RTX (NYSE:RTX) Q4 2025 Earnings call January 27, 2026 08:30 AM ET Company ParticipantsChris Calio - Chairman and CEOKristine Liwag - Executive Director and Head of Aerospace and Defense Equity ResearchNathan Ware - VP of Investor RelationsNeil Mitchill - CFOScott Mikus - Director of Aerospace, Defense, and Space ResearchSheila Kahyaoglu - Managing Director in Equity ResearchConference Call ParticipantsDoug Harned - Managing Director and Senior AnalystGautam Khanna - Managing Director and Senior AnalystJason ...

RTX (NYSE:RTX) Q4 2025 Earnings call January 27, 2026 08:30 AM ET Speaker1Good day, ladies and gentlemen, and welcome to the RTX Fourth Quarter 2025 earnings conference call. My name is Livia and I'll be your operator for today. As a reminder, this conference is being recorded for replay purposes. On the call today are Chris Calio, Chairman and Chief Executive Officer; Neil Mitchill, Chief Financial Officer; and Nathan Ware, Vice President of Investor Relations. This call is being webcast live on the Intern ...

Earnings conference call 4th quarter 2025 January 27, 2026 © 2026 RTX Corporation. All rights reserved. Forward looking statements Note: This investor webcast presentation contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide RTX Corporation ("RTX") management's current expectations or plans for our future operating and financial performance, b ...

Group 1 - U.S. stock index futures show mixed performance, with Nasdaq futures up 0.63% and S&P 500 futures up 0.25%, while Dow futures are down 0.44% [1] - Major European indices also display mixed results, with Germany's DAX down 0.09%, UK's FTSE 100 up 0.35%, France's CAC up 0.37%, and the Euro Stoxx 50 up 0.28% [1] - The Federal Reserve officials expect to pause interest rate cuts this week, with an unclear path for future cuts [1] Group 2 - Samsung Electronics and SK Hynix are negotiating with Apple to significantly increase the price of LPDDR memory used in iPhones, with a potential increase of up to 100% [2] Group 3 - The European Union has initiated two compliance procedures to ensure Google meets its obligations under the Digital Markets Act [3] Group 4 - Microsoft has received approval to build 15 additional data centers in Wisconsin, USA [4] Group 5 - Micron Technology is investing $24 billion to expand production in Singapore to address AI chip shortages [5] - Synopsys CEO anticipates that the price increase and shortage of memory chips will persist until 2027 [5] Group 6 - Nike is reportedly planning to lay off 775 employees to enhance profitability and accelerate automation [6] Group 7 - Alibaba has officially launched its flagship reasoning model Qwen3-Max-Thinking, which is noted for its stronger initiative and proficiency in logical reasoning [7] Group 8 - XPeng Motors' CEO expects "very strong" growth this year, with overseas sales growth potentially surpassing that of the domestic market [8] Group 9 - VinFast is collaborating with AI company Autobrains to develop autonomous driving technology [9] Group 10 - The U.S. Treasury has terminated its contract with consulting firm Booz Allen, related to the leak of tax records for Trump and Musk [10] Group 11 - UnitedHealth reported Q4 revenue of $113.215 billion, with adjusted EPS down 69.02% year-over-year to $2.11 [11] - General Motors reported Q4 revenue of $45.29 billion, with a loss of $3.31 billion; the company approved a $6 billion stock buyback plan [12] - American Airlines reported Q4 adjusted EPS of $0.16, which was below expectations, and anticipates a revenue decrease of $150 million to $200 million due to winter storms [13] - Raytheon Technologies reported a 12% year-over-year increase in Q4 sales to $24.24 billion, with adjusted EPS of $1.55, exceeding expectations [14]

Core Viewpoint - The defense and aerospace company reported better-than-expected earnings and sales for the fourth quarter [1] Financial Performance - The company achieved higher earnings than analysts' expectations for the fourth quarter [1] - Sales figures also surpassed forecasts, indicating strong demand in the defense and aerospace sectors [1]

Core Insights - RTX reported higher sales in the fourth quarter, driven by strong demand for munitions and missiles, indicating robust market conditions and potential for future growth [1] Company Performance - The company experienced increased sales in the fourth quarter, attributed to ongoing demand for its products [1] - RTX has provided guidance for continued growth in the upcoming year, suggesting confidence in its market position and operational strategy [1]

Aerospace and defense giant RTX posted a higher fourth-quarter revenue and profit on Tuesday, driven by a rise in sales for its engines and a strong appetite for commercial aircraft maintenance and re... ...

