RTX Corporation: Profile, Segment, Operations & Financials

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Quick Facts / Company Snapshot

Data Point	Disclosed Information
Official Corporate Name	RTX Corporation
State & Year of Incorporation	Delaware, 1934
Principal Corporate Headquarters	1000 Wilson Boulevard, Arlington, Virginia 22209
Telephone Number	(781) 522-3000
Stock Exchange & Ticker Symbol	New York Stock Exchange (NYSE): RTX
Other Registered Securities	2.150% Notes due 2030 (NYSE: RTX 30)
Chairman and Chief Executive Officer	Christopher T. Calio
Executive Vice President and CFO	Neil G. Mitchill, Jr.
Independent Registered Auditor	PricewaterhouseCoopers LLP (Auditor since 1947)
Total Global Workforce	Approximately 180,000 employees
Engineering Workforce	Approximately 54,000 engineering professionals
Global Geographic Presence	Operating across 52 countries
Total GAAP Net Sales (2025)	$88,603 million
Adjusted Net Sales (2025)	$88.6 billion ($88,603 million)
GAAP Operating Profit (2025)	$9,300 million
GAAP Net Income Attributable to Common Shareowners	$6,732 million
Diluted Earnings Per Share (GAAP / Adjusted)	$4.96 (GAAP) / $6.29 (Adjusted)
Total Backlog (Remaining Performance Obligations)	$268 billion
Cash Flow Provided by Operating Activities (2025)	$10,567 million
Free Cash Flow (Non-GAAP, 2025)	$7,940 million

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Company Overview

RTX Corporation operates as an aerospace and defense company delivering advanced systems, structures, and services to commercial, military, and government customers across the world. Headquartered in Arlington, Virginia, the enterprise combines major engineering and manufacturing operations across three primary operating units: Collins Aerospace, Pratt & Whitney, and Raytheon. The business serves both initial production runs and massive aftermarket cycles, functioning as an original equipment manufacturer (OEM) and comprehensive fleet maintenance provider.

The company’s commercial operations supply airframe structures, advanced avionics, flight controls, interiors, and commercial jet engines to the world’s leading aircraft manufacturers and commercial airlines. Concurrently, its defense segment serves domestic and international military customers as a prime contractor and top-tier subcontractor across integrated air and missile defense, smart effectors, radars, hypersonic technology, and secure battlefield networks.

• Global Footprint: Operating across 52 countries with approximately 180,000 employees, including a core technical base of 54,000 engineering professionals.
• Balanced Market Exposure: Consolidated sales for 2025 stood at 52% defense and 48% commercial, shielding operating results from cyclical downturns in any single sector.
• Massive Order Commitments: Backlog reached $268 billion at year-end 2025, providing visible demand across multi-year production schedules.
• Heavy Technology Reinvestment: Committed $7.7 billion to combined company-funded and customer-funded research and development programs during 2025.

The corporation guides its manufacturing lines, overhaul depots, and engineering labs using its proprietary Customer Oriented Results and Excellence (CORE) operating system. This operating model focuses on systematic waste elimination, manufacturing throughput optimization, and product quality enhancement across facilities worldwide. Operational execution is reinforced by a shared digital backbone connecting 17,000 industrial machines and 40 factories to central platforms, covering over 50% of annual manufacturing hours.

Financially, RTX generated $88,603 million in GAAP net sales in 2025, up from $80,738 million in 2024 and $68,920 million in 2023. Its operational earnings conversion generated $10,567 million in operating cash flow and $7,940 million in free cash flow, supporting ongoing dividend payments, capacity expansions, and debt repayments.

Business Segments

RTX structures its worldwide operational footprint into three principal, reportable business segments: Pratt & Whitney, Collins Aerospace, and Raytheon. Each segment maintains operating autonomy over dedicated product lines, customer platforms, and technologies while sharing corporate administrative, digital, and regulatory structures.

Intercompany transactions among segments are eliminated within consolidated financial statements under “Eliminations and other” to reflect third-party results.

Business Segment Performance Summary

Segment (Sorted by 2025 Net Sales)	2025 Net Sales (Millions)	% of Total Net Sales (Calculated by FirmsWorld)	2025 Operating Profit (Millions)	Operating Profit Margin (%)	Segment Total Backlog (Billions)
Pratt & Whitney	$32,916	37.15%	$2,596	7.9%	$151
Collins Aerospace	$30,196	34.08%	$4,923	16.3%	$42
Raytheon	$28,043	31.65%	$3,227	11.5%	$75
Total Segment Sales	$91,155	102.88%	$10,746	11.8% (Calculated by FirmsWorld)	$268
Eliminations and Other	$(2,552)	(2.88)%	$54	—	—
Corporate & Unallocated	—	—	$(248)	—	—
FAS/CAS Operating Adjustment	—	—	$753	—	—
Acquisition Accounting Adjustments	—	—	$(2,005)	—	—
Consolidated Total	$88,603	100.00%	$9,300	10.5%	$268

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Pratt & Whitney

Pratt & Whitney designs, manufactures, and services high-thrust aircraft engines and auxiliary power units for commercial, military, business aviation, and regional platforms. The segment produced $32,916 million in net sales in 2025, accounting for 37.15% of RTX’s consolidated total (Calculated by FirmsWorld), and achieved $2,596 million in operating profit, establishing a 7.9% operating margin.

• Commercial Powerplant Footprint: Powers more than 2,600 commercial aircraft across over 90 international airline operators utilizing the PW1000G Geared Turbofan (GTF) engine family.
• Key Commercial Platforms: Sole source or primary engine provider for the Airbus A320neo family, Airbus A220, and Embraer E-Jets E2.
• Next-Generation Certification: Achieved full type certification from the U.S. Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) for the GTF Advantage engine in 2025.
• Military Dominance via F135: Exclusively powers all three variants of the fifth-generation F-35 Lightning II aircraft (F-35A, F-35B, and F-35C) produced by Lockheed Martin.
• Small Engine Installed Base: Pratt & Whitney Canada delivered 2,318 engines during 2025, expanding its active global fleet to more than 71,000 engines.

Pratt & Whitney relies on collaboration arrangements where financial risks, program development costs, and aftermarket revenues are distributed among global partners. In these programs, third-party collaboration participants hold aggregate equity interests ranging between 13% and 49%.

