RTX Corporation (RTX) — Company Research

Last Updated: 19 Oct 2026

RTX Corporation (NYSE: RTX) is one of the world’s largest aerospace and defence companies, operating through three businesses: Collins Aerospace (avionics, aerostructures and aircraft systems), Pratt & Whitney (commercial and military jet engines) and Raytheon (missiles, air-defence systems and radars). FY2025 sales reached a record $88.6bn, and in July 2026 management raised its 2026 outlook to $95.0–96.0bn of adjusted sales and $7.10–7.25 of adjusted EPS. Since then Raytheon has booked a run of multi-year munitions contracts, including up to $24.4bn for SM-6 and $20.7bn for AMRAAM. This refreshed report covers results through Q2 2026, the balance sheet at 30 Jun 2026, valuation and risks, using company releases and SEC filings only. Q3 2026 results are due on 20 Oct 2026.

1. Company Snapshot

Field	Value
Ticker / Exchange	RTX / NYSE
CEO / Leadership	Christopher T. Calio, Chairman & CEO; Neil G. Mitchill Jr., CFO; segment presidents Troy Brunk (Collins), Shane Eddy (Pratt & Whitney, retiring; Jill Albertelli succeeds from 01 Jan 2027) and Phil Jasper (Raytheon)
Sector	Defence & aerospace — commercial aerospace systems, aero engines and defence electronics/missiles
Employees	~180,000 at 31 Dec 2025, including ~54,000 engineers; 69% in the US (FY2025 10-K)
Market cap	~$261.4bn ($193.92 at 16 Oct 2026 close × ~1.348bn shares)
FY2025 Revenue	$88,603m (+9.7%)
FY2025 net income	$6,732m attributable to shareholders (GAAP EPS $4.96; adjusted EPS $6.29)
Backlog	$289bn at 30 Jun 2026 ($170bn commercial, $119bn defence)
2026 guidance	Adjusted sales $95.0–96.0bn, adjusted EPS $7.10–7.25, free cash flow $8.50–8.75bn (raised 23 Jul 2026)
Dividend	$0.73 quarterly (raised 7.4% on 30 Apr 2026), $2.92 annualised, ~1.5% yield at $193.92

2. Bull & Bear Case

Bull Case

• Record backlog: Backlog rose to $289bn at 30 Jun 2026 from $268bn at year end, with defence backlog up 22% year on year to $119bn. The 10-K expects about a quarter of year-end backlog to convert to sales within 12 months.
• Multi-year munitions awards: Since late September Raytheon has announced a $20.7bn AMRAAM multi-year contract, an SM-6 contract worth up to $24.4bn and a $6.3bn SM-3 Block IB award, plus $729m of counter-drone orders.
• Guidance raised: In July management lifted 2026 adjusted sales guidance to $95.0–96.0bn (from $92.5–93.5bn) and adjusted EPS to $7.10–7.25 (from $6.70–6.90), after Q2 adjusted EPS rose 21% to $1.89.
• Engine franchise and aftermarket: Pratt & Whitney delivered the first GTF Advantage-powered aircraft to United on 24 Sep 2026. GTF orders and commitments took the engine backlog past 8,000, and aircraft on ground fell 25% year to date.
• Cash generation: FY2025 free cash flow was $7.94bn (operating cash flow $10.57bn less capex $2.63bn), and 2026 guidance is $8.50–8.75bn while the dividend grows.

Bear Case

• Premium multiple: At $193.92 the shares trade on ~34x trailing GAAP EPS and ~27x the midpoint of 2026 adjusted EPS guidance, well above Lockheed Martin’s ~18x forward multiple on its own guidance.
• GTF powder-metal overhang: The PW1100G-JM inspection programme still leaves aircraft grounded and drives shop visits, customer compensation and costs, and the 10-K warns that estimates rest on assumptions that could change.
• Debt load: Total debt was ~$37.4bn at 30 Jun 2026, against ~$9.0bn of cash and marketable securities, and the current portion has risen to $5.3bn.
• Insider selling: Every 2026 Form 4 transaction found is a sale or an option exercise and sale, including ~$13.0m by the CEO in Feb and ~$7.4m by the CFO. No open-market purchases were found.
• Government and compliance exposure: 38% of 2025 sales went to the US government. RTX also operates under DOJ deferred prosecution agreements, an SEC order and a State Department ITAR consent agreement with an independent compliance officer.

