Air Defense · Missiles · Engines · Avionics
RTX
Aerospace and defense manufacturer operating three segments: Collins Aerospace, Pratt & Whitney and Raytheon.
RTX
NYSE
RTX builds two categories of hardware that both take decades to design and decades to retire. The first is defense equipment: guided interceptors, air-to-air missiles, radars, sensors and the command systems that connect them. The second is aircraft equipment: jet engines for military and commercial aircraft, plus avionics, landing gear, cabin systems and communications gear.
The company sells through three segments. Raytheon supplies missiles, air and missile defense systems and defense electronics, mostly to the U.S. government and allied governments. Pratt & Whitney designs and services large commercial engines, regional and business-jet engines, and the F135 engine that powers the F-35 fighter. Collins Aerospace supplies avionics, interiors, mission systems and power controls to airframers, airlines and defense customers.
A large share of revenue arrives after the initial sale. Engines and aircraft systems generate spare parts, repair and overhaul revenue for as long as the fleet flies, which is typically longer than the original production run. In the second quarter of 2026, Pratt & Whitney commercial aftermarket sales rose 25 percent and Collins commercial aftermarket sales rose 10 percent, both versus the prior year.
The Patriot air and missile defense system and its Guidance Enhanced Missile-Tactical (GEM-T) interceptor are the anchor program. Adjacent lines include the Standard Missile family for naval air and missile defense, the AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM), the National Advanced Surface-to-Air Missile System (NASAMS), StormBreaker precision munitions, and ground-based and shipborne radars. Raytheon second quarter 2026 sales were $8,269 million, up 18 percent year over year, driven by land and air defense systems, naval programs, and Patriot, Standard Missile and AMRAAM volume.
The GTF geared turbofan powers the Airbus A320neo family and the A220. The F135 engine powers all three F-35 variants and is undergoing the Engine Core Upgrade. Pratt & Whitney Canada supplies regional and business-aviation engines. Segment sales were $8,889 million in the second quarter of 2026, up 16 percent, with military sales up 23 percent on higher F135 volume and commercial aftermarket up 25 percent.
Collins supplies avionics, flight controls, actuation, landing systems, power and controls, interiors, and military communications and mission systems. Segment sales were $8,210 million in the second quarter of 2026, up 8 percent as reported and 13 percent organically after adjusting for divestitures completed in 2025, with commercial original-equipment sales up 26 percent.
| Date | Awarding Body | Program / Scope | Value | Status |
|---|---|---|---|---|
| 08/17/2026 | U.S. Navy / Department of War | Seven-year Tomahawk cruise-missile production agreement supporting an annual ramp to more than 1,000 missiles plus associated support | $22.9B contract value | Awarded |
| 06/23/2026 | U.S. Air Force / Foreign Military Sales | AMRAAM D4/C9 system requirements, preliminary design, proof-of-design and proof-of-manufacturing work; FA8556-26-C-B003 | $398.7M face value $104.1M obligated | Awarded |
| 04/30/2026 | U.S. Army Contracting Command | Patriot GEM-T interceptor procurement, modification P00026 to W31P4Q-23-C-0036; completion estimated September 30, 2026 | $441.6M obligated | Awarded |
| 04/14/2026 | U.S. Air Force / Foreign Military Sales | AMRAAM Extended Range transition to production; FA8556-26-C-B002 | $234.8M NTE $61.6M obligated | Awarded |
| 04/14/2026 | German government financing for Ukraine | Patriot GEM-T interceptors with COMLOG production support in Schrobenhausen, Germany | $3.7B announced | Awarded |
| 04/06/2026 | U.S. Air Force / Foreign Military Sales | Small Diameter Bomb Increment II production Lot 12, test equipment and spares; FA8672-26-C-B001 | $708.9M NTE ≈$338.5M obligated | Awarded |
| 03/04/2026 | U.S. Army / Foreign Military Sales | Patriot hardware and services for the United Arab Emirates; W31P4Q-26-C-0001 | $183.7M action $281.1M cumulative face | Awarded |
| 12/23/2025 | Government of Spain | Four Patriot fire units | $1.7B announced | Awarded |
Four drivers account for most of the current growth. First, air and missile defense replenishment: European and Middle Eastern governments are buying Patriot fire units and GEM-T interceptors, and the U.S. Army is placing urgent-need orders. Second, F135 volume, including the Engine Core Upgrade. Third, commercial aftermarket, where an aging and heavily utilized narrowbody fleet drives spare parts and shop visits at both Pratt & Whitney and Collins. Fourth, commercial original-equipment rates at Airbus and Boeing, which set Collins and Pratt delivery volumes.
