RTX Corp
RTX Corp is a U.S.-based aerospace and defense company organized around Collins Aerospace, Pratt & Whitney, and Raytheon. It supplies commercial aircraft systems and engines, aftermarket parts and services, and defense systems and missiles to commercial, military, and government customers worldwide.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueAircraft systems, avionics, interiors, and related aftermarket support for commercial and military platforms.
Commercial and military aircraft engines, engine parts, and engine aftermarket services.
Missiles, air and missile defense, sensors, radars, and command-and-control systems.
Smaller operations and intercompany eliminations not allocated to the core segments.
Products
Reported · share of revenue- Products72.4 %
- Services27.6 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
RTX sells to commercial airlines and aircraft OEMs, but a large part of the business also serves the U.S. Department of War and allied government customers. Its defense programs are typically sold as prime contractor or major subcontractor awards, while its aerospace businesses support original equipment and long-life aftermarket fleets. The customer base is therefore split between civil aviation operators that need certified systems and engines, and government buyers that need mission-critical defense hardware and support.
Airlines, lessors, and aircraft OEMs buy engines, avionics, and aftermarket support to keep fleets certified and operating.
The U.S. Navy, Army, Air Force, Space Force, and Missile Defense Agency buy missiles, radars, and defense systems.
NATO agencies and foreign militaries buy air defense, missile, and precision weapon systems for national security needs.
U.S. civil agencies and classified programs buy specialized aerospace and defense technologies and support services.
Strategy
RTX focuses on large installed fleets, long-cycle defense programs, and backlog conversion across its three segments. It emphasizes program execution, backlog growth, capital discipline, and continued investment in advanced technologies, certification, and aftermarket support to strengthen its position in both civil aerospace and defense.
Long-cycle contracts and firm orders provide visibility and support future sales.
Large aerospace and defense programs require cost control, certification, and reliable delivery.
Support, parts, and services extend revenue beyond initial equipment sales.
New systems and advanced technologies help win future defense and aerospace programs.
Geography
Q1/2026RTX is headquartered in the United States but operates and sells globally across commercial aviation and defense markets. Its manufacturing, engineering, and support footprint spans North America, Europe, the Middle East, and Asia, with some commercial manufacturing facilities in Israel and a meaningful share of cash held by foreign subsidiaries. Geography matters because defense sales depend on government approvals and alliances, while aerospace demand and supply chains are exposed to global trade, currency, and regional security conditions.
Share of the revenue the company reports by geography.
Risks
RTX faces execution risk on complex, long-duration aerospace and defense programs, where delays, certification issues, or quality failures can affect delivery and customer confidence. It is also exposed to defense spending cycles, supply chain disruptions, cybersecurity threats, geopolitical tensions, and legal or regulatory matters tied to global operations and government contracting.
- Program execution and contract performanceImpact: HighLikelihood: High
Large aerospace and defense contracts require tight cost, schedule, and quality control.
Exposure - Defense budget and procurement changesImpact: HighLikelihood: Medium
A meaningful share of revenue depends on U.S. and allied government spending priorities.
Exposure - Cybersecurity and intellectual propertyImpact: HighLikelihood: Medium
Defense contractors are frequent targets for cyberattacks and sensitive data theft.
Exposure - Supply chain and commodity disruptionImpact: MediumLikelihood: High
RTX relies on global suppliers and materials that can be affected by shortages or cost inflation.
Exposure - Geopolitical and regional security exposureImpact: MediumLikelihood: High
Operations and suppliers in conflict-prone regions can face delays or disruption.
Exposure - Legal, regulatory, and compliance mattersImpact: MediumLikelihood: Medium
Global defense and aerospace operations face export controls, investigations, and contract compliance risk.
Exposure: U.S. and non-U.S. operations
Accounting
Judgemental itemsMany programs are recognized over time, so estimates of cost, margin, and progress affect reported revenue and profit.
Impact: Affects timing of sales, earnings, and contract asset/liability balances
Engineering and development costs are capitalized when recoverable, then amortized as products are delivered.
Impact: Can shift expense recognition and create impairment risk if programs change
Backlog is a key forward indicator for future sales but excludes some options and variable orders.
Impact: Important for revenue visibility and investor forecasting
Discount rates, asset returns, and contribution assumptions affect liabilities and expense.
Impact: Can materially change reported equity and operating results
Large acquisitions and segment performance can trigger impairment testing.
Impact: Potential non-cash charges if business outlook weakens
International operations and repatriation decisions affect deferred taxes and tax expense.
Impact: Can create volatility in effective tax rate and cash taxes
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Last updated: 24/09/2026