Financial Performance - RTX reported fourth quarter 2025 sales of $24.2 billion, up 12% year-over-year, and full year sales of $88.6 billion, up 10% year-over-year[6][9] - GAAP EPS for Q4 2025 was $1.19, reflecting an 8% increase from $1.10 in Q4 2024, while full year GAAP EPS was $4.96, up 40% from $3.55[9][6] - Adjusted EPS for Q4 2025 was $1.55, a 1% increase from the prior year, and full year adjusted EPS was $6.29, up 10% year-over-year[6][9] - Net sales for Q4 2025 reached $24,238 million, a 12% increase from $21,623 million in Q4 2024[28] - Operating profit for Q4 2025 was $2,596 million, up 23% from $2,111 million in Q4 2024[28] - Net income attributable to common shareholders for Q4 2025 was $1,622 million, compared to $1,482 million in Q4 2024, reflecting a 9% increase[28] - Basic earnings per share (EPS) for Q4 2025 was $1.21, up from $1.11 in Q4 2024, representing a 9% growth[28] - Consolidated net sales for the quarter ended December 31, 2025, reached $24,238 million, an increase from $21,623 million in the same quarter of 2024, representing a growth of 7.5%[29] - Operating profit for the total segments was $3,060 million for the quarter ended December 31, 2025, compared to $2,434 million in the same quarter of 2024, reflecting a year-over-year increase of 25.6%[29] - Net income for the twelve months ended December 31, 2025, was $7,069 million, significantly higher than $5,013 million for the same period in 2024, representing a growth of 40.9%[31] - Total adjusted net sales for the twelve months ended December 31, 2025, reached $88,603 million, a 9.0% increase from $80,738 million in 2024[33] Cash Flow and Liquidity - Operating cash flow for Q4 2025 was $4.2 billion, with free cash flow of $3.2 billion, representing a 549% increase from $492 million in Q4 2024[9][8] - Free cash flow for the quarter ended December 31, 2025 was $3,195 million, a significant increase from $492 million in the same quarter of 2024[38] - For the twelve months ended December 31, 2025, free cash flow reached $7,940 million, compared to $4,534 million in 2024, reflecting a year-over-year growth of 75%[38] - The company reported a net cash flow from operating activities of $4,165 million for the quarter ended December 31, 2025, compared to $1,561 million in the same quarter of 2024, indicating a substantial increase of 167.5%[31] - The company reported net cash flows from operating activities of $10,567 million for the twelve months ended December 31, 2025, up from $7,159 million in 2024[38] Segment Performance - Collins Aerospace reported Q4 2025 sales of $7.736 billion, up 3% year-over-year, driven by a 9% increase in commercial OE and a 13% increase in commercial aftermarket[11][12] - Pratt & Whitney's Q4 2025 sales were $9.496 billion, a 25% increase year-over-year, supported by a 28% rise in commercial OE and a 30% increase in military sales[16][17] - Raytheon reported Q4 2025 sales of $7.657 billion, up 7% year-over-year, driven by higher volume in land and air defense systems[18][19] - Collins Aerospace segment reported net sales of $7,736 million for the quarter, an increase from $7,537 million in the same quarter of 2024[32] - Pratt & Whitney segment net sales increased to $9,496 million from $7,569 million year-over-year, reflecting a growth of 25.5%[32] - Raytheon segment net sales were $7,657 million, up from $7,157 million in the same quarter of 2024, marking a 7.0% increase[32] Guidance and Future Outlook - For full year 2026, RTX expects adjusted sales between $92.0 billion and $93.0 billion, with organic sales growth projected at 5% to 6%[6] - Adjusted EPS guidance for 2026 is estimated to be between $6.60 and $6.80, with free cash flow expected to be between $8.25 billion and $8.75 billion[6] - The company anticipates continued growth in adjusted net sales and operating profit, although specific forward-looking guidance is subject to variability[25] Costs and Expenses - The total costs and expenses for Q4 2025 were $21,948 million, an increase from $19,770 million in Q4 2024[28] - Interest expense for Q4 2025 was $400 million, down from $486 million in Q4 2024, indicating improved cost management[28] - Research and development expenses for Q4 2025 were $789 million, slightly down from $808 million in Q4 2024[28] Strategic Initiatives - The company is focused on strategic initiatives such as digital transformation and operational efficiency to enhance future performance[25] - The company’s backlog reached $268 billion, with $161 billion in commercial and $107 billion in defense[6] Balance Sheet Highlights - Cash and cash equivalents increased to $7,435 million as of December 31, 2025, up from $5,578 million a year earlier, marking a growth of 33.3%[30] - Total assets rose to $171,079 million as of December 31, 2025, compared to $162,861 million in 2024, indicating an increase of 5.5%[30] - Total current liabilities increased to $58,784 million as of December 31, 2025, from $51,499 million in 2024, reflecting a rise of 14.2%[30] - Total liabilities amounted to $103,941 million as of December 31, 2025, up from $100,903 million in 2024, which is an increase of 2.0%[30] - The company’s total equity increased to $67,102 million as of December 31, 2025, compared to $61,923 million in 2024, representing a growth of 8.4%[30] Non-Recurring Items - The company incurred a net pre-tax charge of approximately $0.1 billion related to a customer bankruptcy at Pratt & Whitney for the twelve months ended December 31, 2025[45] - A pre-tax gain of $0.1 billion was recorded for the sale of the Simmonds Precision Products business at Collins during the quarter ended December 31, 2025[45] - The twelve months ended December 31, 2025 included a non-cash pre-tax pension settlement charge of $0.3 billion related to a buy-out conversion of a group annuity contract[46]

