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, driven by robust demand and operational improvements.

• Record backlog of $268B at year-end, up 23% year-over-year, with $161B commercial and $107B defense, and a book-to-bill of 1.56.

• Strategic execution, operational excellence, and significant investments in capacity, technology, and digital solutions supported growth.

• All major segments contributed to double-digit organic sales and profit growth.

Financial highlights

• Q4 2025 adjusted sales were $24.2B, up 14% organically; adjusted EPS was $1.55, up 1% year-over-year.

• Q4 2025 net income attributable to common shareowners was $1.6B; adjusted net income was $2.1B, up 2% year-over-year.

• Full-year adjusted segment operating profit margin was 11.9%, up from 11.4% in 2024.

• 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 operating cash flow was $10.6B.

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 R&D.

• All three segments expected to deliver organic sales and operating profit growth with margin expansion.

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