NYSE: RTX · Aerospace & Defense
RTX Corporation
RTX, based in Arlington, Virginia, is an aerospace and defense company with three segments: Collins Aerospace (aircraft systems; $30.2 billion of 2025 sales), Pratt & Whitney (aircraft engines, including the GTF; $32.9 billion) and Raytheon (defense systems; $28.0 billion). Net sales rose from $56.6 billion in 2020, the year of the Raytheon–United Technologies merger and a $3.5 billion net loss, to $88.6 billion in 2025, with net income of $6.7 billion. Sales to the U.S. government were $33.3 billion (38%) in 2025, and total backlog reached $268 billion. It is under DOJ deferred prosecution agreements from 2024 and still handles the GTF powder-metal issue.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 3, 2026 02:08 (SEC EDGAR) · Source 10-K filed: February 6, 2026
Built on10-K FY2025 · filed 2026-02-0610-Q (quarter ended 2026-09-30) · filed 2026-10-20Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 9.4%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 10.5%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -0.9 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 1.9x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.57x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 4 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 31.4x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.74
Higher than 59% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 27% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 24% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 52% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 53% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$196.59close on 2026-11-04
Market cap$263.88B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 31.4x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 4.0x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 21.2x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 3.0%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.4%
At FY2025 year-end: 37.0x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 3.8x
Book value at FY2025 year-end
At FY2025 year-end: 20.0x
EBITDA for FY2025
At FY2025 year-end: 3.2%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$22.48B → $24.97B (vs. a year earlier)↑ +11.1%$22.48B → $24.97B (vs. a year earlier)
- Operating margin11.2% → 13.4% (vs. a year earlier)↑ +2.1 pts11.2% → 13.4% (vs. a year earlier)
- Net income$1.92B → $2.58B (vs. a year earlier)↑ +34.7%$1.92B → $2.58B (vs. a year earlier)
- Diluted EPS$1.41 → $1.89 (vs. a year earlier)↑ +34.0%$1.41 → $1.89 (vs. a year earlier)
- Cash$8.31B → $9.17B (vs. previous quarter-end)↑ +10.5%$8.31B → $9.17B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 20, 2026.
Management outlook ↑ Raised
Raised 2026 outlook for adjusted sales, adjusted EPS and free cash flow. Source sentence
Raises 2026 outlook for adjusted sales,* adjusted EPS,* and free cash flow*
Key changes
Q3 sales $25.0B, up 11%. Source sentence
RTX third quarter reported and adjusted sales* were $25.0 billion, up 11 percent versus the prior year and 12 percent organically.* GAAP EPS of $1.89 included $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant and/or non-recurring items.
Backlog $340B. Source sentence
Company backlog of $340 billion, including $176 billion of commercial and $164 billion of defense
Adjusted net income $3.1B, up 34%. Source sentence
Adjusted net income* of $3.1 billion was up 34 percent versus the prior year driven by $1.1 billion of adjusted segment operating profit growth* across all three segments, including $0.4 billion of IEEPA recovery.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- RTX Corp
- Headquarters
- ARLINGTON, VA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: RTX
- Industry
- Aerospace & Defense
- CIK
- 101829
- Website
- https://www.rtx.com/ ↗
- IR page
- https://investors.rtx.com/ ↗
Workforce (as of FY2025 year-end)
Employees
180,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 23–28 days after quarter end (Jan 27, 2026; Jan 28, 2025; Jan 23, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 20–28 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 20, 2026 (+20 days) | Oct 20, 2026 10-Q (+20 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 23, 2026 (+23 days) | Jul 23, 2026 10-Q (+23 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 21, 2026 (+21 days) | Apr 21, 2026 10-Q (+21 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 27, 2026 (+27 days) | Feb 6, 2026 10-K (+37 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 21, 2025 (+21 days) | Oct 21, 2025 10-Q (+21 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 22, 2025 (+22 days) | Jul 22, 2025 10-Q (+22 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 22, 2025 (+22 days) | Apr 22, 2025 10-Q (+22 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 28, 2025 (+28 days) | Feb 3, 2025 10-K (+34 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 22, 2024 (+22 days) | Oct 22, 2024 10-Q (+22 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 25, 2024 (+25 days) | Jul 25, 2024 10-Q (+25 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 23, 2024 (+23 days) | Apr 23, 2024 10-Q (+23 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 23, 2024 (+23 days) | Feb 5, 2024 10-K (+36 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Pratt & Whitney
Aircraft engines
Commercial and military engines, including the GTF geared turbofan family, plus aftermarket services.
