Overview
- Fourth-quarter revenue rose about 12% year over year to $24.24 billion, with adjusted EPS of $1.55 topping expectations.
- Free cash flow reached $3.2 billion in Q4 and $7.9 billion for 2025, and total backlog ended the year at a record $268 billion.
- RTX guided 2026 adjusted sales to $92–93 billion, adjusted EPS to $6.60–$6.80, and free cash flow to $8.25–$8.75 billion.
- Pratt & Whitney benefited from strong engine demand, including a $2.8 billion award for 141 F135 engines and a $1.6 billion F135 sustainment deal, as segment sales rose 25%.
- GTF repair cash outflows are expected to ease from about $1 billion in 2025 to roughly $700 million in 2026, while a new executive order tying capital returns to weapons delivery introduces uncertainty for Raytheon.