RTX Corporation (Raytheon) vs Lockheed Martin

Founded in Cambridge as the American Appliance Company by iconic scientist Vannevar Bush and partners, the firm revolutionized early radio electronics before manufacturing vital magnetron tubes during World War II. An engineer accidentally noticed a radar tube melting a candy bar in his pocket, directly leading to Raytheon inventing the microwave oven.

Raytheon completed an unprecedented merger of equals with United Technologies, creating an aerospace colossus valued at over $100 billion. The transaction combined Raytheon's core missile defense portfolios with UTC's legendary commercial segments, specifically Pratt & Whitney jet engines and Collins Aerospace flight systems.

The newly rebranded parent company, RTX Corporation, faced a massive industrial crisis after discovering a rare microscopic powder metal defect in its Pratt & Whitney GTF engines, forcing the global grounding and inspection of hundreds of Airbus A320neo jets. The company incurred billions in unexpected operational compensation costs.

By mid-2026, RTX Corporation successfully pushed its trailing twelve-month revenue past $90 billion, driven by surging global demand for its Patriot missile systems and advanced AMRAAM munitions. Backed by an enormous order backlog, the enterprise effectively stabilized its commercial jet engine supply pipelines while scaling production of localized drone defense architectures.

Allan and Malcolm Loughead founded the Alco Hydro-Aeroplane Company in 1912, building seaplanes. The Loughead name was consistently mispronounced as "log-head" rather than "lock-heed." When Allan refounded the company in 1926 after a bankruptcy, he changed the spelling to Lockheed to match the pronunciation. The company produced innovative aircraft throughout the 1920s and 1930s, including the Vega monoplane that Amelia Earhart used for her solo transatlantic flight in 1932.

Lockheed established a secret advanced development division in 1943 — later nicknamed "Skunk Works" after the moonshine distillery in the Li'l Abner comic strip. The division operated with extraordinary secrecy and autonomy. Its first project was the P-80 Shooting Star — America's first operational jet fighter, designed and built in 143 days. Skunk Works became the most productive advanced aircraft design organisation in history, responsible for some of the most significant aircraft ever built.

Skunk Works designed and built the U-2 reconnaissance aircraft in 1955 — a high-altitude spy plane that could fly above Soviet air defences and photograph military installations. The programme was so secret that most Lockheed employees did not know it existed. U-2 flights over the Soviet Union provided the United States with intelligence unavailable through any other means. When a U-2 was shot down over the Soviet Union in 1960, piloted by Francis Gary Powers, it triggered an international crisis and ended the Paris Summit between Eisenhower and Khrushchev.

The SR-71 Blackbird, designed by Skunk Works and first flown in 1964, remains the fastest air-breathing manned aircraft ever built — capable of exceeding Mach 3.2 (2,200 mph) at altitudes above 85,000 feet. The aircraft outran surface-to-air missiles by simply accelerating away from them. The SR-71 was designed with stealth characteristics decades before the term "stealth" existed in aviation. It was retired in 1998.

Lockheed Martin reported revenues of $71.0 billion for 2024 — up 5% — making it the world's largest defence contractor. The F-35 Lightning II, Lockheed's most significant current programme, is the most expensive weapons system in history with an estimated lifetime cost of $1.7 trillion. The F-35 had faced years of technical problems, cost overruns, and schedule delays — but had ultimately been adopted by the United States and more than fifteen allied nations as their primary combat aircraft for the coming decades. The company that Amelia Earhart had trusted with her transatlantic flight was now the backbone of Western air power.