Collins Aerospace
Aircraft systems
Avionics, interiors, power, controls and other aircraft systems.
Raytheon
Defense systems
Missiles, air defense, sensors and other defense systems.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
No market share figure is stated in the 10-K.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-09-30)
07
Recent strategic focusSite analysis
Recent developments.
Q3 2026 results
Q3 net sales $24,965M (vs $22,478M); diluted EPS $1.89 (vs $1.41); a $0.4B customer bankruptcy charge.
Source: Form 10-Q (quarter ended 2026-09-30)
Backlog
Backlog rose to $268B at end-2025 from $218B.
Source: Form 10-K (FY2025)
Leadership
Pratt & Whitney president Shane Eddy steps down effective January 1, 2027.
Source: Form 8-K (2026-09-15)
Capex ÷ D&A (FY2025)
0.60x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$2,627M ÷ $4,378M = 0.60x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
3.2%
formularesearch & development expense ÷ revenue × 100
e.g.$2,807M ÷ $88,603M × 100 = 3.2%
M&A spend (6-year total)
$1.57B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $1.8B in FY2020 to $2.63B in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$88.6B
As reported in the 10-K
Revenue CAGR (5 years)
+9.4%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($88,603M ÷ $56,587M) ^ (1÷5) − 1 = 9.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
10.5%▲favorable
+13.8pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$9,300M ÷ $88,603M × 100 = 10.5%
ROE (FY2025)
10.7%▲favorable
6-year average: 5.2%
As reported in the 10-K
P/B (FY2025 end)
3.77x
formulafiscal year-end closing price ÷ book value per share
e.g.$183.40 ÷ $48.61 = 3.77x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
20.0x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($246,175M + $34,288M − $7,435M) ÷ ($9,300M + $4,378M) = 20.0x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +9.4% a year over 5 years (strong growth)
From $56.59B in FY2020 to $88.6B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: -3.3% → 10.5%
How much operating profit is left per $100 of revenue. It moved +13.8 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 38.1% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ―
ROE averaged 5.2% over 6 years (latest: 10.7%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Design and production of aircraft systems and engines
- Aftermarket parts and services
- Missiles, sensors and defense systems
06 · what it draws on
Key resources
- About 180,000 employees (54,000 engineers)
- Engine and systems programs, partners in collaborative programs
- Foreign-sourced metals such as titanium, nickel and cobalt
02 · why customers buy
Value propositions
- Commercial aerospace systems and engines (Collins, Pratt & Whitney) and defense systems (Raytheon); competes on price, delivery, past performance and reliability.
04 · how it keeps them
Customer relationships
- Aftermarket services; total backlog of $268 billion at December 31, 2025.
03 · how it reaches them
Channels
- Direct to aircraft makers, airlines and the U.S. and allied governments.
01 · who it serves
Customer segments
- Airlines and aircraft makers
- U.S. government (38% of sales) and allied governments
- Foreign military sales through the U.S. government
09 · where money goes
Cost structure
FY2025, share of revenue ($88.6B)
- Research & development3.2%
- Selling, general & administrative6.9%
- Other operating costs (incl. cost of goods sold)79.5%
Operating profit left: 10.5% of revenue. Depreciation & amortization (inside the costs above): $4.38B. Capital spending: $2.63B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Net sales $88,603M (2025)
- Pratt & Whitney $32,916M; Collins $30,196M; Raytheon $28,043M
- Backlog $268B at end-2025
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Sells commercial aircraft systems and engines with long aftermarket service streams, and defense systems mainly to the U.S. government and allies.
