NYSE:RTX
RTX Corp
A premier global aerospace and defense conglomerate delivering high-value propulsion, avionics, and sensing solutions to commercial, military, and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
The stock offers compelling exposure to the secular growth in global air travel recovery and increasing defense spending worldwide. With a diversified revenue stream across commercial, defense, and industrial sectors, RTX provides stability against cyclical downturns in any single market.
Bear Case
Valuation remains elevated relative to historical norms, with high price-to-earnings multiples reflecting optimistic growth expectations that may not materialize. The company's heavy capital intensity and exposure to macroeconomic slowdowns could compress margins if demand for commercial aircraft slows unexpectedly.
About RTX Corp
RTX Corporation is a diversified aerospace and defense technology leader serving commercial aviation, military, and industrial markets globally. The company manufactures critical propulsion systems, avionics, engines, and mission-critical components for aircraft and power generation. Its portfolio spans Pratt & Whitney's gas turbine engines, Collins Aerospace's integrated flight systems, and Raytheon Technologies' radar and missile solutions.
Analysis
Management Discussion
RTX delivered a robust 25% year-over-year revenue increase to $88.60B, driven by strong demand for new aircraft engines and defense programs. Net income surged to $7.07B as operational efficiencies offset inflationary pressures on inputs, though significant capital expenditures of $2.63B were required to maintain production capabilities.
Industry Overview
The aerospace and defense industry is characterized by long development cycles, high regulatory barriers, and a reliance on government procurement for the defense side. Commercial aviation growth is tied to global GDP and fuel prices, while defense spending is driven by geopolitical instability and modernization needs.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $67.07B | $68.92B | $80.74B | $88.60B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $67.07B | $68.92B | $80.74B | $88.60B |
| Operating Expenses | $61.66B | $65.36B | $74.20B | $79.30B |
| Operating Income | $5.41B | $3.56B | $6.54B | $9.30B |
| R&D | $2.71B | $2.81B | $2.93B | $2.81B |
| G&A | $5.66B | $5.81B | $5.81B | $6.09B |
| Stock-Based Comp | $420.0M | $425.0M | $437.0M | $519.0M |
| D&A | $4.11B | $4.21B | $4.36B | $4.38B |
| Depreciation | $1.84B | $1.80B | $1.80B | $1.90B |
| Amortization | $1.96B | $2.08B | $2.20B | $2.10B |
| Other OpEx | $53.29B | $56.74B | $65.46B | $70.40B |
| Non-Operating Income | $613.0M | $275.0M | $-344.0M | $-567.0M |
| Interest Expense | $1.28B | $1.50B | $1.86B | — |
| Pre-Tax Income | $6.03B | $3.84B | $6.19B | $8.73B |
| Income Tax | $700.0M | $456.0M | $1.18B | $1.66B |
| Continuing Ops | $5.33B | $3.38B | $5.01B | $7.07B |
| Discontinued Ops | $-19.0M | $0 | $0 | $0 |
| Net Income | $5.31B | $3.38B | $5.01B | $7.07B |
| Minority Interest | $0 | $0 | $0 | $337.0M |
| Net to Common | $5.31B | $3.38B | $5.01B | $6.73B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $42.44B | $48.42B | $51.13B | $60.33B |
| Cash & Equivalents | $6.22B | $6.59B | $5.58B | $7.43B |
| Marketable Securities | $774.0M | $745.0M | $786.0M | $750.0M |
| Inventory | $10.62B | $11.78B | $12.77B | $13.36B |
| Other Current Assets | $24.83B | $29.31B | $32.00B | $38.78B |
| Long-Term Assets | $116.42B | $113.45B | $111.73B | $110.75B |
| PP&E (Net) | $15.17B | $15.75B | $16.09B | $16.87B |
| Intangibles | $36.82B | $35.40B | $33.44B | $31.84B |
| Goodwill | $53.84B | $53.70B | $52.79B | $53.34B |
| Operating Leases | $1.83B | $1.64B | $1.86B | $1.89B |
| Other LT Assets | $8.76B | $6.97B | $7.54B | $6.80B |
| Total Assets | $158.86B | $161.87B | $162.86B | $171.08B |
| Current Liabilities | $39.11B | $46.76B | $51.50B | $58.78B |
| Accounts Payable | $9.90B | $10.70B | $12.90B | $15.89B |
| Current Leases | $356.0M | $348.0M | $367.0M | $450.0M |
| Deferred Revenue | $14.60B | $17.18B | $18.62B | $21.61B |
| Other Current Liab | $3.27B | $3.62B | $19.62B | $20.82B |
| Long-Term Liabilities | $45.54B | $53.66B | $49.40B | $45.16B |
| LT Operating Leases | $1.59B | $1.41B | $1.63B | $1.60B |
| Other LT Liab | $43.43B | $52.25B | $47.77B | $43.55B |
| Total Liabilities | $84.65B | $100.42B | $100.90B | $103.94B |
| Shareholders' Equity | $74.21B | $61.45B | $61.96B | $67.14B |
| Paid-In Capital | $37.94B | $37.05B | $37.43B | $38.13B |
| Retained Earnings | $52.27B | $52.15B | $53.59B | $56.72B |
| AOCI | $-2.02B | $-2.42B | $-3.75B | $-2.72B |
| Treasury Stock | $15.53B | $26.98B | $27.11B | $26.88B |
| Total L&E | $158.86B | $161.87B | $162.86B | $171.08B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $5.31B | $3.38B | $5.01B | $7.07B |
| Non-Cash Adjustments | $-3.50B | $-6.66B | $-5.70B | $-10.16B |
| Working Capital Changes | $5.36B | $11.16B | $7.84B | $13.66B |
| Cash from Operations | $7.17B | $7.88B | $7.16B | $10.57B |
| Capital Expenditures | $2.29B | $2.42B | $2.62B | $2.63B |
| Cash from Investing | $-2.83B | $-3.04B | $-1.53B | $-1.26B |
| Debt Issuances | $1.0M | $12.91B | $0 | $0 |
| Debt Repayments | $3.0M | $578.0M | $2.50B | $3.43B |
| Share Buybacks | $2.80B | $12.87B | $444.0M | $50.0M |
| Dividends Paid | $3.13B | $3.24B | $3.22B | $3.57B |
| Cash from Financing | $-5.86B | $-4.53B | $-6.62B | $-7.49B |
| FX Effect | $-42.0M | $18.0M | $-28.0M | $48.0M |
| Net Change in Cash | $-1.56B | $335.0M | $-1.02B | $1.86B |
| Beginning Cash | $7.83B | $6.29B | $6.63B | $5.61B |
| Ending Cash | $6.22B | $6.63B | $5.61B | $7.47B |
Frequently Asked Questions
How does RTX Corp make money?
The company operates through three primary segments: Pratt & Whitney (aerospace engines), Collins Aerospace (integrated aircraft systems and components), and Raytheon Technologies (defense radar, missiles, and intelligence solutions). Revenue is further diversified across Commercial Aviation, Defense, Uniformed Services, Helicopters, Space, and Industrial markets.
What are the main risks for RTX?
Supply chain constraints for specialized raw materials could disrupt production schedules and inflate costs. Geopolitical tensions may lead to export restrictions on defense technologies or destabilize key international markets like China. Intense competition from rivals like GE Aerospace and Safran pressures margins in the commercial engine space.
What is RTX's competitive advantage?
RTX leverages a massive installed base of over 25,000 commercial aircraft engines, creating a high barrier to entry and ensuring recurring service revenue. The company benefits from deep proprietary technology in propulsion and sensing, combined with a highly skilled global workforce capable of executing complex engineering projects.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.