3. Business Segments

RTX reports three segments. Percentages use FY2025 segment sales of $91,155m before inter-segment eliminations of −$2,552m; consolidated sales were $88,603m. International customers made up 47% of 2025 sales.

Segment	% of revenue	What it is
Pratt & Whitney	36.1% ($32,916m)	Commercial and military aero engines (GTF family, F135 for the F-35, Pratt & Whitney Canada) and their aftermarket services.
Collins Aerospace	33.1% ($30,196m)	Avionics, aerostructures, interiors, mission systems and aftermarket for commercial and military aircraft.
Raytheon	30.8% ($28,043m)	Defence systems: air and missile defence (Patriot, LTAMDS, NASAMS), missiles (Standard Missile family, AMRAAM, Tomahawk, Coyote) and radars and sensors.

In Q2 2026 segment sales were $8,889m at Pratt & Whitney, $8,210m at Collins and $8,269m at Raytheon.

4. Business Model & Moat

How it makes money. Commercial revenue comes from selling engines and aircraft systems to Airbus, Boeing and other airframers, often at thin or negative margins, and then earning higher-margin aftermarket revenue from spare parts, overhauls and long-term service agreements over decades of flying. Defence revenue comes mainly from US and allied government contracts for missiles, radars and engines. They are a mix of cost-plus and fixed-price work, increasingly on multi-year terms.

Installed base. The installed fleet of Pratt & Whitney engines and Collins systems keeps generating aftermarket demand for as long as the aircraft fly. With the engine backlog above 8,000 units, the GTF base will keep growing for years.

Moat. Few companies can certify a large commercial engine or a combat-proven interceptor, so RTX’s positions on platforms like GTF-powered narrowbodies, the F-35 (via F135) and Patriot are hard to displace. Switching costs, export approvals and long qualification cycles protect these positions. The weak points are execution (the GTF powder-metal problem) and dependence on government budgets.

5. Financial Health

Annual figures are from RTX’s Q4 earnings releases and SEC XBRL filings. Long-term debt is the non-current balance-sheet amount at year end (long-term debt and finance lease obligations, excluding the current portion).

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	$64,388m	+13.8%	$2.56	$4.27	$2.005	$31,327m
FY2022	$67,074m	+4.2%	$3.50	$4.78	$2.16	$30,694m
FY2023	$68,920m	+2.8%	$2.23	$5.06	$2.32	$42,355m
FY2024	$80,738m	+17.1%	$3.55	$5.73	$2.48	$38,726m
FY2025	$88,603m	+9.7%	$4.96	$6.29	$2.67	$34,288m

Dividends are declared per share as reported in SEC XBRL. FY2021 growth is measured against FY2020 sales of $56,587m, which were affected by the pandemic. FY2023 GAAP sales and EPS include the Q3 2023 powder-metal charge; adjusted sales that year were $74.3bn.

Quarterly progression, most recent first, with the FY2025 total in bold:

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 2026	$24,708m	$1.89	$1.57
Q1 2026	$22,076m	$1.78	$1.51
Q4 2025	$24,238m	$1.55	$1.19
Q3 2025	$22,478m	$1.70	$1.41
Q2 2025	$21,581m	$1.56	$1.22
Q1 2025	$20,306m	$1.47	$1.14
FY2025 total	$88,603m	$6.29	$4.96

Quarterly adjusted EPS sums to $6.28 against the reported $6.29 because of rounding. Over the four quarters to 30 Jun 2026, sales were ~$93.5bn, GAAP EPS ~$5.68 and adjusted EPS ~$6.92. The gap between GAAP and adjusted EPS is mostly acquisition accounting adjustments (about $0.27–$0.28 a quarter in 2025) plus restructuring and other significant items.