01 what it draws on
Inputs & resources
- About 180,000 employees (54,000 engineers)
- Engine and systems programs, partners in collaborative programs
- Foreign-sourced metals such as titanium, nickel and cobalt
02 what it does
Activities
- Design and production of aircraft systems and engines
- Aftermarket parts and services
- Missiles, sensors and defense systems
03 who it serves
Customers
- Airlines and aircraft makers
- U.S. government (38% of sales) and allied governments
- Foreign military sales through the U.S. government
04 how money comes in
How it earns
- Net sales $88,603M (2025)
- Pratt & Whitney $32,916M; Collins $30,196M; Raytheon $28,043M
- Backlog $268B at end-2025
How the business makes money
- Three reportable segments.
- U.S. government is the largest customer.
- Quarterly dividend $0.68 (February 2026).
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
RTX’s defense business is built on U.S. government contracts and is bound by DPAs and procurement rules; sanctions and environmental rules also shape it.
Government as customer
U.S. government as largest customer
Sales to the U.S. government were $33.3B (38%) in 2025; it is the largest customer of its defense business.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Approvals & licenses
DOJ and SEC agreements
Operates under 2024 deferred prosecution agreements with the DOJ and an SEC administrative order.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Trade & export rules
Sanctions on titanium sources
Canada’s February 2024 sanctions affected Russian-owned titanium suppliers it used.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Environmental rules
Climate rules
Greenhouse gas rules, carbon pricing and energy taxes could add costs.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Pratt & Whitney
32,916 (36%)Collins Aerospace
30,196 (33%)Raytheon
28,043 (31%)
Source: Form 10-K (FY2025) Segment net sales before eliminations (−$2,552M).
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 53% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
47,291 (53%)Europe
18,799 (21%)Asia Pacific
13,782 (16%)Middle East and North Africa
3,621 (4%)Other regions
5,110 (6%)
Source: Form 10-K (FY2025) Net sales by geographic region.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
RTX’s aerospace businesses compete with many U.S. and foreign firms that obtain regulatory approval to make products and spare parts; its defense businesses compete with numerous U.S. and foreign defense companies. The 10-K names no specific competitors.
Competitors named in the 10-K
No competitor is named in the 10-K.
Peer group the company chose
Core A&D peers, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Core A&D peers for 2025 PSUs from the 2026 proxy statement.
- Airbussite ↗
- Boeingsite ↗
- GE Aerospacesite ↗
- General Dynamicssite ↗
- Honeywellsite ↗
- L3Harrissite ↗
- Lockheed Martinsite ↗
- Northrop Grummansite ↗
- Safransite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 56,587 | 64,388 | 67,074 | 68,920 | 80,738 | 88,603 |
| Operating income | -1,889 | 5,136 | 5,504 | 3,561 | 6,538 | 9,300 |
| Pretax income | -2,353 | 5,109 | 6,117 | 3,836 | 6,194 | 8,733 |
| Net income (attributable) | -3,519 | 3,864 | 5,197 | 3,195 | 4,774 | 6,732 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 13.8% | 4.2% | 2.8% | 17.1% | 9.7% |
| Operating margincalcoperating income ÷ revenue × 100 | -3.3% | 8.0% | 8.2% | 5.2% | 8.1% | 10.5% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | -6.2% | 6.0% | 7.7% | 4.6% | 5.9% | 7.6% |
| Balance sheet ($M) | ||||||
| Total assets | 162,153 | 161,404 | 158,864 | 161,869 | 162,861 | 171,079 |
| Total equity | 73,852 | 74,664 | 74,178 | 61,410 | 61,923 | 67,102 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 31,983 | 31,485 | 32,414 | 43,827 | 41,261 | 34,288 |
| Equity ratio | 44.5% | 45.3% | 45.7% | 36.9% | 36.9% | 38.1% |