The business operates a dedicated GTF maintenance, repair, and overhaul (MRO) network comprising 21 overhaul facilities worldwide. Throughput optimization expanded PW1100G-JM shop visit volume by 26% year-over-year in 2025. Military momentum was sustained through $5.3 billion in F135 engine orders in 2025, including a $2.8 billion undefinitized contract action for Lot 18 and Lot 19 long-lead engine hardware.

  +-------------------------------------------------------------------+
  |                     Pratt & Whitney Portfolio                     |
  +---------------------------------+---------------------------------+
  |        Commercial Aviation      |        Military Propulsion      |
  +---------------------------------+---------------------------------+
  | • PW1000G Geared Turbofan (GTF) | • F135 (F-35 Lightning II)      |
  | • GTF Advantage Engine          | • F135 Engine Core Upgrade      |
  | • V2500 Fleet Support (via IAE) | • B-21 Raider Propulsion        |
  | • PT6 E-Series Turboprops       | • XA103 Prototype (USAF NGAP)   |
  | • 21 Dedicated MRO Stations     | • Auxiliary Power Units (APUs)  |
  +---------------------------------+---------------------------------+

Collins Aerospace

Collins Aerospace provides technologically advanced aerostructures, electrical power systems, cabin interiors, flight controls, and avionics to civil and military aircraft manufacturers and commercial airlines. The unit reported $30,196 million in net sales in 2025 (34.08% of consolidated sales, Calculated by FirmsWorld) and generated $4,923 million in operating profit, delivering an operating margin of 16.3%.

• Major Airframe Partners: Boeing and Airbus represented a combined 16% of total Collins segment sales prior to customer discounts and incentives in 2025.
• MRO Expansion: Captured more than $4 billion in combined long-term commercial airline agreements for parts and shop maintenance in 2025.
• Air Traffic Modernization: Awarded a $438 million contract by the FAA to modernize the U.S. National Airspace System through the Radar System Replacement program.
• Defense Network Backbone: Awarded a follow-on contract valued up to $904 million over five years for the U.S. Navy’s Cooperative Engagement Capability (CEC).

Collins designs mechanical and electrical systems across the airframe, including thrust reversers, engine nacelles, evacuation slides, aircraft lighting, cargo handling systems, carbon brakes, and landing gear. During 2025, Collins advanced its carbon braking systems for the Airbus A321XLR, engineered to extend component operational brake life by 50%.

The segment streamlined its portfolio in 2025 by completing the divestiture of its actuation and flight control business for $1.2 billion in net proceeds and selling Simmonds Precision Products for $0.7 billion. Operations are supported by major manufacturing facilities located across the United States, Puerto Rico, Mexico, India, Singapore, and the Philippines.

Raytheon

Raytheon engineers defensive and offensive threat detection, missile interception, radar monitoring, and precision strike systems for the U.S. Department of War, allied foreign governments, and civil agencies. The unit generated $28,043 million in net sales in 2025 (31.65% of consolidated sales, Calculated by FirmsWorld) and $3,227 million in operating profit, delivering an 11.5% margin.

• Historic Munitions Agreements: Secured a $3.5 billion production contract for the Advanced Medium Range Air-to-Air Missile (AMRAAM), representing the largest contract in program history.
• Short-Range Missile Scale: Awarded a $1.1 billion contract from the U.S. Navy to manufacture AIM-9X Block II missiles, ramping output to 2,500 units annually.
• Integrated Air & Missile Defense: Booked $1.5 billion for low-rate initial production of the Lower Tier Air and Missile Defense Sensor (LTAMDS) for the U.S. Army and Poland.
• Autonomous Swarm Defeat: Expanded manufacturing output for the combat-proven Coyote unmanned aircraft system (UAS) to address global counter-UAS requirements.

Raytheon serves as prime contractor across several cornerstone global air defense platforms, including the Patriot air and missile defense system, National Advanced Surface-to-Air Missile System (NASAMS), and Standard Missile family (SM-3 and SM-6). The business booked $39,975 million in external defense orders in 2025, elevating its ending segment backlog to $75 billion.

During 2025, Raytheon expanded production facilities by breaking ground on a $53 million, 23,000-square-foot expansion in Andover, Massachusetts for LTAMDS radar assembly, while adding capacity at the Redstone Missile Integration Facility in Huntsville, Alabama to increase site capacity by 50%.

History and Evolution

RTX Corporation traces its corporate origins to its incorporation in Delaware in 1934. Over nine decades, the company evolved through organic aerospace engineering development, major defense integrations, and multi-billion-dollar portfolio transactions.

The modern structure emerged from United Technologies Corporation (UTC) and its historic combinations with aerospace pioneers. UTC executed a series of portfolio shaping transactions to establish an aerospace and defense enterprise.

• Acquisition of Goodrich Corporation (2012): Formed UTC Aerospace Systems by absorbing landing systems, actuation, and aerostructures assets.
• Rolls-Royce IAE Restructuring (2012): Pratt & Whitney acquired Rolls-Royce’s collaboration interest in International Aero Engines AG to consolidate its V2500 engine position.
• Acquisition of Rockwell Collins (2018): Combined UTC Aerospace Systems with Rockwell Collins to establish Collins Aerospace.
• Spin-Offs of Carrier and Otis (2020): UTC separated its non-aerospace operations, spinning off Carrier Global and Otis Worldwide as independent, publicly traded corporations.
• Merger of UTC and Raytheon Company (2020): United Technologies merged in an all-stock transaction with Raytheon Company, renaming the combined entity Raytheon Technologies Corporation.
• Segment Realignment & Rebranding (2023): Renamed to RTX Corporation, consolidating four operating segments into three: Collins Aerospace, Pratt & Whitney, and Raytheon.

Portfolio management continued through targeted divestitures. In early 2024, Raytheon completed the sale of its Cybersecurity, Intelligence and Services (CIS) business for $1.3 billion in net proceeds, generating a net gain of $415 million. Collins Aerospace followed in late 2024 by divesting Goodrich Hoist & Winch for $0.5 billion.

In 2025, Collins divested its actuation and flight control business for $1.2 billion and its Simmonds Precision Products business for $0.7 billion. These sales sharpened management focus on higher-margin connected avionics, commercial aftermarket services, and integrated defense systems.

Products and Services

RTX separates its consolidated operations into products sales and services sales. Products sales comprise newly manufactured original equipment, including commercial gas turbine engines, defense missile interceptors, radar platforms, aerostructures, and mechanical assemblies. Services sales include fleet management contracts, spare parts distribution, overhaul services, and field technical support.