Cash flow and balance sheet. All figures are from SEC XBRL filings (FY2025 10-K and Q2 2026 10-Q).

• Operating cash flow: $10.57bn in FY2025; ~$14.21bn trailing twelve months to 30 Jun 2026 (H1 2025 was depressed at $1.76bn, partly by a four-week Pratt & Whitney strike).
• Capital expenditure: $2.63bn in FY2025; ~$2.80bn trailing twelve months.
• Depreciation & amortisation: $4.38bn in FY2025 (of which ~$2.1bn amortisation of acquired intangibles); ~$4.40bn trailing twelve months.
• Debt at 30 Jun 2026: long-term debt and finance leases of $31,858m non-current plus $5,296m current, and short-term borrowings of $229m, ~$37.4bn in total.
• Cash at 30 Jun 2026: cash and equivalents $8,305m plus marketable securities $711m, ~$9.0bn in total. Shareholders’ equity was $66.4bn.

6. Valuation

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$261.4bn (price $193.92 at 16 Oct 2026 close × ~1.348bn shares)
Enterprise value	~$289.8bn (market cap ~$261.4bn + total debt ~$37.4bn − cash and marketable securities ~$9.0bn per 30 Jun 2026 balance sheet)
Trailing P/E (GAAP)	~34.1x ($193.92 / TTM GAAP EPS ~$5.68, Q3 2025–Q2 2026). On TTM adjusted EPS of ~$6.92 the multiple is ~28.0x
P/E (forward)	~27.0x ($193.92 / $7.18, the midpoint of 2026 adjusted EPS guidance of $7.10–7.25)
P/S (TTM)	~2.80x ($261.4bn / ~$93.5bn TTM sales)
EV/EBITDA (TTM)	~19.5x (EV ~$289.8bn / TTM EBITDA ~$14.9bn; EBITDA = operating profit ~$10.49bn + D&A ~$4.40bn, using the total depreciation and amortisation figure). On FY2025 EBITDA of ~$13.7bn ($9.30bn + $4.38bn) it is ~21.2x
P/FCF	~32.9x (market cap ~$261.4bn / FY2025 FCF ~$7.94bn; FCF = operating CF $10.57bn − capex $2.63bn per FY2025 cash flow statement). On TTM FCF of ~$11.4bn it is ~22.9x, and on 2026 FCF guidance of $8.50–8.75bn it is ~30x
Dividend yield	~1.5% ($2.92 annualised / $193.92)
52-week high	$226.88 (Aug 2026)
52-week low	$159.45
Short interest (% of float)	~1.0% (13.65m shares at the 30 Sep 2026 settlement, up from 12.34m on 31 Aug)
Days to cover	~3.4 days

7. What Are They Building

RTX’s investment is split between ramping production of munitions and air-defence systems for the US and its allies, and improving the durability of the engines that drive its commercial aftermarket.

• Interceptors and missiles: SM-6 (up to $24.4bn over five years plus two option years, 01 Oct 2026), SM-3 Block IB ($6.3bn, 08 Oct 2026), SM-3 Block IIA ($745m, 10 Aug 2026), AMRAAM ($20.7bn multi-year, 28 Sep 2026) and a seven-year Tomahawk contract (17 Aug 2026). The Raytheon–Rafael joint venture delivered its first US-made Tamir interceptors on 09 Oct 2026.
• Air and missile defence radars: LTAMDS, the new radar for the Patriot system, received a $1.03bn production modification in Feb 2026 and a $904.6m low-rate production modification in Apr 2026. SPY-6 naval radars won $1.8bn in Jul 2026, and Raytheon was selected on 15 Oct 2026 to modernise US Space Force early-warning radars.
• Counter-drone: The Coyote Block 2C+RM interceptor passed three tests (12 Oct 2026), and $729m of counter-drone contracts from the US, Qatar and Jordan followed on 13 Oct 2026.
• Engines: The GTF Advantage entered service with United on 24 Sep 2026. On the F135, the Engine Core Upgrade completed a risk-reduction design review on 15 Sep 2026, and a $1.3bn sustainment contract was awarded on 31 Jul 2026.
• Hypersonics and new propulsion: The US Air Force confirmed a flight test of the HACM hypersonic cruise missile with Australia on 05 Oct 2026, with fielding targeted for FY2027 after delays. Pratt & Whitney is also testing hybrid-electric and small-engine demonstrators.