Backlog gives some visibility into how long that lasts. RTX reported total backlog of $289 billion at June 30, 2026, up 22 percent year over year, split $170 billion commercial and $119 billion defense. Backlog is a contracted-work measure, not a revenue forecast, and converts to sales over multiple years subject to funding, production capacity and customer schedules.
Company guidance for full-year 2026, raised on July 23, 2026, is adjusted sales of $95.0 billion to $96.0 billion, organic sales growth of 8 to 9 percent, adjusted earnings per share of $7.10 to $7.25, and free cash flow of $8.50 billion to $8.75 billion. These are company projections and are subject to the forward-looking-statement cautions in the release.
RTX is running two different businesses on the same balance sheet: a defense manufacturer whose near-term upside is constrained by production capacity and an aerospace installed-base business that earns recurring aftermarket revenue. Both are growing at once. The August Tomahawk award makes the execution question sharper: demand is no longer the main uncertainty in several missile lines. Throughput, supplier capacity and delivery timing are.
National security implication. The seven-year $22.9 billion Tomahawk award, Patriot replenishment orders and allied interceptor demand make Raytheon production rates a direct input to U.S. and allied inventory recovery. RTX says the Tomahawk agreement supports a ramp to more than 1,000 missiles annually. That is an announced production objective, not current achieved output.
Capital implication. Free cash flow was $2.878 billion in Q2 2026 versus negative $72 million a year earlier and RTX raised full-year free cash flow guidance to $8.50 billion to $8.75 billion. Stronger cash conversion gives the company more room to fund production capacity, shareholder returns and balance-sheet priorities, but powder-metal remediation remains a material cash and operational variable.
What to watch next. Tomahawk and Patriot production ramps; backlog conversion against reported sales; Pratt & Whitney segment margin; F135 Engine Core Upgrade milestones; Airbus and Boeing production rates; the closing of the Blue Canyon Technologies sale; and any change in the status of RTX's disclosed legal and compliance obligations.
The durable advantage is installed base plus qualification cost. Once an air force certifies a Patriot fire unit or an engine type, replacing it means requalifying the system, retraining crews, rebuilding the spares pool and rewriting sustainment contracts. That is a multi-year, multi-billion-dollar decision, so incumbents keep the sustainment revenue by default. The same logic applies to the F135, where RTX is the sole propulsion supplier for the F-35.
The second advantage is the aftermarket structure of the engine business. Original-equipment engine sales carry thin or negative margins; the return arrives across decades of shop visits and spare parts. A large delivered fleet is therefore an annuity, which is why Pratt & Whitney commercial aftermarket growth of 25 percent in the second quarter of 2026 matters more to earnings than the 8 percent decline in commercial original-equipment sales.
The moat has two visible limits. Interceptor production capacity is shared across the industrial base, so RTX can be demand-constrained by suppliers it does not own. And European customers increasingly require local co-production, as with the COMLOG facility in Germany, which transfers some manufacturing value out of RTX's own footprint in exchange for market access.
Program and technical risk. RTX continues to disclose the rare condition identified in powder metal used to manufacture certain Pratt & Whitney engine parts, which required accelerated removals and inspections across a significant portion of the PW1100G-JM geared turbofan fleet. The company's own risk language notes that other engine models may be affected.
Legal and regulatory risk. The company discloses deferred prosecution agreements with the Department of Justice, a Securities and Exchange Commission administrative order, related investigations, and a consent agreement with the Department of State. These carry ongoing compliance obligations and the possibility of further action.
Contract structure risk. Fixed-price development and production contracts transfer cost overruns to the contractor. Defense margin is also exposed to accounting-estimate revisions on long-duration programs, which RTX lists among its risk factors.
Customer and budget concentration. Demand depends on U.S. and allied defense appropriations and on commercial aircraft production rates at two airframers. Both are outside the company's control. Trade policy, tariffs and export-licensing decisions can also change the economics of international awards.
Supply chain. Interceptor and engine output is gated by suppliers of castings, forgings, energetics and microelectronics. Capacity expansion is capital-intensive and slower than order intake.
Pension and balance-sheet exposure. RTX carries pension obligations and substantial debt. Interest rates, asset returns and capital-allocation choices can affect funding needs even when operating demand is strong.
Tariffs, foreign exchange and export controls. RTX sells into global commercial and defense markets. Tariffs can raise input costs, foreign-exchange movements can affect reported results and export approvals can delay or constrain international defense sales.
Portfolio and transaction risk. The agreed $620 million sale of Blue Canyon Technologies is still subject to regulatory approvals and customary closing conditions in the latest primary record reviewed. Until it closes, timing and proceeds remain exposed to transaction conditions.
