The Backlog Belongs to Pratt's Maintenance ContractsNarrow moat

RTX (RTX) — moat facet

RTX's revenue is half government, but its backlog is mostly Pratt & Whitney's airline maintenance contracts running up to 20 years.

By revenue RTX is half a government contractor. By backlog it is mostly an engine-maintenance company. At the end of 2025 Pratt & Whitney held $151 billion of RTX's $268 billion backlog1, 56%2, against 36% of segment sales3.

RTX backlog by segment, end of 2025 ($bn)151Pratt & Whitney75Raytheon42CollinsRTX Form 10-K FY2025
Pratt holds more than half.

RTX explains why: about half of its remaining performance obligations at the end of 2025 related to long-term commercial aerospace maintenance contracts at Pratt & Whitney, contracts "generally expected to be realized over a span of up to 20 years"4. By June 2026 the share was about 45%5, as defence bookings grew faster.

That distinction matters for the clients. The revenue customers are governments and airframers; the backlog customers are airlines, including some that have failed and cost Pratt & Whitney charges. An airline maintenance contract is only as good as the airline.

It also explains why the backlog converts slowly. About a quarter of it is expected to become revenue within twelve months6; the rest runs for years, some of it for two decades.

The backlog grew in both halves in the first half of 2026. Commercial backlog rose from $161 billion to $170 billion and defence from $107 billion to $119 billion7. Defence grew faster, which is why the maintenance contracts' share of remaining performance obligations fell from about half to about 45%8.

The commercial backlog was $170 billion in June 2026 against $119 billion of defence9. The split to watch is that one; if commercial backlog stops growing while airlines fly more, Pratt & Whitney is signing fewer long maintenance agreements, and the future annuity is shrinking.

Moat trajectory: Holding steady

Commercial backlog $161bn to $170bn in six months.

The number that tests this moat
Moat Explorer calc
Commercial share of backlog, latest quarter
59% (June 2026: $170bn of $289bn)

Whose future RTX has contracted; a stall in commercial backlog while flying grows would mean fewer maintenance agreements.

How it's calculated: Commercial backlog ($170bn) divided by total backlog ($289bn) at 30 June 2026, from the Q2 2026 10-Q.
Source: Moat Explorer calculation: RTX backlog and customers ↗
References
  1. ReportedAt the end of 2025 Pratt & Whitney held $151 billion of RTX's $268 billion backlog, 56%, against 36% of segment sales.
    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 ↗
  2. Moat Explorer calcAt the end of 2025 Pratt & Whitney held $151 billion of RTX's $268 billion backlog, 56%, against 36% of segment 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.
  3. Moat Explorer calcAt the end of 2025 Pratt & Whitney held $151 billion of RTX's $268 billion backlog, 56%, against 36% of segment sales.
    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.
  4. ReportedRTX explains why: about half of its remaining performance obligations at the end of 2025 related to long-term commercial aerospace maintenance contracts at Pratt & Whitney, contracts "generally expected to be realized over a span of up to 20 years".
    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 ↗
  5. ReportedBy June 2026 the share was about 45%, as defence bookings grew faster.
    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 ↗
  6. ReportedAbout a quarter of it is expected to become revenue within twelve months; the rest runs for years, some of it for two decades.
    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 ↗
  7. ReportedCommercial backlog rose from $161 billion to $170 billion and defence from $107 billion to $119 billion.
    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 ↗
  8. ReportedDefence grew faster, which is why the maintenance contracts' share of remaining performance obligations fell from about half to about 45%.
    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 ↗
  9. ReportedThe commercial backlog was $170 billion in June 2026 against $119 billion of defence.
    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 ↗
Sources
Generated September 28, 2026