RTX Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - RTX Corporation's fourth-quarter 2025 adjusted earnings per share (EPS) of $1.55 exceeded the Zacks Consensus Estimate of $1.46 by 5.9% and improved 0.6% from the previous year's $1.54 [1] - The company reported total revenues of $24.24 billion for the fourth quarter, surpassing the Zacks Consensus Estimate of $22.74 billion by 6.6% and reflecting a 12.1% increase from $21.62 billion in the fourth quarter of 2024 [2] - RTX's total costs and expenses rose nearly 10.9% year over year to $21.95 billion, while adjusted operating profit increased to $2.6 billion from $2.1 billion in the prior-year quarter [3] Revenue Breakdown - Collins Aerospace segment sales reached $7.74 billion, up 3% year over year, driven by a 9% increase in commercial OE, a 13% increase in commercial aftermarket, and a 2% increase in defense [4] - Pratt & Whitney segment sales totaled $9.5 billion, reflecting a 25% year-over-year improvement, with commercial OE sales up 28% and military sales up 30% [5] - Raytheon segment recorded sales of $7.66 billion, up 7% year over year, supported by higher volume in land and air defense systems [6] Financial Performance - As of December 31, 2025, RTX had cash and cash equivalents of $7.44 billion, an increase from $5.58 billion a year earlier [7] - Long-term debt decreased to $34.29 billion from $38.73 billion as of December 31, 2024 [9] - Net cash flow from operating activities for 2025 was $10.57 billion, up from $7.16 billion the previous year, while free cash flow totaled $7.94 billion compared to $4.53 billion in 2024 [9] Future Guidance - RTX expects 2026 adjusted EPS to be in the range of $6.60-$6.80, with sales projected between $92-$93 billion [10] - The company anticipates generating free cash flow of $8.25-$8.75 billion in 2026 [10]