RTX Raytheon Stock Outlook 2026: GTF Recall Recovery, Record Backlog, and Missile Defense Growth

RTX Corporation is unusual among defense primes: it operates both a commercial jet engine business and a weapons/defense electronics business under one roof. That dual exposure made 2023–2025 complicated — the Pratt & Whitney GTF powder metal recall created a massive one-time cost burden at exactly the moment when the Raytheon defense segment was seeing its strongest demand in decades.

In 2026, the recovery from that GTF recall headwind is the core investment narrative. Q1 2026 delivered double-digit organic growth, management raised its 2026 outlook, and the backlog hit record levels. The question is how quickly GTF recall costs tail off and what the normalized earnings power looks like once the inspection and repair program winds down.

FY2024 and Q1 2026 Financial Snapshot

RTX’s fiscal year runs January–December.

Metric	FY2024	Q1 2026
Revenue	$80.74 billion	$22.08 billion
Net Income	$4.77 billion	$2.06 billion
Diluted EPS	$3.55	$1.51
Free Cash Flow	$4.53 billion	$1.31 billion
Annual Dividend	$2.48 (FY2024)	$2.72 (current)

Source: stockanalysis.com, accessed May 2026. Stock price: $176.74 (May 6, 2026). Market cap: $238.01 billion. Trailing P/E: 33.2x.

Trailing twelve months through March 2026 show revenue of approximately $90.37 billion and net income of $7.26 billion — significantly above the FY2024 annual figures, confirming that GTF recall charges were front-loaded in 2023–2024 and that underlying earnings are recovering.

The GTF Powder Metal Recall: The Full Story

The Pratt & Whitney Geared Turbofan (GTF) engine is one of the most significant commercial aviation propulsion innovations of the past 20 years. Its geared fan architecture dramatically improves fuel efficiency — 15–20% better than prior-generation engines — making it the powerplant of choice for the Airbus A220 and A320neo families.

In 2023, P&W discovered that a batch of high-pressure turbine discs manufactured using contaminated powder metal had a higher risk of premature fatigue cracking. The contamination occurred during the powder metallurgy process used to make the disc forgings.

What the recall required:

• Accelerated inspection of affected engines (earlier than originally scheduled overhaul intervals)
• Engine removal from aircraft for disc inspection
• Disc replacement in affected units
• Airlines were grounded on hundreds of Airbus aircraft while waiting for spare discs

Financial impact: RTX disclosed recall-related costs exceeding $6 billion over the 2023–2026 period — charges spread across P&W financial statements as inspection and repair work was completed. By 2026, the acute phase of the recall is winding down, with the most expensive years (2023–2024) behind the company.

Airlines affected: Particularly Air India, IndiGo, Wizz Air, and other large A320neo operators. The grounding of hundreds of aircraft caused real operational and reputational damage for P&W with the airline community.

As the recall work is completed through 2025–2026, P&W’s earnings headwind lifts, which explains why TTM (trailing twelve months) earnings are substantially stronger than FY2024 full-year figures.

Three-Segment Business Model

Segment	Key Products	Character
Pratt & Whitney	GTF, F135 (F-35 engine), PW1000G series	Commercial aviation + military
Raytheon	Patriot, AMRAAM, Tomahawk, StormBreaker, SM-6	Pure defense
Collins Aerospace	Avionics, actuation, interiors, landing systems	Commercial + military

Raytheon is the segment most directly benefiting from the elevated defense environment. Patriot missile systems and PAC-3 interceptors are in extraordinary demand — Poland, Romania, Germany, Japan, and Taiwan have active procurement or expansion programs. AMRAAM air-to-air missiles have seen unprecedented demand as NATO allies replenish stocks consumed in or transferred to Ukraine.

Collins Aerospace benefits from commercial aviation recovery — aircraft interiors, avionics, and engine systems go into new aircraft deliveries and into maintenance services on the existing fleet. The Airbus and Boeing production rate outlooks directly affect Collins revenue.

Pratt & Whitney beyond GTF: the F135 engine (sole powerplant for F-35) gives P&W a defense-side revenue stream. The F135 Enhancement Program (EEP) to upgrade engine capability and the potential F135 Core Upgrade are multi-billion dollar programs under negotiation.

