Analysis of Reportable Segments
RTX Corp. operates in 3 segments: Collins Aerospace; Pratt & Whitney; and Raytheon.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Current Ratio since 2005
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Segment Profit Margin
RTX Corp., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins exhibited varied performance across the reporting periods. Collins Aerospace demonstrated consistent improvement, while Pratt & Whitney experienced significant volatility. Raytheon’s margins showed a more moderate fluctuation.
- Collins Aerospace
- Collins Aerospace experienced a steady increase in profit margin from 9.53% in 2021 to 16.30% in 2025. The growth was particularly strong between 2021 and 2023, increasing from 9.53% to 14.57%. Subsequent increases were more incremental, reaching 16.30% in the latest reporting period. This indicates improving operational efficiency or favorable pricing dynamics within this segment.
- Pratt & Whitney
- Pratt & Whitney’s profit margin displayed substantial fluctuation. Beginning at 2.50% in 2021, it rose to 5.24% in 2022, but then experienced a significant decline to -7.95% in 2023. A recovery was observed in 2024, with the margin reaching 7.18%, and continued to 7.89% in 2025. The negative margin in 2023 warrants further investigation to determine the underlying causes, potentially related to increased costs, project write-downs, or unfavorable contract terms. The recent recovery suggests corrective actions may be taking effect.
- Raytheon
- Raytheon’s segment profit margin showed a moderate decline from 12.49% in 2021 to 9.81% in 2022. It continued to decrease to 9.03% in 2023, before recovering to 9.71% in 2024 and further increasing to 11.51% in 2025. While not as dramatic as the changes seen in Pratt & Whitney, the trend suggests potential pressures on profitability followed by a recent positive shift. The return to a margin approaching the 2021 level is a positive indicator.
Overall, the segment performance varied considerably. Collins Aerospace consistently improved, Raytheon demonstrated moderate fluctuation with a recent positive trend, and Pratt & Whitney experienced significant volatility, including a period of negative profitability. Further analysis is recommended to understand the drivers behind these differing trends and their implications for the overall company performance.
Segment Profit Margin: Collins Aerospace
RTX Corp.; Collins Aerospace; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit (loss) ÷ Net sales
= 100 × ÷ =
Collins Aerospace demonstrated a consistent pattern of growth in both operating profit and net sales between 2021 and 2025. This growth is accompanied by a notable and positive trend in segment profit margin.
- Operating Profit
- Operating profit increased from US$1,759 million in 2021 to US$4,923 million in 2025. The growth was not linear, with a more substantial increase occurring between 2022 and 2023 (US$1,482 million) than between 2024 and 2025 (US$788 million). However, each year exhibited an absolute increase in operating profit.
- Net Sales
- Net sales followed a similar upward trajectory, rising from US$18,449 million in 2021 to US$30,196 million in 2025. The rate of increase in net sales also showed some variation, with the largest year-over-year gain observed between 2022 and 2023 (US$5,656 million). Like operating profit, net sales increased in absolute terms each year.
- Segment Profit Margin
- The segment profit margin experienced a steady improvement over the five-year period. Starting at 9.53% in 2021, it rose to 16.30% in 2025. The increase between 2021 and 2023 was particularly significant, moving from 9.53% to 14.57%. The growth rate slowed slightly between 2023 and 2024 (0.05 percentage points) but resumed a more substantial increase between 2024 and 2025 (1.68 percentage points). This indicates increasing efficiency in converting sales into profit.
The consistent growth in operating profit, net sales, and segment profit margin suggests a strengthening financial performance for Collins Aerospace during the analyzed period. The increasing profit margin is a particularly positive indicator, demonstrating improved profitability alongside revenue growth.
Segment Profit Margin: Pratt & Whitney
RTX Corp.; Pratt & Whitney; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit (loss) ÷ Net sales
= 100 × ÷ =
The segment experienced significant fluctuations in financial performance between 2021 and 2025. Operating profit demonstrated a volatile pattern, initially increasing substantially before experiencing a considerable decline and subsequent recovery. Net sales exhibited an overall upward trend, though not consistently year-over-year. Consequently, the segment profit margin mirrored this volatility, displaying both substantial gains and losses over the period.
- Operating Profit
- Operating profit increased from US$454 million in 2021 to US$1,075 million in 2022, representing a growth of 136.8%. However, 2023 saw a dramatic reversal, with an operating loss of US$1,455 million. This loss was followed by a strong recovery in 2024, with operating profit reaching US$2,015 million, and further growth in 2025 to US$2,596 million. The magnitude of the loss in 2023 is particularly noteworthy.
- Net Sales
- Net sales increased from US$18,150 million in 2021 to US$20,530 million in 2022, a rise of 13.1%. A slight decrease was observed in 2023, with net sales falling to US$18,296 million. Subsequently, net sales experienced substantial growth in both 2024 and 2025, reaching US$28,066 million and US$32,916 million respectively. This indicates accelerating revenue generation in the latter part of the analyzed period.
- Segment Profit Margin
- The segment profit margin began at 2.50% in 2021, increasing to 5.24% in 2022, reflecting improved profitability alongside sales growth. The margin then plummeted to -7.95% in 2023, coinciding with the operating loss. A significant recovery occurred in 2024, with the margin reaching 7.18%, and continued to improve in 2025, reaching 7.89%. The 2023 margin demonstrates a substantial erosion of profitability, while the 2024 and 2025 margins suggest a return to a more sustainable level.
The correlation between operating profit and segment profit margin is strong, indicating that changes in profitability directly impact the segment’s overall margin performance. The substantial growth in net sales in 2024 and 2025 appears to have driven the recovery in operating profit and profit margin following the challenging year of 2023.
Segment Profit Margin: Raytheon
RTX Corp.; Raytheon; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit (loss) ÷ Net sales
= 100 × ÷ =
The segment performance of Raytheon demonstrates a fluctuating profit margin over the five-year period. While net sales experienced an overall increase, operating profit exhibited more volatility, impacting the segment profit margin.
- Operating Profit
- Operating profit decreased from US$3,837 million in 2021 to US$2,379 million in 2023, representing a substantial decline. A modest recovery was observed in 2024, with operating profit reaching US$2,594 million, followed by further growth to US$3,227 million in 2025. Despite the recovery, the 2025 level remains below the 2021 peak.
- Net Sales
- Net sales decreased from US$30,719 million in 2021 to US$26,350 million in 2023. Sales showed a slight increase in 2024 to US$26,713 million and continued to rise in 2025, reaching US$28,043 million. The 2025 sales figure is still below the 2021 level, but represents a positive trend.
- Segment Profit Margin
- The segment profit margin followed a corresponding pattern to operating profit. It decreased from 12.49% in 2021 to 9.03% in 2023. A slight improvement was seen in 2024, with the margin increasing to 9.71%. The most significant increase occurred in 2025, with the segment profit margin rising to 11.51%, though it did not fully recover to the 2021 level. The margin’s improvement in 2025 suggests a potential stabilization of profitability despite the sales remaining below 2021 levels.
The period between 2021 and 2023 indicates a period of declining profitability for the segment, potentially due to increased costs or pricing pressures. The subsequent years show signs of recovery, driven by both increased sales and improved operating efficiency, as evidenced by the rising profit margin. Further investigation into the factors influencing operating profit and net sales would be beneficial to understand the underlying drivers of these trends.
Segment Return on Assets (Segment ROA)
RTX Corp., ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment return on assets exhibited varied performance across the reporting periods. Overall, an increasing trend in segment ROA is observable for two of the three segments, while the third experienced significant volatility.
- Collins Aerospace
- Collins Aerospace demonstrated a consistent upward trend in segment ROA from 2.60% in 2021 to 6.87% in 2025. This represents a substantial improvement over the five-year period, indicating increasing efficiency in asset utilization and profitability within this segment. The growth appears to have accelerated in the later years, with increases of 1.16% and 1.16% between 2023 and 2024, and 2024 and 2025 respectively.
- Pratt & Whitney
- Pratt & Whitney experienced the most significant fluctuations in segment ROA. The segment moved from 1.36% in 2021 to 2.97% in 2022, indicating positive momentum. However, this was followed by a substantial decline to -3.57% in 2023, suggesting a period of underperformance or asset impairment. A recovery was then observed in 2024 and 2025, with ROA reaching 4.55% and 4.95% respectively, though it did not return to the levels seen in 2022. The negative ROA in 2023 warrants further investigation.
- Raytheon
- Raytheon’s segment ROA began at 7.63% in 2021, followed by a decrease to 5.84% in 2022. The segment then stabilized, with ROA at 5.30% in 2023 and 5.77% in 2024. A further increase to 7.20% was observed in 2025, returning the segment to levels comparable to those seen in 2021. While not consistently increasing, Raytheon demonstrated resilience and a strong finish to the period.
- Overall Observations
- The differing trends suggest varying operational and market conditions impacting each segment. While Collins Aerospace and Raytheon show positive or stabilizing performance, Pratt & Whitney’s volatility highlights potential challenges requiring attention. The increasing ROA for Collins Aerospace and Raytheon suggests effective asset management and profitability improvements, while the fluctuations in Pratt & Whitney’s ROA may indicate sensitivity to external factors or internal operational issues.
Segment ROA: Collins Aerospace
RTX Corp.; Collins Aerospace; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit (loss) | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating profit (loss) ÷ Total assets
= 100 × ÷ =
Collins Aerospace demonstrates a consistent improvement in financial performance as measured by Return on Assets (ROA) over the five-year period. This positive trend is supported by increasing operating profit and relatively stable total assets.
- Operating Profit
- Operating profit exhibits a clear upward trajectory, increasing from US$1,759 million in 2021 to US$4,923 million in 2025. The growth is not linear, with a more substantial increase between 2022 and 2023 (US$1,482 million) than between 2024 and 2025 (US$788 million). This suggests potentially accelerating profitability followed by a moderation in the rate of growth.
- Total Assets
- Total assets remain relatively consistent throughout the period, fluctuating between US$67,030 million and US$72,372 million. A slight increase is observed from 2021 to 2023, followed by a minor decrease in 2025. The stability in asset levels indicates that the improvements in profitability are not primarily driven by significant asset expansion, but rather by more efficient asset utilization or increased operational efficiency.
- Segment ROA
- Segment ROA shows a consistent and significant increase, rising from 2.60% in 2021 to 6.87% in 2025. This indicates a strengthening ability to generate profit from its asset base. The rate of increase in ROA mirrors the pattern observed in operating profit, with a larger jump between 2022 and 2023 (from 3.50% to 5.31%) and a smaller increase between 2024 and 2025 (from 5.71% to 6.87%). This suggests a strong correlation between operating profit and ROA, and that improvements in asset utilization are contributing to the overall positive trend.
In summary, Collins Aerospace’s financial performance, as indicated by its segment ROA, has improved substantially over the analyzed period. This improvement is driven primarily by growth in operating profit, while asset levels have remained relatively stable. The observed patterns suggest a strengthening operational efficiency and a growing ability to generate returns from its existing asset base.
Segment ROA: Pratt & Whitney
RTX Corp.; Pratt & Whitney; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit (loss) | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating profit (loss) ÷ Total assets
= 100 × ÷ =
The segment performance of Pratt & Whitney demonstrates significant fluctuations in profitability and asset utilization over the five-year period. Operating profit experienced considerable volatility, transitioning from positive figures to a substantial loss before recovering and ultimately achieving growth. This profit trend is reflected in the corresponding changes in Segment Return on Assets (ROA).
- Operating Profit
- Operating profit increased substantially from US$454 million in 2021 to US$1,075 million in 2022, indicating improved operational efficiency or increased demand. However, 2023 witnessed a significant downturn, resulting in an operating loss of US$1,455 million. A strong recovery followed in 2024, with operating profit reaching US$2,015 million, and continued growth into 2025, reaching US$2,596 million. This suggests potential turnaround strategies or favorable market conditions impacting the segment’s performance in later years.
- Total Assets
- Total assets exhibited a consistent upward trend throughout the period, increasing from US$33,414 million in 2021 to US$52,482 million in 2025. This growth in asset base may be attributed to investments in new projects, acquisitions, or organic expansion. The consistent increase suggests a long-term strategy of asset accumulation within the segment.
- Segment ROA
- Segment ROA mirrored the volatility in operating profit. It rose from 1.36% in 2021 to 2.97% in 2022, reflecting improved profitability relative to the asset base. The substantial operating loss in 2023 resulted in a negative ROA of -3.57%. A significant rebound occurred in 2024, with ROA reaching 4.55%, and further improvement was observed in 2025, reaching 4.95%. The increasing ROA in the final two years indicates improved efficiency in generating profit from the growing asset base.
The correlation between operating profit and Segment ROA is strong, demonstrating that the segment’s ability to generate returns is directly tied to its profitability. The substantial asset growth, coupled with the recovery in ROA, suggests that investments are beginning to yield positive returns, although the initial period of loss in 2023 represents a notable challenge.
Segment ROA: Raytheon
RTX Corp.; Raytheon; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit (loss) | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating profit (loss) ÷ Total assets
= 100 × ÷ =
The Raytheon segment demonstrated fluctuating performance in profitability and asset utilization between 2021 and 2025. Operating profit experienced an initial decline followed by a recovery, while total assets exhibited a decreasing trend over the five-year period. Consequently, Segment Return on Assets (ROA) mirrored these movements, showing initial weakness before strengthening in the later years.
- Operating Profit
- Operating profit decreased from US$3,837 million in 2021 to US$2,861 million in 2022, representing a decline of approximately 25.3%. A further reduction occurred in 2023, reaching US$2,379 million. However, a recovery began in 2024 with profit increasing to US$2,594 million, and continued into 2025, reaching US$3,227 million. This indicates a stabilization and subsequent improvement in the segment’s core earnings.
- Total Assets
- Total assets decreased consistently from US$50,311 million in 2021 to US$44,795 million in 2025. The largest decrease occurred between 2021 and 2023, falling by approximately 10.8%. The rate of decline slowed between 2023 and 2025, suggesting a potential stabilization of the asset base. This reduction in asset levels could be due to asset sales, depreciation, or improved asset management.
- Segment ROA
- Segment ROA followed a similar pattern to operating profit. It decreased from 7.63% in 2021 to 5.84% in 2022, and further to 5.30% in 2023. A modest increase was observed in 2024, with ROA reaching 5.77%. The most significant improvement occurred in 2025, with ROA rising to 7.20%. This suggests that the segment’s ability to generate profit from its assets improved, particularly in the final year of the observed period. The increase in ROA in 2025, despite continued asset reduction, indicates improved operational efficiency or a more favorable product mix.
The interplay between declining assets and fluctuating operating profit resulted in a volatile ROA. The recovery in both operating profit and ROA in 2024 and 2025 suggests positive momentum for the Raytheon segment, although continued monitoring is warranted to assess the sustainability of this trend.
Segment Asset Turnover
RTX Corp., asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment asset turnover ratios demonstrate varying performance across the reporting periods and between segments. Generally, the ratios indicate the efficiency with which each segment utilizes its assets to generate revenue. Observed trends suggest differing operational dynamics within each segment.
- Collins Aerospace
- Collins Aerospace exhibits a consistent upward trend in asset turnover. The ratio increased from 0.27 in 2021 to 0.42 in 2025. This suggests improving efficiency in asset utilization over the five-year period, potentially due to increased sales volume relative to asset base or improved asset management practices.
- Pratt & Whitney
- Pratt & Whitney’s asset turnover ratio shows more fluctuation. It began at 0.54 in 2021, rose to 0.57 in 2022, then decreased to 0.45 in 2023 before recovering to 0.63 in both 2024 and 2025. The dip in 2023 warrants further investigation, potentially linked to increased investment in assets without a corresponding immediate increase in revenue, or a temporary decline in sales. The subsequent recovery indicates a return to more efficient asset utilization.
- Raytheon
- Raytheon demonstrates relative stability in its asset turnover ratio. The ratio remained consistently around 0.60 from 2021 to 2023, with a slight increase to 0.63 in 2025. This indicates a steady and consistent level of asset utilization throughout the period, with a minor improvement in the most recent year. The consistency suggests predictable operational performance.
Comparing the segments, Raytheon and Pratt & Whitney generally exhibit higher asset turnover ratios than Collins Aerospace throughout the observed period, suggesting greater efficiency in asset utilization. However, Collins Aerospace demonstrates the most significant improvement in this metric. The fluctuations observed in Pratt & Whitney’s ratio suggest a sensitivity to specific operational or market conditions.
Segment Asset Turnover: Collins Aerospace
RTX Corp.; Collins Aerospace; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
Collins Aerospace demonstrates a consistent upward trend in segment asset turnover from 2021 to 2025. This indicates increasing efficiency in utilizing assets to generate sales revenue. Simultaneously, net sales have increased over the same period, while total assets have remained relatively stable, contributing to the improved turnover ratio.
- Net Sales
- Net sales experienced growth annually, increasing from US$18,449 million in 2021 to US$30,196 million in 2025. This represents a substantial overall increase, suggesting strong revenue generation capabilities.
- Total Assets
- Total assets exhibited relative stability between 2021 and 2025, fluctuating between US$67,030 million and US$72,372 million. The modest changes in asset base, coupled with increasing sales, are a key driver of the observed turnover improvement.
- Segment Asset Turnover
- The segment asset turnover ratio increased steadily from 0.27 in 2021 to 0.42 in 2025. This progression signifies that Collins Aerospace is becoming more effective at converting its investments in assets into revenue. The increase suggests improved operational efficiency, potentially through better inventory management, faster collection of receivables, or optimized asset utilization.
The consistent improvement in segment asset turnover, alongside growing net sales and stable total assets, suggests positive performance and efficient asset management within Collins Aerospace. Continued monitoring of these trends will be important to assess the sustainability of this performance.
Segment Asset Turnover: Pratt & Whitney
RTX Corp.; Pratt & Whitney; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
The segment performance of Pratt & Whitney demonstrates fluctuating revenue and asset levels over the five-year period. Analysis of the segment asset turnover reveals a dynamic relationship between sales and asset utilization.
- Net Sales
- Net sales exhibited an initial increase from US$18,150 million in 2021 to US$20,530 million in 2022. A subsequent decrease to US$18,296 million occurred in 2023, followed by substantial growth to US$28,066 million in 2024 and further expansion to US$32,916 million in 2025. This indicates a period of recovery and accelerated growth in recent years.
- Total Assets
- Total assets consistently increased throughout the period, rising from US$33,414 million in 2021 to US$52,482 million in 2025. The rate of asset growth accelerated in the later years, mirroring the increase in net sales. This suggests investment in resources to support expanding operations.
- Segment Asset Turnover
- The segment asset turnover ratio initially increased from 0.54 in 2021 to 0.57 in 2022, indicating improved efficiency in asset utilization. A decline to 0.45 in 2023 suggests a decrease in sales relative to assets. However, the ratio rebounded strongly to 0.63 in both 2024 and 2025, demonstrating a significant improvement in generating sales from its asset base. The stabilization at 0.63 in the final two years implies a consistent level of asset utilization efficiency following the period of recovery and growth.
Overall, the segment experienced a period of sales volatility followed by robust growth, accompanied by a corresponding increase in asset investment. The asset turnover ratio reflects these trends, showing initial improvement, a temporary decline, and a subsequent strong recovery, ultimately reaching a consistent level in the most recent years.
Segment Asset Turnover: Raytheon
RTX Corp.; Raytheon; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
The segment asset turnover for Raytheon demonstrates a relatively stable, albeit slightly declining, trend over the observed period. Net sales experienced a decrease from 2021 to 2023, followed by modest increases in 2024 and 2025, while total assets consistently decreased from 2021 to 2025. These movements are reflected in the asset turnover ratio.
- Segment Asset Turnover Trend
- The segment asset turnover ratio decreased from 0.61 in 2021 to 0.59 in both 2022 and 2023. This indicates a slightly diminishing efficiency in generating sales from the asset base during those years. A stabilization is then observed in 2024, with the ratio remaining at 0.59. Finally, a slight improvement is noted in 2025, with the ratio increasing to 0.63.
- Relationship to Net Sales
- The initial decline in the asset turnover ratio correlates with the decrease in net sales from US$30,719 million in 2021 to US$26,350 million in 2023. The subsequent increase in net sales in 2024 and 2025 appears to contribute to the ratio’s stabilization and eventual slight increase in 2025.
- Relationship to Total Assets
- Total assets decreased consistently from US$50,311 million in 2021 to US$44,795 million in 2025. This decrease in the asset base, while occurring alongside fluctuating sales, likely mitigated further declines in the asset turnover ratio. The reduction in assets may reflect strategic divestitures, asset depreciation, or other capital management activities.
Overall, the Raytheon segment maintained a relatively consistent ability to generate sales per dollar of assets, despite a decreasing asset base and fluctuating sales figures. The slight increase in asset turnover in 2025 suggests a potential improvement in asset utilization efficiency.
Segment Capital Expenditures to Depreciation
RTX Corp., capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of segment capital expenditures relative to depreciation reveals differing investment patterns across the three reported segments. Overall, the ratios suggest varying levels of investment in maintaining and expanding productive capacity.
- Collins Aerospace
- The ratio for Collins Aerospace demonstrates relative stability over the five-year period. It begins at 0.91 in 2021, decreases slightly to 0.87 in 2023, and then increases to 0.93 in 2024 before settling back to 0.91 in 2025. This pattern suggests capital expenditures have generally tracked depreciation, with minor fluctuations. The ratio consistently being below 1.0 indicates that, on average, capital expenditures have been slightly less than the annual depreciation expense.
- Pratt & Whitney
- Pratt & Whitney exhibits a clear upward trend from 2021 to 2023, increasing from 1.09 to 1.39. This indicates a growing investment in capital assets relative to depreciation during this period. A slight decrease is observed in 2024, with the ratio falling to 1.23, followed by a modest increase to 1.26 in 2025. The consistently above 1.0 ratio suggests that capital expenditures have exceeded depreciation expense, implying expansion or modernization efforts.
- Raytheon
- Raytheon’s ratio fluctuates more noticeably than the other two segments. Starting at 1.14 in 2021, it declines to 1.07 in 2022 before rising to 1.17 in 2023. A significant increase is then observed in 2024, reaching 1.48, which is the highest ratio among all segments and years. The ratio then decreases to 1.19 in 2025. This pattern suggests periods of increased investment followed by stabilization, with the 2024 peak potentially indicating a substantial capital project or acquisition. The ratio consistently being above 1.0 indicates that, on average, capital expenditures have been greater than the annual depreciation expense.
In summary, while Collins Aerospace maintains a relatively consistent investment level, both Pratt & Whitney and Raytheon demonstrate periods of increased capital expenditure relative to depreciation. Raytheon’s ratio shows the most volatility, potentially reflecting project-specific investments. These differences in capital expenditure patterns may reflect varying strategic priorities and growth opportunities within each segment.
Segment Capital Expenditures to Depreciation: Collins Aerospace
RTX Corp.; Collins Aerospace; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation & amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation & amortization
= ÷ =
The segment capital expenditures to depreciation ratio for Collins Aerospace demonstrates relative stability over the five-year period, with minor fluctuations. Capital expenditures experienced a slight decrease from 2021 to 2023, followed by increases in both 2024 and 2025. Depreciation and amortization consistently increased throughout the period. Despite these movements in the underlying values, the ratio remained within a narrow range.
- Capital Expenditures
- Capital expenditures decreased from US$665 million in 2021 to US$628 million in 2023, representing a cumulative decline of approximately 5.8%. Expenditures then increased to US$786 million in 2024 and further to US$793 million in 2025, indicating a renewed investment phase. The 2025 level is approximately 20.4% higher than the 2023 level.
- Depreciation & Amortization
- Depreciation and amortization exhibited a consistent upward trend, increasing from US$728 million in 2021 to US$873 million in 2025. This represents a cumulative increase of approximately 19.8%. The increases were relatively consistent year-over-year, suggesting a steady realization of value from prior investments.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio began at 0.91 in 2021, decreased slightly to 0.87 in 2023, and then increased to 0.93 in 2024 before settling at 0.91 in 2025. This indicates that, while capital expenditures and depreciation both changed over time, the relationship between the two remained relatively consistent. The ratio suggests that, for each dollar of depreciation, approximately 90 to 93 cents were invested in capital expenditures during the analyzed period.
The observed pattern suggests a balanced approach to maintaining and expanding assets within the segment. The recent increase in capital expenditures, coupled with continued increases in depreciation, may indicate preparation for future growth or modernization of existing infrastructure.
Segment Capital Expenditures to Depreciation: Pratt & Whitney
RTX Corp.; Pratt & Whitney; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation & amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation & amortization
= ÷ =
The segment experienced increasing capital expenditures and depreciation & amortization from 2021 to 2023, followed by stabilization and slight fluctuations through 2025. The ratio of capital expenditures to depreciation & amortization demonstrates a generally increasing trend initially, with a subsequent leveling off.
- Capital Expenditures
- Capital expenditures increased from US$700 million in 2021 to US$1,025 million in 2023, representing a substantial investment in the segment’s assets. Expenditures decreased slightly to US$968 million in 2024 before rising again to US$994 million in 2025. This suggests a period of significant investment followed by a potential pause and then resumed investment.
- Depreciation & Amortization
- Depreciation & amortization followed an upward trend, increasing from US$642 million in 2021 to US$736 million in 2023. Similar to capital expenditures, depreciation & amortization increased to US$784 million in 2024 and remained relatively stable at US$786 million in 2025. This indicates a growing asset base subject to depreciation.
- Segment Capital Expenditures to Depreciation
- The segment capital expenditures to depreciation ratio increased from 1.09 in 2021 to 1.39 in 2023, indicating that capital expenditures were growing at a faster rate than depreciation & amortization. This suggests a focus on expanding capacity or upgrading existing assets. The ratio decreased to 1.23 in 2024 and remained at 1.26 in 2025, indicating a moderation in the growth rate of capital expenditures relative to depreciation. The ratio remains above 1.0 throughout the period, meaning capital expenditures consistently exceeded depreciation & amortization.
Overall, the segment demonstrated a pattern of investment in capital assets, with a peak in spending around 2023. The subsequent stabilization of the capital expenditures to depreciation ratio suggests a shift towards maintaining existing assets rather than aggressive expansion.
Segment Capital Expenditures to Depreciation: Raytheon
RTX Corp.; Raytheon; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation & amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation & amortization
= ÷ =
Analysis of capital expenditures and depreciation within the Raytheon segment reveals fluctuating investment patterns over the five-year period. Capital expenditures remained relatively stable between 2021 and 2023, with a noticeable increase in 2024, followed by a slight decrease in 2025. Depreciation and amortization exhibited more consistent levels, with a minor increase in 2022, remaining stable through 2023, decreasing in 2024, and returning to 2022 levels in 2025.
- Capital Expenditures
- Capital expenditures began at US$592 million in 2021, decreased slightly to US$580 million in 2022, and then increased to US$637 million in 2023. A significant rise was observed in 2024, reaching US$771 million, before declining to US$644 million in 2025. This suggests periods of focused investment, particularly in 2024, potentially related to specific projects or strategic initiatives.
- Depreciation & Amortization
- Depreciation and amortization showed a modest increase from US$520 million in 2021 to US$542 million in 2022. It remained relatively consistent at US$544 million in 2023, decreased to US$520 million in 2024, and then returned to US$542 million in 2025. The stability indicates a consistent asset base subject to depreciation.
- Segment Capital Expenditures to Depreciation
- The ratio of capital expenditures to depreciation began at 1.14 in 2021, decreased to 1.07 in 2022, and then increased to 1.17 in 2023. A substantial increase to 1.48 was recorded in 2024, indicating significantly higher capital investment relative to depreciation during that year. The ratio decreased to 1.19 in 2025, remaining above the 2021 and 2022 levels but below the peak observed in 2024. This suggests a period of accelerated asset investment in 2024, potentially indicating expansion or modernization efforts, followed by a moderation of that investment in 2025.
Overall, the Raytheon segment demonstrates a dynamic investment profile. The increasing capital expenditures to depreciation ratio in 2024 warrants further investigation to understand the nature and expected returns of those investments. The subsequent decrease in 2025 suggests a recalibration of investment strategy.
Net sales
RTX Corp., net sales by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon | |||||
| Total segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance of the reportable segments demonstrates varied trends over the five-year period. Overall, total segment net sales exhibit an increasing trajectory, though with fluctuations in individual segment contributions. A significant acceleration in growth is apparent in the later years of the period.
- Collins Aerospace
- Collins Aerospace demonstrates consistent growth in net sales throughout the period, increasing from US$18,449 million in 2021 to US$30,196 million in 2025. The rate of growth appears to be accelerating, with larger absolute increases observed in the later years. This segment consistently contributes a substantial portion to overall segment revenue.
- Pratt & Whitney
- Pratt & Whitney experienced a period of initial growth, increasing from US$18,150 million in 2021 to US$20,530 million in 2022. However, net sales decreased to US$18,296 million in 2023 before exhibiting substantial growth in 2024 and 2025, reaching US$32,916 million. This segment’s performance shows a notable recovery and acceleration in recent years.
- Raytheon
- Raytheon’s net sales experienced a decline from US$30,719 million in 2021 to US$26,350 million in 2023. While a slight increase was observed in 2024 (US$26,713 million), growth remained modest, reaching US$28,043 million in 2025. This segment’s performance contrasts with the growth observed in the other two segments.
- Total Segment Net Sales
- Total segment net sales increased from US$67,318 million in 2021 to US$91,155 million in 2025. The growth was relatively moderate between 2021 and 2023, with a more pronounced increase occurring between 2023 and 2025. This acceleration is primarily driven by the strong performance of Collins Aerospace and Pratt & Whitney, offsetting the relatively stable performance of Raytheon.
The combined effect of these segment performances indicates a shift in the overall revenue composition, with increasing reliance on Collins Aerospace and Pratt & Whitney for growth. The stabilization of Raytheon’s sales, while not demonstrating significant decline, represents a different trend compared to the other segments.
Operating profit (loss)
RTX Corp., operating profit (loss) by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon | |||||
| Total segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The operating profit performance of the reportable segments exhibits varied trends over the five-year period. Overall, segment operating profit demonstrates a recovery from a dip in 2023, with significant growth observed in 2024 and 2025. However, individual segment performance contributes differently to this overall trend.
- Collins Aerospace
- Collins Aerospace demonstrates a consistent upward trend in operating profit throughout the period. Beginning at US$1,759 million in 2021, operating profit increased to US$2,343 million in 2022, then experienced more substantial growth to US$3,825 million in 2023. This positive momentum continued with further increases to US$4,135 million in 2024 and US$4,923 million in 2025. This segment consistently contributed positively to overall segment profitability.
- Pratt & Whitney
- Pratt & Whitney’s operating profit experienced significant volatility. Starting at US$454 million in 2021, it rose substantially to US$1,075 million in 2022. However, 2023 saw a considerable decline, resulting in an operating loss of US$1,455 million. A strong recovery occurred in 2024, with operating profit reaching US$2,015 million, and this upward trend continued into 2025, reaching US$2,596 million. The 2023 loss significantly impacted overall segment performance.
- Raytheon
- Raytheon’s operating profit exhibited a downward trend from 2021 to 2023, decreasing from US$3,837 million to US$2,379 million. While a modest increase was observed in 2024, reaching US$2,594 million, the segment demonstrated further growth in 2025, with operating profit reaching US$3,227 million. Although showing improvement in the latter years, Raytheon’s performance did not fully recover to its 2021 levels.
- Total Segment
- Total segment operating profit initially increased from US$6,050 million in 2021 to US$6,279 million in 2022. A substantial decrease was then observed in 2023, falling to US$4,749 million, largely influenced by the negative performance of Pratt & Whitney. A significant recovery occurred in 2024, with operating profit rising to US$8,744 million, and continued strongly into 2025, reaching US$10,746 million. The growth in 2024 and 2025 was driven by improvements across all segments, particularly Collins Aerospace and the recovery of Pratt & Whitney.
The overall trend indicates a strengthening of segment profitability, particularly in the latter part of the period. However, the volatility of Pratt & Whitney’s performance warrants continued monitoring. The consistent growth of Collins Aerospace provides a stable foundation, while Raytheon’s recovery, though slower, contributes to the overall positive trend.
Total assets
RTX Corp., total assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon | |||||
| Total segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The total assets across reportable segments demonstrate a generally increasing trend over the five-year period. However, the performance of individual segments varies considerably, contributing to the overall pattern. A detailed examination of each segment reveals distinct characteristics in asset growth and potential shifts in resource allocation.
- Collins Aerospace
- Collins Aerospace exhibited relatively stable assets between 2021 and 2022, with a slight decrease observed. From 2022 to 2023, assets increased to US$72.085 billion, continuing to US$72.372 billion in 2024. A minor decrease to US$71.680 billion was noted in 2025. This segment’s asset base appears to have reached a plateau, with fluctuations remaining within a narrow range in recent years.
- Pratt & Whitney
- Pratt & Whitney experienced consistent asset growth throughout the period. Starting at US$33.414 billion in 2021, assets increased to US$36.205 billion in 2022, then to US$40.723 billion in 2023. This growth accelerated in 2024, reaching US$44.307 billion, and continued strongly into 2025, with assets totaling US$52.482 billion. This represents the most significant asset expansion among the three segments.
- Raytheon
- Raytheon’s asset base showed a decline from 2021 to 2023, decreasing from US$50.311 billion to US$44.929 billion. Assets remained relatively flat between 2023 and 2024 at US$44.936 billion, and experienced a slight decrease to US$44.795 billion in 2025. This segment’s asset trend contrasts with the growth observed in Pratt & Whitney.
- Total Segment Assets
- The combined assets of all segments increased from US$151.289 billion in 2021 to US$168.957 billion in 2025. The largest year-over-year increase occurred between 2024 and 2025, driven primarily by the substantial growth in Pratt & Whitney’s assets. While Collins Aerospace remained relatively stable and Raytheon experienced a decline, the overall trend indicates a net increase in the company’s asset base.
The differing asset trajectories of the segments suggest potential strategic shifts or varying investment needs within the organization. The significant growth at Pratt & Whitney warrants further investigation to understand the underlying drivers, while the decline in Raytheon’s assets may indicate divestitures, depreciation, or changes in operational requirements.
Capital expenditures
RTX Corp., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon | |||||
| Total segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Capital expenditures across reportable segments exhibited varied trends between 2021 and 2025. Overall, segment capital expenditures increased from 2021 to 2024, followed by a decrease in 2025. A detailed examination of each segment reveals differing patterns of investment.
- Collins Aerospace
- Capital expenditures for Collins Aerospace generally decreased from $665 million in 2021 to $628 million in 2023. A notable increase occurred in 2024, reaching $786 million, and remained relatively stable at $793 million in 2025. This suggests a period of reinvestment following a decline, with stabilization in the most recent year.
- Pratt & Whitney
- Pratt & Whitney demonstrated a consistent increase in capital expenditures from $700 million in 2021 to $1,025 million in 2023. While expenditures decreased slightly to $968 million in 2024, they rose again to $994 million in 2025. This segment consistently represented a significant portion of total segment capital expenditures and shows a strong commitment to investment.
- Raytheon
- Raytheon’s capital expenditures remained relatively stable between 2021 and 2023, fluctuating around $580 to $637 million. A substantial increase was observed in 2024, reaching $771 million, but decreased to $644 million in 2025. This pattern indicates potential project-based investments with a peak in 2024 followed by a reduction.
- Total Segment
- Total segment capital expenditures increased from $1,957 million in 2021 to a peak of $2,525 million in 2024. A decrease to $2,431 million was observed in 2025. The overall trend suggests a period of growth in capital investment, potentially driven by increased demand or strategic initiatives, followed by a slight pullback in the latest year. The increase from 2021 to 2024 was approximately 29%.
The combined effect of these segment-level trends indicates a strategic allocation of capital, with Pratt & Whitney consistently representing a large portion of the overall investment. The fluctuations in Collins Aerospace and Raytheon suggest targeted investments in specific projects or areas within those segments.
Depreciation & amortization
RTX Corp., depreciation & amortization by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Collins Aerospace | |||||
| Pratt & Whitney | |||||
| Raytheon | |||||
| Total segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Depreciation and amortization expense across reportable segments exhibited varied trends between 2021 and 2025. Overall, total segment depreciation and amortization increased from US$1,890 million in 2021 to US$2,201 million in 2025, though not consistently year-over-year.
- Collins Aerospace
- Depreciation and amortization for Collins Aerospace initially increased from US$728 million in 2021 to US$742 million in 2022. A slight decrease was then observed in 2023, falling to US$724 million, before rising significantly to US$841 million in 2024 and further to US$873 million in 2025. This segment demonstrates the most substantial growth in depreciation and amortization expense over the analyzed period.
- Pratt & Whitney
- Pratt & Whitney experienced a consistent increase in depreciation and amortization from US$642 million in 2021 to US$736 million in 2023. The rate of increase slowed in 2024, reaching US$784 million, and remained relatively stable in 2025 at US$786 million. This suggests a maturing asset base with potentially fewer significant new asset additions in the later years.
- Raytheon
- Raytheon’s depreciation and amortization remained relatively stable throughout the period. It increased modestly from US$520 million in 2021 to US$542 million in 2022, remained consistent at US$544 million in 2023, decreased to US$520 million in 2024, and then returned to US$542 million in 2025. This indicates a consistent asset base with minimal net changes.
- Total Segment
- Total segment depreciation and amortization increased from US$1,890 million in 2021 to US$2,008 million in 2022. A slight decrease occurred in 2023, with the total falling to US$2,004 million. A more substantial increase was then observed in 2024, reaching US$2,145 million, and continued into 2025, reaching US$2,201 million. The overall trend is upward, driven primarily by the increases in Collins Aerospace.
The variations in depreciation and amortization across segments likely reflect differing investment cycles, asset bases, and the nature of operations within each business unit. The significant increase at Collins Aerospace warrants further investigation to understand the underlying drivers, such as capital expenditures and asset lives.