RTX Corporation (NYSE:RTX) reported fourth-quarter 2025 results on Tuesday, showing solid execution across its businesses, as higher demand drove growth in sales, earnings, and cash flow. Shares traded higher following the release after the company topped Wall Street expectations.
Fourth-quarter sales totaled $24.238 billion, up 12% from $21.623 billion a year earlier. GAAP diluted EPS was $1.19, compared with $1.10 in the prior-year quarter, and included $0.31 of acquisition accounting adjustments, $0.02 of restructuring, and $0.03 of other net significant and/or non-recurring items.
Adjusted EPS rose 1% to $1.55, as revenue of $24.238 billion and adjusted EPS both came in above analyst estimates of $22.737 billion and $1.47.
Cash Flow and Backlog
Operating cash flow in the quarter was $4.165 billion, and free cash flow was $3.195 billion, up sharply from the prior year. Capital expenditures totaled $1.0 billion.
RTX reported a backlog of $268 billion, including $161 billion of commercial and $107 billion of defense. The company also completed the divestiture of Collins' Simmonds Precision Products business.
Collins Aerospace
Collins Aerospace reported fourth-quarter sales of $7.736 billion, up 3%. Reported operating profit was $1.402 billion, while adjusted operating profit was $1.223 billion. Reported ROS was 18.1% and adjusted ROS was 15.8%.
Reported results included a gain on the Simmonds Precision Products sale, while adjusted profit was partially offset by divestiture impacts and "higher tariffs across the business."
Pratt & Whitney
Pratt & Whitney posted fourth-quarter sales of $9.496 billion, up 25%. Reported operating profit was $773 million, and adjusted operating profit was $776 million. Reported ROS was 8.1% and adjusted ROS was 8.2%.
Growth was driven by higher commercial and military volume, partially offset by "higher tariffs across the business," higher SG&A expense, and the absence of a prior-year insurance recovery of approximately $70 million. Prior-year results included a $157 million customer bankruptcy charge.
Raytheon
Raytheon reported fourth-quarter sales of $7.657 billion, up 7%. Reported and adjusted operating profit was $885 million, with ROS of 11.6%.
Results reflected higher volume on land and air defense systems, including Patriot and GEM-T, and naval programs, including Evolved SeaSparrow Missile and Tomahawk.
Full-Year 2025 Results
For the full-year 2025, RTX reported sales of $88.603 billion, up 10%, with organic sales growth of 11%. GAAP diluted EPS was $4.96, and adjusted EPS was $6.29. Net income attributable to common shareowners totaled $6.732 billion, while adjusted net income was $8.531 billion.
Operating cash flow for the year was $10.567 billion, and free cash flow was $7.940 billion. Capital expenditures totaled $2.627 billion. Cash and cash equivalents were $7.435 billion at year-end, and total debt was $37.700 billion.
Outlook
For 2026, RTX guided for adjusted sales of $92.0 billion to $93.0 billion versus a $92.461 billion estimate, with organic sales growth of 5% to 6%.
The company expects adjusted EPS of $6.60 to $6.80 versus a $6.71 estimate and free cash flow of $8.25 billion to $8.75 billion.
"RTX delivered strong sales, adjusted EPS and free cash flow in 2025, enabled by our continued focus on operational performance and execution," said RTX Chairman and CEO Chris Calio. "We enter 2026 with great momentum and are well positioned to deliver our 2026 financial outlook."
RTX Price Action: RTX shares were up 3.04% at $200.03 during premarket trading on Tuesday. The stock is trading near its 52-week high of $203.03, according to Benzinga Pro data.
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