RTXNarrow moat

RTX — overall economic moat

Investment snapshot
Narrow moat↗ WideningConfidenceMediumValuationExpensive
Strongest advantageInstalled bases: more than 2,600 GTF aircraft, sole source on every F-35, Collins parts on both airframers and Patriot fielded by allies, behind a $289bn backlog
Greatest threatReturns: ROIC 7.1% (2025) below an 8% hurdle, half the balance sheet goodwill, and Pratt & Whitney earning 7.9% against GE Aerospace's 26.6% on commercial engines
Key metricPratt & Whitney operating margin (8.3% in Q2 2026) on the way past 10%
Verdict: RTX owns positions that are hard to take away: an engine fleet that will need maintenance for decades, the only engine for the F-35, aircraft parts certified on almost every airliner, and air-defence systems the allies are reordering. What it does not yet have is a good return on the price paid for them: 7.1% on invested capital, below its cost, with Pratt & Whitney still earning single-digit margins after the powder-metal recall. At about 33 times trailing earnings the shares price the recovery as done. They are fairer on free cash flow, about 22 times, and the verdict turns on whether Pratt's margin passes 10%.
📈 RTX valuation, revenue & earnings — P/E, P/S, revenue, EPS →

RTX makes the equipment inside aircraft and weapons, and then maintains it for decades. It has three businesses: Collins Aerospace, which makes aircraft systems, cabins and avionics; Pratt & Whitney, which makes jet engines for airlines and the F-35; and Raytheon, which makes missiles, air-defence systems and radars1. It is the former United Technologies, which spun off Carrier and Otis and merged with Raytheon Company in April 20202.

RTX net sales ($bn)56.6202064.4202167.1202268.9202380.7202488.62025RTX Forms 10-K FY2022-FY2025; 2020 includes Raytheon from April 3 only
Flat through the recall year, then up 29% in two years.

Net sales were $88,603 million in 20253. By segment, Pratt & Whitney sold $32,916 million, Collins $30,196 million and Raytheon $28,043 million, before $2,552 million of eliminations4. By customer, the U.S. government bought 38%5, other governments about 14%6, and commercial aerospace 48%7. Airbus, the largest commercial customer, took about 14%8.

How it makes money is the installed base. An engine or a system is sold, often at a thin margin, and then serviced, re-parted and upgraded; a missile system is fielded and then replenished. RTX's backlog shows the result: $289 billion in June 2026, $170 billion commercial and $119 billion defence9, about three years of sales10.

Operating profit was $9,300 million in 2025 and net income $6,732 million, or $4.96 a share11; adjusted for acquisition accounting and other items, $6.2912. Free cash flow was $7,940 million13. Collins earned 16.3% on its sales, Raytheon 11.5% and Pratt & Whitney 7.9%1415.

Two things shaped recent years. In 2023 a flaw in powder metal forced hundreds of GTF engines off wing and cost $5.4 billion of sales and $2.9 billion of operating profit16. And the defence budget turned up: Raytheon's backlog rose to $86 billion17.

The shares were $189.40 on 25 September 2026, a market value of $255.27 billion18, about 33 times trailing earnings19.

The company is large in people as well as money. It employs about 180,000 people, including about 54,000 engineers, in 52 countries, with 69% of them in the United States20. Christopher Calio has been chief executive since May 2024 and chairman since April 202521. No shareholder controls it: the largest holders at the end of 2025 were Vanguard with 9.3%, BlackRock with 7.8% and State Street with 6.8%22.

The three businesses run on different clocks. Commercial aerospace follows flying hours and airframe production; defence follows budgets and wars. In 2025 the commercial side supplied most of the growth, and in the first half of 2026 defence took over: Raytheon's bookings in the second quarter alone were $19.9 billion23. Owning both cycles is the closest RTX comes to diversification, and it is why its sales rose in every year from 2021 to 2025, even in the recall year, when they reached $68,920 million24.

The moat is narrow: the installed bases are durable, but RTX paid enough for them that its return on invested capital, 7.1% in 2025, is still below an assumed 8% cost of capital25. The number that would change the verdict is Pratt & Whitney's operating margin, 8.3% in the latest quarter2627; above 10% the largest business would finally be earning its size.