Track the defence and aerospace sector on ChartsView’s Live Charts.

8. Competitive Landscape

RTX competes with GE Aerospace and Safran in commercial aero engines and systems and with Lockheed Martin, Northrop Grumman and General Dynamics for defence budgets. Lockheed is also a major customer, via the F135 engine for the F-35, and a partner on some programmes. Market caps are 16 Oct 2026 closes, and metrics come from each company’s FY2025 results release.

Peer	Market cap (Oct 2026)	Key 2025 metric
GE Aerospace (GE)	~$325.6bn	FY2025 GAAP revenue $45.9bn (adjusted $42.3bn), per GE Aerospace Q4 2025 release
Safran (SAF.PA)	~€131.3bn	FY2025 adjusted revenue €31,329m, per Safran FY2025 results
Lockheed Martin (LMT)	~$127.4bn	FY2025 net sales $75.0bn, per Lockheed Q4 2025 release
General Dynamics (GD)	~$93.1bn	FY2025 revenue $52.6bn, per GD Q4 2025 release
Northrop Grumman (NOC)	~$73.9bn	FY2025 sales $42.0bn, per Northrop Q4 2025 release

9. Leadership & Insider Activity

Christopher T. Calio is Chairman and Chief Executive Officer, and Neil G. Mitchill Jr. is CFO. On 15 Sep 2026 RTX named Jill Albertelli President of Pratt & Whitney from 01 Jan 2027, succeeding Shane Eddy, who retires and stays as an adviser until Mar 2027. Amy Comer becomes President of Pratt & Whitney Military Engines on the same date. Form 4 filings show no open-market insider purchases in 2026. The transactions below are sales, several following option or SAR exercises.

Name	Date	Type	Shares	Price	Value	Plan Type
Ramsaran Maharajh (EVP, General Counsel)	18 Aug 2026	SAR exercise and sale	13,655 sold	~$223.92 (weighted)	~$3.06m	No 10b5-1 plan indicated on Form 4
Tracy Atkinson (Director)	27 Jul 2026	Sale	2,295	$218.05	~$0.50m	Not verified
Troy Brunk (President, Collins)	24 Jul 2026	Option exercise and sale	8,557	$210.29	~$1.80m	Not verified
Kevin DaSilva (SVP, Treasurer)	24 Jul 2026	Sale	7,010	$214.68	~$1.50m	Not verified
Dantaya Williams (EVP, CHRO)	23 Feb 2026	Sale	12,713	$202.83	~$2.58m	Not verified
Neil Mitchill (EVP, CFO)	19 Feb 2026	Option exercise and sale	35,755	$205.56	~$7.35m	Not verified
Christopher Calio (Chairman & CEO)	19 Feb 2026	SAR exercise and sale	63,568 sold	~$203.80 (weighted)	~$12.96m	No 10b5-1 plan indicated on Form 4

Other Feb 2026 sales after option exercises came from Shane Eddy (17,527 shares, ~$3.49m), Kevin DaSilva (8,136 shares, ~$1.64m) and Amy Johnson (8,088 shares, ~$1.58m). Discuss insider activity with other members on the ChartsView Forum.

