RTX Corporation (RTX) — Company Research
Last Updated: 3 Jun 2026
RTX Corporation (NYSE: RTX) is one of the world's largest aerospace and defence companies, formed from the 2020 merger of Raytheon Company and United Technologies. The business is built on three franchises: Collins Aerospace and Pratt & Whitney serve commercial and military aviation, while the Raytheon segment is a leading prime contractor for missiles, air-and-missile defence and sensors. In its most recent full year (FY2025, ended 31 December 2025) RTX reported record sales of $88.60bn and a backlog of $268bn, split between $161bn of commercial and $107bn of defence work. This report compiles publicly available figures from RTX's earnings releases and SEC filings; it contains no analyst price targets or ratings.
1. Company Snapshot
| Field | Value |
|---|---|
| Ticker / Exchange | RTX (NYSE) |
| Sector | Aerospace & Defence |
| CEO / Leadership | Christopher T. Calio (Chairman & CEO; CEO since May 2024, Chairman since April 2025) |
| Headquarters | Arlington, Virginia, USA |
| Employees | Approximately 185,000 |
| Market cap | ~$234.7bn (early June 2026) |
| FY2025 revenue | $88.60bn |
| FY2025 net income (GAAP) | $6.73bn |
| FY2025 GAAP EPS | $4.96 |
| FY2025 adjusted EPS | $6.29 |
| Backlog (YE2025) | $268bn ($161bn commercial / $107bn defence) |
RTX is led by Chief Executive Officer Christopher T. Calio, who became CEO in May 2024 and added the Chairman role in April 2025. The group's three reportable segments are Collins Aerospace, Pratt & Whitney and Raytheon.
2. Bull and Bear Case
Bull Case
- Record backlog and defence demand: A $268bn backlog at year-end 2025 — rising to $271bn after Q1 2026 — gives multi-year revenue visibility, reinforced by elevated global defence spending and munitions reorders.
- Commercial aftermarket strength: Collins and Pratt & Whitney benefit from a large installed base of aircraft and engines, generating high-margin spares and maintenance revenue as global air traffic grows.
- GTF engine franchise: Pratt & Whitney secured over 1,000 GTF orders in 2025, including large fleet commitments, building a long-tail services annuity despite earlier durability issues.
- Rising shareholder returns: RTX raised its quarterly dividend 8% during 2025 and again to $0.73 in May 2026, with FY2025 free cash flow of about $7.9bn supporting buybacks and dividends.
- Raised 2026 outlook: After a strong Q1 2026, management lifted full-year adjusted EPS guidance to $6.70–$6.90 and adjusted sales to $92.5–$93.5bn.
Bear Case
- Programme and supply-chain execution: The GTF powder-metal inspection campaign and broader supply constraints have weighed on cash and margins, and any recurrence would hit Pratt & Whitney hard.
- Government budget dependence: The Raytheon segment relies heavily on US and allied defence budgets, which are subject to political negotiation, continuing resolutions and shifting priorities.
- Premium valuation: At roughly 35x trailing GAAP earnings, the shares price in continued execution, leaving little room for disappointment.
- Tariff and cost inflation: Management flagged tariff impacts during 2025, and input-cost inflation can compress fixed-price contract margins.
- Legacy legal and accounting items: Acquisition-accounting adjustments and prior legal settlements continue to create a gap between GAAP and adjusted earnings.
3. Business Segments
RTX reports through three segments. The figures below are FY2025 adjusted (segment) sales; inter-segment eliminations of roughly $2.6bn bridge the segment total to consolidated revenue of $88.60bn.
| Segment | % of revenue | What it is |
|---|---|---|
| Pratt & Whitney | ~36% ($32.92bn) | Designs and services commercial and military aircraft engines, including the geared turbofan (GTF) family and the F135 engine for the F-35. |
| Collins Aerospace | ~33% ($30.20bn) | Avionics, interiors, mechanical and electrical systems for commercial and military aircraft, plus mission systems. |
| Raytheon | ~31% ($28.04bn) | Defence prime: integrated air and missile defence, effectors/missiles, radars and advanced sensors for US and allied forces. |
4. Business Model and Moat
How it makes money. RTX earns revenue from original-equipment sales (engines, avionics, missiles, radars) and, crucially, from long-duration aftermarket services — spare parts, maintenance, repair and overhaul on a vast installed base. Defence work is largely contract-based with the US Government and allied nations, blending cost-plus and fixed-price arrangements.
