Foreign Governments: Direct and Through WashingtonNarrow moat

RTX (RTX) — moat facet

Allied governments bought about $12.8 billion from RTX in 2025, and they now hold nearly half of Raytheon's backlog.

RTX's foreign defence customers buy in two ways. Some buy through the U.S. government's foreign military sales channel, $6,702 million in 2025; others buy directly, $6,123 million1. Together they took about $12.8 billion, 14.5% of net sales2. Most of it goes through Raytheon, which sold $4,480 million through foreign military sales and $4,099 million directly3.

RTX sales by customer region, 2025 ($M)47,291United States18,799Europe13,782Asia Pacific5,110Other3,621Middle East andNorth AfricaRTX Form 10-K FY2025, by customer location
The United States is still just over half.

The foreign customer is growing fastest. Raytheon's backlog was 48% international in June 2026, up four points in a year, and it booked more than $10 billion of international awards in the first half, more than $7 billion from Europe4. RTX's international sales, commercial and defence together, rose to 47% of net sales in 2025 from 43%5.

These customers bring their own risks: export approvals, foreign politics, and currency and payment terms. They also bring advance payments, which the company credited for part of its second-quarter cash flow6.

The foreign military sales channel is the steadier half, because the U.S. government contracts on the ally's behalf and applies its own rules.

The geography of the sales is concentrated. Europe bought $18,799 million from RTX in 2025, Asia Pacific $13,782 million, and the Middle East and North Africa $3,621 million7. Europe is the second-largest market after the United States, and it supplied most of Raytheon's new international defence orders in the first half of 20268.

International sales share is the measure. At 47% in 20259, a continued rise led by defence would say RTX's weapons are becoming the standard among allies; a reversal would mean the European surge has passed.

Moat trajectory: Widening

International sales 43% (2024) to 47% (2025).

The number that tests this moat
Reported
International share of net sales, full year
47% (2025), from 43% in 2024

The allies' weight; a reversal would mean the European surge has passed.

Source: RTX Form 10-K FY2025, customers and backlog ↗
References
  1. ReportedSome buy through the U.S. government's foreign military sales channel, $6,702 million in 2025; others buy directly, $6,123 million.
    RTX Form 10-K for fiscal 2025 - Item 7 segment review and Note 20: net sales and operating profit by segment for 2023-2025, organic sales drivers (commercial aftermarket, OEM, military), sales by customer type, products and services, segment assets, capital expenditure and research and development - totals across segments: segment sales and profit, eliminations, acquisition accounting and FAS/CAS adjustments. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  2. Moat Explorer calcTogether they took about $12.8 billion, 14.5% of net sales.
    Moat Explorer calculation from RTX's Forms 10-K FY2023-FY2025, Form 10-Q Q2 2026 and Q2 2026 earnings call. GTF aircraft: more than 2,600 against more than 1,700, about 900 more, 2,600 / 1,700 - 1 = 53%; operators 70 to over 90. Raytheon backlog 86 / 52 - 1 = 65% (December 2023 to June 2026); 86 / 28.043 = 3.1 years of 2025 sales. Total backlog 289 / 93.5 = 3.1 years of trailing sales. Pratt & Whitney share of backlog 151 / 268 = 56% (December 2025). Commercial share of backlog 170 / 289 = 59%; defence 119 / 289 = 41% (June 2026). Defence backlog 119 / 78 - 1 = 53% (December 2023 to June 2026). Government share of 2025 net sales (33,279 + 6,702 + 6,123) / 88,603 = 46,104 / 88,603 = 52%; foreign governments 6,702 + 6,123 = 12,825, 12,825 / 88,603 = 14.5%. — 2023-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in RTX's Forms 10-K and 10-Q, earnings releases, earnings call and market data; operands shown in the source line.
  3. ReportedMost of it goes through Raytheon, which sold $4,480 million through foreign military sales and $4,099 million directly.
    RTX Form 10-K for fiscal 2025 - Item 7 segment review and Note 20: net sales and operating profit by segment for 2023-2025, organic sales drivers (commercial aftermarket, OEM, military), sales by customer type, products and services, segment assets, capital expenditure and research and development - Raytheon: segment sales, operating profit, organic drivers, defence bookings and customer types. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  4. ReportedRaytheon's backlog was 48% international in June 2026, up four points in a year, and it booked more than $10 billion of international awards in the first half, more than $7 billion from Europe.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  5. ReportedRTX's international sales, commercial and defence together, rose to 47% of net sales in 2025 from 43%.
    RTX Form 10-K for fiscal 2025 - customers and backlog: sales to the U.S. government (38%, 40%, 46% of net sales in 2025-2023), Airbus (about 14%, 14%, 17% before discounts and incentives; 29%, 31%, 48% of Pratt & Whitney sales), Boeing and Airbus at 16% of Collins sales, international sales of 47%, and total, commercial and defence backlog with remaining performance obligations. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  6. ReportedThey also bring advance payments, which the company credited for part of its second-quarter cash flow.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
  7. ReportedEurope bought $18,799 million from RTX in 2025, Asia Pacific $13,782 million, and the Middle East and North Africa $3,621 million.
    RTX Form 10-K for fiscal 2025 - customers and backlog: sales to the U.S. government (38%, 40%, 46% of net sales in 2025-2023), Airbus (about 14%, 14%, 17% before discounts and incentives; 29%, 31%, 48% of Pratt & Whitney sales), Boeing and Airbus at 16% of Collins sales, international sales of 47%, and total, commercial and defence backlog with remaining performance obligations. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  8. ReportedEurope is the second-largest market after the United States, and it supplied most of Raytheon's new international defence orders in the first half of 2026.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  9. ReportedAt 47% in 2025, a continued rise led by defence would say RTX's weapons are becoming the standard among allies; a reversal would mean the European surge has passed.
    RTX Form 10-K for fiscal 2025 - customers and backlog: sales to the U.S. government (38%, 40%, 46% of net sales in 2025-2023), Airbus (about 14%, 14%, 17% before discounts and incentives; 29%, 31%, 48% of Pratt & Whitney sales), Boeing and Airbus at 16% of Collins sales, international sales of 47%, and total, commercial and defence backlog with remaining performance obligations. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
Sources
Generated September 28, 2026