RTX · 8-K · 20261020PR000030
Operating Income and Margins
RTX Corp · 2026-10-20 · Importance 64 · Surprise 56 · No source text
Third-quarter 2026 consolidated operating profit increased to $3.337 billion from $2.523 billion, while adjusted operating profit rose 34% to $3.987 billion. Collins Aerospace adjusted operating profit increased 50% to $1.788 billion and adjusted ROS expanded 560 basis points to 21.3%, driven by commercial volume, mix, and approximately $250 million of IEEPA recovery. Pratt & Whitney adjusted operating profit rose 29% to $968 million and adjusted ROS increased 160 basis points to 10.5%, despite large commercial OE and aftermarket mix pressure and higher SG&A. Raytheon adjusted operating profit increased 32% to $1.134 billion and ROS expanded 190 basis points to 14.1%, supported by productivity, volume, favorable mix, and approximately $85 million from an international contract modification and offset-obligation adjustment.
Key facts
- Collins Aerospace adjusted operating profit: $1,788 million, up 50 percent versus prior year and including approximately $250 million of IEEPA recovery source
- Third quarter 2026 adjusted net income: $3.1 billion, up 34 percent versus prior year, driven by $1.1 billion of adjusted segment operating profit growth including $0.4 billion of IEEPA recovery source
- Raytheon adjusted operating profit: $1,134 million, up 32 percent versus prior year and included approximately $85 million of benefits associated with an international contract modification and a favorable adjustment related to an offset obligation source
- Pratt & Whitney adjusted operating profit: $968 million, up 29 percent versus prior year and included approximately $160 million of IEEPA recovery source
- Raytheon reported operating profit: $1,133 million, up 32 percent versus prior year source
- Collins Aerospace reported operating profit: $1,789 million, up 42 percent versus prior year source
- RTX reported net income attributable to common shareowners in Q3 2026: $2.6 billion, which included $0.3 billion of acquisition accounting adjustments and $0.2 billion of restructuring and other net significant and/or non-recurring items source
- Pratt & Whitney reported operating profit: $608 million, down 19 percent versus prior year and included a charge of $363 million related to a customer bankruptcy source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +7.9% | Nine months ended September 30, 2026 consolidated adjusted operating profit: $10,369 million versus $8,422 million in prior year |
| operating_income | negative | realized | -1.5% | Pratt & Whitney reported operating profit: $608 million, down 19 percent versus prior year and included a charge of $363 million related… |
| net_income | negative | realized | -1.2% | RTX reported net income attributable to common shareowners in Q3 2026: $2.6 billion, which included $0.3 billion of acquisition accounting… |
| operating_income | positive | realized | +1.0% | Collins Aerospace adjusted operating profit: $1,788 million, up 50 percent versus prior year and including approximately $250 million of… |
| net_income | negative | realized | -0.8% | RTX reported net income attributable to common shareowners in Q3 2026: $2.6 billion, which included $0.3 billion of acquisition accounting… |
| operating_income | positive | realized | +0.7% | Pratt & Whitney adjusted operating profit: $968 million, up 29 percent versus prior year and included approximately $160 million of IEEPA… |
| operating_income | positive | realized | +0.3% | Raytheon adjusted operating profit: $1,134 million, up 32 percent versus prior year and included approximately $85 million of benefits… |
| operating_income | positive | realized | — | Collins Aerospace adjusted operating profit: $1,788 million, up 50 percent versus prior year and including approximately $250 million of… |
| net_income | positive | realized | — | Third quarter 2026 adjusted net income: $3.1 billion, up 34 percent versus prior year, driven by $1.1 billion of adjusted segment… |
| operating_income | positive | realized | — | Pratt & Whitney adjusted operating profit: $968 million, up 29 percent versus prior year and included approximately $160 million of IEEPA… |
| net_income | positive | realized | — | RTX reported net income attributable to common shareowners in Q3 2026: $2.6 billion, which included $0.3 billion of acquisition accounting… |
| net_income | positive | realized | — | Third quarter 2026 Adjusted EPS: $2.26, up $0.56 or 33 percent versus prior year, including $0.25 from IEEPA cost recovery |