RTX First-Quarter Sales Rise Despite GTF Engine Delivery Pressure

RTX

RTX first-quarter sales increased year on year despite lower commercial engine deliveries at Pratt & Whitney, showing the strength of aerospace aftermarket and defence demand. The US aerospace group reported sales of $22.1bn in January-March, up 9% from a year earlier.

RTX first-quarter sales were supported by stable commercial original equipment demand, strong aftermarket activity and higher defence demand. The company’s three major businesses — Collins Aerospace, Pratt & Whitney and Raytheon — all sit inside supply chains tied to aircraft production, engine maintenance and military systems.

RTX first-quarter sales also benefited from a record backlog of $271bn. This included $162bn in commercial contracts and $109bn in defence contracts, with Raytheon supported by higher bookings for Patriot guidance-enhanced missiles.

The result highlights a split inside the aerospace market. Aircraft and defence demand remain strong, but engine delivery constraints continue to slow the pace at which some commercial aircraft programmes can convert orderbooks into production.

Pratt & Whitney Engine Deliveries Remain a Key Airbus Constraint

Pratt & Whitney reported a 1% decline in commercial original equipment sales because of lower engine deliveries. The company produces the PW1100G geared turbofan engine for Airbus’ A320neo family, one of the world’s most important narrowbody aircraft programmes.

The shortfall matters because Airbus depends on engine supply to meet its build-rate targets. Pratt & Whitney has struggled to deliver enough engines, and Airbus has already had to adjust its production trajectory because of engine availability.

RTX said the challenge reflects the need to balance new aircraft demand with the health of the existing GTF fleet. The current engine variant has faced durability issues, creating pressure on both newbuild supply and aftermarket support.

The GTF fleet management plan remains central to Pratt & Whitney’s operating outlook. In 2023, RTX identified a rare condition in powder metal used to manufacture high-pressure turbine disks and high-pressure compressor disks. The issue requires accelerated inspections across the PW1100G-JM fleet.

This creates a complex supply-chain problem. Pratt & Whitney must supply engines for new aircraft while also managing inspections, repairs and parts availability for the installed fleet.

The result is an engine bottleneck that affects more than RTX. Airbus, airlines, leasing companies, MRO providers, forging suppliers, powder metal producers and high-temperature alloy producers all feel the impact.

Aftermarket Strength and MRO Investment Support Longer-Term Recovery

Aftermarket demand helped offset lower engine deliveries. RTX’s first-quarter performance shows that commercial aerospace earnings are increasingly supported by maintenance, repair and overhaul activity as global fleets remain active and engine shop visits rise.

Pratt & Whitney’s MRO output for the PW1100 increased by 23% from a year earlier. First-quarter shop visits were in line with the expected full-year run rate of about 800.

This aftermarket strength is strategically important. Engine problems can reduce new OE sales, but they also create higher demand for inspections, replacement parts, shop visits and repair capacity.

RTX is investing to expand that capacity. The company has made MRO investments in Singapore, plans to add a forging press at its Columbus, Georgia facility, and will install a new powder production tower at its HMI facility in New York.

These investments point directly to the materials side of aerospace. GTF recovery depends on reliable powder metallurgy, high-performance alloys, forged components, precision machining and certified repair capacity.

Defence demand adds another layer of support. Wars in the Middle East and Ukraine increased demand for defence systems, while Raytheon’s Patriot missile backlog strengthened RTX’s defence orderbook.

The industrial message is clear. RTX is benefiting from strong aerospace and defence markets, but the GTF engine issue shows that one material or component bottleneck can still constrain aircraft production.

The Metalnomist Commentary

RTX’s results show that aerospace demand remains strong, but production growth is still limited by engine and materials bottlenecks. Powder metallurgy, forging capacity and MRO infrastructure are now strategic parts of the aircraft supply chain, not just supporting processes.

RTX’s OE Deliveries Drop Amid Ongoing Aerospace Supply Chain Challenges

RTX

RTX, the US aerospace conglomerate, reported a decline in its third-quarter commercial original equipment (OE) deliveries through its subsidiaries Pratt & Whitney and Collins Aerospace, primarily due to ongoing supply chain disruptions faced by major aircraft manufacturers Airbus and Boeing. However, the company’s financial results were buoyed by strong demand from the aftermarket and military sectors.

