RTX · 10-Q · 2026Q2

RTX Corp

Filed 2026-07-23 · Automotive · View original filing on EDGAR

Ranked Events

• Pratt & Whitney Engine IssuesImportance 71 · Surprise 60
  Pratt & Whitney determined in 2023 that a rare powder-metal condition requires accelerated inspections, part retirements, and replacements across the PW1100 GTF fleet powering Airbus A320neo aircraft. The FAA issued…
• Operating Cash Flow TrendsImportance 69 · Surprise 64
  Net cash provided by operating activities increased to $5.4 billion in the six months ended June 30, 2026, from $1.8 billion in the prior-year period, an increase of approximately $3.6 billion. The improvement was…
• Cost Accounting Standards ClaimsImportance 65 · Surprise 60
  The U.S. Defense Contract Management Agency asserted a claim against Pratt & Whitney for approximately $1.7 billion plus $1.6 billion of interest as of June 30, 2026, alleging noncompliance with Cost Accounting…
• Customer DynamicsImportance 65 · Surprise 48
  Six-month sales to the U.S. government increased 7.9% to $17.3 billion, while foreign military sales through the U.S. government increased 22.4% to $3.8 billion. Foreign government direct commercial sales increased…
• Operating Income and MarginsImportance 64 · Surprise 56
  Consolidated operating profit increased 31.0% year over year to $2.811 billion in the quarter and 28.3% to $5.366 billion for the six months ended June 30, 2026. Operating margin expanded from 9.9% to 11.4% in the…
• Order Backlog and Book-to-BillImportance 61 · Surprise 32
  Total backlog increased to $289 billion as of June 30, 2026 from $268 billion at December 31, 2025, a $21 billion increase. Commercial backlog rose to $170 billion from $161 billion, while defense backlog increased to…
• Liquidity and Debt PositionImportance 56 · Surprise 24
  At June 30, 2026, RTX held $8.3 billion in cash and cash equivalents, approximately 27% of which was held by foreign subsidiaries, against $37.4 billion of total debt. S&P Global affirmed RTX’s BBB+ rating in May 2026…
• Revenue Performance and MixImportance 54 · Surprise 40
  Consolidated net sales increased 14.5% year over year to $24.708 billion in the quarter ended June 30, 2026, including $3.511 billion of organic growth, and increased 11.7% to $46.784 billion for the six-month period.…
• Portfolio Reshaping (M&A / Divestiture)Importance 53 · Surprise 60
  On June 19, 2026, RTX entered into an agreement to sell its Blue Canyon Technologies business within the Raytheon segment for approximately $0.6 billion. Closing remains subject to regulatory approvals and other…
• Capital AllocationImportance 51 · Surprise 64
  Cash used in financing activities increased to $2.909 billion in the six months ended June 30, 2026 from $1.409 billion in the prior-year period, mainly because RTX did not receive the $1.4 billion of commercial-paper…
• Export Controls / Regulatory RiskImportance 47 · Surprise 60
  The U.S. State Department’s Office of Defense Trade Controls Compliance notified RTX in May 2024 that it intended to seek administrative penalties for alleged violations of the Arms Export Control Act and International…
• Regulatory Compliance MonitorsImportance 47 · Surprise 60
  RTX and Raytheon Company entered into deferred prosecution agreements with the U.S. Department of Justice and an SEC administrative order in October 2024 concerning alleged improper payments tied to Middle East…
• Geographic Revenue PerformanceImportance 47 · Surprise 22
  U.S. revenue increased 8.7% year over year to $25,006 million in the six months ended June 30, 2026, representing 53.5% of consolidated sales. Europe revenue increased 18.7% to $10,232 million, while Asia Pacific…
• Powder Metal MatterImportance 46 · Surprise 42
  RTX estimates approximately $0.7 billion of cash impact during full-year 2026 related to the Powder Metal Matter. The estimate includes customer credits applied and the timing of partner recovery. Cash utilization is…
• Defense Spending OutlookImportance 46 · Surprise 42
  Congress funded most federal agencies through September 30, 2026, while the President’s proposed Fiscal Year 2027 defense budget seeks $1.5 trillion, including $1.15 trillion in base discretionary funding and $350…
• Trade Policy and TariffsImportance 46 · Surprise 42
  Since February 2025, the U.S. has imposed tariffs on imports from all trading partners, while certain countries have imposed retaliatory tariffs and non-tariff countermeasures on U.S. goods. RTX has paid approximately…
• Defense Contract AwardsImportance 46 · Surprise 42
  Raytheon recorded major awards across air and missile defense products during the second quarter of 2026. Awards included $3.7 billion for Patriot GEM-T interceptors for Ukraine, $988 million for Patriot GEM-T…
• Income Tax Rate ChangesImportance 39 · Surprise 22
  RTX’s effective tax rate was 18.0% for the quarter ended June 30, 2026, versus 15.4% in the prior-year quarter, primarily because the 2025 quarter included an IRS examination benefit and a larger stock-compensation…
• Working Capital and Contract AssetsImportance 38 · Surprise 24
  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…
• Defense Acquisition ReformImportance 37 · Surprise 42
  The President issued executive orders intended to reform Department of War acquisition processes and accelerate defense procurement. The Department’s Acquisition Transformation Strategy prioritizes speed, flexibility,…

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