| ROE | -4.9% | 5.3% | 7.1% | 4.8% | 8.0% | 10.7% |
| Cash flow ($M) | ||||||
| Operating CF | 4,334 | 7,142 | 7,168 | 7,883 | 7,159 | 10,567 |
| Investing CF | 3,343 | -1,364 | -2,829 | -3,039 | -1,534 | -1,265 |
| Financing CF | -3,860 | -6,756 | -5,859 | -4,527 | -6,617 | -7,486 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,539 | 5,008 | 4,880 | 5,468 | 4,534 | 7,940 |
| Cash and equivalents | 8,802 | 7,832 | 6,220 | 6,587 | 5,578 | 7,435 |
| Per share & other | ||||||
| EPS ($) | -2.59 | 2.56 | 3.50 | 2.23 | 3.55 | 4.96 |
| BVPS ($) | 48.60 | 48.93 | 49.54 | 45.07 | 45.16 | 48.61 |
| Dividend per share ($) | 2.16 | 2.01 | 2.16 | 2.32 | 2.48 | 2.67 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | — | 78.3% | 61.7% | 104.0% | 69.9% | 53.8% |
| P/E (x) | — | 33.6 | 28.8 | 37.7 | 32.6 | 37.0 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 58.2 | 15.7 | 18.1 | 19.2 | 17.4 | 20.0 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 1.47 | 1.76 | 2.04 | 1.87 | 2.56 | 3.77 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $24.97B+11.1% | $3.34B+32.3% | $2.58B+34.7% | $1.89 |
| 2026-06-30 | $24.71B+14.5% | $2.81B+31.0% | $2.14B+29.1% | $1.57 |
| 2026-03-31 | $22.08B+8.7% | $2.56B+25.6% | $2.06B+34.1% | $1.51 |
| 2025-12-31 † | $24.24B+12.1% | $2.6B+23.0% | $1.62B+9.4% | — |
| 2025-09-30 | $22.48B | $2.52B | $1.92B | $1.41 |
| 2025-06-30 | $21.58B | $2.15B | $1.66B | $1.22 |
| 2025-03-31 | $20.31B | $2.04B | $1.54B | $1.14 |
| 2024-12-31 † | $21.62B | $2.11B | $1.48B | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
7.5%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$9,300M × (1 − 17.5%) ÷ $102,287M × 100 = 7.5%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.42%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $246.18B ÷ ($246.18B + $34.29B) = 87.8%
e.g.Debt weight: $34.29B ÷ ($246.18B + $34.29B) = 12.2%
e.g.WACC: 9.0% × 87.8% + 5.0% × (1 − 17.5%) × 12.2% = 8.42%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 7.0%–10.2% and ROIC − WACC runs −2.7 to +0.5 points. The sign flips inside this range, so the result depends on the assumptions. This describes the latest year and does not predict future value creation.
WACC 8.42% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.74 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.02%
- Cost of debt
- 4.95% (no debt on record, using the risk-free rate)
- Tax rate
- 17.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 88% : 12%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.42%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.74 (price-derived adjusted beta. Raw β 0.62, R² 0.13, 129 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.617 + 0.33 = 0.744
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.74 × 5.5% = 9.0%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
5.7%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.4% − 2.7%
Past FCF growth (FY2020–FY2025)
+25.6%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+9.4%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $7.94B (operating CF − capex); enterprise value $289.98B = market cap $263.88B (latest close, 2026-11-04) + debt $34.29B − cash and short-term investments $8.19B; r = WACC of 8.4% using this page’s default assumptions (β 0.74, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$294.07B
FCF $7.94B ÷ (8.4% − 5.7%)
Theoretical ÷ actual enterprise value
1.01x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.4% | 7.4% | 8.4% | 9.4% | 10.4% |
|---|---|---|---|---|---|
| 0% | 0.43x | 0.37x | 0.33x | 0.29x | 0.26x |
| 2% | 0.62x | 0.51x | 0.43x | 0.37x | 0.33x |
| 4% | 1.14x | 0.81x | 0.62x | 0.51x | 0.43x |
| 6% | 6.85x | 1.96x | 1.14x | 0.81x | 0.62x |
| 8% | — | — | 6.85x | 1.96x | 1.14x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.75x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.3%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 106%
Most profit comes from core operations.
