<div id="readability-page-1"><div>RTX Corp, a leading player in the aerospace and defense sectors, has released its annual Form 10-K report, detailing its financial and operational performance for the past year. The report highlights significant growth in net sales, improved profitability, and strategic initiatives aimed at enhancing the company's long-term financial flexibility and operational capabilities. Financial Highlights <ul><li>Total Net Sales: $88,603 million, reflecting a year-over-year increase driven by higher sales across all segments, particularly in commercial aerospace and defense.</li><li>Operating Profit: $9,300 million, with an operating profit margin of 10.5%, indicating improved segment performance and the absence of prior year charges.</li><li>Net Income Attributable to Common Shareowners: $6,732 million, benefiting from increased operating profit and the absence of significant charges from the previous year.</li><li>Diluted Earnings Per Share (EPS): $4.96, reflecting the overall increase in net income and improved financial performance across the company.</li></ul> Business Highlights <ul><li>Revenue Segments: Collins Aerospace, Pratt &amp; Whitney, and Raytheon are the three principal business segments. Collins Aerospace provides advanced aerospace and defense products, Pratt &amp; Whitney supplies aircraft engines, and Raytheon offers defensive and offensive threat detection and mitigation capabilities.</li><li>Geographical Performance: The company has substantial international sales, with significant operations in the United States, India, Mexico, Singapore, and the Philippines. The U.S. government remains the largest customer, with international sales also contributing significantly to total net sales.</li><li>Sales Units: Pratt &amp; Whitney's GTF engine family powers over 2,600 aircraft for more than 90 operators across three aircraft platforms, demonstrating a significant presence in the commercial aviation market.</li><li>New Product Launches: Collins Aerospace was awarded contracts to deliver satellite communication systems and support the FAA's Radar System Replacement program, indicating a focus on expanding technological capabilities.</li><li>New Production Launches: Collins Aerospace continues to invest in operational capacity in strategic locations, including the United States, India, Mexico, Singapore, and the Philippines, to enhance production capabilities.</li><li>Future Outlook: The company is focused on sustainable technologies and alternative energy solutions, such as sustainable aviation fuel, hydrogen, and hybrid electric power sources, to address future market demands and regulatory requirements.</li></ul> Strategic Initiatives <ul><li>Liquidity and Financial Flexibility: The company has implemented strategic initiatives to enhance its liquidity and financial flexibility. This includes the repayment of long-term debt totaling $3.35 billion in 2025, which consisted of a $1.1 billion term loan due in 2026, $1.5 billion notes due in 2025, and a $750 million term loan due in 2025.</li><li>Divestitures: The company has focused on divesting non-core assets, such as the sale of the actuation and flight control business and the Simmonds Precision Products business, generating significant cash inflows.</li><li>Capital Management: Capital management activities included maintaining a revolving credit agreement with a capacity of $5.0 billion, expiring in August 2028, with no borrowings outstanding as of December 31, 2025. The company also managed its capital structure by reducing its total debt to total capitalization ratio from 40% in 2024 to 36% in 2025.</li><li>Future Outlook: Looking ahead, the company plans to continue its focus on debt reduction and maintaining strong liquidity. It expects global pension and PRB cash funding requirements to be approximately $0.3 billion in 2026. The company also intends to repatriate certain undistributed earnings of its international subsidiaries that have been previously taxed in the U.S., while continuing to permanently reinvest other international earnings unless tax-effective to repatriate.</li></ul> Challenges and Risks <ul><li>Industry Risks: Changes in U.S. government defense spending could significantly impact RTX's financial position, as a substantial portion of its revenue comes from U.S. government contracts. The unpredictability of defense spending due to geopolitical events and budgetary decisions poses a risk to the company's operations.</li><li>Contractual Risks: RTX faces risks related to U.S. government contracts, including potential terminations, performance delays, and cost overruns. The mix of fixed-price and cost-reimbursable contracts adds complexity, with fixed-price contracts exposing the company to cost overrun risks.</li><li>International Business Risks: The company's international operations are subject to economic, regulatory, and competition risks. Foreign currency fluctuations and differing legal systems can impact profitability. Additionally, geopolitical tensions, such as sanctions from China and Russia, pose significant risks to international sales and operations.</li><li>Operational Risks: Supply chain disruptions, particularly in raw materials and components, have led to increased costs and delays. The company is also vulnerable to cyber-attacks, which could disrupt operations and compromise sensitive information.</li><li>Technological Risks: The development and integration of new technologies, such as artificial intelligence, involve significant risks. Failure to meet technological and regulatory standards could impact the company's competitive position.</li><li>Environmental and Climate Risks: Climate change and related regulations could increase operational costs and require significant investments in new technologies. Extreme weather events could disrupt operations and supply chains.</li><li>Legal and Regulatory Risks: RTX is subject to various legal and compliance risks, including U.S. government audits and investigations. Recent settlements with the DOJ and SEC highlight the potential for significant financial and reputational impacts from regulatory non-compliance.</li><li>Management Strategies: Management is focused on addressing supply chain challenges and enhancing cybersecurity measures. Strategic initiatives include digital transformation and investments in sustainable technologies to mitigate climate-related risks.</li><li>Market Risks: RTX is exposed to market risks, including foreign currency exchange rate fluctuations and interest rate risks, which could adversely affect financial results. The company is actively managing these risks through hedging strategies and financial planning.</li></ul>SEC Filing: RTX Corp [ RTX ] - 10-K - Feb. 06, 2026</div></div>

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RTX Corp has released its annual Form 10-K report, showcasing significant growth in net sales of $88.6 billion and an operating profit of $9.3 billion. The report highlights improved profitability, strategic initiatives for financial flexibility, and a focus on sustainable technologies. Key segments include Collins Aerospace, Pratt & Whitney, and Raytheon, with substantial international sales. The company faces risks from U.S. government defense spending, contractual obligations, and international operations. Management is focused on debt reduction and maintaining liquidity while navigating industry challenges.

RTX Corp SEC 10-K Report