RTX Corporation (RTX)

RTX, the maker of Pratt & Whitney jet engines, Collins Aerospace aircraft systems and Raytheon missiles, reported third-quarter 2026 sales of $25 billion on 20 October, up 11 percent 1. Net income rose to $2,583 million from $1,918 million a year earlier 1. Its backlog, the value of firm orders not yet delivered, reached a record $340 billion: $176 billion commercial and $164 billion defense 1.

Raytheon's sales rose 14 percent on higher volume of Patriot, Standard Missile and Tomahawk 1. Pratt & Whitney's commercial aftermarket, the spare parts and repairs for engines already flying, rose 21 percent 1. About $0.4 billion of the profit gain came from refunds of tariffs that the Supreme Court ruled unauthorized in February 2026 12.

Pratt & Whitney's profit carried a $363 million charge for a customer's bankruptcy, a customer the release does not name 1. Chairman and chief executive Chris Calio said "Demand for our products remains robust with over $81 billion of new commercial and defense awards" 1. The open question is funding: four new missile contracts are worth up to about $74 billion together, and Congress funds them one fiscal year at a time (computed) 2.

The company began as United Technologies, incorporated in Delaware in 1934 5. On 3 April 2020 it spun off Carrier and Otis, completed an all-stock merger of equals with Raytheon Company and became Raytheon Technologies 5. What remained was a pure aerospace and defense company, which later took the name RTX Corporation 4.

The merger lifted 2020 sales to $56,587 million from $45,349 million, but the pandemic hit the aircraft businesses hard 5. Without the merger, sales fell $10,438 million, as airlines grounded planes and put off engine maintenance 5. A $3.2 billion goodwill write-down at two Collins units helped push the year to an operating loss of $1,889 million 5.

Travel came back slowly: sales reached $64,388 million in 2021 and $67,074 million in 2022 6. Sales grew $3.7 billion organically in 2022, led by $2.5 billion more at Pratt & Whitney and $2.4 billion more at Collins 6. Shortages of raw materials, microelectronics and workers slowed deliveries, the company reported 6.

In 2023 Pratt & Whitney found a rare flaw in the powder metal used for some engine parts, forcing early inspections of PW1100G-JM engines on Airbus A320neo jets 4. It took a $2.9 billion operating charge for its net 51 percent share of the program, mainly to compensate airlines for grounded planes 4. The matter cut sales by $5.4 billion, yet sales still rose to $68,920 million while operating profit fell to $3,561 million 43.

On 1 July 2023 the company folded its businesses into three segments: Collins Aerospace, Pratt & Whitney and Raytheon 4. In October 2023 it began a $10 billion accelerated share repurchase, buying back a large block of its shares at once, and finished it in September 2024 3.

Sales jumped to $80,738 million in 2024, mostly because the 2023 charge did not repeat, with $7.8 billion of organic growth on top 3. Raytheon sold its Cybersecurity, Intelligence and Services business early in 2024 3. In October 2024 Raytheon Company settled federal probes into Middle East payments and defective pricing through deferred prosecution agreements with the Justice Department 3.

In 2025 sales reached $88,603 million and operating profit $9,300 million, up from $6,538 million in 2024 3. Sales grew $8.9 billion organically, $4.8 billion of it at Pratt & Whitney, where aftermarket parts and repairs led 3. Collins sold its actuation and flight control business and Simmonds Precision Products that year 3.

Behind the climb, sales abroad grew faster than sales at home 3. International sales reached $41,312 million in 2025, 47 percent of the total, while sales to the U.S. government were $33,279 million, 38 percent 3. Two years earlier the U.S. government had bought 46 percent 3.

Pratt & Whitney: jet engines

Pratt & Whitney designs, builds and services engines for airliners, fighters, bombers, business jets and helicopters 3. It was the largest segment in 2025, with sales of $32,916 million and operating profit of $2,596 million 3. Airbus was its largest commercial customer, at 29 percent of segment sales 3.

Its PW1000G Geared Turbofan family powers more than 2,600 aircraft for over 90 operators, on the Airbus A320neo and A220 and the Embraer E-Jets E2 3. The newer GTF Advantage won FAA and EASA certification in 2025, with 4 to 8 percent more takeoff thrust 3. Its F135 is the only engine of Lockheed Martin's F-35 fighter, and it passed one million flight hours in 2025 3.

In the third quarter of 2026 its sales rose 10 percent to $9,231 million, while sales of new engines fell 5 percent 1. It shares big engine programs with partners, whose stakes ranged from 13 to 49 percent a program at the end of 2025 3.

