RTX (NYSE:RTX) raised its full-year outlook after reporting stronger second-quarter 2026 sales, profit and cash flow, citing broad demand across its commercial aerospace and defense businesses and continued progress on operational execution.
Chairman and Chief Executive Officer Chris Calio said the company delivered “another strong quarter of performance and financial results,” with adjusted sales of $24.7 billion, up 16% organically from a year earlier. Adjusted earnings per share rose 21% to $1.89, while adjusted segment operating profit increased 18% to $3.2 billion. Free cash flow totaled $2.9 billion.
Defense Demand Drives Record Backlog
Raytheon recorded nearly $20 billion of awards in the quarter, producing a book-to-bill ratio of 2.4. Calio said the awards included more than $5 billion of GEM-T Patriot effectors, driven by international customers and the first domestic GEM-T production order in more than 30 years. Raytheon also booked more than $4 billion of classified and confidential awards and $1.8 billion for AMRAAM.
Nathan Ware, vice president of investor relations, said Raytheon’s quarterly sales rose 18% to $8.3 billion, driven by higher volume in land and air defense systems, naval programs and air and space defense systems, including Patriot, Standard Missile and AMRAAM. Adjusted operating profit increased $234 million to $1 billion, with margins expanding 100 basis points.
Raytheon ended the quarter with an $86 billion backlog, 48% of which was international, up four percentage points from a year earlier. Ware said other key awards in the quarter included $1.1 billion for AIM-9X and about $800 million for LTAMDS.
Calio said RTX is encouraged by bipartisan support for increased U.S. defense spending, pointing to a base budget request of $1.1 trillion for 2027 and increased funding for RTX priority programs including Tomahawk, LTAMDS and Standard Missile. He also said Raytheon booked more than $10 billion of international awards in the first half of the year, more than double the prior-year period, including more than $7 billion from European customers.
Commercial Aerospace Aftermarket Remains Strong
On the commercial side, Calio said RTX received more than $20 billion of original equipment and aftermarket orders in the quarter. He highlighted AirAsia’s order for 150 Airbus A220 aircraft, which are exclusively powered by Pratt & Whitney GTF engines, and a five-year agreement under which Collins Aerospace will provide Air New Zealand with maintenance, repair and overhaul services for engine nacelles on its Boeing 787 fleet.
Calio said commercial aftermarket demand remains strong and passenger air travel is resilient. He said global revenue passenger kilometers are expected to grow this year in all regions outside the Middle East, while engine retirements have remained relatively low.
At Pratt & Whitney, sales rose 16% on an adjusted basis to $8.9 billion and 17% organically, supported by commercial aftermarket and military engine strength. Ware said commercial aftermarket sales rose 25% on higher MRO volume, while military engine sales increased 23%, driven by higher F135 volume. Commercial original equipment sales fell 8% as increased engine deliveries were more than offset by large commercial engine mix.
Calio said the GTF fleet management plan remains on track. PW1100 aircraft-on-ground levels were down sequentially and down 25% year to date, supported by MRO output that increased more than 40% year over year and a 23% reduction in turnaround time.
Collins, Pratt and Raytheon Outlooks Raised
Chief Financial Officer Neil Mitchill said RTX now expects full-year adjusted sales of $95 billion to $96 billion, up from the prior range of $92.5 billion to $93.5 billion. The company now expects organic sales growth of 8% to 9%, compared with the previous range of 5% to 6%.
RTX also raised its adjusted EPS outlook to $7.10 to $7.25, up from $6.70 to $6.90. Free cash flow is now expected to range from $8.5 billion to $8.75 billion, compared with the prior range of $8.25 billion to $8.75 billion.
Mitchill said most of the sales increase is tied to stronger defense performance across the company, primarily at Raytheon, along with higher GTF aftermarket volume at Pratt & Whitney and commercial original equipment strength at Collins Aerospace.
- Collins Aerospace: Second-quarter sales were $8.2 billion, up 13% organically. RTX now expects Collins sales to grow mid- to high-single digits on an adjusted basis, with operating profit growth of $550 million to $625 million versus 2025.
- Pratt & Whitney: RTX now expects Pratt sales to grow high-single digits on both an adjusted and organic basis, with operating profit growth of $275 million to $350 million versus 2025.
- Raytheon: RTX now expects Raytheon sales to grow high-single digits to low-double digits, with operating profit growth of $575 million to $650 million versus 2025.
Company Highlights Investments and Portfolio Actions
Calio said RTX continues to invest in capacity and technology across the business. Raytheon is investing an additional $100 million domestically to increase GEM-T component production and accelerate LTAMDS testing capabilities. Pratt & Whitney announced more than $100 million of U.S. investments to expand GTF MRO capacity in Texas, Florida and Arkansas. Collins completed a commercial MRO expansion in Malaysia during the quarter.
RTX also reported progress on technology programs. Collins was down-selected to deliver mission autonomy software for the U.S. Air Force’s collaborative combat aircraft program. Pratt received aircraft certification for the GTF Advantage engine and began deliveries to Airbus, with entry into service expected later this year and full production cutover in 2028. Raytheon is developing a longer-range variant of the StormBreaker effector using a modified Pratt TJ-150 engine, with an upcoming flight test planned.
Mitchill also said RTX entered into an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million as the company focuses on core capabilities.
In response to analyst questions, Calio said RTX’s capital allocation priorities remain consistent: investing in the business, maintaining its dividend commitment and reducing debt. He said the company does not see anything it “really need[s]” from a portfolio standpoint and believes its existing portfolio is “exceptionally strong.”
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.