The number that tests this moat
Reported
Revenue, and where it comes from
$88.6bn in 2025: Pratt & Whitney $32.9bn, Collins $30.2bn, Raytheon $28.0bn (before eliminations); governments 52%, commercial 48%

Three equal segments on two cycles; watch Pratt & Whitney's margin, 8.3% in Q2 2026.

Source: RTX Form 10-K, FY2025 ↗
Moat scorecardHow ratings work →
Switching costs8/10
Network effects3/10
Pricing power5/10
Hard to replicate8/10
Disruption resistance7/10
Overall durability6/10

Switching costs are high: engines, certified parts and fielded missile systems stay for decades. Network effects are limited to shared allied weapons and airline maintenance networks. Pricing power is middling: engines are sold at discounts to win the aftermarket, and the U.S. government caps defence margins. Hard to replicate because certification, qualification and production lines take a decade to build. Disruption resistance is good but new defence entrants and alternative parts makers chip at the edges. Durability sits in the upper narrow band because the positions are durable and the return on capital is not yet above its cost.

Dig deeper
DIG DEEPER 01
The Revenue Lines
RTX's three segments sell almost the same amount, but Collins earns nearly twice what Pratt & Whitney does on smaller sales.
DIG DEEPER 02
The Moat
RTX owns three installed bases that are hard to displace, but paid enough for them that its return on capital is still below its cost.
DIG DEEPER 03
Competitors
RTX rarely faces a rival at the point of sale except on the A320neo, and there its engine earns a third of the margin of GE Aerospace's.
DIG DEEPER 04
Major Clients
RTX sells half to governments and half to aerospace companies, but its backlog belongs mostly to airlines on long maintenance contracts.
✦ Future bets — beyond today's moat
✦ FUTURE BET 01
The Future Bets
RTX's next years depend on a longer-lasting engine, a bigger defence budget and more repair capacity, not on a new invention.
⚠ Threats to the moat
⚠ THREAT 01
The Powder-Metal Recall: $5.4 Billion of Sales Reversed
A flaw in powder metal cost RTX $5.4 billion of sales and $2.9 billion of operating profit in one quarter, and the last of the compensation is still…
⚠ THREAT 02
Thirty-Three Times Earnings for a 7% Return
RTX trades at about 33 times earnings while its return on capital is still below 8%, so the price assumes a recovery that has not finished.
◆ What the market may be missing
◆ THE VARIANT VIEW
What the Market Isn't Pricing In
RTX is cheaper on cash than on reported earnings, but the market's optimism rests on Pratt & Whitney's margin rising, and that has not happened yet.
◆ THE VARIANT VIEW
Inside the Latest Quarter (Q2 2026)
In the second quarter of 2026 RTX grew sales 14%, booked Raytheon orders at 2.4 times shipments and raised its outlook for the year.
References
  1. ReportedIt has three businesses: Collins Aerospace, which makes aircraft systems, cabins and avionics; Pratt & Whitney, which makes jet engines for airlines and the F-35; and Raytheon, which makes missiles, air-defence systems and radars.
    RTX Form 10-K for fiscal 2025 - Item 1 business: the three segments and their products, the GTF family powering more than 2,600 aircraft for over 90 operators, the F135 as sole-source engine on all F-35 variants, GTF Advantage certification, the IAE collaboration shares, employees (about 180,000 in 52 countries, 69% in the U.S.) and the divested businesses. — FY2025 · publ. 6 February 2026 · source ↗
  2. ReportedIt is the former United Technologies, which spun off Carrier and Otis and merged with Raytheon Company in April 2020.