Record Backlog Growth

Management’s AGM statement (2026) highlighted “record backlog growth” without specifying the total dollar figure. For context, RTX’s backlog as reported in recent 10-Ks has been in the range of $195–$210 billion — representing approximately 2.5 years of annual revenue. As of Q1 2026, both the defense backlog (Raytheon) and commercial aftermarket backlog (Collins and P&W) are expanding.

A growing backlog is a leading indicator of future revenue. Defense backlogs are particularly durable because U.S. government contracts are backed by congressional appropriations — counterparty risk is de minimis compared to commercial contracts.

Q1 2026 Earnings Raise and Outlook

RTX raised its 2026 full-year financial outlook after Q1 2026, citing:

• Double-digit organic sales growth
• Margin recovery at Pratt & Whitney as recall costs taper
• Strong Raytheon defense bookings and deliveries

An earnings guidance raise after Q1 — in the first quarter following a period of GTF-related headwinds — signals that management has high confidence in the remainder-of-year trajectory. This is a meaningful positive signal for 2026 investors.

Dividend Profile

RTX’s current annual dividend of $2.72 per share yields approximately 1.54% at the current stock price (source: stockanalysis.com). This is a lower yield than LMT (2.68%) or PG (2.86%), but RTX has been raising dividends consistently since the 2020 merger.

The dividend is classified as a qualified dividend for U.S. tax purposes, making it efficient in both taxable accounts and tax-advantaged wrappers.

Roth IRA: Moderate fit. The low yield limits the dividend compounding argument, but RTX’s total return including price appreciation can be compelling in a long-duration account. Better suited as a growth-and-income position than a pure income hold.

401(k): Good fit. Defense sector exposure in a retirement portfolio provides a non-cyclical ballast to equity holdings in tech or consumer sectors.

Valuation: Why the P/E Looks High

The trailing P/E of 33.2x (source: stockanalysis.com) appears elevated compared to LMT at 24.7x. The explanation lies in the timing of GTF recall charges:

• FY2024 net income of $4.77 billion was depressed by recall charges
• TTM (through March 2026) net income of $7.26 billion reflects charge normalization
• Forward P/E on FY2026 consensus estimates is substantially lower than the trailing metric

Investors should evaluate RTX on forward earnings or normalized FCF — not trailing GAAP EPS, which was distorted by the one-time recall program. The fair-value comparison is RTX at approximately 20–22x forward earnings vs. LMT at 20–22x forward earnings — a more comparable picture.

Bull, Base, and Bear Scenarios

Bull scenario: GTF recall costs fully absorbed by Q3 2026. Raytheon defense orders remain at elevated levels. F135 Enhancement Program contract is finalized. P&W commercial aftermarket recovers to pre-recall margins. Stock advances toward $200+.

Base scenario: Steady GTF cost taper through 2026. Double-digit Raytheon organic growth continues through defense spending cycle. Dividend grows 7–9% annually. Stock delivers 10–12% total return. Price target toward $190.

Bear scenario: GTF recall costs prove larger than disclosed. Additional P&W engine families require inspection. Defense budget pressure reduces Raytheon bookings. Collins avionics margins compress. Stock retreats toward $150.

Scenario	Key Driver	Price Target
Bull	GTF cost resolution + defense demand	$200–$215
Base	Steady recovery trajectory	$185–$200
Bear	GTF cost escalation	$145–$160

RTX vs. LMT vs. ITA

Investment	Yield	P/E (Trailing)	Differentiation
RTX	1.54%	33.2x (distorted)	Commercial aviation + defense
LMT	2.68%	24.7x	F-35 dominant
ITA	~0.9%	Blended	Full sector diversification

RTX is the better choice if you want exposure to commercial aviation recovery (P&W engine deliveries, Collins interiors) alongside defense. LMT is the better choice if you want concentrated F-35 and hypersonics exposure with a higher starting yield.

The Raytheon-United Technologies Merger: Background and Rationale

The 2020 merger that created RTX combined two very different companies:

Raytheon Company was a pure-play defense electronics company — missiles, radar, sensors, and intelligence systems. It had no commercial aerospace exposure and derived essentially all revenue from U.S. and allied government defense procurement.

United Technologies (UTX) was a diversified industrial that owned Pratt & Whitney (jet engines), Collins Aerospace (avionics and aerospace systems), Otis (elevators), and Carrier (HVAC). The merger separated Otis and Carrier into independent companies and combined the aerospace assets of UTX with Raytheon’s defense electronics.

