclical upside, while Lockheed, GD, and NOC represent steadier but slower compounding models. For investors seeking growth within aerospace and defense, RTX remains the sector leader; for value and stability, its peers may offer better entry risk-reward at current multiples.

Notably, GuruFocus data indicates relatively limited involvement from well-known value investors in RTX at present. While large institutions and index funds maintain sizable passive holdings, few high-conviction value managers, such as Warren Buffett (Trades, Portfolio), Seth Klarman (Trades, Portfolio), or Tom Gayner (Trades, Portfolio), hold material positions. In contrast, peers like Lockheed Martin and General Dynamics feature more prominent ownership among long-term value funds. This muted participation suggests that while the market is pricing RTX for growth, disciplined value investors may be waiting for a more attractive entry point or greater proof of sustained free-cash-flow expansion before committing capital.

RTX’s latest results reaffirm its position as one of the most balanced and execution-driven players in global aerospace and defense. Its integrated commercialdefense model, blending Pratt & Whitney’s propulsion innovations, Collins Aerospace’s avionics, and Raytheon’s defense systems, enables technology sharing and scale efficiencies that few peers can replicate. In capital terms, RTX’s ROIC of around 89% remains comparable to peers like Lockheed Martin and General Dynamics, reflecting disciplined but not superior efficiency. This makes growth execution, rather than margin dominance, the critical driver of future value. Interestingly, GuruFocus data shows relatively limited participation from well-known value investors, which could help explain the valuation stretch, a market that’s confident in growth but cautious on cash realization.

With shares trading near 29 forward earnings, RTX’s valuation assumes continued backlog conversion, double-digit EPS growth, and expanding free cash flow. If the company sustains these trends, its intrinsic value could converge toward the upper end of the $195225 range. But given the high expectations, even minor execution shortfalls could trigger multiple compressions. RTX remains a high-quality compounder with durable tailwinds, but at current levels, conviction requires faith in flawless delivery rather than undervaluation.

India is entering a phase of rapid economic growth, with markets, innovation, and investment opportunities expanding at an unprecedented pace. For individuals under 40, this creates a unique chance to build substantial wealth if approached strategically. Chartered accountant Nitin Kaushik recently highlighted that young professionals have the potential to become crorepatis by adopting disciplined financial habits and leveraging the long-term growth of India’s economy with the power of compounding.

In a post shared on X, Kaushik emphasizes that financial discipline is the foundation of wealth accumulation. “If you save at least half of your income consistently, you create the base for substantial wealth over time,” he points out. For someone earning ₹1 lakh per month, saving 50% sets the stage for significant growth without drastically changing lifestyle choices.

Smart Investment Choices

Saving alone is not enough. Investing wisely is the next step. Kaushik recommends putting around 70% of your savings into equities, such as systematic investment plans (SIPs), index funds, or carefully selected quality stocks. Equities, he explains, benefit from India’s growth trajectory and the long-term upward trend of markets.
“Investing consistently in equities allows your money to grow exponentially,” Kaushik notes. By focusing on long-term growth rather than short-term market fluctuations, investors can harness the power of compounding.

Consistency Over Decades

Perhaps the most critical factor, according to Kaushik, is time. Staying invested for 20 years or more can turn a monthly SIP of ₹1 lakh into more than ₹10 crore, assuming a reasonable 12% annual return. “This isn’t a fantasy or luck. It’s mathematics working quietly behind the scenes,” he adds.Kaushik stresses that investors do not need to engage in daily trading or attempt to time the market. Instead, the focus should be on believing in India’s long-term economic growth and remaining invested through market cycles.

The Three Habits To Build Wealth

From Kaushik’s insights, three habits emerge for wealth creation before 40:

• Save aggressively: Set aside at least 50% of monthly income.

• Invest wisely: Allocate the majority of savings to equities for long-term growth.

• Be patient and consistent: Maintain investments for decades to leverage compounding.

Those who adopt discipline, strategic investment, and patience now could enjoy a life of financial security and wealth accumulation in the years to come.

