Common-Size Income Statement
Quarterly Data
RTX Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
Analysis of the common-size income statement reveals a general trajectory of expanding profitability and operational efficiency, despite a period of significant volatility in late 2023. The overall trend indicates a shift toward higher-margin operations and a reduction in the relative weight of operating expenses over the analyzed period.
- Revenue Composition
- The revenue mix remains predominantly driven by product sales, which typically range between 71% and 77% of net sales. However, there is a discernible long-term increase in the proportion of service sales, rising from approximately 23% in early 2021 to nearly 27% by 2025. A notable anomaly occurred in the quarter ending September 30, 2023, where service sales spiked to 36.01% and product sales dropped to 63.99%, suggesting a temporary shift in the revenue stream.
- Gross Margin and Cost of Sales
- Gross margins have generally stabilized between 18% and 21%, with a strengthening trend observed toward the end of the period, reaching 23.25% by September 30, 2026. The most significant deviation occurred in September 2023, where the gross margin collapsed to 5.30% due to a surge in the cost of sales to 94.70% of net sales. Following this event, costs of sales for both products and services showed a gradual decline, improving the overall margin profile.
- Operating Expense Trends
- Operating efficiency has improved through the systematic reduction of overhead as a percentage of net sales. Research and development expenses declined from a peak of 4.75% in late 2021 to 2.85% by September 2026. Similarly, selling, general, and administrative expenses, which fluctuated around 8% in the early periods, trended downward to approximately 6.7% to 7.7% in the latter half of the analyzed timeframe.
- Operating and Net Profitability
- Operating profit exhibits a strong upward trend, moving from a range of 6% to 8% in 2021 to a peak of 13.37% by September 30, 2026. This growth was interrupted by a sharp operating loss of 10.37% in September 2023. Net income attributable to common shareowners followed a similar recovery path, recovering from a low of 0.56% in June 2024 to reach 10.35% by the end of the period, reflecting enhanced bottom-line performance.
- Non-Operating Items and Tax Impact
- Interest expenses have remained relatively stable, generally fluctuating between 1.5% and 2.5% of net sales. Non-service pension income, which provided a consistent buffer in early periods at approximately 3%, saw a gradual decline to approximately 1.4% by 2026. Income tax expenses as a percentage of net sales have remained volatile but typically range between 1% and 2.4%.
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