The strategic rationale for the combination:

1. Defense electronics from Raytheon paired with aerospace systems from Collins and engines from P&W creates a broader defense-commercial aerospace platform
2. R&D synergies between commercial aerospace technology and defense electronics
3. Scale in procurement, manufacturing, and government relations
4. Combined platform better positioned for next-generation programs that require both propulsion and electronic warfare capabilities

The merger created a company that is simultaneously:

• A commercial jet engine maker (P&W)
• A commercial avionics and systems supplier (Collins)
• A missile and air defense manufacturer (Raytheon)
• A defense electronics and sensors maker (Collins defense side)

This breadth is unusual among defense primes — most are more specialized. It’s why RTX is sometimes harder to categorize than LMT or NOC.

Patriot Air Defense: The NATO Standard and Global Demand

Raytheon’s Patriot missile defense system is the NATO standard for theater air and missile defense. The system has been in service since the 1980s and has been continuously upgraded through multiple configurations (PAC-1, PAC-2, PAC-3 MSE).

PAC-3 MSE (Missile Segment Enhancement): The current highest-capability interceptor uses hit-to-kill (kinetic) technology rather than proximity detonation — physically colliding with and destroying the incoming ballistic missile. This provides higher single-shot kill probability against ballistic missiles and cruise missiles.

Global deployment and demand:

• Germany: Purchasing additional Patriot batteries as part of a major defense modernization
• Poland: One of the largest international Patriot customers, with multiple systems deployed
• Romania: NATO’s Aegis Ashore ballistic missile defense site operates alongside Romanian Patriot batteries
• Japan, South Korea: Patriot provides terminal defense against North Korean ballistic missiles
• Saudi Arabia, UAE, Kuwait: Gulf Cooperation Council nations operating Patriot for regional air defense
• Ukraine context: Multiple Patriot batteries have been provided to Ukraine; each engagement expends interceptors that require replacement

The Ukraine conflict has demonstrated that active use of Patriot systems rapidly consumes interceptor inventory. NATO nations providing Patriot batteries have had to simultaneously defend their own airspace and replenish donated systems. This has created a surge in Patriot interceptor production demand that Raytheon has been working to meet through production line expansion.

Collins Aerospace: Defense Electronics Beyond Commercial Aviation

While Collins Aerospace’s commercial aviation business (avionics, actuation, interiors) gets significant investor attention, the defense side of Collins is equally important and less cyclical.

Defense Collins products include:

• AN/APG-79 AESA radar for F/A-18 Super Hornet: The standard fighter radar for U.S. Navy carrier-based aircraft
• AN/ALQ-214 IDECM: Integrated Defensive Electronic Countermeasures for protecting aircraft against radar-guided missiles
• LINK 16 tactical data links: The NATO standard tactical communications and identification system
• Helmet-mounted display systems: Used in F-35 and next-generation platforms for pilot situational awareness
• C2 communication systems: Satellite-based and terrestrial communications for military command and control

Each of these products has government-mandated refresh cycles, upgrade programs, and sustainment contracts that provide long-duration revenue visibility. The defense electronics portfolio is less visible than missiles or aircraft but generates consistent margins from specialized, high-barrier-to-entry technology.

Supply Chain Complexity and the GTF Manufacturing Challenge

The GTF powder metal recall highlighted a supply chain vulnerability that affects all complex aerospace manufacturers: the long, specialized supply chains required for advanced aerospace components.

High-strength rotating parts in jet engines — turbine discs, compressor discs, shafts — are made using superalloy powder metal processes. The powder is produced by a small number of specialized manufacturers globally, melted and formed into ingots, then machined into the final part geometry. Each step requires certified suppliers with specific process qualifications.

When Pratt & Whitney discovered the powder metal contamination issue, the remediation required:

1. Identifying which aircraft contained affected engine discs (serial number traceability)
2. Scheduling engines for removal during maintenance events
3. Manufacturing replacement discs at accelerated rates — requiring either existing supplier production increases or qualification of additional suppliers
4. Inspecting removed engines and replacing only confirmed-affected discs

The supply chain for replacement discs was a bottleneck. Additional suppliers needed to be qualified, which requires extensive testing and FAA/EASA certification. This qualification process takes months, meaning the supply of replacement discs couldn’t be instantly expanded when the recall scope became clear.

