RTX Corporation
RTXFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$22.1B
Q1 FY2026 · +10% YoY
TTM ROIC
11.1%
FY2025 · NOPAT / Invested Capital (goodwill-inclusive); Invested Capital = Total Assets ~$105B minus non-interest-bearing current liabilities ~$23B · WACC ~8.5% · Moat spread +2.6pp
Financial Snapshot
ticker: RTX step: 04 generated: 2026-05-12 source: quick-research
RTX Corporation (RTX) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Adj. Revenue | $74.3B | $80.8B | $88.6B | +10% |
| Revenue Growth (organic) | +11% | +11% | +12% | |
| Adj. Operating Margin | 11% | 13% | 14% | +100bps |
| Adj. Net Income | $5.4B | $7.2B | $9.1B | +26% |
| Adj. EPS | $4.95 | $5.02 | $5.85 | +17% |
| Free Cash Flow | $4.7B | $4.5B | $7.0B | +56% |
Segment Revenue (FY2025)
| Segment | Revenue | Op Margin |
|---|---|---|
| Collins Aerospace | ~$28B | ~17% |
| Pratt & Whitney | ~$27B | ~10% (GTF drag) |
| Raytheon | ~$34B | ~10% |
Backlog (key metric)
| Period | Total Backlog |
|---|---|
| Q4 2024 | $218B ($125B commercial + $93B defense) |
| Q3 2025 | $251B |
| Q4 2025 | $268B |
| Q1 2026 | $271B (record) |
| Defense Backlog | $107B |
| Commercial Backlog | ~$160B |
Major Defense Contracts
| Program | Value |
|---|---|
| Patriot multi-year | $50B+ (DoD) |
| F-35 engines | 156 deliveries 2025 → 200 by 2028 |
| LRHW + hypersonics | Multi-billion development |
| Tomahawk + Standard Missile | Ongoing replenishment + EU orders |
| Replenishment for Ukraine/Israel/EU | Multi-year |
GTF Recall Status
| Metric | Value |
|---|---|
| Recall scope | ~1,200 engines (powder metal defect) |
| 2025 cash compensation | $1B paid |
| 2025 P&W aftermarket charges | Cumulative ~$3-5B over 2023-2025 |
| Status 2026 | Groundings declining as maintenance ramps |
Other Charges
| Item | Value |
|---|---|
| Missile settlement (Feb 2026) | $1B |
| 2026 Tariff exposure | ~$850M |
| Patriot R&D investment | Ongoing |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$10B |
| Capital Expenditures | ~$3B |
| Free Cash Flow | $7.0B |
| Cash & Investments | ~$10B |
| Total Debt | ~$40B |
Key Ratios (approximate, May 2026)
- P/E (forward): ~21x | EV/EBITDA: ~14x | Dividend Yield: ~1.9%
- ROIC: ~10%
- FCF Margin: ~8%
Growth Profile
FY25 adj. revenue +10% to $88.6B; EPS $5.85 (+17%). Q1 2026 raised full-year outlook on record $271B backlog. 2026 capex stepping up from $2.6B to $3.1B for missile production capacity. GTF maintenance ramp + groundings declining. Defense spending tailwinds from Israel, Ukraine, Patriot orders.
Forward Estimates
- FY2026E Adj Revenue: ~$96B (+8-9%)
- FY2026E Adj EPS: ~$6.40-6.60 (consensus, +9-13%)
- FY2027E EPS: ~$7.50-8.00
- 2028 F-35 Engine Deliveries: 200 (ramped from 156)
Capital Return
- Quarterly dividend $0.63 = $2.52 annual (~$3.3B paid)
- 32+ consecutive years of dividend payments
- Buybacks: ~$2-3B annual run rate
- Total return: ~3-5% combined yield
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $RTX.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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