Core Insights - RTX reported strong financial performance in Q4 and full-year 2025, with adjusted sales of $24.2 billion in Q4 and $88.6 billion for the full year, reflecting a year-over-year increase of 12% and 11% respectively on an organic basis [1][2] - The company highlighted durable demand in commercial aerospace and defense sectors, with a record backlog of $268 billion, up 23% year-over-year, indicating strong future growth potential [3][6] Q4 Performance - Adjusted segment operating profit for Q4 rose 9% to $2.9 billion, while adjusted EPS was $1.55, up 1% despite higher corporate expenses and tax rates [1] - Free cash flow for Q4 was reported at $3.2 billion, contributing to a total of $7.9 billion for the full year, which was an increase of $3.4 billion from 2024 [5][2] Full-Year 2025 Results - Full-year adjusted EPS was $6.29, up 10% year-over-year, with significant contributions from commercial OE (10% growth), commercial aftermarket (18% growth), and defense (8% growth) [2] - The company achieved a book-to-bill ratio of 1.56 for the year, with commercial orders accounting for approximately $161 billion and defense awards totaling $107 billion [6] 2026 Guidance - RTX provided guidance for 2026, projecting adjusted sales between $92 billion and $93 billion, representing 5% to 6% organic growth [10] - Adjusted EPS is expected to be in the range of $6.60 to $6.80, with operational performance anticipated to contribute positively despite headwinds from lower pension income and a higher share count [11] Segment Performance - Collins Aerospace reported Q4 sales of $7.7 billion, up 3% adjusted and 8% organically, driven by commercial OE and aftermarket strength [14] - Pratt & Whitney's Q4 sales increased 25% to $9.5 billion, with significant growth across all channels, including a 30% rise in military engine sales [14] - Raytheon experienced a 7% increase in Q4 sales to $7.7 billion, supported by higher volume in defense systems [14] Investment and Capacity Expansion - RTX plans to invest $10.5 billion in combined CapEx and R&D for 2026, including $3.1 billion in CapEx, to support capacity and technology advancements [4][14] - The company noted progress in its GTF fleet management plan, with a significant reduction in aircraft-on-ground levels and increased MRO output [13]

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 ...

Core Insights - RTX's stock performance remained stable despite a 0.6% decline in the S&P 500, indicating positive investor sentiment due to news from its Pratt & Whitney division [1][7] Business Division Highlights - Pratt & Whitney, a key division of RTX, received certification for its GTF Advantage engine from the European Union Aviation Safety Agency (EASA), following a similar certification from the FAA [2][3] - The GTF Advantage engine is designed to offer greater thrust and improved fuel efficiency compared to existing market alternatives [4] Market Impact and Future Prospects - Pratt & Whitney's president described the GTF Advantage engine as a potential "game-changer" for operators, although no specific sales impact estimates were provided for RTX [5] - Despite the positive news, RTX was not included in a list of top stock recommendations by The Motley Fool, which highlighted other stocks with potentially higher returns [6][8]

Core Insights - The GTF Advantage engine has received type certification from the European Union Aviation Safety Agency (EASA), allowing for entry into service expected in 2026 [1][2] - The GTF Advantage engine offers enhanced performance with 4% more takeoff thrust at sea level and 8% more at high altitude, along with improved fuel efficiency [2] - Pratt & Whitney has introduced the Hot Section Plus (HS+) upgrade option for existing GTF engines, which will provide 90 to 95% of the durability benefits of the GTF Advantage [3] Company Overview - Pratt & Whitney, a business unit of RTX, is a leader in aircraft engine design, manufacturing, and servicing for military and commercial aviation [4] - RTX is the largest aerospace and defense company globally, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [5]

Summary of RTX FY Conference Call - September 10, 2025 Company Overview - **Company**: RTX (NYSE: RTX) - **Industry**: Aerospace and Defense Key Points and Arguments Company Performance and Resilience - RTX has demonstrated strong organizational resilience and adaptability in response to unexpected challenges such as tariffs, regulatory changes, supplier fires, and a four-week strike at Pratt & Whitney [3][4] - Organic sales increased by 8% in the first half of the year, supported by a robust demand signal and a backlog of $236 billion [4][5] Investment and Growth Strategy - RTX plans to invest $10 billion in research and development (E&D) and capital expenditures (CapEx) in 2025, focusing on new products and long-term technologies [5] - The company is committed to long-term growth, with a focus on executing its backlog and ensuring timely delivery to customers [4][5] Market Trends and Demand - The consumer market remains resilient, with solid household balance sheets contributing to continued growth in revenue passenger kilometers (RPKs) and aftermarket services [6][8] - The aerospace sector is expected to see demand for approximately 40,000 new aircraft over the next 20 years, indicating significant growth potential [10][11] Defense Sector Insights - RTX is well-positioned to meet the increasing demand for defense capabilities, particularly in light of global threats and the evolving defense landscape [11][15] - The U.S. defense budget is expected to grow, with a focus on munitions and homeland defense, providing a favorable environment for RTX's defense products [15][16] Backlog and Production Capacity - RTX's defense backlog stands at nearly $64 billion, with plans to double production on key programs such as GEM-T, AMRAAM, and Coyote in 2025 [19][20] - The company has invested approximately $1 billion in capacity increases since 2020, with an additional $300 million planned for 2025 [20] Commercial Aerospace Outlook - The commercial aftermarket saw an 18% year-over-year increase in the first half of 2025, with strong performance from Collins and Pratt & Whitney [28][30] - The GTF Advantage engine has received certification and is undergoing aircraft certification testing, expected to enhance performance and fuel efficiency [35] Financial Outlook and Capital Allocation - RTX anticipates free cash flow of around $8.5 billion for 2025, driven by strong demand in both commercial and defense sectors [42][44] - The company is on track to return $37 billion to shareholders by year-end 2025, with a focus on debt reduction and dividend growth [46][47] Strategic Partnerships and Innovation - RTX Ventures Fund has made approximately 20 investments, focusing on partnerships with emerging defense tech companies to enhance product offerings [26] - The company is exploring ways to apply commercial contracting principles to the defense sector to improve efficiency and output [49][50] Future Outlook - RTX is optimistic about its positioning in both commercial and defense markets, emphasizing execution and delivery on its substantial backlog of $236 billion [51] Additional Important Insights - The company is actively monitoring supply chain health and is focused on ensuring that suppliers are aligned with demand [9][10] - RTX is committed to leveraging its extensive installed base and technological advancements to maintain a competitive edge in the evolving defense landscape [24][25]

Core Insights - Pratt & Whitney is launching the Hot Section Plus (HS+) upgrade for the PW1100G-JM engine, which will nearly double the time on wing compared to the current GTF engine, providing 90 to 95% of the durability benefits of the GTF Advantage engine [1][2] Group 1: Product Features - HS+ will consist of approximately 35 part numbers and will be available for purchase during maintenance visits, with installations starting in 2026 [2] - The GTF Advantage engine features advanced hot section technology, including improved airfoil design and optimized cooling hole characteristics to enhance durability [3] Group 2: Efficiency and Cost Savings - The GTF engine is recognized as the most efficient engine for single-aisle aircraft, offering up to 20% better fuel efficiency than previous generations, leading to significant cost savings for operators [4] Group 3: Company Overview - Pratt & Whitney, a business unit of RTX, specializes in the design, manufacture, and service of aircraft engines and auxiliary power units, supporting over 90,000 in-service engines globally [5] - RTX is the largest aerospace and defense company, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [6]