- ✓
Days sales outstanding: 60 → 53 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$10,567M ÷ $6,732M = 1.57x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$9,300M ÷ $8,733M × 100 = 106%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($10,976M + $14,701M) ÷ 2 ÷ $88,603M × 365 = 53 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 80.3%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 19.7%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 300 of 416
- Beta (adjusted)
- 0.74
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 72% of covered companies have more
above 1 = swings more than the market
- 1,082.6M shares reported by 3,444 13F filers ÷ 1,347.8M shares outstanding on 2026-06-30. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-09 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-06-30)
19
Strengths & weaknessesSite analysis
Strengths
1. Record backlog
Total backlog of $268B at end-2025, up from $218B.
Evidence: Form 10-K (FY2025)
2. Growing earnings
Operating profit rose from $3,561M (2023) to $9,300M (2025).
Evidence: Form 10-K (FY2025)
3. Government anchor customer
U.S. government sales of $33.3B in 2025.
Evidence: Form 10-K (FY2025)
Weaknesses
1. GTF powder-metal issue
2023 charge raised accrued liabilities by $2.8B for expected customer compensation.
Evidence: Form 10-K (FY2025)
2. Compliance history
Deferred prosecution agreements with the DOJ and an SEC order in October 2024.
Evidence: Form 10-K (FY2025)
3. 2020 loss
Net loss of $3.5B in 2020, the merger year.
Evidence: Form 10-K (FY2025)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
37.0x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.46%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
54%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.2%
(Operating CF − capex) ÷ market cap
1. Aftermarket and defense demand
Large installed engine base and $268B backlog.
- What has to hold
- Air travel and defense spending stay strong.
- The other side
- Program execution and GTF costs.
Evidence: Form 10-K (FY2025)
2. Dividend
DPS rose from $2.005 (2021) to $2.67 (2025).
- What has to hold
- Cash flow keeps growing.
- The other side
- Legal and compliance costs.
Evidence: Form 10-K (FY2025)
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
2.3x
$8.19B vs. $3.62B
Interest coverage (operating income ÷ interest expense)
Not disclosed
Interest expense isn’t reported as a separate line.
Free cash flow ÷ dividends paid
2.2x
$7.94B vs. $3.57B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -35.3% in FY2023 ($5.5B → $3.56B) | Yes, by FY2024 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Recovered from 2020 loss
Net income of $3.9B in 2021 after a $3.5B loss in 2020.
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
RTX operates under 2024 DOJ deferred prosecution agreements and an SEC order, faces powder-metal securities suits and an SEC investigation, and disputes DCMA cost claims at Pratt & Whitney.
2 open matters (1 flagged as major) · 1 settled or closed
Powder metal litigation and SEC investigation
PendingClass actionMajorShareholders; SEC; RTX
Securities class actions followed the 2023 powder-metal disclosures; the SEC has subpoenaed documents and testimony about those disclosures.
Source: Form 10-K (FY2025) — Note on Commitments and Contingencies
DCMA cost claims (Pratt & Whitney)
On appealContract disputeDCMA; Pratt & Whitney
Pratt & Whitney is appealing DCMA claims to the ASBCA, which it says are without legal basis and not material.
Source: Form 10-K (FY2025) — Note on Commitments and Contingencies
DOJ deferred prosecution agreements and SEC order
ResolvedEnforcement / sanctionDOJ; SEC; RTX
In October 2024 Raytheon Company entered DPAs with the DOJ and the company became subject to an SEC administrative order to resolve investigations, including pricing on certain government contracts; violations could lead to prosecution.
Source: Form 10-K (FY2025) — Note on Commitments and Contingencies
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings, reviewed 2026-11-03. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
DPA compliance
- Company disclosure (summarized from the 10-K)
- Violating the 2024 deferred prosecution agreements or SEC order could lead to prosecution and penalties.
- Company’s stated mitigation
- RTX maintains compliance programs and is subject to an independent compliance monitor under the agreements.
