RTX REPORTS 12 PERCENT FOURTH QUARTER REVENUE INCREASE SUPPORTED BY RECORD $268 BILLION BACKLOG
ARLINGTON, Va. -- For the fourth quarter of 2025, RTX reported sales of $24.2 billion, an increase of 12 percent compared to $21.6 billion in the same period the previous year. Organic sales growth for the quarter reached 14 percent. Net income attributable to common shareowners for the quarter was $1.6 billion, or $1.19 per share, compared to $1.5 billion, or $1.10 per share, in the fourth quarter of 2024. For the full year, the company recorded total sales of $88.6 billion and a net income of $6.7 billion.
The company ended the fiscal year with a record total backlog of $268 billion, a 23 percent increase over the prior year. This figure includes $161 billion in commercial orders and $107 billion in defense programs. Notable contract activity in the final quarter included a $1.2 billion award for Patriot missile defense systems for Spain and a $1.2 billion contract for Tamir missile production. The defense book-to-bill ratio for the year reached 1.31, reflecting sustained global demand for integrated air and missile defense and precision munitions. These awards support long-term production stability and are aligned with current modernization priorities for international and domestic partners.
Management issued 2026 financial guidance projecting adjusted sales between $92.0 billion and $93.0 billion, representing organic growth of 5 to 6 percent. This outlook indicates a moderate deceleration from 2025 growth rates but provides high revenue visibility given the current backlog. Key execution risks include persistent supply chain constraints in solid rocket motors and castings, as well as approximately $500 million in projected headwinds related to trade frictions and tariffs. The 2026 forecast also assumes continued recovery in commercial aftermarket throughput and a further reduction in aircraft-on-ground levels.
INDUSTRY SEGMENTS
Collins Aerospace
Fourth quarter sales at Collins Aerospace reached $7.7 billion, a 3 percent increase over the prior year. Organic sales growth for the segment was 8 percent when excluding the impact of divestitures, such as the Simmonds Precision Products business. Growth was primarily driven by a 9 percent increase in commercial original equipment and a 13 percent increase in commercial aftermarket volume, largely due to widebody and narrowbody platform demand. Defense sales for the segment remained relatively flat with a 2 percent increase.
Operating profit for Collins Aerospace was $1.4 billion, up 27 percent from the fourth quarter of 2024, though this figure included a gain from the divestiture of the Simmonds business. Adjusted operating profit was $1.22 billion, a 1 percent increase. Performance was bolstered by favorable commercial aftermarket mix and higher volume, though these gains were partially offset by higher tariffs and the loss of income from divested units.
Pratt & Whitney
Pratt & Whitney reported fourth quarter sales of $9.5 billion, representing a 25 percent increase year-over-year. Revenue growth was led by a 30 percent increase in military sales, supported by higher F135 production and sustainment activity. Commercial original equipment sales rose 28 percent, while commercial aftermarket sales increased 21 percent. The segment reported a 39 percent increase in maintenance, repair, and overhaul output as it continues to execute its Geared Turbofan fleet management plan.
Reported operating profit for the segment was $773 million, up 53 percent over the prior year period. Adjusted operating profit rose 8 percent to $776 million. Profitability was driven by volume growth in commercial aftermarket and military programs, though margins were compressed by a less favorable commercial aftermarket mix and higher selling, general, and administrative expenses. Operating margin decreased to 8.2 percent from 9.5 percent in the previous year.
Raytheon
Raytheon recorded fourth quarter sales of $7.7 billion, an increase of 7 percent over the same period in 2024. Growth was primarily attributed to higher volume across air and missile defense programs, including the Patriot and AMRAAM systems. The segment achieved a quarterly book-to-bill ratio of 1.35, resulting in a record segment backlog of $75 billion. International contracts now account for 47 percent of the Raytheon backlog.
Operating profit for the segment reached $885 million, representing a 7 percent increase. Adjusted operating profit grew 22 percent as margins expanded to 11.6 percent from 10.2 percent in the prior year. Profitability improvements were driven by net productivity gains, higher production volume, and a favorable program mix. The segment also benefited from a 20 percent increase in output for critical munitions, including GEM-T interceptors.