What are the main concerns in RTX Corp's latest SEC filing?

The analysis identified 5 key concerns: The company faces margin pressures from increasing material and labor costs, particularly on fixed-price contracts, and notes uncertainty regarding the impact of global tariffs.; Significant increase in contract assets and liabilities suggests complex contract accounting, warranting further review.; Environmental remediation liabilities of $0.8 billion are accrued, with no material adverse effect expected on financial condition..

What are the top risks for RTX Corp (RTX)?

The top risks identified in the 10-K filing are: Supply Chain Disruptions and Increased Costs, Cyber Threats and Evolving Regulations, Geopolitical Instability and Sanctions. The company faces significant risks primarily stemming from escalating supply chain disruptions, increasing cyber threats, and heightened geopolitical tensions. These factors, coupled with reliance on government spending and competitive pressures, suggest a deteriorating risk profile demanding careful management.

RTX - Comprehensive Filing Intelligence

FY 2025•10-K•Filed Feb 6, 2026

6.0/10

Filing Health:GOOD

Solid fundamentals with minor concerns to monitor

Executive Summary

RTX demonstrated improved operating profit in 2025, driven by organic growth across its segments and the absence of significant prior-year charges, alongside gains from business divestitures.. The company faces margin pressures from increasing material and labor costs, particularly on fixed-price contracts, and notes uncertainty regarding the impact of global tariffs.. Environmental remediation liabilities of $0.8 billion are accrued, with no material adverse effect expected on financial condition.. Total net sales increased by $7.865 billion.

Top Concerns

!The company faces margin pressures from increasing material and labor costs, particularly on fixed-price contracts, and notes uncertainty regarding the impact of global tariffs.
!Significant increase in contract assets and liabilities suggests complex contract accounting, warranting further review.
!Environmental remediation liabilities of $0.8 billion are accrued, with no material adverse effect expected on financial condition.
!The company is subject to ongoing litigation, including one remaining lawsuit related to the 737 MAX accidents, with expected resolution or dismissal in 2026.
!Supply Chain Disruptions and Increased Costs (high)

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is balanced.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is low with $0.8 billion in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows supply chain disruptions and increased costs as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

6.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.