RTX (RTX) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results with adjusted sales of $88.6B, up 11% organically, and adjusted EPS of $6.29, up 10% year-over-year.

• Free cash flow for 2025 was $7.9B, a $3.4B increase year-over-year, with a record backlog of $268B, up 23% year-over-year.

• Strategic execution and operational excellence drove double-digit organic sales and profit growth across all major segments.

• Backlog at year-end was $268B, split between $161B commercial and $107B defense.

• Positioned well for 2026 with robust demand and operational improvements.

Financial highlights

• Q4 2025 adjusted sales were $24.2B, up 12% adjusted and 14% organically; adjusted segment operating profit was $2.9B, up 9% year-over-year.

• Q4 adjusted EPS was $1.55, up 1% year-over-year; GAAP EPS for 2025 was $4.96, including $1.15 of acquisition accounting adjustments and $0.14 of restructuring.

• Q4 free cash flow was $3.2B; full-year free cash flow was $7.9B, up 75% year-over-year.

• Adjusted segment operating profit margin for 2025 was 11.9%, up from 11.4% in 2024.

• Backlog grew 23% to $268B, with $138B in new awards and a full-year book-to-bill of 1.56.

Outlook and guidance

• 2026 adjusted sales expected between $92B and $93B, with 5%-6% organic growth.

• Adjusted EPS guidance for 2026 is $6.60–$6.80; free cash flow expected between $8.25B and $8.75B.

• CapEx for 2026 projected at $3.1B, with continued investments in capacity and technology.

• Adjusted effective tax rate for 2026 projected at 18.0%–18.5%.

• Powder-metal compensation cash outflow expected to be $700M in 2026, down from $1B in 2025.