Revenue Contribution by Source

Revenue Source	2025 Revenue (Millions)	% of Total 2025 Revenue	2024 Revenue (Millions)	2023 Revenue (Millions)
Products Sales	$64,171	72%	$59,612	$49,571
Services Sales	$24,432	28%	$21,126	$19,349
Total Net Sales	$88,603	100%	$80,738	$68,920

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Products Portfolio Overview

RTX’s products business generated $64,171 million in 2025, an increase of $4,559 million over 2024. The growth reflected higher engine deliveries at Pratt & Whitney, volume gains across commercial airframe programs at Collins, and accelerated munitions production at Raytheon.

• Commercial Aircraft Engines: Pratt & Whitney manufactures the PW1000G Geared Turbofan family for the Airbus A320neo, Airbus A220, and Embraer E2 series. The unit also produces the PT6 turboprop line, turboshaft helicopter engines, and commercial auxiliary power units.
• Military Aircraft Propulsion: Pratt & Whitney manufactures the F135 propulsion system for the F-35 Lightning II. The business is also developing the XA103 adaptive cycle engine for the U.S. Air Force’s Next Generation Adaptive Propulsion (NGAP) program and builds engines for the B-21 Raider.
• Aerostructures, Nacelles & Mechanical Systems: Collins designs flight control systems, engine nacelles, thrust reversers, environmental control architectures, evacuation systems, and landing systems.
• Integrated Avionics & Power Architecture: Collins builds flight displays, flight controls, digital communication networks, aircraft sensors, and main electric power distribution equipment.
• Integrated Air and Missile Defense: Raytheon manufactures the Patriot missile system, LTAMDS radar, NASAMS, and exoatmospheric interceptors including Standard Missile-3 (SM-3) and Standard Missile-6 (SM-6).
• Precision Munitions & Sensors: Raytheon builds the AMRAAM air-to-air missile, AIM-9X Sidewinder, Tomahawk cruise missile, StormBreaker smart glide weapon, Coyote UAS, Javelin, Stinger, SPY-6 naval radars, and the AN/TPY-2 radar.

The cost of products sales rose to $53,780 million in 2025 compared to $50,768 million in 2024 and $43,425 million in 2023. These costs were driven by higher volumes and raw material inflation, offset by the absence of prior-year contract termination charges.

  +--------------------------------------------------------------------------+
  |                           RTX Product Spectrum                           |
  +--------------------+--------------------------------+--------------------+
  | Commercial Systems | Defense Munitions & Sensors    | Military Platforms |
  +--------------------+--------------------------------+--------------------+
  | • GTF Engines      | • Patriot / LTAMDS Air Defense | • F135 Propulsion  |
  | • PT6 Turboprops   | • AMRAAM & AIM-9X Missiles     | • B-21 Engines     |
  | • A321XLR Brakes   | • Tomahawk & StormBreaker      | • SPY-6 Radars     |
  | • Nacelles & APUs  | • Coyote Counter-UAS Swarms    | • Next-Gen Jammer  |
  | • Avionics & Power | • Standard Missile-3 / SM-6    | • CEC Tactical Net |
  +--------------------+--------------------------------+--------------------+

Services Portfolio Overview

Services sales expanded to $24,432 million in 2025, up 15.6% from $21,126 million in 2024 and $19,349 million in 2023. Aftermarket revenue was driven by growth in commercial airline flight hours, rising passenger air traffic, and higher heavy engine maintenance overhauls.

• Commercial Engine Maintenance & Overhaul: Pratt & Whitney delivers engine overhauls, parts replacement, and fleet management under long-term agreements across 21 GTF maintenance centers.
• Commercial Spares & Component Repairs: Collins provides spare parts, avionics modifications, and cabin refresh services for airlines, cargo operators, and business aviation.
• Military Fleet Sustainment: Depot maintenance, supply chain management, and operational upgrades for the F135 global fleet and international military aircraft.
• Defense Field Upgrades & Technical Engineering: Raytheon supplies radar maintenance, software refreshes, system modernization, and missile component replenishment for U.S. and allied forces.

Cost of services sales reached $17,034 million in 2025 compared to $14,560 million in 2024 and $13,406 million in 2023. The increase was driven by elevated shop visit activity across commercial MRO facilities.

Brand Portfolio

RTX conducts its global business through three primary enterprise brands. These divisions hold established market positions across commercial aviation and defense systems.

                                  RTX CORPORATION
                 +-----------------------+-----------------------+
                 |                       |                       |
        PRATT & WHITNEY             COLLINS AEROSPACE         RAYTHEON
     • Large Jet Engines          • Avionics & Control     • Air Defense (Patriot)
     • P&W Canada (Turboprops)    • Aerostructures         • Precision Munitions
     • Military Propulsion (F135) • Aircraft Interiors     • Naval & Space Radars

Pratt & Whitney Brand Profile

Operating under its historic eagle insignia, Pratt & Whitney represents RTX’s propulsion segment. The brand covers commercial airline operations through the GTF engine family, regional aviation via Pratt & Whitney Canada, and military power through the F135 engine.

• 2025 Financial Contribution: Generated $32,916 million in net sales and $2,596 million in operating profit.
• Key Platforms: GTF family (PW1100G-JM, PW1500G, PW1900G), GTF Advantage, F135, F119, PT6A, and PW127XT.
• Brand Assets: Includes 21 GTF MRO facilities, an installed base of over 71,000 Pratt & Whitney Canada engines, and collaboration management in International Aero Engines (IAE).

Collins Aerospace Brand Profile

Collins Aerospace manufactures structural components, cabin systems, flight hardware, and mission avionics. Formed by combining Rockwell Collins and UTC Aerospace Systems, the brand serves as a primary equipment supplier across Boeing, Airbus, and business jet platforms.

• 2025 Financial Contribution: Delivered $30,196 million in net sales and $4,923 million in operating profit.
• Core Product Families: Environmental controls, flight control actuation, landing gear, carbon wheels and brakes, primary avionics, and aircraft seating.
• Brand Reach: Installed hardware is present on nearly every modern commercial airliner and numerous military aircraft.

Raytheon Brand Profile

Raytheon serves as the enterprise’s defense and security technology division, engineering radars, interceptors, guided weapons, and electronic warfare suites.