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Patients with HIV may be able to switch from a multi-tablet regimen to a single-tablet regimen, as a single-tablet regimen of bictegravir 75 mg/lenacapavir 50 mg (BIC/LEN) was found to be equally effective when patients switched from multi-tablet regimens to treat their HIV diagnosis. These results come from the ARTISTRY-1 clinical trial, a phase 3 study.¹

Results from the ARTISTRY-1 trial had previously been published earlier in the year, with ARTISTRY-1 showing BIC/LEN was able to keep all but 1 of 103 participants virally suppressed compared with all 25 patients who remained virally suppressed on complex antiretroviral therapy (ART) regimens through 24 weeks.² These new results update the previous study to evaluate the efficacy through 48 weeks.

Patients on complex regimens are often not able to benefit from single-tablet regimens due to drug-drug interactions, pre-existing resistance, and tolerability, which can leave them with a higher burden of pills to take. Those who participated in ARTISTRY-1 were taking between 2 and 11 pills per day to continue to be virally suppressed. The single-tablet regimen of BIC/LEN aims to address these patients by offering a combination therapy in a single tablet.

“Gilead developed the first single-tablet complete regimen for the treatment of HIV in 2006. Today, innovative single-tablet regimens are still needed to help suit people’s needs, modernizing treatment while helping to sustain viral suppression. By reducing the multi-tablet burden, we hope to improve health outcomes while expanding options,” said Jared Baeten, MD, PhD, senior vice president of clinical development at Gilead Sciences.¹

BIC is an integrase strand transfer inhibitor that has a higher barrier to resistance and is only used in combination. LEN has been approved as a method of pre-exposure prophylaxis but has also been used to treat multi-drug-resistant HIV in adults, with its use approved in multiple countries.

Participants of the ARTISTRY-1 trial were aged 18 years or older,² were virally suppressed for at least 6 months before screening, and were on a stable, complex ART regimen for at least 6 months due to either intolerance, previous viral resistance, or a contraindication to existing single-tablet regimens. Participants were recruited from Australia, Canada, the US, the Dominican Republic, and Puerto Rico.

For the phase 3 part of the study, participants were randomized 2:1 to either BIC/LEN or continued their baseline complex regimen. The study looked for a primary end point of viral suppression of less than 50 copies/mL after 48 weeks, as well as, change in baseline CD4 cell count and the occurrence of treatment-emergent adverse events (TEAEs).

In new results whose details will be revealed at a later date, researchers found that the primary efficacy end point of ARTISTRY-1 was met through 48 weeks and was well-tolerated in the patients.

“These ARTISTRY-1 trial results demonstrate that a combination regimen of bictegravir and lenacapavir maintains viral suppression in people living with HIV who would otherwise have to take a complex multi-tablet regimen. The findings are significant for those people, many of whom have lived with HIV for decades and who have medical comorbidities of aging and thus take many other medications as well,” said Chloe Orkin, MBE, clinical professor of Infection and Inequities at Queen Mary University of London.¹

References

1. Gilead’s investigational single-tablet regimen of bictegravir and lenacapavir for HIV-1 treatment meets primary endpoint in phase 3 ARTISTRY-1 trial. News release. Gilead. November 13, 2025. Accessed November 14, 2025. https://www.gilead.com/news/news-details/2025/gileads-investigational-single-tablet-regimen-of-bictegravir-and-lenacapavir-for-hiv-1-treatment-meets-primary-endpoint-in-phase-3-artistry-1-trial

2. Mounzer K, Slim J, Ramgopal M, et al. Efficacy and safety of switching to daily bictegravir plus lenacapavir from a complex HIV treatment regimen: a randomized, open-label, multicenter phase 2 study (ARTISTRY-1). Clin Infect Dis. 2025;80(4):881-888. doi:10.1093/cid/ciae522

This November has already provided many exciting developments across the multidisciplinary oncology world. Within the first half of the month alone, the FDA has been busy issuing new approvals and regulatory nods across different breast cancer, leukemia, and gynecologic malignancy populations. Additionally, presentations from the recent 2025 Society for Immunotherapy of Cancer Annual Meeting showcased novel treatment modalities that may show utility across various treatment settings.

