RTX reported fourth-quarter 2025 adjusted sales of $24.2 billion, marking a 12 percent increase versus prior year, driven by 14 percent organic growth. Adjusted EPS rose 1 percent to $1.55, topping analyst consensus of $1.47. Operating cash flow reached $4.2 billion, resulting in free cash flow of $3.2 billion—up from $0.5 billion a year ago—reflecting improved working capital management and segment profit increases across Collins Aerospace, Pratt & Whitney and Raytheon.

For full-year 2026, RTX projects adjusted sales between $92.0 billion and $93.0 billion, implying 5 to 6 percent organic growth. Adjusted EPS guidance is set at $6.60 to $6.80, consistent with consensus estimates, while free cash flow is expected to reach $8.25 billion to $8.75 billion. Management emphasized investment in new production capacity and execution against a backlog of $268 billion—split $161 billion commercial and $107 billion defense—as key drivers of sustained margin expansion.

RTX’s Raytheon business secured a $197 million contract from the U.S. Air Force Life Cycle Management Center to supply seven MS-110 multispectral reconnaissance pods to the Polish Air Force, marking Poland as the first NATO member to field the system. Separately, Raytheon was awarded a contract with TTM Technologies valued up to $200 million over three years for LTAMDS sensor components. These awards bolster RTX’s defense backlog and underscore its technological leadership in next-generation sensing and missile defense.

Jefferies maintained a Hold rating on RTX shares while lifting its 12-month price target from $210 to $225, citing confidence in the company’s ability to deliver on its 2026 guidance and capitalize on robust commercial engine demand. The upgrade reflects Jefferies’ expectation that free cash flow conversion above 90 percent of net income and disciplined capital returns—including a $2 billion share buyback announced for 2026—will support shareholder value even in a conservative valuation environment.