RTX Reports 12% Q4 Revenue Growth to $24.2B, Guides $92–93B Next Year
RTX reported Q4 2025 sales of $24.2B, up 12% year-over-year, with adjusted EPS of $1.55 and GAAP EPS of $1.19; free cash flow reached $3.2B. Full-year 2025 sales rose 10% to $88.6B with adjusted EPS of $6.29, and management guided 2026 sales of $92–93B and EPS of $6.60–6.80.
1. Q4 2025 Earnings Exceed Estimates
RTX reported adjusted earnings per share of $1.55 for the fourth quarter of 2025, surpassing the consensus estimate of $1.46 and rising 1% year-over-year. Fourth-quarter sales reached $24.2 billion, up 12% versus the prior year, driven by strong engine demand and robust commercial aircraft maintenance and repair services. Net income attributable to common shareowners was $1.6 billion, while adjusted net income climbed 2% to $2.1 billion. Operating cash flow in the quarter totaled $4.2 billion, enabling free cash flow of $3.2 billion after $1.0 billion in capital expenditures.
2. Full-Year 2025 Performance
For the full year 2025, RTX delivered sales of $88.6 billion, a 10% increase over 2024, with organic growth of 11%. Adjusted EPS rose 10% to $6.29, and GAAP earnings per share reached $4.96, up 40% year-over-year. The company generated operating cash flow of $10.6 billion and free cash flow of $7.9 billion, a 75% improvement from the prior year. Backlog stood at $268 billion as of year-end, split between $161 billion in commercial orders and $107 billion in defense contracts.
3. Segment Highlights
Collins Aerospace posted fourth-quarter sales of $7.74 billion, up 3%, with operating profit of $1.40 billion, a 27% increase driven by higher commercial aftermarket and widebody OE volumes. Pratt & Whitney delivered $9.50 billion in sales, up 25%, and operating profit of $773 million, a 53% gain supported by strong military engine production and large-commercial OE deliveries. Raytheon Technologies’ defense segment achieved $7.66 billion in sales, a 7% increase, and operating profit of $885 million, boosted by higher volume on Patriot, air defense systems and naval missile programs.
4. 2026 Financial Outlook
RTX forecasts adjusted sales of $92.0 billion to $93.0 billion for full-year 2026, reflecting expected organic growth of 5% to 6%. The company projects adjusted earnings per share in the range of $6.60 to $6.80 and free cash flow between $8.25 billion and $8.75 billion. Management plans to invest in new production capacity, expand manufacturing capabilities and execute on the $268 billion backlog to support continued growth in both commercial and defense markets.