• 2025 Financial Contribution: Produced $28,043 million in net sales and $3,227 million in operating profit.
• Cornerstone Systems: Patriot air and missile defense system, LTAMDS radar, AMRAAM, AIM-9X Sidewinder, Tomahawk, StormBreaker, SPY-6 radar, and Coyote counter-UAS.
• Customer Base: Prime contractor to the U.S. Department of War and allied defense forces across Europe, the Middle East, and Asia-Pacific.

Geographical Presence

RTX operates manufacturing facilities, assembly lines, service depots, and design centers in approximately 25 countries, employing 180,000 people across 52 nations. The business is anchored in the United States, but maintains significant revenue generation in Europe, Asia Pacific, and the Middle East.

Regional Revenue Breakdown

Geographic Region (Sorted by 2025 Sales Mix)	Disclosed 2025 Sales Mix (%)	Calculated 2025 Net Sales (Millions) (Calculated by FirmsWorld)
United States	53%	$46,959.59
Europe	21%	$18,606.63
Asia Pacific	16%	$14,176.48
Other Regions	6%	$5,316.18
Middle East and North Africa	4%	$3,544.12
Total Consolidated	100%	$88,603.00

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Sales by Customer Category

Customer Classification	2025 Sales (Millions)	% of Total Net Sales	2024 Sales (Millions)	2023 Sales (Millions)
Commercial Aerospace & Other Commercial	$42,499	48%	$37,410	$28,069
U.S. Government (Direct)	$33,279	38%	$32,246	$31,628
Foreign Military Sales (via U.S. Government)	$6,702	8%	$5,765	$4,974
Foreign Government Direct Commercial Sales	$6,123	7%	$5,317	$4,249
Total Net Sales	$88,603	100%	$80,738	$68,920

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

United States

The domestic market represents RTX’s operational foundation, generating 53% of net sales in 2025 ($46,959.59 million, Calculated by FirmsWorld). Operations in the U.S. account for 69% of the global workforce and 70% of total facility square footage.

• Defense Anchor: U.S. government direct sales totaled $33,279 million in 2025, accounting for 38% of consolidated revenue.
• Industrial Centers: Major operations are located in Arlington, Virginia (headquarters); Tucson, Arizona (munitions); Huntsville, Alabama (missile integration); Andover, Massachusetts (LTAMDS radars); and Asheville, North Carolina (airfoil casting).

International Operations

International revenue totaled $41,312 million in 2025, representing 47% of consolidated net sales, up from $34,651 million (43%) in 2024 and $29,440 million (43%) in 2023. International revenue consists of commercial airline sales, foreign government direct commercial sales, and foreign military sales administered through the U.S. government.

• Europe (21% of Sales): Generated $18,606.63 million (Calculated by FirmsWorld), driven by commercial aerospace deliveries to Airbus and defense deployments including Patriot air defense, LTAMDS radars for Poland, and AMRAAM procurements.
• Asia Pacific (16% of Sales): Generated $14,176.48 million (Calculated by FirmsWorld), supported by commercial airline fleet growth and defense partnerships with Japan, Australia, and regional allies.
• Middle East & North Africa (4% of Sales): Generated $3,544.12 million (Calculated by FirmsWorld), focused on integrated missile defense systems and commercial airline spare parts.
• Other Regions (6% of Sales): Generated $5,316.18 million (Calculated by FirmsWorld), anchored by Pratt & Whitney Canada’s worldwide regional turboprop operations.

Profit and Loss

Financial performance improved in 2025, supported by commercial aftermarket volume growth, higher defense weapons deliveries, and the absence of prior-year charges. GAAP operating profit reached $9,300 million (a 10.5% margin), while adjusted operating profit reached $11,389 million.

Consolidated Statement of Operations

Financial Metric (Dollars in Millions, Except EPS)	2025	2024	2023
Products Sales	$64,171	$59,612	$49,571
Services Sales	$24,432	$21,126	$19,349
Total Net Sales	$88,603	$80,738	$68,920
Cost of Sales – Products	$53,780	$50,768	$43,425
Cost of Sales – Services	$17,034	$14,560	$13,406
Research and Development (Company-funded)	$2,807	$2,934	$2,805
Selling, General, and Administrative	$6,095	$5,806	$5,809
Total Costs and Expenses	$79,716	$74,068	$65,445
Other Income (Expense), Net	$413	$(132)	$86
Operating Profit	$9,300	$6,538	$3,561
Non-service Pension Income	$(1,182)	$(1,518)	$(1,780)
Interest Expense, Net	$1,749	$1,862	$1,505
Total Non-operating Expense (Income), Net	$567	$344	$(275)
Income Before Income Taxes	$8,733	$6,194	$3,836
Income Tax Expense	$1,664	$1,181	$456
Net Income	$7,069	$5,013	$3,380
Less: Noncontrolling Interest in Subsidiaries’ Earnings	$337	$239	$185
Net Income Attributable to Common Shareowners	$6,732	$4,774	$3,195
Diluted Earnings Per Share (EPS)	$4.96	$3.55	$2.23
Basic Earnings Per Share	$5.02	$3.58	$2.24
Diluted Weighted Average Shares (Millions)	1,356.4	1,343.6	1,435.4
Basic Weighted Average Shares (Millions)	1,341.4	1,332.1	1,426.0

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Operating Expenses and R&D Investment

Consolidated research and development expenditures totaled $7,693 million in 2025. This comprised $2,807 million in direct company-funded initiatives (3.2% of net sales) and $4,886 million in customer-funded development work (5.5% of net sales) recorded within cost of sales.

Selling, general, and administrative (SG&A) expenses rose by $289 million in 2025 to $6,095 million, driven by employee compensation increases and severance restructuring actions at Collins Aerospace. SG&A represented 6.9% of net sales in 2025, down from 7.2% in 2024 and 8.4% in 2023.

  +--------------------------------------------------------------------------+
  |                          2025 R&D Spending Profile                       |
  +-------------------------------------+------------------------------------+
  |      Customer-Funded Research       |       Company-Funded Research      |
  +-------------------------------------+------------------------------------+
  | • $4,886 Million (5.5% of Sales)    | • $2,807 Million (3.2% of Sales)   |
  | • Reimbursed under Contracts        | • Internal Discretionary Capital   |
  | • F135 ECU & Military Programs      | • GTF Advantage Advancements       |
  | • Classified Technology Maturation  | • Avionics & Autonomous Systems    |
  +-------------------------------------+------------------------------------+
  |            Total R&D Investment: $7,693 Million ($7.7 Billion)           |
  +--------------------------------------------------------------------------+

Non-Operating Results, Financing Costs, and Taxes

Non-service pension income was $1,182 million in 2025, down from $1,518 million in 2024. The decrease was driven by a $261 million settlement charge in the fourth quarter of 2025 associated with an annuity buy-out transaction.