Pratt & Whitney, a key subsidiary of RTX, delivered 252 large commercial engines in Q3 2024, a decrease from 261 engines during the same period last year but an increase from 236 engines in the previous quarter. Military engine deliveries, however, experienced a notable decline, dropping to 34 units compared to 55 in Q3 2023 and 37 in Q2 2024. In contrast, Pratt & Whitney Canada saw an increase in engine shipments, delivering 521 units, up from 500 a year earlier and 474 in the second quarter of 2024.

Financial Performance Strengthened by Aftermarket and Military Demand

Despite the dip in OE deliveries, Pratt & Whitney’s adjusted sales for July-September 2024 rose by 14%, reaching $7.2 billion, compared to $6.3 billion in Q3 2023. Commercial aftermarket sales rose by 13%, military sales increased by 20%, and commercial OE grew by 9%. These gains helped offset the prior-year $5.4 billion charge related to an engine withdrawal caused by the use of contaminated powdered metal.

RTX’s geared turbofan fleet management plan, including maintenance, repair, and overhaul (MRO) for PW1100G engines, has been performing well, with throughput rising by 10% from Q2 to Q3 2024, and 27% year-over-year. RTX President Christopher Calio highlighted the company's efforts to address the ongoing challenges of balancing the demand for spare parts and new engine production, particularly for Airbus as it ramps up its production.

Supply Chain and Production Adjustments

Collins Aerospace, another RTX subsidiary, reported $7 billion in sales, a modest increase from $6.6 billion in the prior year. This was largely driven by strong defense and commercial aftermarket demand. However, commercial OE volumes fell by 8% due to lower sales of narrowbody aircraft engines for Airbus A320 and Boeing 737.

RTX has continued to manage its supply chain issues by receiving material and building end products for high-volume programs to meet Boeing’s post-strike requirements. The company also made cost-curtailment adjustments on certain parts of its Boeing product portfolio in response to ongoing pressures.

Challenges with Widebody Aircraft

The company faced mixed performance on widebody aircraft sales. Collins Aerospace saw a 1% increase in sales, primarily driven by Boeing’s 787 program. However, sales related to Airbus A350 deliveries were lower, and the 787 program is not currently profitable for RTX on the OE front. These challenges were further exacerbated by the shift in heat exchanger supply from Russia to the US and UK, a move that has added complexities to the company’s cost structure.

Outlook

While RTX faces significant challenges in its OE delivery and supply chain management, the company's strong performance in the aftermarket, military sectors, and maintenance operations has helped mitigate some of these pressures. The outlook remains cautious, as the aerospace sector grapples with ongoing production issues, particularly with Airbus and Boeing.

RTX's Engine Deliveries Increase in 2024

Pratt & Whitney

RTX, through Pratt & Whitney, increased commercial aircraft engine deliveries in 2024. This growth was supported by a strong fourth-quarter performance.

Commercial Engine Deliveries Rise, Military Declines

RTX delivered 996 large commercial engines in 2024, a 14pc year-on-year increase. Q4 shipments rose 8pc sequentially to 276 units, the year's highest quarterly output. Conversely, military engine deliveries fell 13pc to 180 units. Pratt & Whitney Canada's engine deliveries increased slightly to 2,078 units. Q4 shipments were up 5.4pc to 587 engines.

Financial Growth and Future Outlook

Pratt & Whitney's Q4 revenue grew 18pc to $7.6bn. Commercial original equipment sales climbed 31pc, aftermarket rose 17pc, and military increased 8pc. RTX anticipates similar commercial engine delivery growth in 2025. The company will support aftermarket demand and meet Airbus ramp requirements. Geared turbofan engine throughput at MRO sites rose 30pc in 2024. RTX plans further throughput increases, contingent on supply chain improvements. RTX's 2024 profit rose 6pc to $7.7bn, with revenues up 17pc to $80.7bn. Q4 profit climbed 18pc to $2.1bn, and revenues rose 9pc to $21.6bn.