10. Key Risks

• GTF powder-metal programme (Operational): Accelerated removals and inspections of PW1100G-JM engines keep aircraft grounded and require shop visits and customer compensation. The 10-K flags possible further liquidated damages, ramp and supplier delays, and the chance that other engine models are affected.
• Fixed-price contracts (Financial): Some defence work, including fixed-price development, leaves RTX carrying cost overruns. The Department of War is also changing its contracting terms, including more OTAs and demands for intellectual-property disclosure.
• Government budgets (Macro): The US government accounted for 38% of 2025 sales. Continuing resolutions, shutdowns or shifts in priorities can delay new starts and production increases, and the new multi-year munitions awards depend on annual appropriations.
• Trade and supply chain (Macro): Tariffs and counter-tariffs, sanctions and export controls weigh on a business with 47% international sales and global supply chains. RTX cited tariffs when it cut 2025 EPS guidance in Jul 2025.
• Legal and compliance (Regulatory): RTX operates under DOJ deferred prosecution agreements, an Oct 2024 SEC order over Raytheon and Thales-Raytheon Systems payments, and a three-year ITAR consent agreement with an independent Special Compliance Officer. A breach could bring penalties or debarment, and Q2 2026 included a $69m litigation charge.
• Balance sheet items (Financial): ~$37.4bn of debt, pension assumptions and large goodwill and intangible balances from past acquisitions expose earnings to interest-rate moves and impairment.

11. Recent Developments

• 15 Oct 2026 — Early-warning radar win. Raytheon was selected to modernise US Space Force early-warning radars.
• 13 Oct 2026 — Counter-drone orders. Raytheon received $729m of counter-drone contracts from the US, Qatar and Jordan, a day after three successful tests of Coyote Block 2C+RM.
• 09 Oct 2026 — First US-made Tamir. The Raytheon–Rafael joint venture R2S delivered its first US-built Tamir interceptors.
• 08 Oct 2026 — SM-3 Block IB contract. Raytheon was awarded a $6.3bn multi-year contract for SM-3 Block IB interceptors.
• 01 Oct 2026 — SM-6 contract up to $24.4bn. A five-year contract plus two option years for SM-6 interceptors. The same day, Amy Comer was named President of Pratt & Whitney Military Engines from 01 Jan 2027.
• 29 Sep 2026 — Q3 date set. RTX said it will report Q3 2026 results on 20 Oct before the market opens, and announced an expansion of Collins’ Des Moines engine-components facility.
• 28 Sep 2026 — AMRAAM multi-year. Raytheon won a $20.7bn multi-year AMRAAM contract.
• 24 Sep 2026 — GTF Advantage enters service. The first GTF Advantage-powered aircraft was delivered to United Airlines.
• 15 Sep 2026 — Pratt & Whitney succession. Jill Albertelli was named President of Pratt & Whitney from 01 Jan 2027, and the F135 Engine Core Upgrade completed its risk-reduction design review.
• 23 Jul 2026 — Q2 2026 results and guidance raise. Sales rose 14% to $24.7bn and adjusted EPS 21% to $1.89, and free cash flow was $2.88bn. Adjusted EPS guidance rose to $7.10–7.25. RTX also agreed to sell Blue Canyon Technologies to MDA Space for about $620m.

Macro releases that move defence and industrial stocks are tracked on the Economic Calendar.

12. Key Dates

• 20 Oct 2026 — Q3 2026 results before the market opens, conference call 8:30am ET
• Expected Oct 2026 — Q4 2026 dividend declaration (last year declared on 30 Oct 2025, paid 11 Dec 2025)
• Expected by end of 2026 — completion of the ~$620m sale of Blue Canyon Technologies to MDA Space, subject to approvals
• 01 Jan 2027 — Jill Albertelli becomes President of Pratt & Whitney and Amy Comer President of Pratt & Whitney Military Engines
• Expected Jan 2027 — Q4 and full-year 2026 results with the 2027 outlook (FY2025 results were released on 27 Jan 2026)

The 2027 annual meeting date has not been announced.

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