    RTX Form 10-K for fiscal 2023 - the three-segment recast of 2021-2022, the GTF family powering more than 1,700 aircraft for 70 operators, backlog of $196 billion, the Carrier and Otis separation and Chinese sanctions on Raytheon Missiles & Defense. — FY2023 · publ. February 2024 · source ↗
  3. ReportedNet sales were $88,603 million in 2025.
    RTX Form 10-K for fiscal 2025 - consolidated financial statements and notes: income statement, cash flow, dividends and repurchases, long-term debt of $37,700 million, goodwill by segment, pension income, the 2024 resolution of certain legal matters, the Raytheon contract termination and the accelerated share repurchase. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  4. ReportedBy segment, Pratt & Whitney sold $32,916 million, Collins $30,196 million and Raytheon $28,043 million, before $2,552 million of eliminations.
    RTX Form 10-K for fiscal 2025 - Item 7 segment review and Note 20: net sales and operating profit by segment for 2023-2025, organic sales drivers (commercial aftermarket, OEM, military), sales by customer type, products and services, segment assets, capital expenditure and research and development - Pratt & Whitney: segment sales, operating profit, organic drivers, customer types, assets and capital expenditure. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  5. ReportedBy customer, the U.S. government bought 38%, other governments about 14%, and commercial aerospace 48%.
    RTX Form 10-K for fiscal 2025 - customers and backlog: sales to the U.S. government (38%, 40%, 46% of net sales in 2025-2023), Airbus (about 14%, 14%, 17% before discounts and incentives; 29%, 31%, 48% of Pratt & Whitney sales), Boeing and Airbus at 16% of Collins sales, international sales of 47%, and total, commercial and defence backlog with remaining performance obligations. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  6. Moat Explorer calcBy customer, the U.S. government bought 38%, other governments about 14%, and commercial aerospace 48%.
    Moat Explorer calculation from RTX's Forms 10-K FY2023-FY2025, Form 10-Q Q2 2026 and Q2 2026 earnings call. GTF aircraft: more than 2,600 against more than 1,700, about 900 more, 2,600 / 1,700 - 1 = 53%; operators 70 to over 90. Raytheon backlog 86 / 52 - 1 = 65% (December 2023 to June 2026); 86 / 28.043 = 3.1 years of 2025 sales. Total backlog 289 / 93.5 = 3.1 years of trailing sales. Pratt & Whitney share of backlog 151 / 268 = 56% (December 2025). Commercial share of backlog 170 / 289 = 59%; defence 119 / 289 = 41% (June 2026). Defence backlog 119 / 78 - 1 = 53% (December 2023 to June 2026). Government share of 2025 net sales (33,279 + 6,702 + 6,123) / 88,603 = 46,104 / 88,603 = 52%; foreign governments 6,702 + 6,123 = 12,825, 12,825 / 88,603 = 14.5%. — 2023-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in RTX's Forms 10-K and 10-Q, earnings releases, earnings call and market data; operands shown in the source line.
  7. ReportedBy customer, the U.S. government bought 38%, other governments about 14%, and commercial aerospace 48%.
    RTX Form 10-K for fiscal 2025 - customers and backlog: sales to the U.S. government (38%, 40%, 46% of net sales in 2025-2023), Airbus (about 14%, 14%, 17% before discounts and incentives; 29%, 31%, 48% of Pratt & Whitney sales), Boeing and Airbus at 16% of Collins sales, international sales of 47%, and total, commercial and defence backlog with remaining performance obligations. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  8. ReportedAirbus, the largest commercial customer, took about 14%.
