Business Description
RTX Corporation, a major player in the aerospace and defense sectors, provides sophisticated systems and extensive services to a diverse global clientele. This includes commercial entities, military organizations, and government agencies, both within the United States and internationally. The company's operations are divided into three primary business units: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace segment delivers a broad range of aerospace and defense products, alongside comprehensive aftermarket support solutions. Its customer base spans manufacturers of civil and military aircraft, commercial airlines, and operators in regional, business, general aviation, defense, and commercial space ventures. This division's offerings cover the design, production, and maintenance of aircraft interior components, such as oxygen systems, food and beverage preparation and storage facilities, galley systems, and lavatory and wastewater management. It also supplies battlespace management tools, test and training range infrastructure, crew escape mechanisms, simulation and training programs, and essential information management services. Its post-sales services include providing spare parts, overhaul and repair, specialized engineering and technical assistance, training and fleet management, and integrated asset and information management. Pratt & Whitney, another core segment, is a leading provider of aircraft propulsion systems for commercial airliners, military aircraft, business jets, and general aviation. This division is also responsible for manufacturing, selling, and maintaining auxiliary power units for both military and commercial applications. Finally, the Raytheon segment specializes in creating advanced capabilities for the detection, tracking, and mitigation of both defensive and offensive threats. Its tailored solutions serve the U.S. government, foreign governments, and various commercial customers. Established in 1934, the company was formerly known as Raytheon Technologies Corporation before officially rebranding as RTX Corporation in July 2023. RTX Corporation maintains its corporate headquarters in Arlington, Virginia.
Business History
Generated: Jun 26, 2026 3:03amPrice Overview
Last updated: Jun 26, 2026 3:00am (1d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 5.02
Total Equity: $65.25B
Shares: 1,356,400,000
Total Debt: $37.90B
Cash: $7.44B
EBITDA: $14.95B
Total Debt: $37.90B
Cash: $7.44B
Revenue: $88.60B
Revenue: $88.60B
Revenue: $88.60B
Total Equity: $65.25B
Tax Rate: 19.1%
Equity: $65.25B
Total Debt: $37.90B
Cash: $7.44B
Current Liabilities: $58.78B
Long-Term Debt: $34.29B
Total Debt: $37.90B
Total Equity: $65.25B
Shares: 1,356,400,000
Shares: 1,356,400,000
CapEx: -$2.63B
Shares: 1,356,400,000
Stock Price: $186.00
Net Income: $6.73B
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
RTX is executing as a mature earner with real operating leverage: revenue grew from $64.4B (2021) to $88.6B (2025), a ~38% cumulative gain, while operating margin expanded from 8.0% to 10.5% and net income rose from $3.86B to $6.73B. 2023 was a clear trough (GM 17.5%, OpM 5.2%, hit by the Pratt powder-metal recall) and the recovery to 20.1% GM and $7.94B FCF in 2025 shows the franchise absorbed a major program issue without permanent damage. Earnings quality looks clean: OCF/NI of 1.75x, accruals at -2% of assets, Beneish M of -2.41, and FCF ($7.94B) actually exceeding net income ($6.73B) in 2025. Diluted shares fell from 1.51B to 1.36B (-2.6% CAGR) with buybacks running 6.6x SBC, so per-share value is being concentrated rather than diluted - rare and admirable discipline at this scale. The clear constraint is the balance sheet: net debt of ~$30B against only $7.4B liquid cash. FCF easily services it, but it removes optionality and means leverage - not cash - is funding the buyback. Altman Z of 2.62 (grey zone) reflects this. Insider tape is neutral-to-slightly-negative (15 sells, 0 buys), but magnitudes are small and consistent with routine comp monetization, not a signal.
