Credit Outlook Change: S&P Global Ratings revised RTX Corp.’s outlook from stable to positive on 29‑May‑2026, while affirming its BBB+ issuer credit rating and A‑2 short‑term rating.
Credit Metrics: The agency expects RTX’s leverage to stay below 2.5× and its funds‑from‑operations to debt ratio to exceed 30 % as robust defense and commercial aerospace demand underpins cash flow.
Commercial Aerospace Demand: Resilient air‑traffic volumes are driving higher demand for commercial aircraft and aftermarket parts. RTX’s Collins unit supplies electronics, components and interiors for wide‑body and narrow‑body airliners; Pratt & Whitney provides engines for roughly 40 % of new Airbus A320 family aircraft.
Defense Business: Military products represent about 50 % of RTX sales. The company secured Pentagon framework agreements to expand production capacity and accelerate delivery of munitions such as Tomahawk, AMRAAM, Standard Missile‑6 and Standard Missile‑3. Production is slated to increase two‑ to four‑fold over a period of up to seven years.
U.S. Defense Budget: The White House’s 2027 budget proposal requests nearly $1.5 trillion for defense, a 44 % rise over the 2026 budget, reinforcing the backdrop for RTX’s defense segment.
Pratt & Whitney Engine Repair Program: The subsidiary is more than halfway through remediation of the PW1100 geared‑turbofan defect disclosed in July 2023. Grounded aircraft have fallen 15 % since the end of 2026 as inspections and repairs progress. S&P estimates about $800 million in remaining compensation to airline customers.
Debt Repayment & Cash Flow: RTX is on track to retire the remaining $3.4 billion of debt incurred from accelerated share repurchases this year, using part of its forecasted >$8 billion free operating cash flow.
Dividends & Credit Measures: The agency projects dividends of approximately $3.7 billion in 2026 and anticipates improved credit ratios, with debt‑to‑EBITDA below 2.5× and free‑flow‑to‑debt in the mid‑30 % range.
