Safran completes takeover of Collins Aerospace flight controls business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 21 2025
0mins
Should l Buy RTX?
Source: SeekingAlpha
Acquisition Completion: Safran has completed its acquisition of Collins Aerospace's flight control and actuation business, a process that began two years ago, while also divesting its North American electromechanical actuation business to meet regulatory requirements.
Future Expectations: The deal is expected to generate approximately $50 million in annual cost synergies by 2028, with the acquired systems generating around $1.5 billion in revenue for RTX Corp. in 2024.
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Analyst Views on RTX
Wall Street analysts forecast RTX stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 212.160
Low
168.00
Averages
195.77
High
215.00
Current: 212.160
Low
168.00
Averages
195.77
High
215.00
About RTX
RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. The Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Crash: South Korea's Kospi index plummeted 12% on Wednesday, marking its worst day ever, reflecting investor concerns over the global economic outlook, particularly amid escalating Middle East conflicts that could lead to oil price spikes and increased inflation risks.
- US Market Decline: Concurrently, US markets also faced significant declines, with the S&P 500 slipping about 0.94% and the Dow dropping over 1,200 points at one point before closing down 0.83%, indicating a sensitive market reaction to international developments.
- Defense Industry Meeting: Executives from US defense contractors Lockheed Martin and RTX are expected to meet with White House officials on Friday to discuss accelerating weapons production, which could positively impact defense spending and the stock prices of related companies.
- China's Manufacturing Slowdown: China's official manufacturing purchasing managers' index fell to 49 in February, missing economists' forecast of 49.1, indicating a slowdown in manufacturing activity due to production and cargo shipment pauses for the holiday, which may affect global supply chain stability.
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- Market Signal: The South Korean ETF (EWY) experienced an approximately 11% selloff overnight, indicating its role as a 'canary in the coal mine' for potential turbulence in the U.S. stock market.
- Profit Signal: Following a buy signal on April 9, 2025, the South Korean ETF (EWY) has shown a strong upward trend, with recent sell-offs prompting investors to consider taking partial profits.
- Memory Market Dynamics: Due to surging AI demand, major memory manufacturers like Samsung Electronics and SK Hynix are perceived as lower risk compared to other AI stocks, contributing to South Korea's market outperforming QQQ by 27.48%.
- Global Industrial Recovery: As a major exporter of industrial goods, South Korea benefits from a global uptick in industrial activity, further bolstering investor confidence in the market.
See More
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Increased Military Spending: Recent military actions involving the U.S. and its allies have led to expectations of increased global military spending, reflecting a strategic realignment in defense priorities and a shift in market perceptions of the defense industry.
Strong Financial Foundations: Companies in the defense sector are showing robust financial health, evidenced by substantial backlogs of contracts and consistent revenue growth, which provide a stable outlook for long-term investments in defense technologies.
Future Growth Prospects: The defense sector is positioned for prolonged demand due to geopolitical factors, with companies focusing on executing ambitious production schedules to convert their significant backlogs into earnings and cash flow, indicating a strong future for defense investments.
See More
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- Ineffective Sanctions: While the EU stated it would protect its security and interests through additional sanctions, Merz criticized their ineffectiveness and emphasized the need for military action if necessary, indicating a lack of coherence and decisiveness in the EU's crisis response.
- Limited Diplomatic Efforts: Neumann noted that despite Iran's retaliatory actions exceeding expectations, the EU must still utilize existing diplomatic channels to engage with Tehran in hopes of de-escalating tensions, showcasing the bloc's vulnerability in crisis management.
- Energy Security Risks: Neumann stressed the need for the EU to collaboratively ensure the safe evacuation of citizens and establish buffers in energy security and supply chains to mitigate risks associated with a potential blockade of the Strait of Hormuz, underscoring the looming threats to Europe's economy.
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