Verify before trusting this (5)
- Composition and maturity ladder of the ~$30B net debt - fixed vs floating, near-term maturities
- Remaining accrual and cash outflow timeline for the Pratt GTF powder-metal fleet management plan
- Defense backlog mix and customer concentration (DoD share) in the 10-K segment detail
- Whether 2025 FCF benefited from a working-capital tailwind or sustainable underlying conversion
- Pension/OPEB status and any contribution requirements that could pressure FCF
RTX trades at $186.59 for a $250B market cap on roughly $8B of FCF (~31x FCF) and a forward P/E in the low-20s - a premium to its own history and a premium to defense-prime peers like LMT and NOC. The bull case (record $250B backlog, GTF recovery behind them, defense supercycle) is well known and largely embedded; the e2e synthesis flagging 'High Conviction Required' is code for 'fair value does not obviously exceed price.' On a quality-adjusted DCF anchored to ~$8B FCF growing mid-single-digits with ~$30B net debt, deserved equity value lands roughly $170-195/share. That straddles the current price. To justify $186 you need FCF to step toward $9-10B by 2026 AND no further Pratt incidents - plausible, not heroic, but not discounted either. The $30B net debt is the real haircut: it caps multiple expansion and means the EV is closer to $280B, pushing EV/EBITDA to ~16x - full for a mature industrial. Earnings quality is clean (no haircut needed), so the deserved number is honest, not flattered. Net: a great business at a fair price, not a mispricing.
Verify before trusting this (4)
- 2025 FCF guidance and Pratt GTF remediation cash outflow tail
- Defense segment book-to-bill and margin trajectory in next two quarters
- Net debt paydown pace and any large M&A signal that would extend leverage
- Commercial aftermarket organic growth - the real margin lever
The macro tape is mildly risk-off (S&P off 3.3%, VIX 18.9) but RTX's 0.31 beta means the broad drawdown barely lands on this name. What matters more is the active narrative: a durable steady-compounder story anchored to a $250B backlog and rising defense budgets, freshly reinforced this week by a White House meeting pressing primes to accelerate weapons production and an $87.6B supplemental request. That is a direct, stock-specific tailwind for RTX. Analyst tone is constructive and aligned with the story (18 Buys, 8 Holds, no Sells; target $224 vs price $187, ~20% implied upside) with a fresh upward revision this month - no meaningful divergence from the live narrative. News flow is benign-to-positive: 'near fair value' framing, peer comparisons that flatter RTX's setup vs GD, and sector rotation chatter back toward defense. No fresh Pratt & Whitney flare-up in the 72h window, which removes the main idiosyncratic headwind that has periodically capped the name. Net pressure is positive but moderate - this is a low-cult, low-intensity narrative, so it pushes steadily rather than violently.
Verify before trusting this (4)
- Any fresh Pratt & Whitney engine or 787-related headline that would reignite the structural bear case
- Passage and size of the $87.6B defense supplemental - confirmation would extend the tailwind
- Sector rotation flows: defense ETF (ITA/XAR) leadership vs broad industrials
- Whether analyst target revisions broaden beyond the single upgrade this month
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 26, 2026 3:04am (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $64.4B | $67.1B | $68.9B | $80.7B | $88.6B |
