RTX CORPORATION

Red flags

• Net accounts receivable rose 34% year over year to $14.7 billion from $11.0 billion; the allowance for expected credit losses also increased to $340 million from $289 million.
• Commercial aerospace financing commitments and other contractual commitments were approximately $13 billion at December 31, 2025, despite uncertainty over customer utilization and funding.
• U.S. government sales were $33.3 billion, or 38% of total net sales, exposing RTX to appropriations, termination-for-convenience, audit, and contract-definitization risks.
• The company disclosed substantial prior execution charges, including a $2.5 billion net reduction in 2023 cost of sales related to the Powder Metal Matter, a $0.5 billion 2024 charge from terminating a Raytheon fixed-price development contract, and $0.2 billion of Collins charges related to titanium sourcing.
• RTX had $3.4 billion of listed long-term debt maturities in 2026, including $2.5 billion of notes and a $0.9 billion term loan, although it also had no borrowings under its $5.0 billion revolving facility at year-end.