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.