| Cost of Revenue | $51.9B | $53.4B | $56.8B | $65.3B | $70.8B |
| Gross Profit | $12.5B | $13.7B | $12.1B | $15.4B | $17.8B |
| Operating Expenses | $7.4B | $8.2B | $8.5B | $8.9B | $8.5B |
| Operating Income | $5.1B | $5.5B | $3.6B | $6.5B | $9.3B |
| Net Income | $3.9B | $5.2B | $3.2B | $4.8B | $6.7B |
| EBITDA | $11.0B | $11.5B | $9.7B | $12.5B | $14.9B |
| EPS | $2.57 | $3.52 | $2.24 | $3.58 | $5.02 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 26, 2026 3:00am (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $7.8B | $6.2B | $6.6B | $5.6B | $7.4B |
| Total Current Assets | $42.1B | $42.4B | $48.4B | $51.1B | $60.3B |
| Total Assets | $161.4B | $158.9B | $161.9B | $162.9B | $171.1B |
| Current Liabilities | $35.4B | $39.1B | $46.8B | $51.5B | $58.8B |
| Long-Term Debt | $31.3B | $30.7B | $42.4B | $38.7B | $34.3B |
| Total Liabilities | $86.7B | $84.7B | $100.4B | $100.9B | $103.9B |
| Total Equity | $73.1B | $72.6B | $59.8B | $60.2B | $65.2B |
| Retained Earnings | $50.3B | $52.3B | $52.2B | $53.6B | $56.7B |
Cash Flow (Annual)
Last updated: Jun 24, 2026 3:04am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $7.1B | $7.2B | $7.9B | $7.2B | $10.6B |
| Capital Expenditure | -$2.3B | -$2.8B | -$3.2B | -$2.6B | -$2.6B |
| Free Cash Flow | $4.7B | $4.4B | $4.7B | $4.5B | $7.9B |
| Acquisitions (net) | $791.0M | $28.0M | $6.0M | $0 | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$2.3B | -$2.8B | -$12.9B | -$444.0M | -$50.0M |
| Net Change in Cash | -$979.0M | -$1.6B | $335.0M | -$1.0B | $1.9B |
Analyst Estimates (Annual)
Last updated: Jun 26, 2026 3:00am (1d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$100.8B $100.1B – $101.2B
|
$107.6B $107.5B – $107.8B
|
$112.6B $111.2B – $114.3B
|
$117.9B $116.4B – $119.7B
|
| EBITDA |
$16.3B $16.2B – $16.3B
|
$17.4B $17.4B – $17.4B
|
$18.2B $17.9B – $18.5B
|
$19.0B $18.8B – $19.3B
|
| Net Income |
$10.1B $9.7B – $10.5B
|
$11.6B $11.0B – $12.3B
|
$12.4B $12.2B – $12.7B
|
$13.4B $13.1B – $13.6B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 26, 2026 3:04am (1d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +4.2% | +2.8% | +17.1% | +9.7% |
| Gross Profit Growth | +9.4% | -11.6% | +27.5% | +15.4% |
| Operating Income Growth | +7.2% | -35.3% | +83.6% | +42.2% |
| Net Income Growth | +34.5% | -38.5% | +49.4% | +41.0% |
| EBITDA Growth | +4.8% | -15.8% | +29.2% | +19.3% |
Insider Trading (Recent)
Last updated: Jun 26, 2026 3:04am (1d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-04-30 | Work Robert O | A-Award | 1,175.67 | $0.00 | $0 |
| 2026-04-30 | ROGERS BRIAN C | A-Award | 2,101.44 | $0.00 | $0 |
| 2026-04-30 | Reynolds Fredric | A-Award | 1,346.06 | $0.00 | $0 |
| 2026-04-30 | Ramos Denise L | A-Award | 1,959.45 | $0.00 | $0 |
| 2026-04-30 | Pawlikowski Ellen M | A-Award | 1,260.86 | $0.00 | $0 |
| 2026-04-30 | Oliver George | A-Award | 1,260.86 | $0.00 | $0 |
| 2026-04-30 | Harris Bernard A Jr | A-Award | 1,175.67 | $0.00 | $0 |
| 2026-04-30 | Caret Leanne G | A-Award | 1,311.98 | $0.00 | $0 |
| 2026-04-30 | Atkinson Tracy A | A-Award | 1,294.94 | $0.00 | $0 |
| 2026-02-23 | Williams Dantaya M | S-Sale | 12,713.00 | $202.83 | $2.6M |
| 2026-02-19 | Mitchill Neil G. JR | M-Exempt | 9,394.00 | $76.00 | $713,944 |
| 2026-02-19 | Mitchill Neil G. JR | D-Return | 3,473.00 | $205.53 | $713,806 |
| 2026-02-19 | Mitchill Neil G. JR | D-Return | 3,697.00 | $205.56 | $759,955 |
| 2026-02-19 | Mitchill Neil G. JR | M-Exempt | 10,000.00 | $76.00 | $760,000 |
