RTX (NYSE:RTX) reported a strong start to 2026, posting double-digit organic revenue growth and raising its full-year adjusted sales and earnings outlook following first-quarter results that executives said were driven by execution, productivity gains, and robust commercial and defense demand.
First-quarter results show growth across commercial and defense
Chairman and CEO Chris Calio said RTX delivered “very strong performance to start the year,” with adjusted sales of $22.1 billion, up 10% organically. Adjusted EPS was $1.78, up 21% year-over-year, while free cash flow was $1.3 billion, up $500 million from the prior-year quarter.
On a GAAP basis, RTX posted earnings per share from continuing operations of $1.51, which included $0.27 of acquisition accounting adjustments, Mitchill said. Free cash flow included about $170 million of powder metal-related compensation. RTX also paid down $500 million of debt during the quarter, Mitchill said.
Orders, backlog, and large defense awards
Calio said demand remained “robust,” with a first-quarter book-to-bill of 1.14x and record backlog of $271 billion, up 25% year-over-year. He said commercial backlog rose 30% year-over-year, citing GTF wins including Vietjet Air’s selection of the GTF engine for an additional 44 aircraft and Finnair’s stated intention to purchase up to 46 GTF-powered Embraer E2 aircraft.
On defense, Calio highlighted significant awards across all three segments, including:
- Pratt & Whitney: over $3 billion for F-135 Lot 19 production, Calio said.
- Collins: close to $3 billion of awards, including $1.7 billion for mission systems capabilities and $400 million for avionics equipment supporting multiple platforms, he said.
- Raytheon: $6.6 billion of awards, including over $600 million for Patriot equipment for the Netherlands and more than $400 million from the U.S. Army for lower-tier air and missile defense sensors, he said.
Calio also discussed five “landmark framework agreements” Raytheon signed with what he referred to as the Department of War for critical munitions including Tomahawk, AMRAAM, and the Standard Missile family. He said once finalized, the agreements would provide firm demand signals for RTX and its suppliers to invest in production ramps “well above existing rates over the next decade,” with increased production primarily at facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts. Calio said RTX has already invested nearly $900 million in CapEx at those locations over the last three years and expects to make additional investments. He described the agreements as incorporating “a collaborative funding approach to preserve upfront free cash flow.”
Outlook raised on sales and EPS; free cash flow maintained
Given the quarter and “the strength we’re seeing in our defense business,” Calio said RTX is raising its full-year outlook for adjusted sales and EPS while maintaining its free cash flow view.
Mitchill said the company raised its adjusted sales outlook by $500 million to $92.5 billion to $93.5 billion, driven by Raytheon performance and slightly lower sales eliminations, while maintaining expected organic sales growth of 5% to 6% for the year. RTX maintained expectations for mid-single-digit commercial OE growth and high-single-digit commercial aftermarket growth, while raising its defense sales growth view to mid- to high-single digits from mid-single digits.
RTX increased its adjusted EPS outlook by $0.10 on both ends to a range of $6.70 to $6.90, Mitchill said. He attributed roughly $0.05 to drop-through from higher Raytheon sales, with the remainder from below-the-line items including lower interest expense. Free cash flow guidance was unchanged at $8.25 billion to $8.75 billion.
Operational updates: GTF fleet management, MRO output, and capacity investments
Calio said the GTF fleet management plan “remains on track,” noting PW1100 AOGs were down about 15% compared with the end of last year, with expectations for the downward trend to continue. He said PW1100 MRO output increased 23% year-over-year, on top of 35% growth in the first quarter of last year, and RTX would continue optimizing material allocation between OE and aftermarket to support overall fleet health.
Calio said GTF shipments were in line with expectations and RTX still expects mid- to high-single-digit delivery growth for the year. He also said GTF-powered aircraft surpassed 2,700 deliveries, with Pratt powering about 45% of A320 deliveries to date, ahead of RTX’s “roughly 40% sold program share.” Calio noted the GTF program reached 10 years in service during the quarter, has more than 50 million flight hours, and a backlog of about 8,000 engines.