Collins Aerospace: aircraft systems and cabins

Collins makes the systems in and around an airplane: power and air systems, landing gear, wheels and brakes, avionics, seats, galleys and propellers 3. Its 2025 sales were $30,196 million and operating profit $4,923 million, and Boeing and Airbus together bought 16 percent 3. In the third quarter of 2026 its sales rose 10 percent to $8,382 million, with equipment for new aircraft up 23 percent 1.

Collins also makes spacesuits and life support for human spaceflight, and air traffic systems for the Federal Aviation Administration 3. In 2025 it signed over $4 billion of long-term repair and spare-parts agreements with airlines 3.

Raytheon: missiles, radars and air defense

Raytheon builds missiles and the radars and command systems that guide them, among them Patriot, Tomahawk, AMRAAM, the SM-6 and SM-3 Standard Missiles, Javelin and Stinger 3. Its 2025 sales were $28,043 million, operating profit $3,227 million and defense bookings, meaning new orders, $39,975 million 3. It also reports growing demand for Coyote, a low-cost expendable drone that can fly in autonomous swarms 3.

Its third-quarter 2026 sales rose 14 percent to $8,031 million 1. Under framework agreements announced in February 2026, Raytheon said it would raise yearly output of Tomahawks to more than 1,000 and of AMRAAMs to at least 1,900, Breaking Defense reported 11.

Customers and orders

In the third quarter of 2026 the U.S. government bought 35.5 percent of sales, foreign governments buying through it 8.6 percent, and airlines and other commercial buyers 48.9 percent 2. The backlog grew from $268 billion at the end of 2025 to $340 billion, as defense bookings reached about $96 billion in nine months 2.

Plants and people

RTX makes and services its products in about 225 factories and overhaul shops in about 25 countries 3. Its roughly 450 significant properties cover about 75 million square feet, 70 percent owned and 70 percent in the United States 3. At the end of 2025 it employed about 180,000 people, 54,000 of them engineers, in 52 countries, 69 percent in the U.S. 3.

Chris Calio is chairman and chief executive, and Neil Mitchill Jr is chief financial officer 3. Jill Albertelli, head of the military engines business, becomes president of Pratt & Whitney on 1 January 2027, succeeding Shane Eddy, who is retiring 7. Shareowners elected ten directors at the annual meeting of 30 April 2026, after James Winnefeld left the board in March 815.

Rivals

The annual report names no single rival, but says every business competes on price, delivery, past performance, reliability, service and technology 3. In defense it points to more commercial competitors, new entrants with different technology and business models, and foreign governments backing rivals 3.

Problems on file

The powder metal problem is not over: Pratt & Whitney expects A320neo groundings to stay elevated through 2026, and still held $0.2 billion for customer compensation at 30 September 2. Shareholder suits over its disclosures continue: a dismissed class action is on appeal, derivative suits are pending in Delaware, and the SEC has sent subpoenas 2.

Defense auditors claim Pratt & Whitney owes about $1.7 billion plus interest, and $1.1 billion more in a second claim, over how it charged research costs to government contracts 2. Pratt & Whitney calls both claims without merit and has appealed them 2.

Under its 2024 settlements, an independent compliance monitor oversees Raytheon Company, and a three-year State Department consent agreement on arms-export rules began in August 2024 3. China has sanctioned the Raytheon business over arms sales to Taiwan 2. A January 2026 executive order lets the Secretary of War seek limits on the dividends and buybacks of contractors judged to underperform 3.

The umbrella, in words

RTX sells under three names, Collins Aerospace, Pratt & Whitney and Raytheon, which are also its three segments 3. Its subsidiaries exhibit lists, among others, Raytheon Company, Rockwell Collins, Goodrich, Hamilton Sundstrand, B/E Aerospace, Rohr, Rosemount Aerospace, ARINC and Pratt & Whitney Canada 9. The exhibit leaves out the other subsidiaries because together they are not significant, and notes that Kidde Technologies does business as Kidde Aerospace & Defense 9.

Ties to other companies: RTX agreed in 2012 to acquire Rolls-Royce's collaboration interests in International Aero Engines AG, a listed subsidiary 39. Raytheon Company also has a joint venture with Thales, Thales-Raytheon Systems 3. On 19 June 2026 RTX agreed to sell Blue Canyon Technologies, a small-satellite maker, to Canada's MDA Space for $620 million in cash 212.

Its land and buildings are the factory network above: about 450 significant properties, 70 percent of the space owned 3. The largest reported holder, Vanguard Capital Management, held 7.47 percent of the common stock as of 31 March 2026 10. RTX had 1,345,974,220 common shares outstanding on the 3 March 2026 record date of its annual meeting 8.

