RTX Reports Record $340B Backlog and Strong Q3 2026 Growth

Strong Q3 2026 Operational Performance

RTX Corporation (RTX) delivered robust third-quarter 2026 financial results, reporting adjusted sales of $25 billion, a 12% increase on an organic basis. The company’s performance was supported by double-digit growth across its commercial original equipment (OE), commercial aftermarket, and defense channels. Adjusted earnings per share (EPS) reached $2.26, a 33% year-over-year increase, which included a $0.25 benefit from cost recovery under the International Emergency Economic Powers Act (IEEPA).

Management highlighted a record company backlog of $340 billion, reflecting an 18% sequential increase. This growth is underpinned by the conversion of significant defense framework agreements into long-term production contracts. Notably, Raytheon secured $59 billion in bookings during the quarter, including approximately $23 billion for the Tomahawk missile and over $14 billion for the Advanced Medium-Range Air-to-Air Missile (AMRAAM) multiyear production programs.

Segment Highlights and Strategic Execution

Across its three primary business segments, RTX focused on operational productivity and capacity expansion:

• Collins Aerospace: Reported $8.4 billion in sales, with a 12% organic increase driven by a 23% rise in commercial OE volume on narrowbody and widebody platforms. The segment is aggressively pursuing structural cost actions, including operational consolidation and increased manufacturing hours at best-cost locations.
• Pratt & Whitney: Achieved $9.2 billion in sales, up 10% year-over-year. The segment saw a 21% increase in commercial aftermarket volume, primarily for the Geared Turbofan (GTF) engine family. Pratt & Whitney is integrating AI-powered inspection software, which has reportedly reduced engine inspection times by more than 30% where deployed.
• Raytheon: Recorded $8 billion in sales, up 14% year-over-year, driven by naval programs and air defense systems. The company is scaling munitions output, which rose 90% year-over-year, to meet high demand. To mitigate production bottlenecks, Raytheon added 150 new suppliers in 2026.

Supply Chain and Future Outlook

Chairman and Chief Executive Officer Christopher T. Calio emphasized that the company’s primary focus remains on supply chain stability, specifically regarding constraints in castings, rocket motors, and circuit boards. Calio described this focus as the "single, biggest enabling factor" in achieving planned production rate increases of 2x to 4x for critical munitions.

Looking ahead, RTX raised its full-year 2026 sales guidance to a range of $97 billion to $97.5 billion and adjusted EPS guidance to $7.65–$7.75. Chief Financial Officer Neil G. Mitchill Jr. noted that while the company benefits from upfront funding in multiyear contracts, it expects a headwind from the requirement for higher working capital to support sustained organic growth. Additionally, the company anticipates a $500 million free cash flow tailwind in 2027 as powder metal-related compensation payments decline. RTX continues to progress the certification of the GTF Hot Section Plus upgrade and the production ramp of the GTF Advantage engine, which is expected to double time-on-wing performance.