This supply chain fragility — concentrated in small numbers of qualified suppliers for safety-critical parts — is a systemic risk across the aerospace industry, not unique to RTX. Future disruptions (natural disasters affecting key supplier locations, geopolitical disruptions to critical materials) could create similar challenges for any aerospace manufacturer.

Related Posts

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• Hanwha Aerospace Stock Outlook 2026 — International defense industry perspective
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• NOBL Dividend Aristocrats ETF 2026 — Defense stocks within dividend growth frameworks
• Tax-Efficient Dividend Investing 2026 — Where to hold defense dividends

Pratt & Whitney: Beyond the GTF Crisis

The GTF powder metal recall has dominated P&W’s financial narrative for two years, but it is important to understand that the underlying business — commercial jet engine development and manufacturing — is fundamentally strong. The GTF itself, despite the recall, represents a genuine engineering achievement.

The GTF architecture: The geared turbofan uses a gear reduction system between the fan and the low-pressure compressor turbine, allowing each component to rotate at its optimal speed. The result is 15–20% better fuel efficiency than the prior-generation CFM56 and V2500 engines it replaces, along with significant noise reduction. These advantages are why the GTF is the sole engine option for the Airbus A220 and a choice option for the A320neo family.

Pratt & Whitney’s competitive position on narrow-body aircraft engines is strong despite the recall:

• The GTF is already deeply embedded in hundreds of aircraft across major airlines worldwide
• Switching to CFM LEAP engines (the competitor) requires airline maintenance certification for an entirely different powerplant — airlines don’t do this lightly
• New GTF-powered aircraft ordered by Airbus customers extend the GTF backlog well into the late 2020s

The recall’s financial effect is a multi-billion dollar one-time cost that is winding down through 2026. The underlying GTF franchise — a growing installed base of fuel-efficient engines generating aftermarket service revenue for 25+ years — is intact.

The F135 engine: Less publicized but strategically significant, Pratt & Whitney is the sole manufacturer of the F135 engine that powers every F-35 variant. As LMT delivers more F-35 aircraft and the fleet sustainment ramp accelerates, Pratt & Whitney’s F135 aftermarket revenue also grows.

The F135 Engine Core Upgrade (ECU) — a significant upgrade to the F135’s core to provide additional thrust, cooling capacity, and growth headroom — has been under development and negotiation. If the ECU is funded and contracted, it represents billions in additional revenue for P&W in the 2027–2032 timeframe.

Raytheon: Missiles, Radar, and the Electronic Warfare Advantage

The Raytheon segment sits at the intersection of two of the strongest defense procurement trends of the 2020s: precision munitions and active defense (air and missile defense).

Precision munitions: The Tomahawk cruise missile is a long-range, all-weather precision strike weapon used across the U.S. Navy and allied military services. Replenishment demand from U.S. military operations and from allied nations purchasing Tomahawks for their own inventories creates multi-year revenue.

Air defense: AIM-120 AMRAAM (Advanced Medium-Range Air-to-Air Missile) is the NATO standard air-to-air missile for F-15, F-16, F/A-18, and F-35 aircraft. AMRAAM production demand has surged as allies seek to expand their aerial arsenal in response to contested airspace scenarios. The AIM-260 JATM (Joint Advanced Tactical Missile), which will eventually succeed AMRAAM, is in development — ensuring Raytheon’s position in air-to-air missile supply for the next generation.

Counter-UAS (Uncrewed Aircraft Systems): The Coyote drone interceptor is Raytheon’s solution to the proliferation of commercial and military drones on the battlefield. Counter-UAS is emerging as a major new procurement category as drone warfare capabilities demonstrated in Ukraine and elsewhere show that affordable drones can be highly effective against expensive military assets. Low-cost counter-drone solutions that can defeat cheap drones without expending $500,000 missiles are in intense development competition.

AESA Radar: Raytheon’s Advanced Electronically Scanned Array radar technology is embedded in the APG-79 (for F/A-18) and next-generation radar programs across the U.S. services. AESA radar provides superior situational awareness, electronic attack capability, and multiple simultaneous track-while-scan functions. This technology advantage feeds into F-35 and next-generation aircraft radar programs.

Collins Aerospace: The Commercial Aviation Cyclical Exposure

Collins Aerospace bridges RTX’s commercial and defense businesses. Collins makes avionics, actuation systems, interiors (seats, galleys, lavatories), landing gear, and engine systems — components that go into every major commercial aircraft and many military platforms.

