Episode Details

For its Q2 2026 quarter, RTX is buried under a record backlog but plans to drastically overhaul how the commercial aerospace industry makes money.

In ~10 minutes:

• Why the "give away the engine" business model is dying

• Shifting US defense manufacturing outward to NATO suppliers

• Sacrificing short-term cash flow to hoard critical inventory buffers

• Throttling new Pratt engine deliveries to fix grounded planes ✈️

RTX delivered strong organic growth and a free cash flow surge, sending the stock up over 7% on earnings day. But beneath the surface, factory capacity is buckling under a $289 billion backlog. Management is intentionally slowing new commercial deliveries and openly rejecting the front-loaded deficits of the traditional aerospace supply framework.

RTX Corporation (RTX) | Q2 FY2026

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