RTX Rides Aftermarket Boom, Lifts Outlook

RTX reported sales of $22.1 billion for the first quarter of 2026, a 9% increase that has prompted the corporation to revise its financial targets upward for the year-end. This performance is backed by a record backlog of $271 billion, driven by demand for defense systems and the commercial aftermarket.

Adjusted earnings per share (EPS) stood at $1.78, exceeding market expectations. Following these results, the firm adjusted its annual sales forecast to a range of $92.5 to $93.5 billion, while maintaining its free cash flow goal within a range of $8.25 to $8.75 billion.

The Pratt & Whitney engine division reported revenue of $8.173 billion, representing 11% growth. However, this financial progress carries an operational nuance: while the commercial aftermarket grew by 19% and the military sector by 7%, OE (Original Equipment) sales for commercial aircraft fell by 1%.

This decrease directly reflects a lower volume of new engine deliveries to assembly lines. Although official company documents made no explicit mention of the dispute with Airbus—which originated earlier this year over engine allocation priorities between new aircraft and airline spares—the data highlights supply chain strain. The European manufacturer has claimed damages for delays affecting the delivery schedule of the A320neo family.

Technical challenges and the powder metal issue

The corporation continues to manage the impact of the so-called “powder metal” issue (contamination in the metal powder of certain turbine components), which has necessitated accelerated inspections for hundreds of GTF (Geared Turbofan) engines. This factor, although listed as a routine risk in the quarterly report, continues to pressure the division’s operating costs, with general and administrative expenses increasing.

At a systems level, the technological focus remains on improving the durability of high-pressure turbine blades and certifying software updates to optimize fuel consumption. In the military segment, the F135 engine remains a revenue pillar, benefiting from a steady stream of orders for the global F-35 fleet’s sustainment.

RTX’s financial strength has a direct correlation to its Latin American production bases. In Mexico, Collins Aerospace facilities in Mexicali and Querétaro have increased production of aerostructures and control systems to meet rising demand for MRO (Maintenance, Repair, and Overhaul) services.

In Brazil, the relationship with local manufacturers and the support infrastructure for avionics systems is becoming critical as regional airlines struggle to keep their fleets operational amid component shortages. RTX’s ability to channel spare parts into the secondary market is allowing regional operators to mitigate delays in receiving new aircraft.

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Pablo Diaz

Pablo Diaz is an award-winning journalist based in Buenos Aires, Argentina. He is also Editor In Chief of Aviacionline.com. Law, Engineering, and a pinch of science. When in doubt, trust evidence.

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