RTX to Pay $200 Million Penalty for Export Violations

RTX

Aerospace conglomerate RTX has agreed to pay $200 million to settle civil allegations from the US State Department over the illegal export of "defense articles" to banned countries, including China, Russia, and Iran. The settlement addresses 750 claims related to "historical jurisdiction and classification errors" within compliance programs from RTX’s acquired and merged entities.

RTX disclosed these compliance issues during the integration of Rockwell Collins and Raytheon Company into RTX, according to company executives in a July earnings call. Half of the penalty will be allocated to enhancing RTX’s compliance program, and an independent monitor will oversee the company’s operations for the duration of the three-year agreement.

This settlement is part of a broader legal strategy for RTX, which anticipates resolving three major legal issues with total payments exceeding $1 billion.

RTX engine deliveries surge on strong commercial and military demand

RTX engine

RTX engine deliveries climbed in the third quarter as global demand for civil and military powerplants strengthened. RTX engine deliveries of large commercial engines (LCEs) rose 17pc quarter on quarter and 5pc year on year. Meanwhile, military engine shipments jumped even faster, with an 85pc annual increase underscoring robust defence demand. Together, these trends allowed RTX to upgrade its 2025 revenue outlook despite lingering tariff headwinds.

RTX engine deliveries support upgraded revenue outlook

RTX engine deliveries are now central to the group’s higher full-year revenue guidance. The company expects 2025 adjusted revenue of $86.5bn-87bn, up from $83bn-84bn previously. As a result, strong LCE and military engine demand is offsetting external pressures such as tariffs and supply chain strains.

Tariff impacts have eased significantly after the US-UK trade deal and RTX’s efforts under the US-Mexico-Canada Agreement. Profit reductions tied to tariffs now total around $90mn, far below the $500mn hit initially modelled. Therefore, higher RTX engine deliveries are flowing more directly to the bottom line, supporting quarterly profit growth to $2.5bn.

Pratt & Whitney GTF Advantage underpins future growth

Pratt & Whitney’s GTF Advantage engine adds a forward growth pillar to RTX engine deliveries. The GTF Advantage recently secured European Union Aviation Safety Agency type certification, following earlier US approval. The engine is expected to enter service in 2026 as the production standard on Airbus A320neo aircraft.

Component upgrades, including redesigned high-pressure turbine airfoils, improve durability and extend time on wing. This enhances lifecycle economics for airlines, strengthening Pratt & Whitney’s position in the narrowbody engine duopoly with CFM’s Leap-1A. In addition, RTX’s $251bn backlog, spanning commercial and defence customers, provides long-dated visibility for future RTX engine deliveries.

However, RTX still flags supply chain vulnerabilities that could affect production cadence and delivery timing. Key aerospace sub-tier suppliers remain under pressure from labour, materials and logistics constraints. As a result, execution on ramp-up plans will depend on stabilising these bottlenecks, even as demand remains strong.

The Metalnomist Commentary

RTX engine deliveries illustrate how aero engine makers are benefiting from both airline recovery and renewed defence spending. The combination of rising shipment volumes, reduced tariff drag and the coming GTF Advantage deployment should support multi-year revenue growth. Yet persistent supply chain fragility means OEMs and metals suppliers alike must plan for intermittent disruptions even in a demand-rich environment.

Collins Aerospace Texas expansion secures $57mn investment and 570 jobs

Collins Aerospace

Collins Aerospace will expand manufacturing and R&D in Richardson, Texas. The Collins Aerospace Texas expansion totals $57mn. Texas awarded a $3.7mn Enterprise Fund grant. The Collins Aerospace Texas expansion will create 570 jobs.

Investment and incentives

Governor Greg Abbott announced the expansion and grant. The Collins Aerospace Texas expansion strengthens local advanced manufacturing capacity. RTX’s subsidiary will apply the funds to facilities, tooling, and hiring.

Industry impact and supply chain

Collins Aerospace manufactures systems for commercial aviation, defense, and space. Added capacity should support US aerospace supply chains. As a result, regional suppliers of alloys and electronics may see steadier demand.

