Raytheon recorded $20 billion in defense bookings in Q2 2026 (vs. $9.4 billion in Q2 2025), including $3.7 billion for Patriot GEM-T interceptors for Ukraine, $1.1 billion each for AIM-9X Sidewinder Block II and AMRAAM, $988 million for Patriot GEM-T to Poland via NATO's NSPA, $833 million for ESSM, $827 million for LTAMDS, $821 million for NASAMS, $658 million for StormBreaker, $542 million for SM-3, and $4.1 billion on classified/confidential contracts. Six-month defense bookings totaled $27 billion (vs. $13.8 billion in H1 2025), and Raytheon defense backlog rose to $86 billion from $75 billion at year-end 2025.
On June 19, 2026, RTX signed a definitive agreement to sell Blue Canyon Technologies (BCT) in its Raytheon segment for approximately $0.6 billion; the transaction is pending regulatory approvals and customary closing conditions and had not closed as of the filing date.
Pratt & Whitney's Powder Metal Matter continues to drive elevated PW1100 GTF (A320neo) aircraft-on-ground levels expected through 2026. The customer-compensation accrual decreased to $0.4 billion at June 30, 2026 from $0.7 billion at year-end 2025, primarily from credits issued to customers; RTX estimates a full-year 2026 cash impact of approximately $0.7 billion. The SEC investigation into RTX's 2023 powder metal disclosures remained open, with no outcome or timing provided.
Following the February 2026 U.S. Supreme Court ruling invalidating IEEPA tariffs, RTX (which had paid roughly $0.5 billion in such tariffs) submitted refund claims via a CBP portal established April 20, 2026, but had received and recognized only an immaterial amount of refunds as of June 30, 2026. The U.S. government appealed the CIT refund order on June 2, 2026, and new or revised tariffs under other statutory regimes were imposed post-ruling, creating ongoing uncertainty for RTX's import costs.
Total backlog grew to $289 billion at June 30, 2026 from $268 billion at year-end 2025 ($170 billion commercial, $119 billion defense). Q2 2026 segment results: Collins net sales $8.2B (+8% y/y), operating margin 15.9%; Pratt & Whitney net sales $8.9B (+16% y/y), operating margin 8.3%; Raytheon net sales $8.3B (+18% y/y), operating margin 12.6%. Pratt & Whitney's Q2 operating profit rose 50% year-over-year, partly reflecting the absence of a 2025 customer-bankruptcy charge and higher F135 production volume.
The independent compliance monitor covering the 2024 deferred prosecution agreements (Thales-Raytheon/FCPA and legacy contract pricing) and the SEC administrative order was engaged in April 2026, starting the three-year compliance period. Separately, S&P affirmed RTX's BBB+ rating with a positive outlook in May 2026, and Moody's had improved its outlook to Baa1/positive in February 2026.
(Filed on April 21, 2026)
+8.7%
20.8%
$6.8B
All three segments posted organic sales and operating-profit growth in Q1 2026: Collins Aerospace net sales $7.6B (+5% y/y), operating profit $1.31B at 17.2% margin (+20% y/y); Pratt & Whitney net sales $8.2B (+11% y/y), operating profit $710M at 8.7% margin (+22% y/y); Raytheon net sales $6.9B (+10% y/y), operating profit $841M at 12.1% margin (+24% y/y). Collins results were reduced by the 2025 divestitures of the actuation/flight-control and Simmonds Precision Products businesses (approximately -$383M sales, -$33M operating profit vs. prior year). Raytheon sales growth was driven by higher Patriot and Standard Missile volumes; P&W growth was led by a $0.7B increase in commercial aftermarket volume.
Defense bookings totaled approximately $14 billion in Q1 2026, up from ~$9 billion a year earlier. Raytheon recorded $7 billion in bookings, including $628M for Patriot systems for the Netherlands and $1.6 billion on classified contracts. Pratt & Whitney recorded $4 billion in bookings, including $3.4 billion for F135 production. Collins recorded $3 billion in smaller individual bookings. Total company backlog rose to $271 billion (commercial $162B; defense $109B) from $268 billion at year-end 2025.
