RTX Corporation

RTX
Financial 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 − non-interest-bearing current liabilities ~$23B · WACC ~8.5% · Moat spread +2.6pp
Margin Profile
Gross 25%
Operating 13%
FCF 9%
FY2025
Net Debt
$30.0B
Cash $10.0B · Debt $40.0B · FY2025

Business Overview

ticker: RTX step: 01 generated: 2026-05-12 source: quick-research

RTX Corporation (RTX) — Business Overview

Business Description

RTX (formerly Raytheon Technologies, renamed July 2023) is the world's largest aerospace and defense company by revenue. Formed in April 2020 via merger of Raytheon Company and United Technologies aerospace businesses. Three segments: Collins Aerospace (commercial + military avionics + systems), Pratt & Whitney (jet engines), and Raytheon (defense systems — missiles, radars, sensors, hypersonics). Total backlog $268-271B, the largest in industry. CEO Chris Calio (since 2024).

Revenue Model

  • Collins Aerospace (~32% of revenue): Avionics, interiors, structures, power & control systems — commercial + military
  • Pratt & Whitney (~30%): Commercial + military jet engines + aftermarket services (military ~60% of P&W revenue)
  • Raytheon (~38%): Defense systems — Patriot, Tomahawk, AMRAAM, Standard Missile, sensors, integrated air & missile defense

Products & Services

Collins Aerospace
  • Avionics (flight management, communications, navigation)
  • Aerostructures (nacelles, engine inlets, wings)
  • Cabin interiors (seats, lavatories, IFE)
  • Power & controls
  • Military avionics (helmet displays, escape systems)
Pratt & Whitney
  • Commercial engines: GTF (PW1000G) for A220, A320neo family, E2; PW4000 (legacy)
  • Military engines: F119 (F-22 Raptor), F135 (F-35 — 156 deliveries 2025 → 200 target by 2028), TF33
  • Auxiliary Power Units (APUs) for commercial + military
  • Aftermarket services: Maintenance, repair, overhaul (MRO)
Raytheon
  • Air & Missile Defense: Patriot system + missiles (recent $50B+ multi-year contract); NASAMS
  • Missiles & Defense: Tomahawk, AMRAAM, Stinger, Standard Missile (SM-2/3/6), Javelin (with Lockheed)
  • Hypersonics: Long Range Hypersonic Weapon (Army), HACM (Air Force), HALO (Navy)
  • Sensors: SPY-6 radar (Navy), AESA radars, RAIVEN Staring EO/IR sensor
  • Space: Satellite control + classified programs

Customer Base & Go-to-Market

  • Commercial aerospace (~50% commercial): Boeing, Airbus, airlines (engine + parts customers), business jet OEMs
  • US DoD (~30%): Largest customer overall — across all three segments
  • International defense (~20%): Allied governments — Patriot orders from Germany, Netherlands, Poland, Ukraine, Israel, Saudi Arabia
  • Geographic mix: ~55% US, ~45% International

Competitive Position

RTX is the global #1 in commercial aerospace systems (Collins) + #1 in air defense / missile defense (Raytheon) + #2 in jet engines (Pratt). Moats: (1) ~$268B backlog provides multi-year revenue visibility, (2) F-35 sole engine supplier through 2050s, (3) Patriot system dominance with 17+ countries, (4) decades of certified aerospace know-how. Competitors: Lockheed Martin (defense), GE Aerospace (engines), Boeing/Airbus (aircraft frames), Northrop Grumman, L3Harris, BAE Systems. Pratt & Whitney GTF powder metal defect has been a multi-year headwind.

Key Facts

  • Founded: 1922 (United Technologies); 1922 (Raytheon)
  • Headquarters: Arlington, VA (corporate); operational HQ Waltham, MA
  • Employees: ~185,000
  • Exchange: NYSE
  • Sector / Industry: Industrials / Aerospace & Defense
  • Market Cap: ~$180B (May 2026)
  • CEO: Christopher T. Calio (since May 2024, succeeded Greg Hayes)
  • Dividend: $2.52 annual ($0.63 quarterly)
  • 32+ consecutive years of dividend payments
  • Total backlog: $268-271B (commercial + defense)

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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