Core Insights - RTX delivered strong sales, adjusted EPS, and free cash flow in 2025, with expectations for continued growth in 2026 [3][4][7] Financial Performance - Fourth quarter 2025 reported and adjusted sales were $24.2 billion, up 12% from the previous year, with GAAP EPS of $1.19 and adjusted EPS of $1.55, up 1% [4][7] - Full year 2025 sales reached $88.6 billion, a 10% increase year-over-year, with adjusted EPS of $6.29, up 10% [7][9] - Operating cash flow for Q4 was $4.2 billion, leading to free cash flow of $3.2 billion, a significant increase from $492 million in the prior year [5][9] Segment Performance - Collins Aerospace reported Q4 sales of $7.736 billion, a 3% increase, with operating profit up 27% to $1.402 billion [10][11] - Pratt & Whitney saw Q4 sales of $9.496 billion, a 25% increase, with operating profit rising 53% to $773 million [12][13] - Raytheon achieved Q4 sales of $7.657 billion, a 7% increase, with operating profit up 7% to $885 million [14][15] 2026 Outlook - The company anticipates adjusted sales between $92.0 billion and $93.0 billion for 2026, with organic sales growth projected at 5% to 6% and adjusted EPS expected between $6.60 and $6.80 [7][9]

RTX Corporation (NYSE:RTX) is anticipated to report an EPS of $1.46 and revenue of $22.7 billion in its upcoming quarterly earnings.The company benefits from rising defense budgets and new contracts, enhancing its position in the aerospace and defense industry.Despite a forecasted 5.2% year-over-year decline in EPS, RTX's revenue is expected to grow by 5.2% to $22.7 billion, with a notable 1.3% upward revision in the consensus EPS estimate over the past 30 days.RTX Corporation (NYSE:RTX) stands as a signifi ...