Commercial aviation recovery: Aircraft production rates at Airbus and Boeing drive Collins revenue from original equipment (OE) sales. Supply chain constraints have kept production rates below demand for several years — any sustained increase in Airbus A320 or Boeing 737 MAX production rates directly benefits Collins.

Aftermarket dominance: Collins earns substantial aftermarket revenue from aircraft maintenance, repair, and overhaul (MRO) of its installed systems. Every Collins avionics suite in service needs software updates, line replaceable unit replacements, and periodic overhaul. The commercial aviation aftermarket is growing as the global fleet ages and passenger traffic continues its post-COVID recovery.

The risk: Boeing’s ongoing quality and production challenges affect Collins’ OE revenue. If Boeing continues to experience production rate constraints or certification delays on new aircraft, Collins’ OE delivery schedule is correspondingly delayed.

RTX’s Defense Budget Sensitivity

RTX is more diversified in its defense exposure than LMT — rather than concentrating in a single dominant program (F-35), RTX spreads across:

• Missile and smart bomb production (Raytheon)
• Engine supply for defense aircraft (P&W F135)
• Defense electronics and avionics (Collins)
• Air defense systems (Patriot, THAAD — shared with LMT for THAAD)

This diversification means RTX’s defense revenue is not as dependent on any single program’s budget survival. Cutting the F-35 budget in a defense crunch year would severely impact LMT; the equivalent at RTX would require simultaneous cuts to Patriot, AMRAAM, Tomahawk, and the F135 — an unlikely combination.

Congressional advocates: Each major RTX program has congressional supporters in districts where the work is performed. Patriot is manufactured at multiple U.S. facilities; AMRAAM at facilities in Arizona, Arkansas, and elsewhere; Collins divisions in Connecticut, North Carolina, and other states. This geographic distribution creates a broad congressional constituency that defends funding during appropriations battles.

Dividend and Share Buyback Framework

RTX’s capital return framework since the 2020 merger has evolved through the GTF crisis. During the peak GTF recall expense years (2023–2024), the company maintained its dividend while managing FCF reduction from recall costs. This maintenance of dividends through a significant adverse event demonstrates the dividend’s priority in capital allocation.

Current dividend: $2.72 annualized ($0.68 per quarter), yielding approximately 1.54% at $176.74 (source: stockanalysis.com).

Buyback history: RTX has conducted share repurchases intermittently since the merger but GTF recall costs temporarily reduced buyback capacity in 2023–2024. As recall costs normalize in 2026 and FCF recovers toward normalized levels, buyback capacity should expand.

Dividend growth target: Management has consistently indicated a target of 5–7% annual dividend growth, consistent with medium-term EPS growth expectations.

Valuation Framework: Normalizing for GTF

Investors evaluating RTX must normalize the earnings base for the GTF recall impact. A simple framework:

Metric	FY2024 (GTF-impacted)	Normalized (estimated)
Revenue	$80.74 billion	$85–90 billion
Net Income	$4.77 billion	$7–8 billion
EPS	$3.55	$5.50–$6.50
P/E	33.2x (trailing)	~27–32x (normalized)

The normalized EPS estimate of $5.50–$6.50 reflects: removal of GTF recall charges, P&W margin recovery, Raytheon growth contribution, and Collins aftermarket expansion. Even at the normalized P/E, RTX is not cheap in an absolute sense — but the story is very different from the headline 33.2x trailing metric.

The TTM (trailing twelve months through March 2026) data showing $90.37 billion in revenue and $7.26 billion in net income (source: stockanalysis.com) already reflects significant normalization — confirming that the recovery trajectory is underway, not just forecasted.

Comparing RTX to International Defense Contractors

U.S. investors focused on defense occasionally overlook that RTX’s products compete globally against European defense majors (BAE Systems, Airbus Defence, Thales) and increasingly against South Korean firms (Hanwha Aerospace) for allied nation defense contracts.

The competitive landscape for defense contracts is changing:

• European nations increasingly prefer domestic defense champions for political and industrial base reasons
• South Korea’s defense exports have grown dramatically (K2 tanks, FA-50 jets, K9 artillery) at competitive prices
• U.S. systems retain technological superiority advantages in many categories, but cost and political considerations create competition

For Raytheon’s Patriot and Tomahawk products — which have decades of combat-proven performance records and NATO interoperability — the competitive moat is strongest. For Collins avionics, competition from Honeywell, Thales, and others is more intense.

