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RTX
FY2025 Q4
Improving
RTX Corporation earnings call
Buzzberg read
Full-year book-to-bill of 1.56 and record backlog of $268 billion
RTX reported strong FY2025 Q4 and full-year results, with revenue up 11% to $88.6B, EPS $6.29, and FCF $7.9B. The 2026 outlook calls for continued growth (organic revenue +5-6%, EPS $6.60-$6.80, FCF $8.25-$8.75B) driven by commercial aftermarket and defense demand. Management highlighted improving GTF MRO output, declining AOGs, and significant capacity investments. Full-year 2025 revenue $88.6B (+11% organic), EPS $6.29 (+10%), FCF $7.9B (+$3.4B).
Buzzberg read Full-year book-to-bill of 1.56 and record backlog of $268 billion RTX reported strong FY2025 Q4 and full-year results, with revenue up 11% to $88.6B, EPS $6.29, and FCF $7.9B. The 2026 outlook calls for continued growth (organic revenue +5-6%, EPS $6.60-$6.80, FCF $8.25-$8.75B) driven by commercial aftermarket and defense demand. Management highlighted improving GTF MRO output, declining AOGs, and significant capacity investments. Full-year 2025 revenue $88.6B (+11% organic), EPS $6.29 (+10%), FCF $7.9B (+$3.4B). Read full analysisCollapse analysis
RTX reported strong FY2025 Q4 and full-year results, with revenue up 11% to $88.6B, EPS $6.29, and FCF $7.9B. The 2026 outlook calls for continued growth (organic revenue +5-6%, EPS $6.60-$6.80, FCF $8.25-$8.75B) driven by commercial aftermarket and defense demand. Management highlighted improving GTF MRO output, declining AOGs, and significant capacity investments. Full-year 2025 revenue $88.6B (+11% organic), EPS $6.29 (+10%), FCF $7.9B (+$3.4B).
- 2026 guidance: revenue $92-93B, EPS $6.60-6.80, FCF $8.25-8.75B, CapEx $3.1B.
- GTF MRO output up 26% in 2025 (39% in Q4); AOGs declined and expected to continue falling.
- Raytheon munitions output up 20% in 2025, with further increases planned in 2026.
Revenue$24.238B+8% QoQ
EPS$1.55-9% QoQ
Gross margin19.46%Reported
Operating margin10.71%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Operations
Raytheon munitions output up 20% in 2025, further increases planned for 2026
Supply
GTF AOGs declined in Q4 and expected to continue decreasing in 2026
Show 3 more callouts
Capex
2026 capex raised to $3.1 billion to support capacity expansion
Guidance
Commercial aftermarket expected to grow high single digits in 2026
Demand
Raytheon backlog mix international now 47%, up 3 points
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $24.238B | +8% QoQ |
| EPS | $1.55 | -9% QoQ |
| Gross margin | 19.46% | Reported |
| Operating margin | 10.71% | Reported |
| Free cash flow | $3.195B | -21% QoQ |
| Capex | $0.97B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $3.1B | $3.1B | Initiated |
| EPS | FY2026 | $6.60–$6.80In line with consensus | $6.70 | Maintained |
| Free cash flow | FY2026 | $8.25B–$8.75BIn line with consensus | $8.5B | Maintained |
| Operating marginCOLLINS | FY2026 | 0.8% | 0.8% | Maintained |
| Revenue | FY2026 | $92B–$93BIn line with consensus | $92.5B | Maintained |
AI, capex & demand read
Management read
Confident
Management repeatedly emphasized strong demand, record backlog, and momentum, while framing challenges like GTF and tariffs as manageable.
Management AI read
Management mentioned deploying proprietary data analytics and AI tools across factories to monitor KPIs, identify bottlenecks, and track equipment health, noting benefits such as reduced cycle times and inventory. They plan to expand coverage across their footprint in 2026.
Investment and capacity
Management raised 2026 capex guidance to $3.1 billion, up from $2.6 billion in 2025, investing in capacity expansion across Raytheon, Collins, and Pratt, including munitions, sensors, castings, and forging production.
all 2 named companies below
Companiesreturns since call
Customers
Customers
Neil Mitchell
Pratt & Whitney GTF MRO output rose 26% in FY2025 and 39% in Q4, accelerating despite a 40% rise in heavy shop visits, signaling improving repair capacity and falling AOGs. — Faster MRO turnaround reduces AOGs for A320neo operators, boosting fleet availability for Airbus and lessors, and may ease pressure on Pratt's spares supply.
Evidence
“the rest will go between Airbus and spares.”
Supply chain
Supply chain
Chris Calio
Pratt & Whitney GTF MRO output rose 26% in FY2025 and 39% in Q4, accelerating despite a 40% rise in heavy shop visits, signaling improving repair capacity and falling AOGs. — Faster MRO turnaround reduces AOGs for A320neo operators, boosting fleet availability for Airbus and lessors, and may ease pressure on Pratt's spares supply.
Evidence
“MRO output was up 39% in the fourth quarter and up 26% for the full year, even as heavier shop visits increased 40% in 2025.”
External signals
Supply-chain alpha · 3returns since call
Pratt & Whitney GTF MRO output rose 26% in FY2025 and 39% in Q4, accelerating despite a 40% rise in heavy shop visits, signaling improving repair capacity and falling AOGs.
Collins experienced a 90 bps tariff drag on margins in 2025 but expects a $75 million year-over-year tailwind in 2026 as tariffs moderate, indicating direct tariff exposure is now abating.
Evidence
“That was a 90 basis point drag. So if you were to add that back, you know, we saw Collins … about $75 million lower than [2025].”
Raytheon output on critical munitions (GEMT, AMRAAM, Coyote) rose over 20% in 2025, and the company plans further significant increases in 2026 on SM-6 and Tomahawk, underscoring capacity ramp in high-demand defense programs.
Evidence
“We saw output increase by 20% across a number of our critical programs, including GEMT, AMRAAM, and Coyote … In 2026, we expect to significantly increase output again.”
Methodology & coverage
Management-only analysis. All 2 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.