RTX occupies three strategically important positions: allied air-defense interceptor supply, sole-source F-35 propulsion through the F135 and large installed bases in commercial engines and avionics. These positions create substantial qualification, switching-cost and sustainment advantages, but government procurement rules, negotiated contracts, customer leverage and supplier constraints limit how directly those advantages translate into pricing. A material production disruption in selected RTX programs could affect military readiness because Raytheon and Pratt & Whitney sit at critical points in Patriot, AMRAAM, Standard Missile and F-35 propulsion supply chains.
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AC| Filed | Form | Description | Link |
|---|---|---|---|
| 07/23/2026 | 10-Q | Quarterly report for the period ended June 30, 2026; financial statements, segment results, risk disclosures and share count | SEC filing → |
| 07/23/2026 | 8-K | Second quarter 2026 earnings release and updated full-year 2026 outlook | Filing feed → |
| 06/18/2026 | 11-K | Annual reports for RTX employee savings plans | View → |
| 06/01/2026 | SD | Specialized disclosure report | View → |
| 03/09/2026 | DEF 14A | 2026 proxy statement covering board elections, governance and executive compensation | Proxy → |
| 02/06/2026 | 10-K | Annual report for the fiscal year ended December 31, 2025, including risk factors, segment disclosures and corporate history | SEC filing → |
| Date | Insider / Role | Type | Shares | Price | Context |
|---|---|---|---|---|---|
| 08/18/2026 | Ramsaran Maharajh · EVP & General Counsel | SAR settlement + sale | 13,655 sold | $223.9153 weighted avg. | Form 4 also reports 20,069 shares acquired through SAR settlement and 6,414 shares disposed back to issuer at $224.07. |
| 07/27/2026 | Tracy A. Atkinson · Director | Form 4 | See filing | See filing | Director transaction reported July 28, 2026. |
| 07/01/2026 | Philip J. Jasper · President, Raytheon | RSU Grant | 20,860 | $0.00 | Equity compensation award, not an open-market purchase. |
| 02/19/2026 | Christopher T. Calio · Chairman & CEO | SAR settlement + dispositions | 63,568 sold | $203.57–$205.26 | Transactions followed stock-appreciation-right settlement. |
| 02/19/2026 | Neil G. Mitchill, Jr. · CFO | SAR settlement + dispositions | 35,755 sold | ≈$205.54–$205.58 | Transactions followed stock-appreciation-right settlement. |
| Holder | Shares | Percent of Class | Disclosure Basis |
|---|---|---|---|
| Vanguard Group, Inc. | 124,986,171 | 9.3% | RTX 2026 proxy; holdings as of Dec. 31, 2025 |
| BlackRock, Inc. | 104,920,146 | 7.8% | RTX 2026 proxy; holdings as of Dec. 31, 2025 |
| State Street Corporation | 91,884,588 | 6.8% | RTX 2026 proxy; holdings as of Dec. 31, 2025 |
| Capital Research Global Investors | 76,140,352 | 5.7% | RTX 2026 proxy; holdings as of Dec. 31, 2025 |
Raytheon Company traces its history to Cambridge, Massachusetts in 1922 and became a major defense electronics and missile producer during and after the Second World War. The current SEC registrant, however, was incorporated in Delaware in 1934 as part of the United Technologies corporate lineage. United Technologies later assembled major aerospace businesses including Pratt & Whitney and, in 2018, Rockwell Collins.
In 2020, United Technologies spun off Otis and Carrier and merged its remaining aerospace businesses with Raytheon Company to form Raytheon Technologies. Sikorsky had already been sold to Lockheed Martin in 2015. The combined company adopted the RTX name in 2023 and organized itself under three segment brands: Collins Aerospace, Pratt & Whitney and Raytheon.
Two events since the merger continue to shape the company. The first is the powder-metal condition identified in certain Pratt & Whitney engine parts, which required accelerated removals and inspections across a significant portion of the PW1100G-JM geared turbofan fleet and remains a disclosed risk factor. The second is the legal and regulatory overhang from previously disclosed deferred prosecution agreements with the Department of Justice, a Securities and Exchange Commission administrative order, and a consent agreement with the Department of State, all of which RTX continues to list among its forward-looking-statement risk factors.
Leadership turned over in 2024 and 2025. Christopher T. Calio, previously president of Pratt & Whitney and then chief operating officer, became president and chief executive officer on May 2, 2024. Gregory J. Hayes, who led the merger, served as executive chairman and then stepped down; the board elected Calio chairman effective April 30, 2025.
In June 2026, RTX agreed to sell Raytheon's Blue Canyon Technologies business to MDA Space for approximately $620 million. The latest primary filings reviewed describe the sale as pending regulatory approvals and customary closing conditions, so Blue Canyon remains a pending divestiture in this profile.