Net interest expense declined to $1,749 million in 2025 from $1,862 million in 2024, reflecting $3.35 billion in term loan and senior note repayments. The average interest rate on outstanding debt held steady at 4.5%.

Income tax expense rose to $1,664 million in 2025, matching the 19.1% effective tax rate reported in 2024. The 2025 tax provision reflected lower Foreign Derived Intangible Income deductions following the corporate tax revisions of the 2025 Reconciliation Act, offset by tax benefits from legal reorganizations.

Reconciliation of GAAP to Non-GAAP Measures

Metric (Dollars in Millions, Except EPS)	2025
GAAP Net Income Attributable to Common Shareowners	$6,732
Restructuring Costs	$246
Acquisition Accounting Adjustments	$2,005
Significant and/or Non-recurring Items in Operating Profit	$(162)
Significant and/or Non-recurring Items in Non-service Pension Income	$261
Significant and/or Non-recurring Items in Net Interest Expense	$(54)
Tax Effect of Restructuring and Non-recurring Items	$(438)
Significant Items in Income Tax Expense	$(59)
Total Non-GAAP Net Income Adjustments	$1,799
Adjusted Net Income Attributable to Common Shareowners	$8,531
Diluted Weighted Average Shares Outstanding	1,356.4
GAAP Diluted EPS	$4.96
Per Share Impact of Non-recurring Adjustments	$1.33
Adjusted Diluted EPS	$6.29

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Balance Sheet

RTX closed 2025 with $171,079 million in total assets, compared to $162,861 million at year-end 2024. Growth was led by increases in operating cash balances, customer receivables, and inventory to support production ramp-ups across military and commercial facilities.

Total liabilities expanded to $103,941 million from $100,903 million, driven by higher trade payables and customer contract advances, while total long-term debt decreased.

Consolidated Balance Sheet

Balance Sheet Item (Dollars in Millions)	As of Dec 31, 2025	As of Dec 31, 2024
Cash and Cash Equivalents	$7,435	$5,578
Accounts Receivable, Net	$14,701	$10,976
Contract Assets, Net	$17,092	$14,570
Inventory, Net	$13,364	$12,768
Other Current Assets	$7,740	$7,241
Total Current Assets	$60,332	$51,133
Customer Financing Assets	$2,132	$2,246
Fixed Assets, Net	$16,868	$16,089
Operating Lease Right-of-Use Assets	$1,887	$1,864
Goodwill	$53,343	$52,789
Intangible Assets, Net	$31,845	$33,443
Other Assets	$4,672	$5,297
Total Assets	$171,079	$162,861
Short-term Borrowings	$204	$183
Accounts Payable	$15,895	$12,897
Accrued Employee Compensation	$3,308	$2,620
Other Accrued Liabilities	$14,350	$14,831
Contract Liabilities (Current)	$21,615	$18,616
Long-term Debt Currently Due	$3,412	$2,352
Total Current Liabilities	$58,784	$51,499
Long-term Debt	$34,288	$38,726
Operating Lease Liabilities, Non-current	$1,602	$1,632
Future Pension & Postretirement Benefit Obligations	$2,067	$2,104
Other Long-term Liabilities	$7,200	$6,942
Total Liabilities	$103,941	$100,903
Redeemable Noncontrolling Interest	$36	$35
Common Stock ($1 par value)	$38,126	$37,434
Treasury Stock	$(26,881)	$(27,112)
Retained Earnings	$56,718	$53,589
Accumulated Other Comprehensive Loss	$(2,718)	$(3,755)
Total Shareowners’ Equity	$65,245	$60,156
Noncontrolling Interest	$1,857	$1,767
Total Equity	$67,102	$61,923
Total Liabilities, Redeemable Noncontrolling Interest & Equity	$171,079	$162,861

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Liquidity, Capital Structure, and Debt Maturities

Total debt stood at $37,904 million at December 31, 2025, compared to $41,261 million at year-end 2024, lowering the company’s total debt-to-capitalization ratio from 40% to 36%. Cash and cash equivalents rose to $7,435 million, with 33% held by international subsidiaries.

• Liquidity Backstop: Maintained an undrawn $5.0 billion revolving credit agreement expiring in August 2028, which also supports its $5.0 billion commercial paper program.
• Credit Rating Trajectory: Moody’s Investors Service upgraded its outlook from Baa1/negative to Baa1/stable in March 2025, while S&P Global affirmed its BBB+ rating with a stable outlook in June 2025.
• Debt Extinguishment: Repaid $3,350 million in principal during 2025, consisting of $1.5 billion in 3.950% senior notes, a $750 million SOFR term loan, and a $1.1 billion SOFR term loan.

Contractual Debt Maturities Schedule

Maturity Period (Dollars in Millions)	Long-Term Debt Principal Repayment	Future Stated Interest Payments	Total Cash Commitment
2026	$3,412	$1,676	$5,088 (Calculated by FirmsWorld)
2027	$2,928	$1,491	$4,419 (Calculated by FirmsWorld)
2028	$3,490	$1,413	$4,903 (Calculated by FirmsWorld)
Thereafter (2029 and beyond)	$27,947	$16,826	$44,773 (Calculated by FirmsWorld)
Total Commitments	$37,777 (Calculated by FirmsWorld)	$21,406 (Calculated by FirmsWorld)	$59,183 (Calculated by FirmsWorld)

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Cash Flow

Operational cash flow reached $10,567 million in 2025, an increase of $3,408 million compared to $7,159 million in 2024. Cash generation benefited from net income growth, favorable trade payable timing, and disciplined working capital management, offset by receivables growth from elevated year-end deliveries.

Free cash flow grew to $7,940 million in 2025, up from $4,534 million in 2024 (Calculated by FirmsWorld: $7,159M operating cash minus $2,625M capex).

