Leeham News and Analysis
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RTX 2025 Earnings: Commercial Aerospace Leads Growth as Pratt Advances GTF Recovery
By Chris Sloan
Jan. 27, 2026 © Leeham News: “RTX is constructed to meet the moment—by the moment I mean the ramp both in defense and commercial—and to drive long-term value for customers and shareholders,” RTX President and Chief Executive Officer Christopher Calio said as the company closed 2025.
The company has strong order momentum and a record backlog, driven by commercial aerospace demand and continued progress at Pratt & Whitney as the company works through the Geared Turbofan (GTF) powder metal issue.
RTX ended the year with a full-year book-to-bill of 1.56 and a $268bn backlog, up 23% year over year, including $161bn of commercial orders and $107bn of defense awards. Commercial backlog rose 29%, supported by higher aircraft production rates and resilient passenger air travel, while organic growth was led by commercial OE and aftermarket.
At Pratt, management emphasized improving performance as the GTF program continues to grow and newer contracts begin to reshape the business. Chief Financial Officer Neil G. Mitchill Jr. said Pratt is “growing out of the older contracts,” with improved pricing on new work and legacy businesses remaining intact, positioning the segment for margin expansion over the next several years as backlog is executed.
Looking ahead, RTX outlined several areas that will shape results in 2026 and beyond, including continued improvements in GTF fleet management, rising MRO output, and the transition to the GTF Advantage engine. Management also pointed to alignment with OEM production ramp-ups, continued improvement at Collins Aerospace, and increased focus on defense output and capital deployment following recent comments from the Trump Administration, framing the company’s outlook as it balances near-term execution with longer-term growth across commercial and defense markets.
RTX Q4 and FY 2025 Earnings Call Slide Image: RTX
Pratt & Whitney builds for the future while wrestling with the present
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By Bjorn Fehrm and Charlotte Bailey
January 26, 2026, © Leeham News: Pratt & Whitney (PW) bet big on the geared turbofan to take it back to a sizeable position in the market’s largest airliner segment, the Single-Aisle. It spent more than 20 years to develop the fan gearbox, including functional demonstrator engines that flew on Airbus test aircraft to prove the technology.
The effort was a success; the gearbox in the Pratt & Whitney range of Geared TurboFans, GTFs, has worked perfectly. It achieved what was promised, a low fuel consumption, and has been rock-solid in its function.
Yet PW’s GTFs have had a range of problems since their introduction in 2016. Bent main shafts, combustors that burn through, bearings that fail. And on top, a huge call-back of engines, as a contaminated power metal process has produced compressor and turbine discs that risk failing before their on-engine life expires. The situation has caused over 600 Airbus A320 and A321neos with GTF engines to be grounded for engine replacements, if and when replacement discs are available.
The issues, stemming from the “business as usual” parts of the GTF, have led to write-offs of billions of dollars for PW’s mother RTX and to lost market share to the competing CFM LEAP engine on the Airbus A320/321neo series. But while this clouds the business of yesterday and today, Pratt & Whitney still has the clout to invest in the future. Being part of one of the World’s largest Defence and Aerospace Companies is an important part of the answer.
Figure 1. The Maeve MJ500 with the revolutionary Pratt & Whitney Canada Constant Volume Open Fan engine. Source: Maeve. Read more
RTX Posts Steady Q3 2-25 As GTF Stabilization, Collins Strength, And Tariff Headwinds Define Results
By Chris Sloan
October 21, 2025, © Leeham News: RTX delivered a solid and steady third quarter, marked by broad-based growth, improving GTF maintenance output, and continued strength at Collins Aerospace—even as tariff headwinds persisted. Company sales rose 12% year-over-year to $22.5bn, or 13% organically, while adjusted segment operating profit increased 19%, marking the sixth consecutive quarter of year-over-year margin expansion. Net income attributable to common shareholders climbed to $1.9bn, up from $1.4bn a year ago.