The Metalnomist Commentary

State incentives remain decisive in high-tech site selection. Watch how talent pipelines and supplier onboarding pace the ramp. Material inputs, from aluminum alloys to precision components, will signal the project’s true cadence.

GTF Advantage Engine Certification signals new era for Pratt & Whitney

Pratt & Whitney

GTF Advantage engine certification in Europe marks a critical milestone for Pratt & Whitney and A320neo operators worldwide. The GTF Advantage engine certification from EASA, following earlier FAA approval, clears the way for entry into service from 2026. As a result, Pratt & Whitney strengthens its position in the narrow-body market against rival CFM’s Leap-1A engine.

Durability and efficiency at the heart of GTF Advantage engine certification

The upgraded design targets longer time on wing and lower lifecycle cost for airlines. Pratt & Whitney expects the GTF Advantage to double time on wing before major maintenance. As a result, operators gain fewer shop visits, lower unit costs and improved fleet availability. Meanwhile, the GTF Advantage engine certification reinforces confidence among lessors and financiers watching ongoing engine reliability debates.

Component enhancements focus on hotter sections where durability matters most. A redesigned airfoil in the high-pressure turbine helps reduce operating temperatures and manage thermal stress. Therefore, the engine can maintain performance over longer intervals with less degradation. Airlines flying dense A320neo schedules should benefit from higher dispatch reliability and more predictable MRO planning.

GTF Advantage engine certification reshapes narrow-body competition

The GTF Advantage will become Pratt & Whitney’s production standard for the Airbus A320neo family. This positions the engine as a direct, modernised challenger to CFM’s Leap-1A on the same platform. However, airlines will continue to weigh fuel burn, maintenance performance and OEM support before committing future fleet choices.

Narrow-body demand remains robust, with strong order backlogs and long delivery queues. As a result, even incremental gains from GTF Advantage engine certification can influence total cost of ownership over decades. For supply chains, higher time on wing may shift MRO demand timing, but it also locks in long-term parts and service revenue for RTX’s aftermarket network.

The Metalnomist Commentary

The GTF Advantage engine certification underscores how incremental turbine and materials engineering now drive competitive advantage in commercial aviation. If Pratt & Whitney delivers the promised durability in real-world service, the balance of power on the A320neo could tilt back toward the GTF. For metal and component suppliers, extended on-wing life will favour higher-value, longer-lasting alloys over pure volume growth.

RTX Engine Deliveries Rise as Airbus Ramp-Up Drives New-Build Focus

RTX

RTX engine deliveries are set to rise in 2026 as the company shifts more output toward new aircraft builds. RTX expects large commercial engine shipments to increase by a mid-to-high single-digit rate from 2025 levels. That follows deliveries of 1,055 large commercial engines last year. As a result, RTX engine deliveries are becoming a more direct measure of Airbus ramp-up progress.

This shift matters because Pratt & Whitney supports key Airbus programs. Its engines mainly serve the A320neo and A220 families. RTX said the split between new-build installs and aftermarket shipments will favor new aircraft in 2026. Therefore, RTX engine deliveries will increasingly track airframe production rather than spare engine demand.

The company is making this move while aftermarket demand remains strong. Airlines still fly older fleets longer because new aircraft deliveries remain delayed. However, RTX now wants more of its engine output directed toward Airbus assembly lines. Consequently, the market will watch whether RTX engine deliveries can support higher narrowbody build rates without weakening service support.

Pratt & Whitney Supply Chain Expansion Is Becoming the Key Enabler

Pratt & Whitney supply chain capacity is now central to this delivery plan. RTX said it is expanding forgings and castings capacity to ease production bottlenecks. Those investments are designed to support Airbus as it pushes toward much higher monthly output targets. As a result, internal supply chain execution is becoming as important as final engine assembly.

The company has already committed major capital to this effort. RTX announced a $206mn expansion in Columbus, Georgia, covering engine MRO, nickel and titanium forgings, and compressor blade production. It also announced a $285mn investment in Asheville, North Carolina, to expand turbine blade castings. Therefore, RTX is reinforcing the upstream parts base that supports future engine growth.