Why the moat is durable. Aerospace and defence is protected by extreme barriers to entry: decades-long certification cycles, classified technology, entrenched platform positions (an engine or radar designed into an airframe is rarely displaced), and a backlog that locks in future revenue. Switching costs for customers are very high once a platform is fielded.
Capital and returns. The model is capital-intensive in R&D and tooling but throws off substantial recurring cash once programmes mature, which RTX returns through a growing dividend and buybacks while funding the next generation of platforms.
5. Financial Health
RTX has grown revenue every year since 2021, with the 2023 step-up reflecting the full-year contribution of the combined group and 2024–2025 driven by both commercial recovery and defence demand. All figures are from RTX earnings releases and SEC filings.
| Year | Revenue ($bn) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| 2021 | 64.39 | — | $2.56 | $4.27 | $2.005 | $31.35bn |
| 2022 | 67.07 | +4.2% | $3.50 | $4.78 | $2.16 | $31.29bn |
| 2023 | 68.92 | +2.8% | $2.23 | $5.06 | $2.32 | $43.64bn |
| 2024 | 80.74 | +17.1% | $3.55 | $5.73 | $2.48 | $41.08bn |
| 2025 | 88.60 | +9.7% | $4.96 | $6.29 | $2.67 | $34.29bn |
Quarterly trend through FY2025 (most recent first):
| Quarter | Revenue ($bn) | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q4 2025 | 24.24 | $1.55 | $1.19 |
| Q3 2025 | 22.48 | $1.70 | $1.41 |
| Q2 2025 | 21.58 | $1.56 | $1.22 |
| Q1 2025 | 20.31 | $1.47 | $1.14 |
| FY2025 total | 88.60 | $6.29 | $4.96 |
FY2025 operating cash flow was $10.57bn and capital expenditure $2.63bn, giving free cash flow of about $7.9bn. Year-end cash and equivalents stood at $7.44bn against total debt of roughly $37.9bn. You can monitor live price action on the ChartsView Live Charts page.
6. Valuation
Raw metrics, June 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$234.7bn (share price ~$174, early June 2026) |
| Trailing P/E (GAAP) | ~35x (price $174 / FY2025 GAAP EPS $4.96) |
| P/E (forward) | ~25.6x (price $174 / 2026 adjusted EPS guidance midpoint ~$6.80) |
| P/S (TTM) | ~2.65x (market cap $234.7bn / FY2025 sales $88.60bn) |
| Enterprise value | ~$265bn (market cap $234.7bn + total debt ~$37.9bn − cash ~$7.4bn per FY2025 balance sheet) |
| EV/EBITDA (TTM) | ~19.4x (EV ~$265bn / EBITDA ~$13.7bn; EBITDA = operating income $9.30bn + D&A $4.38bn per FY2025 statements) |
| P/FCF | ~29.6x (market cap $234.7bn / FCF ~$7.9bn; FCF = operating CF $10.57bn − capex $2.63bn per FY2025 cash flow statement) |
| 52-week high | $214.50 |
| 52-week low | $135.43 |
| Short interest (% of float) | ~1.15% (approx 14.4m shares; per FINRA bi-monthly data via aggregators) |
| Days to cover | ~2.4 |
7. Growth Drivers
RTX's near-term growth rests on three pillars. First, defence demand: heightened geopolitical tension has driven record orders for air-and-missile defence (Patriot/PAC-3-class interceptors, NASAMS, SPY-6 radars) and munitions reloads, with the Raytheon segment booking multi-billion-dollar awards. Second, commercial aerospace: a growing global fleet and constrained new-aircraft supply boost high-margin aftermarket revenue at Collins and Pratt & Whitney. Third, the GTF services annuity: with more than 1,000 GTF engines ordered in 2025 and large new fleet commitments such as AirAsia X's 150 A220s, Pratt & Whitney is building a decades-long maintenance stream. Management's raised 2026 outlook ($92.5–$93.5bn adjusted sales, $6.70–$6.90 adjusted EPS) reflects confidence across all three. Track macro and defence-budget catalysts on the ChartsView Economic Calendar.