| 2026-02-19 | Mitchill Neil G. JR | S-Sale | 5,921.00 | $205.54 | $1.2M |
| 2026-02-19 | Mitchill Neil G. JR | S-Sale | 6,303.00 | $205.54 | $1.3M |
| 2026-02-19 | Mitchill Neil G. JR | S-Sale | 23,531.00 | $205.58 | $4.8M |
| 2026-02-19 | Mitchill Neil G. JR | M-Exempt | 9,394.00 | $76.00 | $713,944 |
| 2026-02-19 | Mitchill Neil G. JR | M-Exempt | 10,000.00 | $76.00 | $760,000 |
| 2026-02-19 | Maharajh Ramsaran | S-Sale | 15,124.00 | $204.65 | $3.1M |
Dividend History (Last 20)
Last updated: Jun 23, 2026 12:27pm (3d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-05-22 | $0.73 | 2026-04-30 | 2026-05-22 | 2026-06-11 |
| 2026-02-20 | $0.68 | 2026-02-06 | 2026-02-20 | 2026-03-19 |
| 2025-11-21 | $0.68 | 2025-10-30 | 2025-11-21 | 2025-12-11 |
| 2025-08-15 | $0.68 | 2025-06-27 | 2025-08-15 | 2025-09-04 |
| 2025-05-23 | $0.68 | 2025-05-01 | 2025-05-23 | 2025-06-12 |
| 2025-02-21 | $0.63 | 2025-01-31 | 2025-02-21 | 2025-03-20 |
| 2024-11-15 | $0.63 | 2024-10-09 | 2024-11-15 | 2024-12-12 |
| 2024-08-16 | $0.63 | 2024-06-03 | 2024-08-16 | 2024-09-05 |
| 2024-05-16 | $0.63 | 2024-05-02 | 2024-05-17 | 2024-06-13 |
| 2024-02-22 | $0.59 | 2024-02-02 | 2024-02-23 | 2024-03-21 |
| 2023-11-16 | $0.59 | 2023-10-11 | 2023-11-17 | 2023-12-14 |
| 2023-08-17 | $0.59 | 2023-06-05 | 2023-08-18 | 2023-09-07 |
| 2023-05-18 | $0.59 | 2023-04-24 | 2023-05-19 | 2023-06-15 |
| 2023-02-23 | $0.55 | 2023-02-03 | 2023-02-24 | 2023-03-23 |
| 2022-11-17 | $0.55 | 2022-10-12 | 2022-11-18 | 2022-12-15 |
| 2022-08-18 | $0.55 | 2022-06-06 | 2022-08-19 | 2022-09-08 |
| 2022-05-19 | $0.55 | 2022-04-25 | 2022-05-20 | 2022-06-16 |
| 2022-02-24 | $0.51 | 2022-02-11 | 2022-02-25 | 2022-03-24 |
| 2021-11-18 | $0.51 | 2021-10-13 | 2021-11-19 | 2021-12-16 |
| 2021-08-19 | $0.51 | 2021-06-21 | 2021-08-20 | 2021-09-09 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly tape first: Q1 2026 revenue of $22.08B is down sequentially from Q4 2025's $24.24B, but Q4 is seasonally strong in aerospace and Q1 net income of $2.06B is actually the highest quarterly NI in the eight-quarter window — margins recovered to 9.3% from 6.7%. The YoY comparison that matters: Q1 2026 vs Q1 2025 is $22.08B vs $20.31B, +8.7% revenue and +34% earnings. Annual 2025 revenue of $88.6B against 2024's $80.7B is +9.7%, with operating income jumping from $6.54B to $9.30B — that's 42% operating income growth on 10% revenue growth, real operating leverage. FCF of $7.94B against a $250B market cap is a 3.2% FCF yield, not cheap but not absurd for a business compounding earnings at this rate. The earnings CAGR of 45% is flattered by the Q2 2024 $111M trough (Pratt powder metal charge) — strip that and you're looking at a more normal ~15% underlying earnings growth, still healthy.
Where I push back on the synthesis verdict of "High Conviction Required at 37x P/E": the 34.7x TTM P/E is misleading because TTM still drags Q2 2024's near-zero quarter. Annualizing the last four quarters of NI ($2.06+1.62+1.92+1.66 = $7.26B) against the $250B cap gives ~34x — but if you take Q1 2026 run-rate ($2.06B × 4 = $8.24B), it's 30x, and forward consensus would likely put it closer to 25-27x on 2026E earnings if margin expansion continues. The synthesis is anchoring on stale TTM optics. ROIC of 6.9% is genuinely mediocre for an industrial trading at 3.8x book, and that's the real bear point the models underweight — RTX earns its cost of capital, barely, and is being priced as if it earns 15%+.
