Raytheon Technologies Corporation (NYSE:RTX), an aerospace and defense company, provides systems and services for the commercial, military, and government customers worldwide. It operates through four segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for aircraft manufacturers and airlines, as well as regional, business, and general aviation; and for defense and commercial space operations. This segment also designs, produces, and supports cabin interior, communications and aviation systems, oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; airborne intelligence, surveillance and reconnaissance systems, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon Intelligence & Space segment develops and provides integrated space, communication, and sensor systems for missions, training, and cyber and software solutions to intelligence, defense, federal, and commercial customers. The Raytheon Missiles & Defense segment designs, develops, produces, and sustains integrated air and missile defense systems; defensive and combat solutions; land- and sea-based radars; command, control, communications, and intelligence solutions; and naval and undersea sensor solutions for the U.S. and foreign government customers. The company is headquartered in Waltham, Massachusetts.

Missile defense systems are high-priority items for militaries globally. Raytheon makes the Patriot missile system, and in partnership with Northrop Grumman is developing air-launched hypersonic cruise missiles under a program dubbed HAWC (Hypersonic Air-breathing Weapon Concept). Raytheon’s missile and defense (RMD) segment serves as a prime contractor or major subcontractor on numerous Defense Department programs.

While the defense contractor’s sales to the U.S. government are responsible for 48% of its annual revenue, sales to foreign customers comprise another 38% (government contracts account for about half that). RMD is actually one of the smallest of Raytheon’s segments in terms of sales, which is just $15.5 billion, but it is the most profitable and generating over $2 billion in operating profits.

Raytheon is a diversified contractor, and its biggest moneymaker is its Collins Aerospace segment, which provides products and services for both military and commercial aircraft. It develops the avionics and communications, electric power generation, flight control, air data and sensing systems, and even food and beverage prep. It also makes space suits and sensors for astronauts. Collins brought in almost $18.5 billion in revenue in 2021, and operating profits of nearly $1.8 billions, which is 29% of Raytheon’s total operating profits.

Therefore, Raytheon Technologies is the best defense stock to buy now and own as a long-term investment.