RTX · Earnings call · 2026Q3T · Full report

Operating Expense Trends

RTX Corp · 2026-10-20 · Importance 31 · Surprise 42

Collins is implementing structural cost actions that include consolidating operations, shifting manufacturing hours to best-cost locations, and reducing overhead layers. Collins reduced indirect labor headcount while delivering double-digit organic sales growth during the year. Collins expects higher fourth-quarter R&D and digital spending to support next-generation technology and back-office automation. Pratt's quarterly operating profit was partly offset by higher SG&A expense, while RTX expects Collins operating margins to continue expanding into 2027.

Key facts

• RTX reported that Collins reduced indirect labor headcount as part of structural cost actions enabling double-digit organic sales growth while reducing indirect labor.