8. Peer Comparison
| Peer | Market cap (June 2026) | Key 2025 metric |
|---|---|---|
| Lockheed Martin (LMT) | ~$118bn | FY2025 revenue $75.05bn; record backlog $194bn |
| Northrop Grumman (NOC) | ~$70bn (approx) | FY2024 revenue $41.03bn |
| General Dynamics (GD) | ~$80bn (approx) | FY2024 revenue $47.7bn (group); $44.47bn defence-related |
RTX is the largest of the US prime contractors by revenue, with its commercial-aerospace exposure differentiating it from the more purely defence-focused Lockheed Martin and Northrop Grumman.
9. Insider Activity
Recent Form 4 filings show routine executive share sales, several executed under pre-arranged plans or tied to equity vesting:
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Shane G. Eddy (President, Pratt & Whitney) | 13 Feb 2026 | Sale | 17,527 | ~$199 | ~$3.49m | Open market / 10b5-1 |
| Kevin G. DaSilva (SVP & Treasurer) | 13 Feb 2026 | Sale | 8,136 | ~$201 | ~$1.64m | Open market / 10b5-1 |
CEO Christopher Calio's holdings are governed by the company's executive share-ownership guidelines. As always, executive sales can reflect personal diversification or tax planning rather than a view on the business.
10. Key Risks
- Programme execution (operational): Engine durability campaigns and supply-chain bottlenecks can disrupt deliveries and cash flow.
- Defence budget concentration (macro/political): A large share of revenue depends on US and allied government budgets and appropriations timing.
- Fixed-price contract risk (financial): Cost inflation on fixed-price defence and OE contracts can compress margins.
- Regulatory and legal (regulatory): Export controls, government investigations and legacy legal matters carry compliance and financial risk.
- Valuation (market): A premium multiple leaves the shares exposed to de-rating if growth or cash conversion disappoints.
11. Recent Developments
- 01 May 2026 — Dividend increase. RTX raised its quarterly dividend to $0.73 per share, continuing its track record of annual increases.
- 22 Apr 2026 — Strong Q1 2026 and raised outlook. Sales rose 9% to $22.1bn with adjusted EPS up 21% to $1.78; backlog reached $271bn and full-year guidance was lifted to $6.70–$6.90 adjusted EPS.
- 15 Apr 2026 — F135 engine award. Pratt & Whitney secured a roughly $6.6bn production award for F135 engines (F-35 lots 18–19).
- 27 Jan 2026 — FY2025 results. RTX reported record sales of $88.60bn, adjusted EPS of $6.29 and a $268bn backlog, and announced its 2026 outlook.
12. Key Dates
- 21 Jul 2026 — expected Q2 2026 earnings release
- 11 Jun 2026 — Q2 2026 dividend payment date (ex-dividend 22 May 2026)
- 27 Jan 2026 — FY2025 results released
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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. RTX is one of the world's largest aerospace and defence companies, earning revenue from aircraft engines, avionics, missiles and sensors plus high-margin aftermarket services across a vast installed base. In FY2025 it reported record sales of $88.60bn (up 9.7%), GAAP EPS of $4.96 and adjusted EPS of $6.29, with a $268bn backlog; management has guided FY2026 adjusted EPS to $6.70–$6.90. The primary drivers are elevated global defence demand and a recovering commercial-aerospace aftermarket, amplified by Pratt & Whitney's growing GTF services annuity.
What would confirm or break it. Continued backlog growth, on-guidance quarterly results and steady free-cash-flow conversion would confirm the bull case. A renewed engine-durability or supply-chain disruption, a material cut to US or allied defence budgets, or a de-rating from the current premium multiple would invalidate the thesis.
Watchpoints
- ConfirmsQ2 2026 earnings (48 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Record backlog and defence demand:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Programme execution (operational):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 3 Jun 2026.