    RTX Form 10-K for fiscal 2025 - customers and backlog: sales to the U.S. government (38%, 40%, 46% of net sales in 2025-2023), Airbus (about 14%, 14%, 17% before discounts and incentives; 29%, 31%, 48% of Pratt & Whitney sales), Boeing and Airbus at 16% of Collins sales, international sales of 47%, and total, commercial and defence backlog with remaining performance obligations. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  9. ReportedRTX's backlog shows the result: $289 billion in June 2026, $170 billion commercial and $119 billion defence, about three years of sales.
    RTX Form 10-Q for the quarter ended 30 June 2026 - backlog of $289 billion ($170 billion commercial, $119 billion defence), remaining performance obligations, the $0.4 billion powder-metal accrual, the Blue Canyon Technologies sale, Patriot awards and the remaining repurchase authority. — Q2 2026 · publ. 23 July 2026 · source ↗
  10. Moat Explorer calcRTX's backlog shows the result: $289 billion in June 2026, $170 billion commercial and $119 billion defence, about three years of sales.
    Moat Explorer calculation from RTX's Forms 10-K FY2023-FY2025, Form 10-Q Q2 2026 and Q2 2026 earnings call. GTF aircraft: more than 2,600 against more than 1,700, about 900 more, 2,600 / 1,700 - 1 = 53%; operators 70 to over 90. Raytheon backlog 86 / 52 - 1 = 65% (December 2023 to June 2026); 86 / 28.043 = 3.1 years of 2025 sales. Total backlog 289 / 93.5 = 3.1 years of trailing sales. Pratt & Whitney share of backlog 151 / 268 = 56% (December 2025). Commercial share of backlog 170 / 289 = 59%; defence 119 / 289 = 41% (June 2026). Defence backlog 119 / 78 - 1 = 53% (December 2023 to June 2026). Government share of 2025 net sales (33,279 + 6,702 + 6,123) / 88,603 = 46,104 / 88,603 = 52%; foreign governments 6,702 + 6,123 = 12,825, 12,825 / 88,603 = 14.5%. — 2023-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in RTX's Forms 10-K and 10-Q, earnings releases, earnings call and market data; operands shown in the source line.
  11. ReportedOperating profit was $9,300 million in 2025 and net income $6,732 million, or $4.96 a share; adjusted for acquisition accounting and other items, $6.29.
    RTX Form 10-K for fiscal 2025 - consolidated financial statements and notes: income statement, cash flow, dividends and repurchases, long-term debt of $37,700 million, goodwill by segment, pension income, the 2024 resolution of certain legal matters, the Raytheon contract termination and the accelerated share repurchase. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  12. ReportedOperating profit was $9,300 million in 2025 and net income $6,732 million, or $4.96 a share; adjusted for acquisition accounting and other items, $6.29.
    RTX fourth-quarter and full-year 2025 earnings release, Form 8-K exhibit 99 - adjusted EPS of $6.29, free cash flow of $7,940 million, adjusted segment results and the January 2026 outlook. — FY2025 · publ. 27 January 2026 · source ↗
  13. ReportedFree cash flow was $7,940 million.
    RTX fourth-quarter and full-year 2025 earnings release, Form 8-K exhibit 99 - adjusted EPS of $6.29, free cash flow of $7,940 million, adjusted segment results and the January 2026 outlook. — FY2025 · publ. 27 January 2026 · source ↗
  14. ReportedCollins earned 16.3% on its sales, Raytheon 11.5% and Pratt & Whitney 7.9%.
    RTX Form 10-K for fiscal 2025 - Item 7 segment review and Note 20: net sales and operating profit by segment for 2023-2025, organic sales drivers (commercial aftermarket, OEM, military), sales by customer type, products and services, segment assets, capital expenditure and research and development - Pratt & Whitney: segment sales, operating profit, organic drivers, customer types, assets and capital expenditure. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  15. Moat Explorer calcCollins earned 16.3% on its sales, Raytheon 11.5% and Pratt & Whitney 7.9%.
