New York, Jan 29, 2026, 14:58 EST — Regular session
- RTX shares ticked up despite the broader U.S. market sliding.
- The head of Pratt & Whitney’s commercial engines division said the jet-engine supply shortage is expected to ease by the end of the decade.
- Investors are sizing up engine repair updates, tariff impacts, and mounting pressure from Washington on defense contractors’ payouts.
Shares of RTX Corp edged up roughly 0.3% to $199.98 in afternoon trading, staying just shy of the session’s peak. The rise followed comments from a senior Pratt & Whitney official who said the current jet-engine demand, which is exceeding supply, is expected to slow down toward the end of the decade. (Reuters)
The engine backlog—and how fast repairs move—has long been one of the clearest signals for RTX’s cash flow. With airlines facing plane shortages, they’re extending the life of older jets, which means more parts and steady shop work.
The announcement comes amid increasing pressure on defense contractors to accelerate weapons deliveries and clarify their priorities: dividends, buybacks, or expanding capacity.
U.S. stocks slipped Thursday, dragged down by a tech selloff fueled by earnings results and concerns over heavy artificial-intelligence investments. Investors shifted attention to market segments showing more consistent demand. (Reuters)
RTX reported fourth-quarter revenue of $24.24 billion on Tuesday, marking a roughly 12% increase. Adjusted earnings came in at $1.55 per share, buoyed by strong engine sales and commercial maintenance demand, which helped offset weakness in other areas. The company projects adjusted sales between $92 billion and $93 billion for 2026. Pratt & Whitney’s adjusted sales jumped 25% in the quarter, while Collins Aerospace and Raytheon saw 3% and 7% gains, respectively. CFO Neil Mitchell estimated tariff impacts for 2025 at around $600 million. Management reiterated their commitment to dividends and revealed plans to invest an additional $500 million in munitions facilities next year, following Trump-linked moves that tied payouts and pay to delivery schedules, raising questions about capital returns. (Reuters)
RTX forecast adjusted earnings per share between $6.60 and $6.80 for 2026, with free cash flow expected to hit $8.25 billion to $8.75 billion. CEO Chris Calio pointed to improved operational discipline in 2025 results amid a rising backlog. (RTX)
Pratt & Whitney shipped 1,055 large turbofan engines in 2025, marking a 6% increase, Calio reported. He noted the number of aircraft grounded by the geared-turbofan recall has dropped roughly 20% from its peak in 2025. “We expect this trend to continue,” he said. Maintenance, repair, and overhaul (MRO) output “remains the key enabler.” (Flight Global)
Defense stocks moved on Thursday following Lockheed Martin’s announcement of a profit-sharing missile deal with the Pentagon. The company also released upbeat 2026 forecasts, reassuring investors and underscoring how Washington’s drive to boost munitions production continues to influence the sector. (Reuters)
Traders eye RTX closely to see if repair throughput continues climbing, if engine supply-chain bottlenecks ease, and how fast new capacity investments translate into deliveries and margins.
The downside scenario looks tricky: repair delays drag on, keeping planes parked longer than hoped, tariffs or material prices hit harder, and tougher restrictions on buybacks and dividends push management into difficult choices.
Investors are now eyeing potential triggers to shift rate expectations and risk appetite. The U.S. January employment report, set for Feb. 6, will be key. At the same time, they’ll watch closely for new insights on engine shop capacity and defense delivery timelines. (Bls)
