At least a few models of Linksys/Cisco home routers I own had their firmware "encrypted" using GnuPG. They had the extension .gpg.img but could simply be decrypted with:
$ gpg --output decrypted.img --decrypt <model><ver>.gpg.img
binwalk can handle the rest.
It looks like they mainly did this for verification, as there is an RSA public key embedded on the device. It unfortunately does make it nearly impossible to flash any modified firmware such as OpenWRT, which is very frustrating. I say nearly as I haven't fully investigated the models that I own. Some routers have a emergency recovery flash method that may bypass the PGP check, I recall older D-Link models having a web flasher integrated into u-boot.