RTX Corp (NYSE: RTX) is an aerospace and defense company that designs, develops, and manufactures aircraft engines, aerospace systems, and defense technology products. It generates revenue through product sales and aftermarket services across two primary customer bases: commercial aerospace operators and the U.S. government defense sector. The commercial aerospace segment sells engines, components, and aftermarket parts and services to commercial airlines, lessors, aircraft operators, and aircraft manufacturers. The defense segment conducts both direct commercial sales and foreign military sales, the latter structured as government-to-government transactions. Total cost of sales was $70.8B in FY2025, representing 80% of net sales, down from 81% in FY2024. Company-funded R&D was $2.8B in FY2025 (3.2% of net sales), with an additional $4.9B in customer-funded R&D (5.5% of net sales). CEO Christopher T. Calio signed the FY2025 10-K filed February 6, 2026. The Collins Aerospace business unit supplies aircraft parts and systems, including to Boeing. Contracts are typically awarded competitively.

Revenue model

Revenue is split between product sales (61% of net sales in FY2025) and services including aftermarket parts and services (19% of net sales in FY2025). Defense revenue flows through U.S. Department of War contracts as well as direct commercial sales and foreign military sales. Commercial aerospace revenue is transactional and aftermarket-driven.

Products and services

Aircraft engines, aerospace components and systems, defense technology products, and aftermarket parts and services. Collins Aerospace is a named business unit that supplies aircraft parts and systems including to Boeing for commercial aircraft programs.

Customers and end markets

Commercial airlines, aircraft lessors, aircraft operators, and aircraft manufacturers on the commercial aerospace side. The U.S. Department of War and foreign governments via foreign military sales on the defense side. Commercial aerospace demand is tied to traffic levels, load factors, aircraft fuel prices, airline financial health, and aircraft retirement cycles.

Value-chain role

Manufacturer and systems supplier sitting upstream of aircraft operators and downstream of raw material suppliers. Also occupies an aftermarket services role providing parts and maintenance-related services over the life of aircraft programs. Defense work includes both prime and supplier roles under U.S. government contracts.

Geographic exposure

Primary defense revenue is tied to U.S. government budgets and policy. International exposure includes foreign military sales (government-to-government) and direct commercial sales requiring U.S. government export licenses and approvals.

Source: SEC 10-K, filed 2026-02-06

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