The contrarian case the models miss: the entire bull thesis rests on defense budgets staying at elevated levels and commercial aerospace aftermarket compounding. Both are consensus. Trump-era defense priorities are noisy — there's been real talk of Pentagon budget restraint paired with weapons-system reprioritization that could hurt legacy primes. Pratt's GTF powder-metal remediation is not done; the $3B+ in charges already taken assumes a finite tail, but A320neo fleet inspections run through 2026-2027 and any second-order finding (military F135?) would reset the cash drag. The narrative model's "durable" tag is doing a lot of work here — duopoly-adjacent positioning is real, but Collins faces Honeywell/GE competition and Raytheon's missile margins have historically been mid-single-digit, not the 12%+ implied by current trajectory. The insider activity is genuinely uninformative — nine awards and one small sale of 12,713 shares is noise, not signal; the models correctly flagged neutral but the synthesis should weight this at zero, not as confirming.
Where the data is thin: balance sheet is incomplete — total debt and equity blank in the tile is a real gap for a company that carried ~$42B net debt post-Raytheon merger. Without current debt figures I can't verify EV/EBITDA of 18.4x, which is the more honest multiple than P/E for a levered industrial. Current ratio of 1.03 is tight; this isn't a fortress balance sheet, and a working-capital squeeze from supply chain or another GTF charge would matter. The 1.45% dividend yield is unremarkable.
My verdict: I dissent mildly from "High Conviction Required" — that framing implies the stock is fairly priced only if you believe the supercycle. I think the trajectory is doing more work than the models credit. Q1 2026's 9.3% net margin against a 5-year average closer to 6% suggests the operating leverage is real and accelerating, not a one-quarter blip. If 2026 delivers $9-9.5B NI (achievable at current run-rate), the forward P/E drops to 26-27x — premium to industrials but defensible against the growth rate. That said, at $186 with 6.9% ROIC and a tight balance sheet, this isn't a fat pitch. Fair value on my math is $175-195 range; current price is mid-range. Not a buy, not a sell. The asymmetry isn't compelling either direction until you get either a GTF
GPT Critique
In analyzing RTX Corporation's financials, several key points stand out. The company has shown impressive revenue growth, with a compound annual growth rate (CAGR) of 13.4% over the past few years. The most recent quarter's revenue of $22.08 billion represents an 8.7% year-over-year increase, and net income has grown even more significantly by 34% over the same period. This suggests strong operational leverage, as evidenced by the operating income growth of 42% in 2025. The free cash flow (FCF) yield stands at 3.2%, which, while not overly generous, is reasonable for a company with such growth metrics. However, the balance sheet data is lacking in terms of total debt and equity figures, which limits a comprehensive understanding of the company's financial health, especially given RTX's history of carrying significant net debt.
I agree with Claude Opus in recognizing the misleading nature of the 34.7x trailing twelve months (TTM) price-to-earnings (P/E) ratio, as it includes a quarter affected by one-time charges. Opus's adjustment to a forward P/E closer to 25-27x based on run-rate earnings is a more accurate representation. However, I diverge from Opus on the skepticism regarding the "High Conviction Required" synthesis verdict. The company's recent margin improvement, with Q1 2026 hitting a 9.3% net margin, suggests that RTX is successfully navigating its challenges, such as those related to Pratt & Whitney's GTF engines.
Where I align with Opus is on the concern about RTX's return metrics, specifically the return on invested capital (ROIC) of 6.9%, which barely covers the cost of capital and is concerning for a company trading at such a premium. This reflects a fundamental issue that should not be overlooked when considering its valuation. Additionally, I agree with the concerns surrounding the geopolitical risks and the sustainability of defense spending, which are critical to RTX's narrative but could be volatile and subject to change.
A careful skeptic might argue that both our views and Opus's could be underestimating the potential for further operational hiccups, especially given the ongoing issues with Pratt & Whitney engines and the potential for shifts in defense spending priorities. The incomplete balance sheet data adds an element of uncertainty, as it prevents a full assessment of financial leverage and risk.