RTX Corp (RTX) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that RTX Corp surfaced in its latest filing.

• In July 2023, a rare condition in powder metal used to manufacture certain engine parts required accelerated inspection of the PW1100G-JM GTF fleet, leading to increased engine removals, inspections, shop visits, aircraft on ground, and costs through end of 2026.July 2023
• On August 29, 2024, the Company entered into a Consent Agreement with the U.S. Department of State to resolve alleged civil violations of the AECA and ITAR, with a three-year term, remedial compliance measures, an external audit, and a Special Compliance Officer appointed on September 27, 2024.August 29, 2024
• In October 2024, the Company entered into a deferred prosecution agreement and a civil settlement agreement with the DOJ to resolve investigations relating to pricing on certain government contracts.October 2024
• Raytheon Company entered into a deferred prosecution agreement (DPA-1) with the DOJ on October 15, 2024, related to conspiracy to violate the FCPA and AECA concerning payments in connection with Middle East contracts.October 15, 2024
• The Company became subject to an SEC administrative order on October 16, 2024, to resolve investigations into payments by Raytheon Company and its joint venture Thales-Raytheon Systems since 2012.October 16, 2024
• Raytheon Company entered into a second deferred prosecution agreement (DPA-2) and a False Claims Act settlement on October 16, 2024, related to defective pricing claims for legacy contracts entered into between 2011-2013 and in 2017.October 16, 2024
• In October 2024, the Company entered into a DPA with the DOJ and consented to an SEC Administrative Order to resolve investigations related to conduct that violated the FCPA.October 2024
• RTX increased indebtedness in connection with $10 billion accelerated share repurchase (ASR) transactions that began in October 2023 and completed in September 2024.October 2023
• Pursuant to a January 7, 2026 Executive Order, the Secretary of War could limit our ability to pay cash dividends or make share repurchases if we underperform on U.S. government contracts.January 7, 2026
• China sanctioned Raytheon Missiles & Defense in February 2023, including a fine of twice the value of arms sold to Taiwan since September 2020, and announced additional sanctions against the Raytheon business and a Collins Aerospace joint venture.February 2023
• U.S. and other governments imposed broad economic sanctions and export controls targeting Russia, and Russia implemented counter-sanctions targeting certain members of the Company's management and Board.