RTX Corporation (RTX) delivered a strong second-quarter performance, reporting adjusted sales of $24.7 billion, up 16% organically compared to the same period last year.
Adjusted earnings per share climbed to $1.89, representing a 21% year-over-year increase driven by 18% growth in segment operating profit across the company’s major divisions.
Free cash flow reached $2.9 billion for the quarter, a dramatic improvement from negative $72 million posted in the prior-year period, signaling robust operational momentum.
The company’s backlog surged to a record $289 billion, up 22% year over year, comprising $170 billion in commercial orders and $119 billion in defense orders.
Raytheon booked nearly $20 billion in awards during the quarter, achieving a book-to-bill ratio of 2.4, with over $10 billion in international awards secured during the first half of 2026.
RTX secured $43 billion in total new awards during the quarter, with management currently converting five framework agreements into definitive contracts representing significant demand over the next decade.
Pratt & Whitney’s GTF fleet management plan is showing meaningful progress, with aircraft-on-ground levels down 25% year-to-date following a 40% increase in MRO output.
The company is investing over $200 million domestically to expand GTF MRO capacity and GEM-T component production to address growing global demand.
Powder metal-related compensation payments totaled approximately $150 million in the second quarter, a continued financial obligation stemming from previously disclosed engine issues.
RTX entered an agreement to sell Raytheon’s Blue Canyon Technologies for $620 million, a move designed to sharpen the company’s focus on core defense capabilities.
Management flagged a shift in Pratt & Whitney’s original equipment sales toward a low single-digit decline as the company prioritizes aftermarket material allocation over spare engine sales.
The company’s connected factory network and AI platform has grown 30% since late 2025, enabling faster production cycle times across manufacturing operations.
RTX anticipates a record number of GTF engine deliveries to Airbus in 2026, even as it strategically prioritizes material flow toward its MRO network.
Management expects bipartisan support for increased defense spending to prioritize critical munitions, potentially benefiting programs like Tomahawk and Standard Missile.
RTX raised its full-year 2026 guidance, now projecting adjusted sales of $95 billion to $96 billion, adjusted EPS of $7.10 to $7.25, and free cash flow of up to $8.75 billion.
The company now expects organic sales growth of 8% to 9% for the full year, up from its prior projection of 5% to 6%, reflecting broad-based demand strength.