Consolidated Statement of Cash Flows

Cash Flow Category (Dollars in Millions)	2025	2024	2023
Net Income	$7,069	$5,013	$3,380
Depreciation and Amortization	$4,378	$4,364	$4,211
Deferred Income Tax Provision (Benefit)	$789	$(47)	$(402)
Stock Compensation Cost	$519	$437	$425
Net Periodic Pension and Postretirement Income	$(1,011)	$(1,326)	$(1,555)
Share-based 401(k) Matching Contributions	$573	$353	$261
Gain on Sale of CIS Business, Net	—	$(415)	—
Change in Accounts Receivable	$(3,235)	$(175)	$(1,805)
Change in Contract Assets	$(2,643)	$(2,414)	$(753)
Change in Inventory	$(532)	$(1,474)	$(1,104)
Change in Accounts Payable & Accrued Liabilities	$3,418	$1,508	$4,016
Change in Contract Liabilities	$2,773	$1,872	$2,322
Other Operating Activities, Net	$(1,531) (Calculated by FirmsWorld)	$(537) (Calculated by FirmsWorld)	$(1,113) (Calculated by FirmsWorld)
Net Cash Flows Provided by Operating Activities	$10,567	$7,159	$7,883
Capital Expenditures	$(2,627)	$(2,625)	$(2,415)
Dispositions of Businesses, Net of Cash Transferred	$1,931	$1,795	$6
Increase in Other Intangible Assets	$(492)	$(611)	$(751)
Derivative Settlements and Customer Financing	$(76) (Calculated by FirmsWorld)	$(93) (Calculated by FirmsWorld)	$121 (Calculated by FirmsWorld)
Net Cash Flows Used in Investing Activities	$(1,265)	$(1,534)	$(3,039)
Long-term Debt Repayments	$(3,429)	$(2,500)	$(578)
Proceeds from Long-term Debt	—	—	$12,914
Dividends Paid to Shareowners	$(3,574)	$(3,217)	$(3,239)
Common Stock Repurchases	$(50)	$(444)	$(12,870)
Other Financing Activities, Net	$(433)	$(456)	$(754) (Calculated by FirmsWorld)
Net Cash Flows Used in Financing Activities	$(7,486)	$(6,617)	$(4,527)
Effect of Exchange Rate Changes on Cash	$48	$(28)	$18
Net Increase (Decrease) in Cash, Cash Eq. & Restricted Cash	$1,864	$(1,020)	$335
Cash, Cash Equivalents & Restricted Cash, End of Year	$7,470	$5,606	$6,626
Less: Restricted Cash (Included in Other Assets)	$35	$28	$39
Cash and Cash Equivalents, End of Year	$7,435	$5,578	$6,587

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Free Cash Flow Reconciliation

Non-GAAP Liquidity Measure (Dollars in Millions)	2025	2024	2023
Net Cash Flows Provided by Operating Activities (GAAP)	$10,567	$7,159	$7,883
Less: Capital Expenditures	$(2,627)	$(2,625)	$(2,415)
Free Cash Flow (Non-GAAP)	$7,940	$4,534 (Calculated by FirmsWorld)	$5,468 (Calculated by FirmsWorld)

Source: RTX Corporation 2025 Annual Report / Form 10-K for the fiscal year ended December 31, 2025.

Board of Directors and Leadership Team

RTX operates under the corporate governance of a 10-member Board of Directors, supported by an executive leadership team directing enterprise-wide operations.

  +--------------------------------------------------------------------------+
  |                             RTX BOARD OF DIRECTORS                       |
  +--------------------+--------------------------------+--------------------+
  | Christopher Calio  | Fredric Reynolds               | Tracy Atkinson     |
  | (Chairman & CEO)   | (Lead Independent Director)    | (Audit Chair)      |
  +--------------------+--------------------------------+--------------------+
  | Leanne Caret       | Dr. Bernard Harris, Jr.        | George Oliver      |
  | (Gov & Defense)    | (Human Capital & Comp)         | (Operations)       |
  +--------------------+--------------------------------+--------------------+
  | Ellen Pawlikowski  | Denise Ramos                   | Brian Rogers       |
  | (Gen. USAF, Ret.)  | (Finance & Audit)              | (Capital Strategy) |
  +--------------------+--------------------------------+--------------------+
  | Robert O. Work     |                                |                    |
  | (Fmr DepSecDef)    |                                |                    |
  +--------------------+--------------------------------+--------------------+

Board of Directors Profiles

• Christopher T. Calio: Chairman and Chief Executive Officer of RTX Corporation. Appointed CEO to lead enterprise strategy, capital allocation, and customer program execution across the three business segments.
• Fredric G. Reynolds: Independent Lead Director of RTX. Retired Executive Vice President and Chief Financial Officer of CBS Corporation, providing capital markets expertise.
• Tracy A. Atkinson: Retired Executive Vice President and Chief Administrative Officer of State Street Corporation. Brings institutional risk governance and corporate financial administration experience.
• Leanne G. Caret: Retired Executive Vice President of The Boeing Company and former CEO of Boeing Defense, Space & Security, contributing aerospace defense operational background.
• Dr. Bernard A. Harris, Jr.: Chief Executive Officer and Managing Partner of Vesalius Ventures, Inc., contributing advanced technology, organizational leadership, and venture development insight.
• George R. Oliver: Retired Chairman and Chief Executive Officer of Johnson Controls International plc, offering global industrial manufacturing and operations expertise.
• Ellen M. Pawlikowski: General, U.S. Air Force (Retired) and former Commander of Air Force Materiel Command, contributing military defense procurement and research experience.
• Denise L. Ramos: Retired Chief Executive Officer and President of ITT Inc., providing industrial manufacturing, executive oversight, and governance insight.
• Brian C. Rogers: Retired Chairman of T. Rowe Price Group, Inc., providing investment management, equity analysis, and institutional capital allocation expertise.
• Robert O. Work: Retired U.S. Deputy Secretary of Defense, providing national security defense policy and military requirements guidance.