On the Pratt & Whitney Powder Metal Matter, RTX stated that aircraft-on-ground levels for the PW1100 GTF / A320neo fleet are expected to remain elevated through 2026. The accrual for expected customer compensation decreased from $0.7B to $0.5B during the quarter, primarily due to credits issued to customers. RTX estimated a full-year 2026 cash impact of approximately $0.7 billion, including customer credits and partner recovery timing. The SEC investigation into RTX's 2023 powder-metal disclosures remains ongoing, with the company cooperating.
In February 2026 the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were unauthorized. RTX, as importer of record, had paid approximately $0.5 billion in IEEPA tariffs since their inception. The U.S. Court of International Trade ordered CBP to process refunds, but the administrative refund process remains under development and the order may be subject to government challenge; RTX has not recorded a recovery as of March 31, 2026. Following the ruling, the U.S. government imposed new and revised tariffs under other legal authorities. RTX's Q1 2026 results reflect its best estimate of the tariff impact then in effect, and the company stated it does not currently expect announced tariffs and countermeasures to have a material adverse effect, while noting significant uncertainty remains.
RTX noted that the July 2025 reconciliation Act provided $24.4 billion for the 'Golden Dome for America' next-generation missile defense project (outlined in a January 2025 Executive Order, with a draft architecture announced May 2025) and $25.4 billion for munitions and supply-chain resiliency, stating its portfolio is well-positioned to participate. A single independent compliance monitor was engaged in April 2026 to oversee RTX's obligations under the 2024 deferred prosecution agreements (DOJ), the SEC Administrative Order, and the related FCA settlement, with a three-year term commencing from the monitor's engagement date.
Net estimates-at-completion (EAC) adjustments reduced Q1 2026 operating profit by $162 million (vs. -$158 million in Q1 2025) and diluted EPS by $0.09. At Pratt & Whitney, contract assets increased $1.0 billion during the quarter primarily due to sales in excess of billings on certain contracts, and contract liabilities increased $0.3 billion from advances received and billings in excess of sales. RTX recognized $3.6 billion of revenue in Q1 2026 related to contract liabilities outstanding at the start of 2026 (vs. $3.0 billion in Q1 2025). The company also disclosed $218 million in aggregate accruals for export-compliance matters as of March 31, 2026, including a $200 million DOS consent agreement (of which $100 million is suspended pending remedial actions) and additional voluntarily disclosed ITAR/EAR matters.
(Filed on February 6, 2026)
+12.1%
—
$7.4B
Q4 2025: RTX completed the sale of Simmonds Precision Products (Collins segment) on October 6, 2025 for ~$800M gross proceeds with a ~$100M pre-tax gain; this follows the Q3 2025 sale of the actuation and flight control business ($1.8B proceeds, $200M gain). RTX made no share repurchases during Q4, with ~$615M remaining under the 2023 buyback program.
Q4 2025: In December 2025, RTX completed a pension annuity buy-out conversion from Prudential transferring ~$2.3B of gross pension obligations covering ~60,000 retirees (~one-third of Plan participants), recognizing a one-time non-cash $300M settlement charge. Separately, Raytheon Company paid $458K in civil penalties in Q4 under an October 2025 Compliance Order on Consent with Colorado's CDPHE for a 2023 water discharge permit violation at a former Boulder facility.
Full-year 2025 (annual context): Key program milestones included the F135 engine surpassing 1 million flight hours and a $2.8B undefinitized contract action for Lots 18-19 production; the GTF Advantage engine receiving FAA and EASA certification for the A320neo family (4-8% thrust increase, up to 1% additional fuel reduction); Pratt & Whitney completing the Detailed Design Review of its XA103 NGAP engine in early 2025 and announcing accelerated development via digital data packages; and PW1100G-JM shop visit output increasing ~26% year over year as the GTF aftermarket network expanded to 21 facilities worldwide.
Full-year 2025 (annual context): Total backlog grew to $268B from $218B at year-end 2024, with ~25% expected to be recognized within 12 months. Defense bookings were ~$61B, including Raytheon's $40B (GEM-T/Patriot launchers $2.5B, AMRAAM $2.1B, LTAMDS LRIP for U.S. Army and Poland $1.5B, Iron Dome Tamir $1.2B, SM-3 $901M, and $5.9B classified). Collins secured over $4B in combined long-term MRO and spare parts agreements with several airlines and was selected for the EU Clean Aviation PHARES hybrid-electric regional aircraft project alongside Pratt & Whitney Canada.
