RTX Faces $3 Billion Profit Hit from Engine Recall
RTX, formerly known as Raytheon Technologies, announced that it will take a $3 billion charge on its pretax results this quarter due to an engine manufacturing flaw affecting Pratt & Whitney GTF engines. The flaw requires accelerated inspections, resulting in the removal of 600 to 700 engines for shop visits through 2026. This issue will cost up to $7 billion and is expected to impact cash flow by $1.5 billion in 2025. Despite the financial impact, RTX reaffirmed its adjusted earnings estimates for 2023.