CancerNetwork^® reported on these latest potential shakeups across oncology. Here are the top 5 takeaways of the week that may influence the future of the field.

#1: FDA Approves Pertuzumab Biosimilar in Breast Cancer Indications

The FDA approved an interchangeable biosimilar formulation of pertuzumab (Perjeta) known as pertuzumab-dpzb (Poherdy), a HER2-neu receptor agonist, in different breast cancer populations.¹

Based on various comparisons of parameters related to safety and efficacy, pharmacokinetic data, clinical immunogenicity findings, and supportive clinical data, the agency determined that the biosimilar exhibited sufficient similarity to the reference product. The biosimilar is indicated for use in combination with agents like trastuzumab (Herceptin) across different treatment settings, including adults with HER2-positive metastatic breast cancer who have not received prior anti-HER2 treatment or chemotherapy for metastatic disease.

#2: FDA Approves Ziftomenib in R/R NPM1-Mutated Acute Myeloid Leukemia

Another key regulatory decision was the FDA’s approval of ziftomenib (Komzifti) for patients with relapsed/refractory acute myeloid leukemia (AML) harboring NPM1 mutations, based on data from the phase 1b/2 KOMET-001/KO-MEN-001 trial (NCT04067336).²

Topline results from the study showed that 21.4% (95% CI, 14.2%-30.2%) of evaluable patients achieved a complete response (CR) or CR with partial hematologic recovery. Additionally, in 66 patients with red blood cell and/or platelet transfusion dependence at baseline, transfusion independence at any 56-day post-baseline period occurred in 14 (21.2%).

#3: Mecbotamab Vedotin Shows Positive OS Results in Soft Tissue Sarcoma

Data presented at SITC 2025 showed that treatment with mecbotamab vedotin (Mec-V) elicited an overall survival (OS) benefit for those with treatment-refractory leiomyosarcoma, liposarcoma, or undifferentiated pleomorphic sarcoma in a phase 2 trial (NCT03425279).³

Across the overall population, the median OS was 18.4 months (95% CI, 7.2-not evaluable [NE]) with Mec-V alone and 22.9 months (95% CI, 14.2-NE) with Mec-V plus nivolumab (Opdivo). Across different subgroups, the median OS was 19.0 months (95% CI, 7.9-29.9) for patients with leiomyosarcoma, 21.7 months (95% CI, 3.7-NE) for those with liposarcoma, and 21.5 months (95% CI, 5.0-NE) for those with undifferentiated pleomorphic sarcoma.

#4: Novel T-Cell Therapies Yield Decade-Long Remission in Epithelial Cancer

In other presentations shared at SITC 2025, investigational cellular therapies demonstrated various benefits across different epithelial cancer populations.

Findings from one single-center phase 2 trial (NCT05686226) showed that T cell receptor (TCR)–T-cell therapy could produce responses in a small cohort of patients with metastatic HPV-associated cancers.⁴ Moreover, another presentation on a different phase 2 trial (NCT01585428) highlighted 2 patients with metastatic cervical cancer who remained in CR for at least 10 years following a single infusion of tumor-infiltrating lymphocyte therapy.⁵

#5: FDA Approves Diagnostic Tool for Pembrolizumab Combo in Endometrial Cancer

In another notable decision from the FDA, the agency approved the Promega OncoMate^® MSI Dx Analysis System as a companion diagnostic for identifying patients with microsatellite-stable endometrial carcinoma who may benefit from treatment with pembrolizumab (Keytruda) in combination with lenvatinib (Lenvima).⁶

Previously, the agency approved pembrolizumab/lenvatinib for this endometrial carcinoma population in July 2021.⁷ This decision was based on findings from the phase 3 KEYNOTE-775 study (NCT03517449).