Executive Leadership Team Profiles

• Christopher T. Calio: Chairman and Chief Executive Officer.
• Neil G. Mitchill, Jr.: Executive Vice President and Chief Financial Officer, directing global controllership, treasury, tax, financial planning, and capital structure.
• Troy D. Brunk: President, Collins Aerospace, managing aerostructures, avionics, flight control, interiors, and commercial airline services.
• Shane G. Eddy: President, Pratt & Whitney, overseeing commercial geared turbofans, military fighter propulsion, and global MRO depot operations.
• Philip J. Jasper: President, Raytheon, responsible for air and missile defense programs, radars, hypersonic platforms, and munitions production.
• Dr. Juan M. de Bedout: Executive Vice President, Chief Technology Officer, overseeing research and development and intellectual property development.
• Paolo Dal Cin: Executive Vice President, Operations, Supply Chain, Quality and EH&S, directing global manufacturing plants, procurement, and environmental safety.
• Vincent M. Campisi: Executive Vice President, Chief Digital Officer, leading the digital backbone, factory sensor connectivity, enterprise IT, and cybersecurity.
• Ramsaran Maharajh, Jr.: Executive Vice President, General Counsel, managing legal governance, compliance monitorships, litigation, and regulatory oversight.
• Art Cameron: Executive Vice President, Global Government Relations, directing legislative engagements and foreign military sales strategy.
• Pamela M. Erickson: Executive Vice President, Chief Communications Officer, responsible for external media, brand reputation, and employee messaging.
• Jesse M. Klempner: Executive Vice President, Corporate Strategy and Development, overseeing mergers, acquisitions, divestitures, and joint ventures.
• Dantaya M. Williams: Executive Vice President, Chief Human Resources Officer, managing talent recruitment, compensation structures, and labor relations.

Subsidiaries, Associates, and Joint Ventures

RTX conducts business through operating subsidiaries, specialized joint ventures, and international consortium programs to share financial risk and access foreign defense markets.

• Pratt & Whitney Canada (P&WC): Wholly owned operating entity of Pratt & Whitney. Manages regional and general aviation, with an installed fleet of more than 71,000 active engines. In 2025, P&WC delivered 2,318 engines and led the European Union’s Clean Aviation PHARES project for hybrid-electric propulsion.
• International Aero Engines AG (IAE): An aerospace collaboration entity managing the V2500 engine program for commercial aviation. RTX holds the leading interest and makes contingent flight-hour payments under a 2012 agreement to acquire Rolls-Royce’s collaboration equity.
• Thales-Raytheon Systems (TRS): An international joint venture between Raytheon Company and Thales Group. Formed to deliver air defense command and control systems, radar platforms, and allied military coordination infrastructure.
• Collins Aerospace International Entities: Fully consolidated subsidiaries operating manufacturing, repair, and engineering centers across India, Mexico, the Philippines, Singapore, and Puerto Rico.

Physical Properties

RTX maintains an industrial footprint comprising approximately 450 significant facilities across 25 nations, covering approximately 75 million square feet of productive floor space.

The physical plant is divided between owned and leased properties to preserve operational flexibility and support classified defense manufacturing.

• Ownership Structure: Approximately 70% of productive floor space is owned, with 30% secured under commercial operating leases.
• Geographic Concentration: Approximately 70% of total facility square footage is located within the United States.
• Operational Classification: Operates approximately 225 dedicated manufacturing, production, or overhaul facilities worldwide.
• Tucson, Arizona: Raytheon’s production hub for missile systems, advanced radar assemblies, and sensor integration lines.
• Asheville, North Carolina: An advanced casting foundry producing turbine airfoils for commercial and military gas turbine engines.
• Huntsville, Alabama: The Redstone Missile Integration Facility, which increased naval munitions production capacity by 50%.
• Andover, Massachusetts: A radar manufacturing complex undergoing a $53 million, 23,000-square-foot expansion to support LTAMDS air defense radars.

Investments and Capital Expenditure Plans

RTX reinvests operating cash flow into manufacturing capacity expansions, tooling, and digital shop-floor infrastructure. Capital expenditures totaled $2,627 million in 2025, compared to $2,625 million in 2024 and $2,415 million in 2023.

Investments prioritize factory automation, digital tooling, and casting capacity to relieve supply chain bottlenecks across commercial aviation and missile programs.

• Redstone Missile Integration Facility (Huntsville, AL): Capital investments increased site missile assembly capacity by 50% to address U.S. Navy munitions requirements.
• LTAMDS Andover Expansion (Andover, MA): Broke ground on a $53 million, 23,000-square-foot expansion to support U.S. Army and Polish military radar production.
• Asheville Advanced Airfoil Foundry (Asheville, NC): Advanced casting foundry investments to produce high-pressure turbine airfoils for Pratt & Whitney commercial and military engines.
• Enterprise Digital Backbone: Connected 17,000 industrial machines and 40 factories into a unified operational analytics platform, covering over 50% of annual manufacturing hours.
• Purchase Obligations Pipeline: Committed to $47 billion in total future purchase obligations, of which $29 billion is scheduled for delivery in 2026. Approximately 50% of these obligations represent purchase orders backed by firm U.S. government contracts.

Shareholding Pattern

RTX common stock is listed on the New York Stock Exchange under the ticker symbol “RTX”. As of December 31, 2025, the company had 1,342,287,676 common shares outstanding, held by 35,327 registered shareowners of record.

The aggregate market value of voting common stock held by non-affiliates as of June 30, 2025 was approximately $195,405,729,090.

• Authorized Capitalization: 4,000,000,000 authorized shares of common stock ($1 par value) and 250,000 authorized shares of preferred stock ($1 par value, none issued).
• Treasury Shares: Maintained 383,025 thousand treasury shares at average cost at year-end 2025.
• Share Repurchase Authorizations: The Board authorized an $11 billion share repurchase program on October 21, 2023. Management had approximately $0.6 billion in remaining repurchase authority as of December 31, 2025.
• Cash Dividends Paid: Total dividends paid reached $3,574 million in 2025 ($2.67 declared per share), up from $3,217 million ($2.48 per share) in 2024 and $3,239 million ($2.32 per share) in 2023.
• Forward Quarterly Dividend: Declared a quarterly dividend of $0.68 per share on February 6, 2026, payable March 19, 2026.

Future Strategy

Management’s enterprise roadmap centers on three operational priorities: Speed, Innovation, and Capacity Expansion. These initiatives are designed to meet commercial airline aftermarket demands while fulfilling allied defense munitions replenishments.

