RTX · 10-Q · 2026Q2 · Full report
Working Capital and Contract Assets
RTX Corp · 2026-07-23 · Importance 38 · Surprise 24 · From source text
Net contract assets increased $1.9 billion during the first six months of 2026, primarily because Pratt & Whitney recognized sales in excess of billings on certain contracts. Contract liabilities increased $1.1 billion, primarily from advances and billings exceeding sales on certain Pratt & Whitney and Raytheon contracts. Net contract liabilities declined to $3.691 billion from $4.523 billion at December 31, 2025. RTX recognized $6.0 billion of revenue in the first six months of 2026 from contract liabilities outstanding at January 1, 2026, compared with $5.0 billion in the prior-year period.
Key facts
- Contract assets, net at June 30, 2026: $18,980 million; at December 31, 2025: $17,092 million. source
- Factoring activity resulted in a $1.5 billion increase in cash provided by operating activities during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. source
- Contract liabilities at June 30, 2026: $22,671 million; at December 31, 2025: $21,615 million. source
- Accounts receivable, net at June 30, 2026: $13,942 million; at December 31, 2025: $14,701 million. source
- Inventory, net at June 30, 2026: $14,409 million; at December 31, 2025: $13,364 million. source
- RTX recognized revenue of $2.4 billion and $6.0 billion during the quarter and six months ended June 30, 2026 related to contract liabilities outstanding as of January 1, 2026. source
- Total assets by segment at June 30, 2026 were: Collins Aerospace $71,451 million, Pratt & Whitney $54,656 million, Raytheon $44,858 million, total segment $170,965 million, consolidated $173,972 million. source
- Contract assets, net increased $1.9 billion during the six months ended June 30, 2026 primarily due to sales in excess of billings on certain contracts at Pratt & Whitney. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +24.3% | RTX recognized revenue of $2.4 billion and $6.0 billion during the quarter and six months ended June 30, 2026 related to contract… |
| assets | positive | realized | +1.1% | Contract assets, net at June 30, 2026: $18,980 million; at December 31, 2025: $17,092 million. |
| cash | positive | realized | +0.9% | Factoring activity resulted in a $1.5 billion increase in cash provided by operating activities during the six months ended June 30, 2026… |
| liability | negative | realized | -0.6% | Contract liabilities at June 30, 2026: $22,671 million; at December 31, 2025: $21,615 million. |
| assets | positive | realized | +0.6% | Inventory, net at June 30, 2026: $14,409 million; at December 31, 2025: $13,364 million. |
| assets | negative | realized | -0.4% | Accounts receivable, net at June 30, 2026: $13,942 million; at December 31, 2025: $14,701 million. |