    Moat Explorer calculation from RTX's segment results (Forms 10-K FY2023 and FY2025, Q2 2026 earnings release; $ millions). Operating margins: Collins 2,380 / 21,152 = 11.3% (2021), 2,816 / 23,052 = 12.2% (2022), 4,923 / 30,196 = 16.3% (2025), H1 2026 2,613 / 15,812 = 16.5%, Q2 2026 1,306 / 8,210 = 15.9%, Q1 2026 (first half less Q2) 1,307 / 7,602 = 17.2%; Pratt & Whitney 454 / 18,150 = 2.5% (2021), 1,075 / 20,530 = 5.2% (2022), 2,015 / 28,066 = 7.2% (2024), 2,596 / 32,916 = 7.9% (2025), H1 2026 1,448 / 17,062 = 8.5%, Q2 2026 738 / 8,889 = 8.3%; Raytheon 3,399 / 26,611 = 12.8% (2021), 2,448 / 25,176 = 9.7% (2022), 2,379 / 26,350 = 9.0% (2023), 3,227 / 28,043 = 11.5% (2025), Q2 2026 1,042 / 8,269 = 12.6%; Q1 2026 Raytheon sales 15,214 - 8,269 = 6,945. Growth 2021-2025: Collins 30,196 / 21,152 - 1 = 43% (about 9% a year), operating profit 4,923 / 2,380 = 2.07 times; Pratt & Whitney 32,916 / 18,150 - 1 = 81%, 2025 32,916 / 28,066 - 1 = 17%; Raytheon 28,043 / 26,611 - 1 = 5%. 2025 shares of segment sales (91,155): Pratt & Whitney 36%, Collins 33%, Raytheon 31%; of segment operating profit (10,746): Collins 4,923 = 45.8%, Raytheon 3,227 = 30.0%, Pratt & Whitney 2,596 = 24.2%. Operating profit over segment assets 2025: Collins 4,923 / 71,680 = 6.9%, Raytheon 3,227 / 44,795 = 7.2%, Pratt & Whitney 2,596 / 52,482 = 4.9%. Pratt & Whitney services share 14,449 / 32,916 = 44%; services growth 14,449 / 9,717 = 1.49 times. Collins commercial share 18,858 / 27,585 = 68%; Collins government sales 7,061 + 436 + 1,230 = 8,727, 8,727 / 27,585 = 32%. Raytheon U.S. government share 19,237 / 27,892 = 69%. Collins services share 6,118 / 27,585 = 22%. Pratt & Whitney segment assets 52,482 / 44,307 - 1 = 18%. Pratt & Whitney 2025 defence bookings other than F135: about 9.0 - 2.9 - 2.4 = 3.7 billion. GE Aerospace Commercial Engines & Services profit 8,861 against Pratt & Whitney 2,596: 3.4 times; margins 26.6% against 7.9%. — 2021-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in RTX's Forms 10-K and 10-Q, earnings releases, earnings call and market data; operands shown in the source line.
  16. ReportedIn 2023 a flaw in powder metal forced hundreds of GTF engines off wing and cost $5.4 billion of sales and $2.9 billion of operating profit.
    RTX Form 10-K for fiscal 2025 - the Powder Metal Matter: the July 2023 finding, the third-quarter 2023 charge ($5.4 billion of net sales, $2.9 billion of operating profit at Pratt & Whitney's net 51% program share, partners' 49% share), customer-compensation accruals of $1.7 billion at the end of 2024 and $0.7 billion at the end of 2025, $1.0 billion used in each of 2024 and 2025, and elevated aircraft on ground levels through the end of 2026. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  17. ReportedAnd the defence budget turned up: Raytheon's backlog rose to $86 billion.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  18. ReportedThe shares were $189.40 on 25 September 2026, a market value of $255.27 billion, about 33 times trailing earnings.
    RTX Corporation (RTX) market data - $189.40 a share at the close on 25 September 2026, market cap $255.27B, revenue (ttm) $93.50B, net income $7.74B, EPS $5.68, 23 analysts with a $234.82 target, 52-week range $155.64-$226.88. — September 2026 · publ. 25 September 2026 · source ↗
  19. Moat Explorer calcThe shares were $189.40 on 25 September 2026, a market value of $255.27 billion, about 33 times trailing earnings.
