Government concentration is a structural fact you read straight from the segment table. RTX's Q3 2025 Form 10-Q and its FY2025 Form 10-K disaggregate sales to the U.S. government across the company's segments — Collins Aerospace, Pratt & Whitney, Raytheon and Other. The point of the disaggregation is to let you see where the dependence on Washington actually sits.
It sits at Raytheon. The defense segment's franchises — Patriot, LTAMDS, SM-3 for the Missile Defense Agency, SPY-6 — are overwhelmingly U.S.-government and allied-government demand, while Collins and Pratt carry more commercial-aerospace exposure. That split is why a single concentration number for RTX as a whole understates the picture: the defense segment is far more government-concentrated than the company average.
Concentration cuts both ways, and this desk insists on naming both. On the upside, U.S.-government demand is durable, multi-year and backed by appropriations; it is the steadiest revenue in the economy. On the downside, it ties the defense segment's trajectory to the budget cycle, continuing-resolution risk and program-level political decisions — exposures the company itself flags in its risk factors.
The disciplined read: don't price RTX's defense business on a blended government-revenue figure. Read the segment-level disaggregation, concentrate your attention on Raytheon, and treat its government concentration as both the source of its stability and the channel through which budget risk reaches the income statement. Filings on sec.gov, surfaced via EdgarBeast.