The GTF as a Platform: Future Engine Opportunities

While the GTF recall has dominated P&W’s recent narrative, investors should not lose sight of what the GTF franchise represents as a technology platform for the next generation of commercial aviation.

The narrow-body aircraft market — A320neo and A220 powered by GTF, 737 MAX powered by CFM LEAP — is the largest segment of commercial aviation by aircraft count. Narrow-body jets dominate domestic routes in the U.S. and short-to-medium-haul routes globally. Airlines replace their fleets on 20–25 year cycles; the new aircraft entering service today will be flying in the 2040s.

As GTF-powered aircraft age and require engine shop visits (scheduled maintenance intervals at which the engine is removed, disassembled, and refurbished), Pratt & Whitney earns aftermarket revenue. The first wave of GTF shop visits is just beginning to materialize — engines delivered in 2016–2018 are approaching their first scheduled shop visit intervals in the mid-2020s.

The aftermarket revenue model is highly favorable. Unlike original equipment sales (where the manufacturer competes against other engine makers), aftermarket service for P&W engines is predominantly captured by P&W itself through proprietary spare parts, specialized tooling, and Approved Maintenance Organization agreements. The aftermarket margin is substantially higher than the OE margin — the installed base is effectively a captive aftermarket customer.

This aftermarket ramp is a multi-decade positive for P&W’s financial contribution to RTX. As the GTF fleet grows from the current few thousand engines in service toward 10,000+ over the next decade, the aggregate aftermarket revenue stream becomes increasingly significant.

Electronic Warfare: Collins and Raytheon’s Shared Advantage

Electronic warfare (EW) — using the electromagnetic spectrum to attack, deceive, and defend against adversary sensors and communications systems — is one of the fastest-growing defense sectors. The Ukraine conflict has demonstrated that electronic jamming, counter-jamming, and electronic intelligence gathering are as important as kinetic weapons in modern conflict.

RTX’s EW capabilities span both Collins and Raytheon segments:

Raytheon’s EW portfolio: Raytheon develops and manufactures radar warning receivers, electronic attack pods, and signals intelligence systems. The AN/ALQ-249 Next Generation Jammer is being developed for the F/A-18 Super Hornet to replace the aging ALQ-99 — a major DoD program that Raytheon won against BAE Systems in a competitive source selection.

Collins EW integration: Collins Aerospace’s electronic systems division provides GPS-denied navigation systems, tactical radios, and electronic protection systems that work in concert with Raytheon’s active jamming capabilities. The combination of Collins’ communications and navigation protection with Raytheon’s active EW attack capabilities positions RTX as a comprehensive EW enterprise.

The EW market is growing 6–9% annually as the U.S. military and allies invest in systems to counter increasingly sophisticated adversary EW capabilities (particularly Chinese and Russian). RTX’s dual-segment EW presence gives it a structural competitive advantage in winning integrated EW program opportunities.

The Bottom Line

RTX in 2026 is a recovery story with a defense growth backbone. The GTF powder metal recall created a 2023–2024 earnings distortion that is visibly unwinding — TTM net income of $7.26 billion versus FY2024’s $4.77 billion confirms the normalization trajectory.

The Q1 2026 earnings beat and raised guidance are meaningful signals: management has confidence in H2 2026 numbers, and the record backlog supports that confidence with hard orders rather than pipeline speculation.

At $176.74 with a distorted trailing P/E of 33.2x that normalizes to approximately 27–30x on forward earnings, the stock is not cheap — but it is priced for a reasonable base case where GTF cost normalization, Raytheon defense demand, and Collins commercial recovery all trend favorably.

For investors who want defense exposure without the F-35 concentration risk of LMT, RTX’s balanced profile across commercial aviation and defense electronics is compelling. The 1.54% dividend yield is modest, but the total return case — price recovery plus dividend growth as earnings normalize — is the primary investment rationale for 2026 and 2027.

Watch Q2 2026 for the first clean quarter with meaningfully reduced GTF recall charges. If Pratt & Whitney segment margins improve quarter-over-quarter alongside Raytheon bookings confirmation, the normalization thesis is on track for a full-year recovery.