RTX Corp (NYSE: RTX) delivered a strong second quarter, reporting adjusted sales of $24.7 billion, representing 16% organic growth compared to the same period last year.
Adjusted earnings per share came in at $1.89, a 21% increase year over year, signaling broad-based momentum across the company’s three major business segments.
The defense and aerospace giant generated $2.9 billion in free cash flow during the quarter, adding to an already formidable financial foundation heading into the second half of 2026.
RTX’s backlog reached a record $289 billion, up 22% year over year, reflecting sustained and growing demand for both commercial aerospace and defense products.
Raytheon, RTX’s defense segment, was a standout performer, booking nearly $20 billion in awards and achieving a book-to-bill ratio of 2.4, a figure that underscores the depth of current defense demand.
Segment operating profit rose 18% year over year to $3.2 billion, with segment margins expanding by 40 basis points, reflecting improving operational efficiency across the portfolio.
All three divisions contributed to the quarter’s organic growth, with Collins Aerospace posting sales of $8.2 billion, up 13% organically, Pratt and Whitney delivering $8.9 billion, up 17%, and Raytheon generating $8.3 billion, up 18%.
Following the strong quarterly performance, RTX raised its full-year adjusted sales outlook to a range of $95 billion to $96 billion, while lifting its adjusted EPS guidance to between $7.10 and $7.25.
Full-year free cash flow guidance was also revised upward to a range of $8.5 billion to $8.75 billion, reflecting management’s confidence in continued execution through year-end.
CEO Christopher Calio addressed the current defense budget environment during the earnings call, noting that the US defense budget request exceeding $1 trillion shows strong demand for RTX’s capabilities, with bipartisan support for increased munitions production aligning well with existing framework agreements.
Calio also confirmed the company is actively engaging with the Department of War to convert framework agreements into definitive contracts while working with suppliers to prepare for increased volumes and capacity.
CFO Neil Mitchill cautioned that some of the strong Q2 free cash flow performance was the result of timing, specifically from catching up on engine deliveries that had been delayed by last year’s work stoppage at Pratt and Whitney.
Mitchill explained that the expected revenue growth slowdown in the second half of 2026 is primarily due to difficult year-over-year comparisons, particularly at Pratt and Whitney, where last year’s work stoppage distorts the baseline.
A mix shift toward installed engines rather than spare parts at Pratt and Whitney is also weighing on revenue growth rates, even as overall engine delivery volumes continue to rise.
RTX is investing to expand production capacity, including $100 million investments directed at GTF MRO capacity and GEM-T component production, positioning the company to meet growing demand over the coming years.
On capital allocation, Calio reaffirmed that RTX’s priorities remain investing in the business, maintaining dividend commitments, and reducing debt, while staying disciplined about mergers and acquisitions given the strength of the current portfolio.