On 20 October 2026 the company raised its full-year outlook for adjusted sales, which leave out one-off items, to $97.0 to $97.5 billion from $95.0 to $96.0 billion 1. It now expects organic sales growth of 10 to 11 percent 1. It expects free cash flow, operating cash less capital spending, of $9.0 to $9.2 billion 1.

The four munitions contracts run five to seven years, and the quarterly report says funding for each depends on yearly appropriations by Congress 2. The company says it is investing in technology, capacity and hiring, and signing long-term supplier agreements, to reach the higher output 2.

A stopgap law keeps defense funding at 2026 levels through 11 December 2026 2. The President's 2027 defense request seeks $1.5 trillion, and a June supplemental request includes $21 billion to replenish munitions 2. The July 2025 tax and spending act set aside $24.4 billion for the Golden Dome missile shield, a project where RTX says its portfolio is well positioned 2.

The company estimates the powder metal matter will take about $0.7 billion of cash in 2026 2. It expects the last 737 MAX crash lawsuit naming Collins to be resolved or dismissed during 2026 3.

Tariff refunds are still in play: RTX paid about $0.5 billion of the tariffs the Supreme Court struck down, and had $0.4 billion of refunds approved by 30 September 2. The U.S. government appealed the refund order on 2 June 2026, though refunds have kept coming so far, the quarterly report says 2. In court, the appeal of the dismissed powder metal class action sits with the Second Circuit 2.

Shane Eddy stays on as a special advisor through March 2027 7. Reuters reported that the Blue Canyon sale is expected to close by the end of 2026, subject to regulators 12. The directors elected in April serve until the 2027 annual meeting 8.

In engines, Pratt & Whitney completed the detailed design review of its XA103 for the Air Force's next adaptive fighter engine program in early 2025 3. It is also maturing an upgrade of the F135's core 3.

Past

RTX Corporation's revenue grew from $64 billion in fiscal 2021 to $89 billion in fiscal 2025, up 8.3% a year, and rose in 4 of 4 years with no fall from a peak; net income was positive in all 5 of those years. Over the three fiscal years to 2025, the diluted share count shrank about 3.0% a year, and dividends and buybacks returned about 91% of its operating cash flow. Officers and directors filed 21 sales and 0 purchases of their own stock on the open market in the year to 2026-10-05. RTX Corporation's filings since 2017 show no warning events: no bankruptcy or receivership notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice. 1

Present

In its latest annual figures on file, for the fiscal year ended 2025-12-31, RTX reported revenue of $89 billion and a profit of $6.7 billion. The most recent quarterly report, filed 2026-10-20, covers the period ended 2026-09-30. RTX earned about 10 cents of profit for every dollar of shareholders' money; it owed about 61 cents per dollar of assets, and its share count grew 1.0% over the year. RTX's revenue of $89 billion in fiscal 2025 ranks in the top 7% by size in its industry family; a net margin of 7.6% ranks in the bottom 36%; revenue growth of 9.7% a year over the last 3 filed years ranks in the bottom 36%. The chief executive on the record is Calio, Christopher T. , filing under that title since 2024-07-31 for 2.2 years; the 18 officers and directors filing in the last fifteen months have been on the record a median of 6.5 years; 8 officer or director changes were reported on Form 8-K since 2023-10-21. 231

Future

The annual report for the fiscal year ending 2026-12-31 is due by 2027-03-01. The quarterly report for the quarter ending 2027-03-31 is due by 2027-05-10. RTX's cash of $7.4 billion against debt of $34 billion leaves negative 15.7% of its assets as net cash; cash from operations less capital spending is 9% of revenue; research spending is 3.2% of revenue. Revenue grew 9.7% a year over the last three filed years against 8.3% over all 5 filed years, speeding up; the newest year grew 9.7%; research spending grew 1.2% a year; capital spending grew 4.7% a year. RTX's revenue of $89 billion in fiscal 2025 came in 0% above the $89 billion its prior three years' pace pointed to; net income of $6.7 billion against a prior three-year average of $4.4 billion; a net margin of 7.6% against 6.1% before. 31

How the company operates

RTX is classed as a product business under Aircraft Engines & Engine Parts. In fiscal 2025, RTX's revenue comes from four lines of business: Pratt and Whitney 37%, Raytheon 32%, Collins Aerospace 31%, and All Other under 1%; by geography, United States 53%, Europe 21%, Asia Pacific 16%, Other regions 6%, Middle East and North Africa 4%. All 4 of the reported lines of business grew against the year before. 21

New moves

On 2026-10-20, RTX filed Form 10-Q, the quarterly report for the period ended 2026-09-30, and Form 8-K for results released. On 2026-09-15, RTX filed Form 8-K for an officer or director change. On 2026-10-20, RTX filed a Form 8-K. 34