Chairman and CEO Christopher Calio credited strong execution across all three segments for the performance, citing double-digit growth in commercial OE, aftermarket, and defense. RTX booked $37bn in new awards during the quarter—$23bn in defense and $14bn in commercial—lifting total backlog to $251bn, up 18% since the end of 2024.
With passenger traffic holding firm and OEM production trending higher, Collins and Pratt both benefited from robust aerospace demand. Calio said the company is raising its full-year outlook for adjusted sales and operating profit, supported by the ongoing production ramp and a stabilizing supply chain.
The conversation around the GTF program has shifted: improved MRO throughput and material flow replaced the usual focus on compensation and grounded aircraft, and for the first time in recent memory, the familiar “powdered-metal” refrain was absent from the call—an indication that Pratt’s recovery is turning a corner.
Collins Aerospace continues R&D on electrical options despite industry pullback
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By Scott Hamilton
Aug. 11, 2025, © Leeham News: At the Annual General Meeting of the International Air Transport Association (IATA) in October 2021, a detailed green aviation plan was adopted to achieve net-zero carbon emissions by 2050.
The ambitious program included milestones in the use of Sustainable Aviation Fuel (SAF) and other alternative fuels. The policy was part of a greater industry effort to develop battery, hydrogen, and hybrid-powered aircraft and eVTOLs.
Some 300 companies were founded to pursue these various objectives, and many global airlines adopted environmental goals. Some placed conditional orders for eVTOLS or hybrid aircraft.
Boeing focused on SAF development while Airbus pursued hydrogen-powered concepts. GE, Safran, Pratt & Whitney, Pratt & Whitney Canada (PWC), and Rolls-Royce each have or continue to research hybrid or new engine opportunities.
Todd Spierling of Collins Aerospace. Credit: Collins Aerospace.
Plenty of skepticism about reaching the Net Zero goal emerged even at the 2021 IATA AGM. Tim Clark, president of Emirates Airline, famously cautioned, Don’t make promises you can’t keep.
Since then, Airbus abandoned its hydrogen goal. Several airlines abandoned their net-zero goals. Most of the 300 start-up companies failed, notably Lilium, which went through an astonishing $1bn before collapsing into insolvency.
One company that acknowledged the idea that aircraft can be powered by batteries alone is Collins Aerospace, a unit of RTX Corp. In an interview with LNA before the Paris Air Show, Todd Spierling, a principal technical fellow, was clear.
“We’ve been working a lot with Pratt and Whitney on electrification and what it means,” Spierling said. “One of the things we found was if you just trade out fuel for batteries, it doesn’t work out.”
What’s the next new aircraft, Part 5
By Scott Hamilton and Bjorn Fehrm
July 31, 2025, © Leeham News: We wrap up our five-part series today on What’s the Next New Airplane in the coming decades. We now look at Airplanes 9-13 in Figure 1 below.
Figure 1. The 13 airliners we look at in the series. Source: Leeham Co.
These are the (9) COMAC 929, (10) Eco-version of New Light Twin, (11) CFM Open Fan single aisle, (12) the Boeing 787 re-engine, and (13) the Airbus A350 re-engine.
RTX Q2 2025 Earnings: Tariff Relief, GTF Stabilization, Strong Demand, and FAA Tailwinds Lift Outlook
By Chris Sloan
July 22, 2025, © Leeham News: RTX delivered strong second-quarter results, supported by continued momentum in the commercial aerospace sector, stabilization in its geared turbofan program, and a significant aftermarket ramp across Pratt & Whitney and Collins Aerospace.
Executives highlighted improving supply chain conditions and growing demand as key contributors, while also noting upcoming FAA modernization investments as a long-term opportunity. Despite ongoing trade friction and a sizeable tariff burden, RTX raised its full-year sales outlook and reaffirmed its free cash flow guidance. Executives said recent developments on the tariff front—including favorable exemptions and successful mitigation strategies—helped soften the impact and improve visibility heading into the second half.
