RTX has raised its full-year 2026 (FY26) outlook after reporting a significant rise in third quarter (Q3) sales and profits, citing continued robust demand across its defence and commercial aerospace businesses.
According to the company’s latest financial statement, RTX posted reported and adjusted sales of $25.0bn for the quarter, a year-on-year increase of 11%, or 12% on an organic basis.
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Net income attributable to shareholders in Q3 reached $2.6bn, while adjusted net income climbed to $3.1bn, marking a 34% increase over the prior year.
The company attributed this growth to higher operating profits across all divisions and contributions from IEEPA recovery, although this was partially offset by increased tax expenses and reduced pension income.
During the quarter, RTX reported new defence and commercial contract awards valued at over $81bn for the period, pushing its total backlog to a record $340bn.
RTX chairman and CEO Chris Calio said: “Our strong execution and operational focus in the third quarter enabled RTX to deliver double-digit organic sales growth across commercial aerospace and defence.”
Segment results showed broad-based strength. Collins Aerospace reported sales of $8.4bn, up 10% year-on-year, propelled by a 7% boost in defence sales.
Excluding divestitures, organic growth reached 12%. Adjusted operating profit at Collins Aerospace rose by 50% to $1.8bn, mainly due to higher commercial volumes and $250m in IEEPA recovery.
Pratt & Whitney generated $9.2bn in sales, also 10% higher than the previous year. Operating profit at Pratt & Whitney declined to $608m, reflecting a $363m charge linked to a customer bankruptcy, but adjusted operating profit was up 29% at $968m.
Raytheon business posted $8.0bn in revenue, a 14% year-on-year gain. This was driven by higher volume across naval and land-based programmes, including Patriot and Tomahawk systems.
The division’s adjusted operating profit at Raytheon reached $1.1bn, representing a 32% annual increase, benefitting from improved productivity and a contract modification.
On the back of the third-quarter results, RTX raised its full-year guidance for several key metrics. The company now expects adjusted sales of $97.0 to $97.5bn, up from a previous forecast of $95.0 to $96.0bn.
Organic sales growth is projected at 10 to 11%, surpassing the earlier 8 to 9% range.
RTX also lifted its adjusted earnings per share estimate to between $7.65 and $7.75 and now anticipates free cash flow between $9.0bn and $9.2bn.
“Given our performance year to date, we are again raising our full year outlook for adjusted sales, adjusted EPS, and free cash flow. We remain focused on increasing output, optimising our cost structure, and investing in new technologies to support our customers and drive continued growth,” Calio said.