  +--------------------------------------------------------------------------+
  |                          RTX Strategic Pillars                           |
  +-------------------+------------------------------+-----------------------+
  |       Speed       |          Innovation          |   Capacity Expansion  |
  +-------------------+------------------------------+-----------------------+
  | • CORE Execution  | • GTF Advantage Entry (2026) | • Huntsville (+50%)   |
  | • 40 Connected    | • A321XLR Carbon Brakes      | • Andover ($53M Plan) |
  |   Smart Factories | • AI Software Testing        | • Asheville Foundry   |
  | • AI Optimization | • PHARES Hybrid-Electric     | • 21 MRO GTF Depots   |
  +-------------------+------------------------------+-----------------------+

• Capacity Expansion & Industrial Output: Expanding factory output across critical defense programs, including AIM-9X missiles (ramping to 2,500 units annually), AMRAAM missiles, GEM-T interceptors, and Coyote counter-UAS platforms.
• Operational Execution via CORE: Deploying the Customer Oriented Results and Excellence (CORE) operating system to eliminate factory constraints and streamline maintenance workflows.
• Propulsion Evolution: Preparing for the 2026 entry-into-service of the certified GTF Advantage engine, which delivers up to 8% more takeoff thrust and an additional 1% reduction in fuel consumption.
• Missile Defense Architecture Alignment: Positioning radar and interceptor portfolios to support the U.S. Department of War’s “Golden Dome for America” missile defense initiative, supported by $24.4 billion in initial authorized program funding.
• Digital Engineering & AI Integration: Applying automated testing across safety-critical avionics software and leveraging machine-sensor analytics across factory networks to reduce cycle times.

Key Strengths

• Massive Order Backlog: A $268 billion backlog provides long-term revenue visibility across multi-year commercial aircraft build cycles and government defense budgets.
• Balanced Dual-Market Exposure: A portfolio split of 52% defense and 48% commercial balances civil aviation cyclicality against government defense procurement cycles.
• Technical Human Capital: A global workforce of 180,000 employees supported by 54,000 engineering professionals driving advanced technology and product development.
• Propulsion Market Share: More than 2,600 commercial aircraft operated by over 90 carriers rely on Pratt & Whitney GTF engines, alongside an active fleet of over 71,000 Pratt & Whitney Canada engines.
• Defense Munitions & Sensor Position: Raytheon serves as prime contractor for essential international defense programs, including the Patriot system, LTAMDS radars, AMRAAM, and AIM-9X.
• Commercial Aftermarket Reach: Collins Aerospace components and systems are installed on nearly all major commercial jetliners, generating recurring high-margin spare parts and maintenance services.

Key Challenges and Risks

Pratt & Whitney Powder Metal Matter

In July 2023, Pratt & Whitney determined that a rare metallurgical condition in powder metal used to manufacture certain engine parts required accelerated inspections across the PW1100G-JM GTF fleet. This issue has resulted in elevated aircraft-on-ground (AOG) levels for the Airbus A320neo family, requiring customer support compensation and accelerated depot shop visits through 2026.

• Historical Pre-Tax Charge: Recorded a $2.9 billion pre-tax operating profit charge in the third quarter of 2023, reflecting Pratt & Whitney’s 51% program share.
• Customer Compensation Utilization: Utilized $1.0 billion of the accrued customer compensation balance in 2024 and another $1.0 billion in 2025 through cash payments and customer concessions.
• Ending Accrual Balance: The remaining liability stood at $0.7 billion at December 31, 2025, compared to $1.7 billion at year-end 2024.
• Forward Cash Impact: Management estimates a full-year 2026 cash impact of approximately $0.7 billion for customer settlements, shop visits, and partner recoveries.

Regulatory Compliance, DPAs, and Legal Matters

RTX operates under extensive regulatory oversight and is subject to multiple federal compliance agreements following the resolution of government investigations in late 2024.

• DOJ Deferred Prosecution Agreements: On October 15 and 16, 2024, Raytheon Company entered into two 3-year DPAs with the Department of Justice resolving investigations into historical foreign agent payments in the Middle East (FCPA violations) and defective contract pricing between 2011 and 2017.
• Independent Compliance Monitor: An independent compliance monitor was selected to oversee Raytheon Company’s and RTX’s compliance under the DPAs and an SEC Administrative Order, with the monitorship scheduled to begin by the end of the first quarter.
• DOS ITAR Consent Agreement: Entered into a 3-year Consent Agreement with the Department of State on August 29, 2024 to resolve historical export control and ITAR violations, appointing an external Special Compliance Officer on September 27, 2024.
• Enforcement Vulnerability: Any material breach of the DPAs or SEC Administrative Order could lead to federal criminal prosecution, additional monetary fines, and potential suspension or debarment from U.S. government contracting.

Supply Chain Constraints and Raw Materials

Manufacturing operations depend on global suppliers for specialty components, microelectronics, and scarce raw materials. Material and component availability challenges have led to factory delays and higher procurement costs.

• Critical Metal Dependencies: The company relies on foreign sources for essential raw materials including cobalt, tantalum, chromium, rhenium, nickel, and titanium.
• Titanium Sourcing Shifts: Russian sanctions and Canadian regulatory restrictions required Collins to transition to alternative titanium sources in 2024, resulting in $175 million in unfavorable purchase commitment charges and contract fulfillment write-offs.
• Fixed-Price Contract Risks: Cost increases for materials and labor pressure operating margins on firm fixed-price development contracts, where the company absorbs cost overruns.

Tariffs and Geopolitical Exposures

The global trade and regulatory environment introduces operational and market uncertainties across key regions.

• Trade Measures & Counter-Tariffs: Following the introduction of U.S. tariffs on foreign imports in February 2025 and corresponding international counter-tariffs, RTX experienced cost increases within its aerospace supply lines, partially offset by price adjustments and trade exemptions.
• Sanctions in China: In February 2023, China announced sanctions and fines against Raytheon Missiles & Defense over defense sales to Taiwan, followed by additional sanctions targeting Raytheon and a Collins joint venture.
• Executive Order Directives: A January 2026 Executive Order authorizes the Secretary of War to seek limits on corporate dividend payments and share repurchases if defense contractors show underperformance or delivery delays on military programs.

Conclusion and Strategic Outlook

RTX Corporation concluded 2025 with $88,603 million in GAAP net sales, $10,567 million in operating cash flow, and a total order backlog of $268 billion. Throughput gains across its 21 GTF maintenance depots and expanded munitions production supported operational earnings growth.

Looking into 2026, the company’s financial and operating performance will depend on its execution across critical milestones: entering the certified GTF Advantage engine into commercial service, completing accelerated inspections on the PW1100G-JM fleet, maintaining production momentum on AMRAAM and AIM-9X missile programs, and navigating independent compliance oversight under its federal regulatory agreements.

Backed by 180,000 employees, 54,000 engineers, and a multi-year order book, RTX remains a cornerstone industrial supplier across global civil aviation and international defense systems.

Official Site: RTX Corporation