These additions will not deliver full benefits immediately. RTX said the Asheville casting project remains in the build-up phase. Management also highlighted work on yields to ensure efficient production when output rises further. Meanwhile, a new powder metal tower and forging press are expected within the next 24 months. That means the supply chain still has execution risk even as capacity grows.

Airbus Ramp-Up Will Test Engine Flow and Material Discipline

Airbus ramp-up will put real pressure on engine delivery discipline. The aircraft maker wants to raise A320neo production to 75 aircraft per month by 2027. It also wants to lift A220 production to 12 aircraft per month this year. Therefore, RTX engine deliveries must improve not only in volume, but also in timing and consistency.

That challenge is already visible in recent numbers. Fourth-quarter large commercial engine shipments rose 12pc year on year to 312 units. RTX benefited from Airbus’ year-end push to meet its revised outlook. However, the market still sees engine shortages as one of the main constraints on narrowbody production. Consequently, 2026 will be a test of whether RTX can move from recovery to reliable support.

RTX’s broader results show it has momentum. Defense engine deliveries rose strongly in 2025, while Pratt & Whitney Canada also posted modest growth. Profit and revenue both increased over the year. Even so, the most strategic question remains clear. Can RTX engine deliveries rise fast enough to support Airbus without creating new strain elsewhere in the system?

The Metalnomist Commentary

RTX is no longer just solving a delivery backlog. It is rebuilding the industrial base behind future engine flow. If forgings, castings, and yield improvements hold, RTX could become one of the key enablers of the next aerospace production upcycle.

RTX Faces Tariff Headwinds Despite Growth in Engine Deliveries

RTX

Commercial and military engine shipments rise, but RTX warns of $850mn tariff impact

RTX, the US aerospace conglomerate, expects up to $850 million in profit impact from tariffs in 2025, even as its commercial engine deliveries increased. In the first quarter, RTX — which includes Pratt & Whitney, Collins Aerospace, and Raytheon — saw strong demand for aircraft engines and aftermarket services.

Strong engine output and MRO demand offset by trade pressures

RTX reported a 7.8% increase in large commercial engine (LCE) shipments to 250 units in Q1, alongside a 35% surge in maintenance, repair, and overhaul (MRO) output. Meanwhile, military engine deliveries rose 19%, and aftermarket sales jumped 28%, driven by older fleets operating longer amid aircraft delivery delays.

However, the company warned that ongoing US-China tariff tensions may significantly pressure earnings. The projected $850mn hit assumes current tariffs remain and includes mitigations such as duty drawbacks, free trade zones, and temporary imports under bond. RTX said it may pass some costs to customers or shift production.

RTX maintains cautious optimism amid supply chain and cost challenges

Despite a 10% drop in quarterly profit to $1.5 billion, RTX remains cautiously optimistic due to sustained aircraft utilization and large backlogs from airframers. The company has addressed supply constraints, including heat exchanger production for Boeing’s 787 Dreamliner. CEO Christopher Calio emphasized flexibility, stating RTX will "execute on the playbook" if market conditions shift.

The Metalnomist Commentary

RTX’s growth in engine output and MRO services shows resilience, but looming trade tensions pose serious margin risks. Strategic flexibility in production and sourcing will be key as global aerospace players navigate the turbulent tariff landscape.

RTX Boosts Heat Exchanger Production for Boeing 787 Dreamliners

U.S. aerospace giant RTX is ramping up production of heat exchangers crucial for Boeing's 787 Dreamliner aircraft, which had faced production slowdowns due to a shortage of this key component. RTX CEO Chris Calio addressed investors, stating, "We're starting to ramp up there to the rates that we need to support what we think Boeing's demand is."

Heat exchangers were among the supply issues that Boeing cited in April as factors reducing the manufacturing rates of the twin-aisle aircraft, with production dipping below the five jets per month achieved at the end of 2023.

Collins Aerospace, a subsidiary of RTX, manufactures these heat exchangers, which can include metals like titanium. The unit struggled to meet Boeing's requirements after relocating its Russian operations due to the Russia-Ukraine conflict. "We had to set up another source here and set up a separate supply chain," Calio explained. "And that has taken some time."