Calio said RTX received aircraft certification for the GTF Advantage and remains on track for entry into service later this year. In Q&A, he described Hot Section Plus as the Advantage retrofit package and said it would be introduced into MRO “a little bit later this year.” He added RTX plans to “get value for that investment” in pricing, while acknowledging contract differences could influence how it is incorporated.
Mitchill said the GTF Advantage will carry higher costs as it brings greater durability, but also higher pricing, and he does not expect “a lot of headwind on a per-engine basis” as the program ramps. He reiterated that RTX expects about $200 million of headwind on OE margins this year, while noting the first-quarter impact was “pretty much flat” year-over-year. He said new engine deliveries will continue to carry negative margins, while aftermarket margins are “low double digits,” with sequential improvement as shop visits become heavier.
RTX also outlined productivity and automation efforts. Calio said Raytheon munitions deliveries rose more than 40% year-over-year in the quarter. He highlighted automation at Pratt’s Singapore MRO facility, where robotics assembling high-pressure compressor rotors delivered 100% first-pass yield and cut assembly time by 50%, contributing to an 80% output increase at the site over two years.
On capacity expansion, Calio cited several investments announced or completed during the quarter, including Pratt’s $200 million investment in Columbus, Georgia to increase output of critical parts; Raytheon’s completed $115 million expansion of its Redstone Missile Integration Facility in Huntsville, expected to increase munitions capacity by over 50%; and a Collins capacity expansion tied to an FAA radar systems contract and other air traffic modernization opportunities.
Segment performance: Collins, Pratt & Whitney, and Raytheon
Vice President of Investor Relations Nathan Ware detailed segment results:
- Collins: Sales were $7.6 billion, up 10% organically. Ware said commercial OE sales were up 15% (adjusting for divestitures), commercial aftermarket rose 7% driven by provisioning and parts/repair growth, while mods and upgrades declined 3% after an 18% increase in the prior-year quarter. Defense sales rose 9%. Operating profit was $1.3 billion, up $71 million, and margins expanded 10 basis points despite a 130-basis-point tariff headwind, Ware said.
- Pratt & Whitney: Sales were $8.2 billion, up 10% organically, driven by commercial aftermarket (up 19%) and military engines (up 7%). Commercial OE sales were down 1% due to lower engine deliveries. Operating profit was $711 million, up $121 million, with margin expansion of 70 basis points despite a 50-basis-point tariff headwind, Ware said.
- Raytheon: Sales were $6.9 billion, up 9% organically, driven by higher volume in land and air defense systems including Patriot and GEM-T, plus naval munitions, Ware said. Operating profit was $845 million, up $167 million, and margins expanded 150 basis points on favorable mix and productivity. Raytheon bookings were $6.6 billion for a book-to-bill of 0.96x and backlog of $74 billion; Ware said rolling 12-month book-to-bill was 1.48x.
In Q&A, executives addressed supply chain capacity and critical minerals for missile production. Calio said munitions output rose more than 40% year-over-year, while Raytheon posted 12 consecutive quarters of material growth, with material receipts up 13% in the first quarter. He flagged rocket motors and microelectronics as areas to monitor and said RTX is “covered” in the near and medium term on critical minerals while working to secure longer-term partnerships and contracts.
Executives also discussed tariffs. Mitchill said there was “no change today” to the full-year tariff outlook and that RTX had paid about $500 million associated with the IEEPA tariffs since implementation; he said the government is beginning a refund process and RTX plans to submit requests but has not recorded any income from reversals or included refunds in guidance.
Calio closed by emphasizing durable demand across commercial and defense markets and said RTX will remain focused on executing its backlog, investing in capacity, and innovating “to drive long-term shareholder value.”
About RTX (NYSE:RTX)
RTX (NYSE: RTX) is a U.S.-based aerospace and defense company that designs, manufactures and services advanced systems for commercial, military and governmental customers worldwide. The company was created through the 2020 combination of Raytheon Company and United Technologies Corporation and later adopted the RTX name, positioning itself as a diversified provider across the aerospace and defense value chain.
RTX’s operations span a broad set of capabilities. Its commercial aerospace businesses include Pratt & Whitney aircraft engines and Collins Aerospace systems, which supply propulsion, avionics, aerostructures, interiors and integrated aircraft systems.
