⚠ Half the Backlog Is Foreign NowModerate threat

RTX (RTX) — threat to the moat

Nearly half of Raytheon's backlog is now foreign, which ties its growth to export approvals and to Europe's rearmament.

Raytheon's growth has moved abroad. Its backlog was 48% international in June 2026, up four points in a year1, and more than $7 billion of its first-half international awards came from Europe2.

Raytheon external sales by customer, 2025U.S. government — 69%Foreign military sales — 16%Foreign governments direct — 15%Commercial — 0%RTX Form 10-K FY2025, Note 20 ($M)
Foreign buyers already a third of sales.

Foreign customers pay well and buy in volume, but they add risks the U.S. budget does not. Every sale needs U.S. export approval. Foreign politics can reverse a purchase. And sanctions can close a market: China imposed sanctions on Raytheon Missiles & Defense in February 20233. RTX also operates under a State Department Consent Agreement on export controls4.

The concentration in Europe means one continent's rearmament is carrying a large share of the order book.

The foreign share was already rising in the sales mix. RTX's international sales, commercial and defence together, reached $41,312 million in 2025, 47% of net sales, against 43% in 2024 and 20235. Raytheon's foreign growth is part of a company that is becoming steadily more international.

Watch the international share of Raytheon's backlog. At 48%6 the balance is healthy; above 55% the segment's fortunes would depend more on foreign governments' budgets than on its home customer.

References
  1. ReportedIts backlog was 48% international in June 2026, up four points in a year, and more than $7 billion of its first-half international awards came 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 ↗
  2. ReportedIts backlog was 48% international in June 2026, up four points in a year, and more than $7 billion of its first-half international awards came 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 ↗
  3. ReportedAnd sanctions can close a market: China imposed sanctions on Raytheon Missiles & Defense in February 2023.
    RTX Form 10-K for fiscal 2023 - the three-segment recast of 2021-2022, the GTF family powering more than 1,700 aircraft for 70 operators, backlog of $196 billion, the Carrier and Otis separation and Chinese sanctions on Raytheon Missiles & Defense. — FY2023 · publ. February 2024 · source ↗
  4. ReportedRTX also operates under a State Department Consent Agreement on export controls.
    RTX Form 10-K for fiscal 2025 - consolidated financial statements and notes: income statement, cash flow, dividends and repurchases, long-term debt of $37,700 million, goodwill by segment, pension income, the 2024 resolution of certain legal matters, the Raytheon contract termination and the accelerated share repurchase. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  5. ReportedRTX's international sales, commercial and defence together, reached $41,312 million in 2025, 47% of net sales, against 43% in 2024 and 2023.
    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. ReportedAt 48% the balance is healthy; above 55% the segment's fortunes would depend more on foreign governments' budgets than on its home customer.
    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 ↗
Sources
Generated September 28, 2026