What it does
RTX states that it is an aerospace and defense company providing advanced systems and services to commercial, military and government customers worldwide. Its three principal segments are Collins Aerospace, Pratt & Whitney and Raytheon. Collins supplies aerospace and defense products, systems and aftermarket services; Pratt & Whitney designs, manufactures and services aircraft engines and auxiliary power units; and Raytheon provides threat detection, tracking and mitigation capabilities, including air and missile defense, sensors, missiles, radars, space systems and related technologies. The company serves both original-equipment and aftermarket parts and services markets.
Source: RTX Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company states that it sells aerospace and defense products and services across commercial and government markets. The segment table below provides the revenue detail by Collins Aerospace, Pratt & Whitney and Raytheon. Collins participates in original equipment and aftermarket activity, including spare parts, overhaul and repair, engineering support, training and fleet-management services. Pratt & Whitney sells engines and related services, including maintenance, repair and overhaul. Raytheon acts as a prime contractor or subcontractor on defense and related programs. RTX also reports substantial U.S. government and international sales.
Source: RTX Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
RTX states that it has substantial U.S. government sales through all three segments and substantial international sales across those segments. The U.S. government is its largest customer and represents a substantial majority of total defense sales, according to the filing. Collins sells to aircraft manufacturers, airlines, airports, aircraft operators, governments, defense contractors, maintenance providers and distributors. Boeing and Airbus are Collins’ largest commercial customers; Airbus is Pratt & Whitney’s largest commercial customer by sales. Pratt & Whitney also sells to aircraft manufacturers, airlines, operators, leasing companies and governments.
Source: RTX Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The filing states that all of RTX’s businesses face significant competition. It identifies price, delivery schedule, past performance, reliability, customer service, innovation and technology as competitive factors. The company says its aerospace businesses compete with numerous U.S. and foreign businesses, while its defense businesses compete with numerous U.S. and foreign companies. The filing does not name individual competitors. It also notes that some competitors have substantial financial resources and technological capabilities, and that certain non-U.S. competitors receive government assistance.
Source: RTX Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
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Changes in U.S. government defense spending could negatively affect the company’s financial position, operating results, liquidity and overall business.
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The filing cites risks relating to U.S. government contracts and programs, including contract mix, performance and cost control.
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International operations are subject to economic, regulatory, competition and other risks.
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RTX states that its financial performance depends on conditions in the cyclical aerospace industry.
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Advanced-technology product development, production, certification and support involve risks, and anticipated benefits may not be realized in the expected degree or timing.
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Competition may reduce revenues and margins and limit future opportunities.
Source: RTX Corporation Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
RTX employed 180,000 people as of December 31, 2025. The company states that it depends on a highly skilled workforce, particularly people with technical, engineering and science backgrounds; its defense business also requires personnel with security clearances for classified programs. RTX states that it faces challenges hiring highly qualified personnel for certain critical roles and locations. Its operations include manufacturing and servicing products globally, supported by a global supply chain for raw materials, commodities, components and services. The filing does not state that its business is seasonal.
Source: RTX Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov