RTX (RTX) raised its full-year 2026 outlook for adjusted sales, adjusted earnings, and free cash flow after second-quarter organic sales growth accelerated to 16% from 10% in the first quarter.

The aerospace and defense company reported second-quarter sales of $24.7 billion, up 14% from a year earlier. Adjusted earnings were $1.89 a share, up 21%, matching the year-over-year adjusted EPS growth it posted in the first quarter. GAAP earnings were $1.57 a share, including $0.27 of acquisition accounting adjustments and $0.05 of restructuring and other net significant and/or non-recurring items.

Chairman and CEO Chris Calio said the quarter included double-digit commercial aftermarket and defense growth, margin expansion across all three segments, and $2.9 billion of free cash flow. He said demand remained robust and that backlog was up 22% year over year.

Company backlog stood at $289 billion at quarter-end, including $170 billion of commercial work and $119 billion of defense work, up from $271 billion at the end of the first quarter.

Operating cash flow was $3.5 billion. Capital expenditures of $0.7 billion left free cash flow at $2.9 billion, compared with $1.9 billion of operating cash flow and $1.3 billion of free cash flow in the first quarter.

Collins Aerospace sales were $8.21 billion, up 8% versus the prior year. Excluding divestitures, sales increased 13% organically, with commercial original equipment up 26%, commercial aftermarket up 10%, and defense up 7%. Commercial OE growth reflected higher volume on narrowbody and widebody platforms, aftermarket growth came primarily from parts and repair and modifications and upgrades, and defense sales rose on higher volume across multiple programs. Adjusted operating profit was $1.37 billion, with adjusted return on sales of 16.7%. The profit increase reflected drop-through on higher commercial and defense volume, partially offset by defense mix, higher SG&A expense, and 2025 divestitures.

Pratt & Whitney sales were $8.89 billion, up 16%, driven by commercial aftermarket up 25% and military up 23%, partially offset by commercial OE down 8%. Aftermarket growth came from higher volume and military growth from higher F135 volume, including the benefit of prior-year contract award timing. Adjusted operating profit was $740 million, with adjusted return on sales of 8.3%. Reported operating profit of $738 million was up 50% after a roughly $100 million customer-bankruptcy charge in the year-earlier quarter.

Raytheon sales were $8.27 billion, up 18%, on higher volume in land and air defense systems, naval programs, and air and space defense systems including Patriot, Standard Missile, and AMRAAM. Adjusted operating profit was $1.04 billion, with adjusted return on sales of 12.6%. The profit increase reflected higher volume, favorable mix including Patriot programs, and improved net productivity.

RTX updated its full-year 2026 outlook to adjusted sales of $95.0–$96.0 billion, from $92.5–$93.5 billion, organic sales growth of 8% to 9%, from 5% to 6%, adjusted EPS of $7.10–$7.25, from $6.70–$6.90, and free cash flow of $8.50–$8.75 billion, from $8.25–$8.75 billion.

Calio said that given first-half performance and current backlog, the company was raising the outlook and that RTX is exceptionally well positioned to drive continued growth as it executes on backlog, increases productivity, expands capacity, and introduces new technologies.

The company also reached an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million.