Powder Metal Matter (ongoing; annual context): Pratt & Whitney expects elevated A320neo aircraft-on-ground levels to continue through 2026. The customer compensation accrual declined from $1.7B to $0.7B over 2025, with $1.0B utilized via cash payments and credits during the year. RTX estimates a full-year 2026 cash impact of ~$700M. The GTF family now powers 2,600+ aircraft for 90+ operators. Other engine models contain affected powder-metal parts, but RTX does not currently anticipate significant additional financial impact.
Sector/regulatory developments in 2025 (annual context): The July 2025 reconciliation Act provided $24.4B for the Golden Dome for America next-generation missile defense shield and $25.4B for munitions/supply chain resiliency, areas where RTX notes its portfolio is positioned. A January 2026 executive order allows the Secretary of War to limit defense contractors' dividends, share repurchases, and executive compensation if performance or production speed is deemed insufficient. The independent compliance monitor for the 2024 DOJ DPAs and SEC Administrative Order is expected to be in place by end of Q1 2026, and the CAFC issued a December 5, 2025 opinion partially reversing and remanding a long-running DCMA collaborator-parts CAS dispute at Pratt & Whitney.
(Filed on October 21, 2025)
+11.9%
20.4%
$6B
Collins Aerospace completed the sale of its actuation and flight control business on July 21, 2025 for $1.8 billion in gross proceeds ($1.6 billion cash net of cash transferred), recording a $0.1 billion pre-tax gain; RTX also entered a definitive agreement on June 30, 2025 to sell Simmonds Precision Products for approximately $0.8 billion, with that transaction closing October 6, 2025 (post-quarter).
Pratt & Whitney Q3 net sales rose 16% to $8.4 billion and operating profit jumped 35% to $751 million (8.9% margin), driven by higher commercial aftermarket volume and a $0.3 billion increase in military sales partly from the F135 Lot 18 contract award received in the quarter; Pratt & Whitney booked $2.9 billion in F135 production and $248 million in F135 sustainment. The PW1100 GTF Powder Metal Matter is expected to keep A320neo fleet aircraft-on-ground levels elevated through 2026, with the customer-compensation accrual declining from $1.7 billion (Dec 2024) to $0.9 billion (Sep 2025) as credits and cash payments were issued, and full-year 2025 cash impact estimated at $1.1–$1.3 billion; a $0.1 billion charge related to a Pratt & Whitney customer bankruptcy was recorded in Q2 2025.
Raytheon Q3 net sales increased 10% to $7.0 billion and operating profit rose 33% to $859 million (12.2% margin), with land and air defense systems driving the sales increase on higher international Patriot, NASAMS, and LTAMDS production. Raytheon booked $15.9 billion in Q3 defense orders, including $2.5 billion for GEM-T and Patriot launchers, $2.1 billion for AMRAAM, $1.5 billion for LTAMDS low-rate initial production (U.S. Army and Poland), $517 million for Stinger, $484 million for precision munitions, $327 million for Javelin, $263 million for LIDS counter-UAS, and $2.5 billion in classified contracts.
Total RTX backlog grew to $251 billion as of September 30, 2025 (from $218 billion at year-end 2024), comprising $148 billion commercial and $103 billion defense; total Q3 defense bookings across all segments were approximately $23 billion versus $25 billion in the prior-year quarter. Consolidated Q3 operating profit reached $2.5 billion (11.2% margin, up from 10.1% a year earlier) with all three segments posting double-digit profit growth: Collins +19%, Pratt & Whitney +35%, Raytheon +33%.
RTX disclosed that the U.S. government shutdown beginning September 30, 2025 (expiration of the continuing resolution) could disrupt program funding, stop-work orders, contract awards, and payments, with significance dependent on shutdown duration; since February 2025, U.S. tariffs on all trading partners and foreign counter-tariffs have been in effect, and RTX states Q3 results reflect its best estimate of tariff costs while noting ongoing uncertainty regarding scope, duration, and enforceability that could affect EACs, inventory, and goodwill recoverability. The July 4, 2025 reconciliation Act included $156.2 billion in supplementary DoD funding through 2029 ($24.4 billion for the Iron Dome for America project and $25.4 billion for munitions/supply chain), which RTX noted positions its portfolio favorably but whose materiality depends on award timelines and budget determinations.
