RTX reported higher sales, earnings and free cash flow for full-year 2025 and issued a 2026 outlook projecting continued growth, supported by sustained demand across its commercial aerospace and defense portfolios and a growing pipeline of long-term defense contracts.
The company said Tuesday that it ended 2025 with a total backlog of $268 billion, including $107 billion tied to defense programs, as it continues to expand production capacity and execute on large, multiyear awards.
How Did RTX Perform in 2025?
RTX reported full-year sales of $88.6 billion, up 10 percent year over year, with adjusted earnings per share of $6.29. Operating cash flow reached $10.6 billion, while free cash flow totaled $7.9 billion, an increase of $3.4 billion compared to 2024.
Fourth-quarter sales were $24.2 billion, up 12 percent from the prior year. The company posted adjusted EPS of $1.55 for the quarter and generated $3.2 billion in free cash flow.
What Drove Growth Across RTX’s Segments?
All three RTX segments posted year-over-year growth in 2025.
Collins Aerospace generated $30.2 billion in full-year sales, supported by higher volumes across commercial original equipment, aftermarket services and defense programs tied to air traffic modernization and aviation infrastructure.
Pratt & Whitney reported $32.91 billion in sales, driven by increased commercial engine deliveries, aftermarket demand, and higher military production and sustainment activity, including the F135 engine supporting the F-35 program.
Raytheon recorded $28.04 billion in sales, with growth tied to higher volumes across air and missile defense, land warfare and naval programs.
How Do Recent Contract Awards Reinforce RTX’s Outlook?
RTX’s defense backlog and growth trajectory are reinforced by several large-scale awards announced in 2025.
RTX secured a $50 billion umbrella contract from the Defense Logistics Agency to supply Patriot missile defense systems, spare parts, services and sustainment over a 20-year period for U.S. and international customers.
Raytheon was named among more than 1,000 companies added to the Missile Defense Agency’s Scalable Homeland Innovative Enterprise Layered Defense contract. The multi-award vehicle supports research, development, prototyping and sustainment efforts tied to the Department of War’s Golden Dome homeland missile defense initiative.
What Does RTX Expect in 2026?
For 2026, RTX projected adjusted sales between $92 billion and $93 billion, representing organic growth of 5 percent to 6 percent. The company forecast adjusted EPS of $6.60 to $6.80 and free cash flow ranging from $8.25 billion to $8.75 billion.
“We enter 2026 with great momentum and are well positioned to deliver our 2026 financial outlook,” said RTX Chairman and CEO Chris Calio. “We remain focused on investing in new capabilities, expanding production capacity, and executing on our backlog to meet the growing needs of our customers.”
