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RTX's Remarkable Financial Journey in 2025

RTX, a leading aerospace and defense company, has recently shared its impressive 2025 financial results and outlook for 2026, underscoring its resilience and strategic direction.

Fourth Quarter Highlights

In Q4 of 2025, RTX reported remarkable sales of $24.2 billion, reflecting a 12% increase compared to the previous year, and an impressive 14% organic growth. The company recorded a GAAP earnings per share (EPS) of $1.19, which included various adjustments such as acquisition accounting impacts and restructuring costs. After adjustments, the EPS rose to $1.55, indicating a modest growth of 1% year-on-year.

Operating cash flow reached $4.2 billion, and free cash flow was substantial at $3.2 billion, depicting the firm’s robust liquidity and ability to fund operations and investments. The backlog at the end of the quarter stood at $268 billion, a vital indicator of future revenue, comprising $161 billion in commercial contracts and $107 billion in defense orders.

RTX completed the divestiture of its Collins' Simmonds Precision Products business, signifying a strategic move toward streamlining operations. This action reflects a focus on optimizing portfolio performance and redirecting resources towards core growth areas.

Annual Performance Insights

For the entire year of 2025, RTX achieved total sales of $88.6 billion, a strong 10% increase compared to 2024. The company’s GAAP EPS totaled $4.96, of which $1.15 stemmed from acquisition-related adjustments. Adjusted EPS indicated a healthier growth trajectory, reaching $6.29, up 10% compared to the prior year. The operating cash flow for the year reached an impressive $10.6 billion, while free cash flow climbed to $7.9 billion, showcasing significant cash generation capacity.

2026 Outlook: Driving Forward

Looking ahead, RTX is optimistic about continued growth. For 2026, the company forecasts adjusted sales to be in the range of $92.0 to $93.0 billion, with expected organic sales growth of 5% to 6%. Adjusted EPS is anticipated to be between $6.60 and $6.80, reinforcing confidence in the company's operational performance.

RTX's leadership, under the guidance of Chairman and CEO Chris Calio, emphasizes the firm’s focus on enhancing operational performance and execution. Calio states, "We enter 2026 with great momentum and are well positioned to deliver our financial outlook. We remain committed to investing in new capabilities, enhancing production capacity, and effectively executing our extensive backlog to meet the evolving demands of our customers."

Strategic Focus and Investment

In 2025, RTX maintained its commitment to investing in innovative capabilities and expanding its production capacity to address the growing global demand for aerospace and defense solutions. The company’s stewardship in managing its resources, coupled with strategic divestitures, positions RTX favorably within the competitive landscape.

The latest financial performance reaffirms RTX’s commitment to delivering value to its shareholders while balancing investment priorities for sustainable growth. As the company navigates through a dynamic market environment, its focus remains on leveraging technology and operational excellence to meet the challenges of the future.

Conclusion

RTX's significant growth in 2025, coupled with an optimistic outlook for 2026, underscores its position as a powerhouse in the aerospace and defense sector. The company's adept management of its resources and strategic vision for the future instills confidence among stakeholders and sets a promising tone for the years ahead.