TacticScaleWhat RTX Does & How It Makes Money (RTX)
Updated October 2026 · reflects RTX's latest reported financials
Aerospace and defense giant making jet engines, aircraft systems, and missile defense. RTX earns revenue by selling aircraft engines, avionics, cabin systems and defense equipment to aircraft makers, airlines and governments.
How RTX makes money
RTX earns revenue by selling aircraft engines, avionics, cabin systems and defense equipment to aircraft makers, airlines and governments. It also earns ongoing aftermarket revenue from spare parts, overhaul, repair and fleet management services.
What RTX does
RTX Corporation (formerly Raytheon Technologies, renamed in July 2023) is an aerospace and defense company headquartered in Arlington, Virginia, serving commercial, military and government customers worldwide. It runs three segments. Collins Aerospace supplies aircraft systems such as power, flight controls, sensors, engine controls and nacelles, plus cabin interiors and connected aviation services. Pratt & Whitney makes engines for commercial, military, business jet and general aviation aircraft, along with auxiliary power units. Raytheon provides threat detection, tracking and mitigation capabilities, along with sensors, satellite control products and software. Besides selling new equipment, RTX earns money from aftermarket work across its installed base: spare parts, overhaul and repair, engineering support, training and fleet management. This mix gives it exposure to both commercial air travel and government defense spending.
Products & services
- Pratt & Whitney aircraft engines
- Collins Aerospace avionics and aircraft systems
- Aircraft cabin interiors (seating, galleys, lavatories)
- Raytheon threat detection and missile defense systems
- Auxiliary power units
- Aftermarket maintenance, repair and overhaul (MRO)
What is RTX worth?
On an owner-earnings DCF, RTX's most-likely value is about $161 versus a recent price near $186 (13% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$74) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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