Boeing expects to return to normal production rates by the end of the year, aiming to produce 10 787s per month by 2026.

RTX also acknowledged it is "not necessarily where we need to be" in terms of engine production rates for Airbus, which reduced its full-year delivery guidance in June due to supply chain challenges. The company, through its Pratt & Whitney unit, continues to manufacture jet engines.

The company is addressing issues related to its geared turbofan fleet management plan, identifying a "rare condition in powder metal" used in high-pressure turbine and compressor discs that could lead to operational failures in Pratt & Whitney's PW-1100G-JM fleet, which powers Airbus' narrow-body A320 family. RTX is producing spare engines with full-life powder metal parts after addressing these issues in first-run engines. Two new maintenance, repair, and overhaul facilities have been added to increase capacity.

Despite these challenges, demand for aerospace original equipment and aftermarket services remained strong, leading RTX to raise its full-year earnings guidance to $78.75bn-79.5bn from the previous forecast of $78bn-79bn. Pratt & Whitney's quarterly deliveries of large commercial engines rose by 24% to 236 units from the same period last year.

However, RTX's profit for the quarter fell sharply to $111 million from $1.3 billion in the prior-year period, largely due to over $1 billion in one-time charges related to outstanding legal issues. Revenue rose by 7.7% to $19.7 billion during the same period.

RTX Forging Press Investment Strengthens US Aerospace Engine Supply Chain

RTX

RTX forging press investment in Columbus, Georgia, will expand US capacity for critical nickel- and titanium-based rotating aircraft components. The $200mn Pratt & Whitney project adds a seventh isothermal forging press and targets a 30pc increase in compressor and turbine disk output.

The RTX forging press expansion comes at a strategically important moment for aerospace manufacturing. Commercial airframers continue to face engine shortages and parts constraints, while defense programs require reliable domestic capacity for high-performance components. Forged rotating parts sit at the center of that pressure because they must withstand extreme heat, stress, and fatigue.

The new press is expected to become operational in 2028. RTX did not disclose current production levels, but the planned 30pc output increase shows that Pratt & Whitney is investing directly in one of the most constrained areas of the aerospace value chain.

Isothermal Forging Capacity Targets Engine Bottlenecks

Isothermal forging is critical for producing high-performance nickel and titanium components used in jet engines. Compressor and turbine disks require precise microstructure control, strength, and thermal stability. These are not ordinary metal parts, and qualifying new capacity takes time.

The Columbus Forge facility already supports several major engine programs, including the PW1100G geared turbofan engine for Airbus’ A320neo family. It also supports the F135 engine used in Lockheed Martin’s F-35 Lightning II fighter jet. That makes the site important for both commercial aerospace and defense readiness.

The investment also responds to a wider industry problem. Airbus build rates have been affected by engine availability, while Pratt & Whitney has been managing a powdered metal issue that grounded hundreds of narrowbody aircraft for inspection and rework. More forging capacity will not solve every engine constraint, but it strengthens a key upstream production step.

Titanium and Nickel Supply Chains Gain Strategic Importance

Nickel- and titanium-based rotating components are among the most demanding products in the aerospace materials chain. They require qualified feedstock, controlled melting, advanced forging, heat treatment, machining, inspection, and strict traceability. Any weakness in one step can delay engine deliveries.

RTX’s investment therefore has implications beyond one facility. It signals that aerospace manufacturers are rebuilding capacity in deeper parts of the supply chain, not only final assembly and MRO. This matters because engine shortages often originate from specialized materials, forgings, castings, coatings, and certified component bottlenecks.

Pratt & Whitney also recently completed a separate $70mn expansion at the Columbus Engine Center. That project added 81,000ft² of MRO capacity and increased annual service capacity by more than 25pc. Together, the forging and MRO investments show a broader strategy: increase new-part output while improving support for engines already in service.

The Metalnomist Commentary

The RTX forging press investment shows that aerospace resilience depends on metallurgical capacity as much as final aircraft demand. Nickel and titanium forging assets are becoming strategic infrastructure for both commercial engine recovery and defense supply security.