Common-Size Income Statement
Quarterly Data
RTX Corp., common-size consolidated income statement (quarterly data)
Based on: 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).
Financial performance exhibits a general trajectory of expanding profitability and improved operational efficiency, despite a significant volatility event in the third quarter of 2023. While revenue composition remains relatively stable, there is a visible long-term trend of reducing operating expenses as a percentage of net sales, which has contributed to a steady increase in the net income attributable to common shareowners over the analyzed period.
- Revenue Composition and Mix
- The revenue stream is primarily driven by product sales, which typically fluctuate between 71% and 77% of net sales. Service sales generally account for 23% to 28% of the total. A notable anomaly occurred on September 30, 2023, where service sales spiked to 36.01% while product sales dropped to 63.99%. Outside of this specific instance, the revenue mix has remained consistent, with a slight long-term shift toward a higher proportion of services beginning in 2024.
- Gross Margin and Cost Analysis
- Gross margins are largely stable, typically oscillating between 18% and 21%. However, a severe contraction occurred on September 30, 2023, with the margin falling to 5.30%, driven by a sharp increase in total cost of sales to 94.70% of net sales. Recovery was immediate in the following quarter, with margins returning to 20.12%. In the later periods of 2025 and 2026, there is a gradual improvement in the cost of sales for products, which declined from approximately 65% in early 2021 to below 60% by early 2026.
- Operating Efficiency and Expense Trends
- Operating profit shows a clear upward trend, rising from 6.64% in March 2021 to a peak of 11.57% by March 2026, excluding the outlier in September 2023. This improvement is supported by a disciplined reduction in operating expenses. Research and development costs decreased from a range of 3.8% to 4.7% in 2021 to approximately 2.8% to 2.9% by mid-2026. Similarly, selling, general, and administrative expenses declined from an average of 8% in 2021 to approximately 6.7% in 2026.
- Net Profitability and Non-Operating Factors
- Net income attributable to common shareowners demonstrates a general increase, moving from 4.94% in March 2021 to 8.66% by June 2026. This growth is tempered by a steady decline in non-service pension income, which dropped from over 3% in 2021 to approximately 1.4% by 2026. A significant one-time impact is noted in December 2021 due to debt extinguishment costs amounting to 3.81% of net sales. Another sharp decline in net income is observed in June 2024 (0.56%), which appears disconnected from the operating profit of 2.68% for that period, suggesting the impact of non-operating expenses or tax adjustments.
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