References

1. FDA approves new interchangeable biosimilar to Perjeta. News release. FDA. November 13, 2025. Accessed November 14, 2025. https://tinyurl.com/2vzwt6ej
2. FDA approves ziftomenib for relapsed or refractory acute myeloid leukemia with a NPM1 mutation. News release. FDA. November 13, 2025. Accessed November 14, 2025. https://tinyurl.com/2mcsxzuv
3. Druta M, Pollack SM, Conley AP, et al. Median OS of 21.5 months among 44 patients with treatment-refractory leiomyosarcoma, liposarcoma, and undifferentiated pleomorphic sarcoma treated with mecbotamab vedotin, an AXL-targeting ADC. Presented at the Society for Immunotherapy of Cancer (SITC) 2025 Annual Meeting; National Harbor, MD; November 5-9, 2025.
4. Norberg SM, Doran SL, Cao J, et al. Complete tumor regression of metastatic epithelial cancer following T cell receptor (TCR)-T cell therapy. Presented at the Society for Immunotherapy of Cancer (SITC) 2025 Annual Meeting; National Harbor, MD; November 5-9, 2025. Abstract 366.
5. Norberg SM, Biswas A, Krishnamurthy S, et al. Decade-long epithelial cancer remissions from cellular therapy. Presented at the Society for Immunotherapy of Cancer (SITC) 2025 Annual Meeting; National Harbor, MD; November 5-9, 2025. Abstract 377.
6. FDA approves Promega OncoMate MSI Dx Analysis System as companion diagnostic for KEYTRUDA in combination with LENVIMA in advanced endometrial carcinoma. News release. Promega. November 11, 2025. Accessed November 14, 2025. https://tinyurl.com/2jdnn7r7
7. FDA grants regular approval to pembrolizumab and lenvatinib for advanced endometrial carcinoma. FDA. July 21, 2021. Accessed November 14, 2025. https://tinyurl.com/49hzfsvh

SEOUL, South Korea — SEOUL, South Korea (AP) — Samsung Electronics and other major South Korean companies on Sunday announced fresh domestic investment plans at a meeting with President Lee Jae Myung, who hopes the moves will counter concerns that the firms would prioritize U.S. investments under a trade deal.

Lee’s meeting with business leaders came days after his government finalized a trade deal with the United States, in which Seoul pledged to invest $350 billion in U.S. industries in exchange for averting the Trump administration’s highest tariffs.

Samsung, a global leader in computer chips, said it will invest 450 trillion won ($310 billion) over the next five years to expand its domestic operations, including building another production line at its Pyeongtaek manufacturing hub to meet surging global semiconductor demands fueled by artificial intelligence.

Samsung said the new line, set to begin operations in 2028, is part of its broader effort to secure additional production capacity in anticipation of rising mid- to long-term demands for memory chips. The company also plans to build AI data centers in the country’s southwest South Jeolla Province and the southeastern city of Gumi to support government efforts to reduce the development gap between the greater Seoul metropolitan area and other regions.

Hyundai Motor Group, South Korea’s largest automaker, said it plans to invest 125 trillion won ($86.3 billion) from 2026 to 2030 to expand domestic research and development and advance new technologies such as AI, robotics and self-driving cars.

SK Group, another semiconductor powerhouse, and shipbuilders Hanwha Ocean and HD Hyundai also announced plans to increase their domestic investments. Both are central to South Korean commitments to boost the U.S. shipbuilding industry, a sector highlighted by President Donald Trump in negotiations with Seoul.

In his meeting with the companies’ chiefs, Lee credited the business sector for helping his government negotiate the trade deal with Washington but urged the companies to maintain strong domestic investments to ease concerns they might cut spending at home to invest more in America. He said his government is exploring various policy steps, including easing regulations, to help create a more favorable business environment for the companies.

SK Chair Chey Tae-won, whose group plans to invest at least 128 trillion won ($88.3 billion) domestically through 2028 with a focus on AI, said the finalization of trade talks with the United States eases uncertainties and paves way for bolder domestic investment.

The two governments on Friday released the details of the trade agreement, including $150 billion in South Korean investments in the U.S. shipbuilding sector and an additional $200 billion in other American industries, which Seoul says will be capped at $20 billion per year to prevent financial instability.

The United States agreed to reduce tariffs on South Korean cars and auto parts from 25% to 15%, and to apply tariffs on South Korean semiconductors on terms “no less favorable” than those granted to comparable competitors in the future.