- This site’s assessment
- Impact High / Likelihood Med
- 2Governance & quality
Powder metal and GTF
- Company disclosure (summarized from the 10-K)
- Rare condition in powder metal used in some Pratt & Whitney engine parts led to a 2023 charge, fleet inspections and customer compensation.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 3Demand & macro
Defense budgets
- Company disclosure (summarized from the 10-K)
- Changes in U.S. and foreign defense spending and priorities affect sales.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 4Supply chain
Supplier and material constraints
- Company disclosure (summarized from the 10-K)
- Relies on foreign sources for titanium, nickel, cobalt and other metals and some single-source suppliers.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5Information security
Cybersecurity
- Company disclosure (summarized from the 10-K)
- A ransomware incident hit its MUSE airport passenger-processing software in September 2025.
- Company’s stated mitigation
- Our cybersecurity program is made up of two components: our enterprise cybersecurity program and our cybersecurity program for our products and services.
- This site’s assessment
- Impact Med / Likelihood Med
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
No longer in the text (4)
Our business may be adversely affected by changes in global economic, capital market, and political conditions. Read more
Our business, operating results, financial condition, and liquidity may be adversely affected by changes in global economic conditions, international relations, and geopolitical events and actions, including inflation, credit market conditions, levels of consumer and business confidence, commodity (including energy) prices and supply, trade policies (including tariffs), exchange rates, levels of government spending and deficits, the threat environment, political conditions, and actual or anticipated default on sovereign debt. Supply chain challenges and inflationary pressures continue to negatively affect our performance and the performance of our suppliers and subcontractors. Inflation has increased material and component prices, labor rates, and supplier costs. In addition,…
We continue to closely monitor potential impacts to RTX’s business, customers, suppliers, employees, and operations in Israel, the Middle East, and the region at large due to the war in Gaza, including a recently-announced ceasefire, the related escalation of conflict and instability in the region, and the regime change in Syria. RTX’s commercial manufacturing facilities in Israel remain open and operational and have continued exporting products and importing critical items and raw materials. RTX’s defense programs’ ability to receive components from Israel has not been impacted in any material respect, although we could experience future delivery delays of certain products if the ceasefire does not hold, or if further escalations arise. The overall impacts to RTX from this situation have been minimal; however, given the volatile nature of the situation, the potential impacts to RTX are…
Moreover, we believe that a critical element of our ability to successfully attract, train, and retain qualified personnel is our corporate culture, which we believe fosters innovation, collaboration, and a focus on execution, all in an environment of high ethical standards. Our global operations may present challenges in maintaining these important aspects of our corporate culture, and a failure to maintain our corporate culture could negatively impact us. Further, we rely on our key personnel to lead with integrity and to meet our high ethical standards that promote excellent performance. To the extent any of our key personnel were to behave in a way that is inconsistent with our values, including with respect to product safety or quality, legal or regulatory compliance, financial reporting, or people management, we could experience a materially adverse impact to our reputation and…
If either distribution of the stock of Carrier or Otis, together with certain related transactions, were to fail to qualify as a transaction that is generally tax-free, including as a result of subsequent acquisitions of our stock (including pursuant to the Raytheon merger), we could be subject to significant tax liabilities. On April 3, 2020, United Technologies Corporation (UTC) completed the separation of UTC’s business into three independent, publicly traded companies (UTC, Carrier Global Corporation (Carrier) and Otis Worldwide Corporation (Otis)) (the Separation Transactions). UTC distributed all of the outstanding shares of Carrier common stock and all of the outstanding shares of Otis common stock to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020, the record date for the distributions (the Distributions) effective at 12:01 a.m.,…
1 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 6, 2026 ↗ with the 10-K filed Feb 3, 2025 ↗.
25
What to watch going forwardSite analysis
- GTF fleet recovery and compensation costs.
- Defense budget and backlog conversion.
- Compliance under the DPAs.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 3, 2026 02:08 (SEC EDGAR) · Source 10-K filed: February 6, 2026
Built on10-K FY2025 · filed 2026-02-06Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent RTX Corporation’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.