RTX Eyes Sustained Growth with Record Backlog, Robust Cash Flow, and Upbeat 2026 Outlook
Record Sales and Free Cash Flow Highlight 2025 Performance
RTX ended 2025 on a high note, posting strong quarterly and full-year financials that underline the company’s momentum across its aerospace and defense businesses. For the fourth quarter, RTX delivered $24.2 billion in sales—up 12% from the previous year—and adjusted net income of $2.11 billion, reflecting steady profitability. Full-year 2025 adjusted sales reached $88.6 billion, a 10% jump, with adjusted EPS rising to $6.29, up 10% from the prior year.
Free cash flow stood impressively at $7.94 billion for the full year, a $3.4 billion increase over 2024. The company’s massive $268 billion backlog—comprising $161 billion in commercial and $107 billion in defense orders—offers a healthy pipeline that positions RTX for growth as it heads into 2026.
| Key Metrics 2025 | 2025 | 2024 | % Change |
|---|---|---|---|
| Adjusted Sales (Billion) | $88.60 | $80.81 | 10% |
| Adjusted EPS | $6.29 | $5.73 | 10% |
| Free Cash Flow (Billion) | $7.94 | $4.53 | 75% |
| Backlog (Billion) | $268.00 (2025) | - | |
Segment Momentum: Double-Digit Gains in Pratt & Whitney, Defense, and Commercial Aerospace
Each major business unit contributed to RTX’s robust year. Pratt & Whitney, in particular, stood out with fourth quarter adjusted sales up 25% and adjusted operating profit up 8%—benefiting from higher commercial, aftermarket, and military volumes. Collins Aerospace saw a rise in commercial demand, reflected by a 9% organic growth rate in commercial original equipment and a 13% jump in aftermarket revenue for the quarter. Raytheon delivered a 7% sales boost, driven by gains in land, air, and naval defense systems.
| Segment | 2025 Sales (Billion) | 2025 Adjusted Op. Profit (Billion) | Adj. Op. Margin | Organic Sales Growth |
|---|---|---|---|---|
| Collins Aerospace | $30.20 | $4.89 | 16.2% | 9% |
| Pratt & Whitney | $32.92 | $2.73 | 8.3% | 17% |
| Raytheon | $28.04 | $3.23 | 11.5% | 6% |
2026 Outlook Signals Confidence in Progress and Operational Discipline
Looking ahead, RTX’s 2026 guidance projects adjusted sales of $92.0–$93.0 billion, organic sales growth of 5–6%, an adjusted EPS range of $6.60–$6.80, and free cash flow between $8.25 billion and $8.75 billion. CEO Chris Calio emphasized the company’s momentum and its “focus on investing in new capabilities, expanding production capacity, and executing on our backlog to meet the growing needs of our customers.”
Takeaway: Strong Fundamentals Position RTX for Another Year of Expansion
RTX’s performance in 2025 underscores the company’s resilience and ability to generate both earnings and liquidity even amid ongoing cost and supply challenges. With order books at record highs and continued investments across its business lines, RTX is staking out a clear path for measured growth into 2026. Investors and industry watchers will be keeping a close eye on execution against these robust targets, supply chain normalization, and sustained demand in both civil and defense aerospace.
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