    Moat Explorer calculation from RTX's Form 10-K FY2025, Q2 2026 earnings release and market data ($ millions unless stated). Goodwill plus intangibles 53,343 + 31,845 = 85,188; 85,188 / 171,079 = 49.8% of total assets; other assets 171,079 - 85,188 = 85,891. Reported against adjusted EPS 2025: 6.29 - 4.96 = 1.33, of which 1.15 acquisition accounting. Return on equity 6,732 / ((65,245 + 60,156) / 2) = 10.7%. Net debt: 37,700 + 204 - 7,435 = 30,469 (December 2025); 31,858 + 5,296 + 229 - 8,305 = 29,078 (June 2026). Net interest 1,749 / operating profit 9,300 = 18.8%. Dividends paid 3,574 / free cash flow 7,940 = 45%; free cash flow covers dividends 7,940 / 3,574 = 2.2 times. Pension items 753 + 1,182 = 1,935; 1,935 / net income 6,732 = 29%. Trailing twelve months to June 2026: revenue 88,603 + 46,784 - 41,887 = 93,500; net income 6,732 + 4,198 - 3,192 = 7,738. P/E 255.27 / 7.738 = 33.0; P/S 255.27 / 93.50 = 2.73. Year-end P/E = market value / net income and P/S = market value / revenue: 2021 128.81 / 3.864 = 33.3 and 128.81 / 64.388 = 2.00; 2022 148.36 / 5.197 = 28.5 and 2.21; 2023 120.99 / 3.195 = 37.9 and 120.99 / 68.920 = 1.76; 2024 154.03 / 4.774 = 32.3 and 1.91; 2025 245.90 / 6.732 = 36.5 and 2.78; 2020 108.60 / 56.587 = 1.92 (loss year). Revenue growth since 2023: 93.50 / 68.92 - 1 = 36%; market value 255.27 / 120.99 = 2.1 times. Share price against 52-week high 189.40 / 226.88 - 1 = -16.5%. Peers: Lockheed Martin plus General Dynamics 121.09 + 92.75 = 213.84 (below RTX's 255.27); RTX / Northrop Grumman 255.27 / 73.08 = 3.5 times. Q2 2026 operating margin 2,811 / 24,708 = 11.4%. Price over 2025 adjusted EPS 189.40 / 6.29 = 30 times. 2024 legal and termination cash 1.5 / free cash flow 4.534 = 33%. Pension sensitivity about 1.0 billion per 25 basis points, so about 4 billion per point; 4,000 / equity 65,245 = 6%. Enterprise value over trailing sales 285.82 / 93.50 = 3.1 times; price over 2026 consensus adjusted EPS 189.40 / 7.24 = 26 times. Purchase obligations after 2026 about 47 - 29 = 18 billion. Forecast extension: 2028 revenue 103.18 x 1.07 = 110.40 and EPS 7.85 x 1.084 = 8.51, extending 2027 consensus growth (not consensus). — 2020-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in RTX's Forms 10-K and 10-Q, earnings releases, earnings call and market data; operands shown in the source line.
  20. ReportedIt employs about 180,000 people, including about 54,000 engineers, in 52 countries, with 69% of them in the United States.
    RTX Form 10-K for fiscal 2025 - Item 1 business: the three segments and their products, the GTF family powering more than 2,600 aircraft for over 90 operators, the F135 as sole-source engine on all F-35 variants, GTF Advantage certification, the IAE collaboration shares, employees (about 180,000 in 52 countries, 69% in the U.S.) and the divested businesses. — FY2025 · publ. 6 February 2026 · source ↗
  21. ReportedChristopher Calio has been chief executive since May 2024 and chairman since April 2025.
    RTX 2026 proxy statement (DEF 14A) - Christopher Calio as chairman and chief executive, the independent lead director, and holders of more than 5% (Vanguard 9.3%, BlackRock 7.8%, State Street 6.8%, Capital Research Global Investors 5.7%). — 2026 · publ. 2026 · source ↗
  22. ReportedNo shareholder controls it: the largest holders at the end of 2025 were Vanguard with 9.3%, BlackRock with 7.8% and State Street with 6.8%.
    RTX 2026 proxy statement (DEF 14A) - Christopher Calio as chairman and chief executive, the independent lead director, and holders of more than 5% (Vanguard 9.3%, BlackRock 7.8%, State Street 6.8%, Capital Research Global Investors 5.7%). — 2026 · publ. 2026 · source ↗
  23. ReportedIn 2025 the commercial side supplied most of the growth, and in the first half of 2026 defence took over: Raytheon's bookings in the second quarter alone were $19.9 billion.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  24. ReportedOwning both cycles is the closest RTX comes to diversification, and it is why its sales rose in every year from 2021 to 2025, even in the recall year, when they reached $68,920 million.