“Our outlook on the impact of tariffs has improved for the year,” said RTX President and Chief Executive Christopher Calio. The company originally expected a $850m tariff headwind in 2025 but has since lowered that figure to $500m. Calio attributed half of the reduction to external developments such as the paused implementation of new rates and the UK’s decision to exempt aerospace components. The remainder, he said, came from the company’s mitigation actions, including optimizing material flows through its supply chain, taking pricing actions where possible, and leveraging trade agreements such as USMCA.
RTX has already incurred approximately $125m in tariff costs through the first half of the year, with the remaining $375m expected in the second half. Of that, $275m is expected to impact Collins Aerospace, and $225m will affect Pratt & Whitney. CFO Neil Mitchill Jr. said roughly $60m and $40m in costs have already been recorded at Collins and Pratt, respectively, during Q2. The total cash impact is expected to reach $600m for the year.
Services are driving revenues and profits in difficult times, Part II
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By Karl Sinclair
May 22, 2025, © Leeham News: In our first look at OEMs in the aviation industry with a significant revenue stream derived from services, LNA analyzed airframe-makers.
Related Article
Now the focus shifts to engine and simulator manufacturers, and how after-market sales can pull a company through difficult times. It can even be the model, that a business follows.
RTX Q1 2025 Earnings: GTF Talk Takes A Back Seat To Tariffs
By Chris Sloan
First quarter 2025 Earnings Report.
April 22, 2025, © Leeham News: The chorus of tariff-dominated earnings season calls continued as RTX took its turns at bat.
President and Chief Executive Christopher Calio aligned with other CEOs to demonstrate that aerospace is in sync with the presidential administration in correcting the trade deficit.
“We really believe that the aerospace and defense industry is really well positioned to meet what the administration’s north star in trade objectives are and that this industry has just been a shining example of that.” Calio cited RTX as a net exporter of goods exceeding imports by $12bn, offering a host of stats to build his case to reduce aerospace-related tariffs. “Our industrial base is largely located in the U S, including about 70% of our employees. On the supply chain side, about 65% of our product spend is with U.S. suppliers. Over the last five years, we’ve invested nearly $10 billion to enhance our domestic manufacturing footprint, with planned capabilities of $2 billion additional planned in 2025.”
Bjorn’s Corner: Air Transport’s route to 2050. Part 10.
By Bjorn Fehrm
February 21, 2025, ©. Leeham News: We do a Corner series about the state of developments to replace or improve hydrocarbon propulsion concepts for Air Transport. We try to understand why the development has been slow.
Last week, we reviewed the present fallout of lower emission projects that have not reached their goals and where investors, therefore, have decided not to invest further.
There is a well-known project failing every month at the present pace. Some recent ones: Universal Hydrogen’s ATR conversions, Volocopter and Lilium’s bankruptcies, Airbus freezing the CityAirbus eVTOL (Figure 1) and pushing out the ZEROe hydrogen airliner, hibernation of the Alice battery aircraft, etc. There will probably be more in the coming months.
RTX 2024 Earnings: Pratt Progress on GTF AOG and MRO While Preparing to Seize the Advantage; Collins Battles BFE Supply-Chain
By Chris Sloan
January 28, 2025 © Leeham News: RTX chief executive Christoper T. Calio says the company’s number one priority is executing on its $218 bn backlog and meeting its commitment to customers – topped by the Geared Turbo Fan program. MRO and Original Equipment momentum has gathered pace in the last year since the powdered metal saga began two years ago.
“AOGs[Aircraft On Ground] have been stable. MRO output is the key enabler. PW1100 output was up 30% last year. So, very good, good progress in terms of material flow and in-shop performance,” he proclaimed. Pratt’s goal of 30% growth in 2025 will be governed by the supply chain – particularly powdered metal. The company didn’t disclose current AOG numbers – which have been up to 30% of the fleet, with protracted durations of up to a year commonplace.