✦ Clearing the Grounded Fleet: More Repair CapacityNarrow moat

RTX (RTX) — the future bets

Pratt & Whitney is building repair capacity to clear its recalled engines, and the same shops will serve the GTF fleet's routine overhauls later.

The recall created a queue of engines waiting for repair, and the bet is on capacity to clear it. Pratt & Whitney's PW1100G-JM shop-visit output rose about 26% in 20251. In the second quarter of 2026 maintenance output rose more than 40% and turnaround time fell 23%, and aircraft on the ground fell 25% year to date2. RTX spent $669 million on capital projects in the quarter, including more than $100 million on GTF repair capacity in the United States3.

PW1100 fleet recovery, Q2 2026 (% change)+40%Maintenance output-25%Aircraft on ground, YTD-23%Turnaround timeRTX Q2 2026 earnings call
More output, faster turns, fewer groundings.

Capacity is the scarce resource. Each engine removed for inspection needs a shop slot, parts and trained people, and while it waits the airline's aircraft is idle and Pratt & Whitney pays compensation. Faster turnaround reduces both.

The same capacity becomes an asset later. A network of 21 GTF maintenance facilities4 built for the recall is a network ready for the fleet's routine overhauls, which will grow as more than 2,600 GTF aircraft5 age.

Aircraft on the ground are expected to remain elevated "through the end of 2026"6.

The capacity is being paid for from a strong cash position. RTX's operating cash flow was $5,402 million in the first half of 2026 and free cash flow $4,187 million7, which gives it room to fund the maintenance expansion and the remaining compensation payments.

The bet is on schedule if the groundings keep falling. Management expects them to trend lower through the second half of 20268; a rise in any quarter would mean parts or labour, not demand, is the limit.

Moat trajectory: Widening

Maintenance output +40%, turnaround -23%, groundings -25% YTD.

The number that tests this moat
Reported
PW1100 aircraft on ground, change year to date
Down 25% (to Q2 2026)

The recall queue clearing; any quarterly rise would mean parts or labour are the limit.

Source: RTX Q2 2026 earnings call transcript ↗
References
  1. ReportedPratt & Whitney's PW1100G-JM shop-visit output rose about 26% in 2025.
    RTX Form 10-K for fiscal 2025 - Item 1 business: the three segments and their products, the GTF family powering more than 2,600 aircraft for over 90 operators, the F135 as sole-source engine on all F-35 variants, GTF Advantage certification, the IAE collaboration shares, employees (about 180,000 in 52 countries, 69% in the U.S.) and the divested businesses. — FY2025 · publ. 6 February 2026 · source ↗
  2. ReportedIn the second quarter of 2026 maintenance output rose more than 40% and turnaround time fell 23%, and aircraft on the ground fell 25% year to date.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
  3. ReportedRTX spent $669 million on capital projects in the quarter, including more than $100 million on GTF repair capacity in the United States.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
  4. ReportedA network of 21 GTF maintenance facilities built for the recall is a network ready for the fleet's routine overhauls, which will grow as more than 2,600 GTF aircraft age.
    RTX Form 10-K for fiscal 2025 - Item 1 business: the three segments and their products, the GTF family powering more than 2,600 aircraft for over 90 operators, the F135 as sole-source engine on all F-35 variants, GTF Advantage certification, the IAE collaboration shares, employees (about 180,000 in 52 countries, 69% in the U.S.) and the divested businesses. — FY2025 · publ. 6 February 2026 · source ↗
  5. ReportedA network of 21 GTF maintenance facilities built for the recall is a network ready for the fleet's routine overhauls, which will grow as more than 2,600 GTF aircraft age.
    RTX Form 10-K for fiscal 2025 - Item 1 business: the three segments and their products, the GTF family powering more than 2,600 aircraft for over 90 operators, the F135 as sole-source engine on all F-35 variants, GTF Advantage certification, the IAE collaboration shares, employees (about 180,000 in 52 countries, 69% in the U.S.) and the divested businesses. — FY2025 · publ. 6 February 2026 · source ↗
  6. ReportedAircraft on the ground are expected to remain elevated "through the end of 2026".
    RTX Form 10-K for fiscal 2025 - the Powder Metal Matter: the July 2023 finding, the third-quarter 2023 charge ($5.4 billion of net sales, $2.9 billion of operating profit at Pratt & Whitney's net 51% program share, partners' 49% share), customer-compensation accruals of $1.7 billion at the end of 2024 and $0.7 billion at the end of 2025, $1.0 billion used in each of 2024 and 2025, and elevated aircraft on ground levels through the end of 2026. — FY2023-FY2025 · publ. 6 February 2026 · source ↗
  7. ReportedRTX's operating cash flow was $5,402 million in the first half of 2026 and free cash flow $4,187 million, which gives it room to fund the maintenance expansion and the remaining compensation payments.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  8. ReportedManagement expects them to trend lower through the second half of 2026; a rise in any quarter would mean parts or labour, not demand, is the limit.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
Sources
Generated September 28, 2026