    RTX Form 10-K for fiscal 2025 - consolidated financial statements and notes: income statement, cash flow, dividends and repurchases, long-term debt of $37,700 million, goodwill by segment, pension income, the 2024 resolution of certain legal matters, the Raytheon contract termination and the accelerated share repurchase. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  25. Moat Explorer calcThe moat is narrow: the installed bases are durable, but RTX paid enough for them that its return on invested capital, 7.1% in 2025, is still below an assumed 8% cost of capital.
    Moat Explorer calculation, tools_roic_edgar.py method on SEC EDGAR XBRL for CIK 101829: return on invested capital 3.5% (2021), 4.1% (2022), 2.8% (2023), 4.9% (2024), 7.1% (2025); -1.5% in 2020. Earlier years are on United Technologies' pre-2020 basis and are not comparable. — 2020-2025 · publ. September 2026 · source ↗
    Method: NOPAT (operating income x (1 - effective tax rate)) divided by average operating invested capital (total assets less current liabilities less cash), from SEC EDGAR XBRL using the tools_roic_edgar.py method. The 8% hurdle is an assumed cost of capital.
  26. ReportedThe number that would change the verdict is Pratt & Whitney's operating margin, 8.3% in the latest quarter; above 10% the largest business would finally be earning its size.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  27. Moat Explorer calcThe number that would change the verdict is Pratt & Whitney's operating margin, 8.3% in the latest quarter; above 10% the largest business would finally be earning its size.
    Moat Explorer calculation from RTX's segment results (Forms 10-K FY2023 and FY2025, Q2 2026 earnings release; $ millions). Operating margins: Collins 2,380 / 21,152 = 11.3% (2021), 2,816 / 23,052 = 12.2% (2022), 4,923 / 30,196 = 16.3% (2025), H1 2026 2,613 / 15,812 = 16.5%, Q2 2026 1,306 / 8,210 = 15.9%, Q1 2026 (first half less Q2) 1,307 / 7,602 = 17.2%; Pratt & Whitney 454 / 18,150 = 2.5% (2021), 1,075 / 20,530 = 5.2% (2022), 2,015 / 28,066 = 7.2% (2024), 2,596 / 32,916 = 7.9% (2025), H1 2026 1,448 / 17,062 = 8.5%, Q2 2026 738 / 8,889 = 8.3%; Raytheon 3,399 / 26,611 = 12.8% (2021), 2,448 / 25,176 = 9.7% (2022), 2,379 / 26,350 = 9.0% (2023), 3,227 / 28,043 = 11.5% (2025), Q2 2026 1,042 / 8,269 = 12.6%; Q1 2026 Raytheon sales 15,214 - 8,269 = 6,945. Growth 2021-2025: Collins 30,196 / 21,152 - 1 = 43% (about 9% a year), operating profit 4,923 / 2,380 = 2.07 times; Pratt & Whitney 32,916 / 18,150 - 1 = 81%, 2025 32,916 / 28,066 - 1 = 17%; Raytheon 28,043 / 26,611 - 1 = 5%. 2025 shares of segment sales (91,155): Pratt & Whitney 36%, Collins 33%, Raytheon 31%; of segment operating profit (10,746): Collins 4,923 = 45.8%, Raytheon 3,227 = 30.0%, Pratt & Whitney 2,596 = 24.2%. Operating profit over segment assets 2025: Collins 4,923 / 71,680 = 6.9%, Raytheon 3,227 / 44,795 = 7.2%, Pratt & Whitney 2,596 / 52,482 = 4.9%. Pratt & Whitney services share 14,449 / 32,916 = 44%; services growth 14,449 / 9,717 = 1.49 times. Collins commercial share 18,858 / 27,585 = 68%; Collins government sales 7,061 + 436 + 1,230 = 8,727, 8,727 / 27,585 = 32%. Raytheon U.S. government share 19,237 / 27,892 = 69%. Collins services share 6,118 / 27,585 = 22%. Pratt & Whitney segment assets 52,482 / 44,307 - 1 = 18%. Pratt & Whitney 2025 defence bookings other than F135: about 9.0 - 2.9 - 2.4 = 3.7 billion. GE Aerospace Commercial Engines & Services profit 8,861 against Pratt & Whitney 2,596: 3.4 times; margins 26.6% against 7.9%. — 2021-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in RTX's Forms 10-K and 10-Q, earnings releases, earnings call and market data; operands shown in the source line.
Sources
Generated September 28, 2026