RTX (NYSE:RTX) concluded a pivotal fiscal 2025 on Tuesday, reporting full-year sales of $88.6 billion—a 10% increase year-over-year—driven by a "super-cycle" in commercial aerospace maintenance and a steady ramp-up in defense production.
The Arlington, Virginia-based company posted an adjusted diluted EPS of $6.29 for the year, supported by a particularly strong fourth quarter that saw revenue hit $24.2 billion, handily beating the $22.7 billion consensus estimate.
The highlight of the report was a record-breaking backlog of $268 billion, divided between $161 billion in commercial orders and $107 billion in defense contracts.
This massive reserve of work reflects a global rush to modernize air fleets and replenish missile defense stocks.
At Pratt & Whitney, sales surged 25% in the fourth quarter, fueled by demand for F135 military engines and a lucrative aftermarket for the Airbus A320neo fleet.
Meanwhile, the Raytheon defense segment reported a 7% sales rise as geopolitical tensions drove orders for land and air defense systems.
Cash generation also saw a significant turnaround in 2025.
RTX reported free cash flow of $7.9 billion, a $3.4 billion increase over the prior year, signaling that the company has largely moved past the peak financial drag of its powder metal engine inspections.
This improved liquidity allowed the firm to return $3.57 billion in dividends to shareholders over the course of the year.
For 2026, RTX provided a bullish forecast, targeting adjusted sales between $92 billion and $93 billion.
The company expects organic sales growth of 5% to 6% and an adjusted EPS in the range of $6.60 to $6.80.