Summary
RTX Corporation's 2025 10-K filing reveals a robust financial performance, driven by significant growth across its key segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The company demonstrated strong top-line growth, with total net sales increasing by approximately 9.8% year-over-year to $88.6 billion, primarily fueled by organic growth across all segments, particularly Pratt & Whitney's commercial aftermarket and military sales, and Raytheon's land and air defense systems. Despite increased operational costs and supply chain pressures exacerbated by global macroeconomic conditions and geopolitical tensions, RTX managed to improve its operating profit margin to 10.5% from 8.1% in the prior year. This improvement was driven by higher sales volumes, favorable contract adjustments, and the absence of significant one-time charges recorded in the prior year. The company also reported a substantial increase in backlog to $268 billion, indicating strong future revenue potential, with a significant portion of this backlog attributed to Pratt & Whitney's defense programs and Raytheon's defense systems. RTX continues to invest in research and development, focusing on advanced technologies and sustainability initiatives. The company is navigating complex regulatory environments and supply chain challenges, including geopolitical impacts and ongoing compliance efforts. The financial results reflect a strengthening business position, supported by strategic investments and a strong demand for its aerospace and defense products and services.
Financial Highlights
53 data points| Revenue | $88.60B |
| R&D Expenses | $2.81B |
| SG&A Expenses | $6.09B |
| Operating Expenses | $79.72B |
| Operating Income | $9.30B |
| Net Income | $6.73B |
| EPS (Basic) | $5.02 |
| EPS (Diluted) | $4.96 |
| Shares Outstanding (Basic) | 1.34B |
| Shares Outstanding (Diluted) | 1.36B |
Key Highlights
- 1Total net sales increased by 9.8% to $88.6 billion in 2025, driven by organic growth across all business segments.
- 2Operating profit increased significantly to $9.3 billion, with the operating profit margin improving to 10.5%.
- 3Total backlog grew to $268 billion, signaling strong future revenue potential.
- 4Pratt & Whitney reported strong organic net sales growth of $4.8 billion, driven by commercial aftermarket, commercial OEM, and military sales.
- 5Raytheon saw an organic net sales increase of $1.7 billion, primarily from land and air defense systems programs.
- 6Collins Aerospace reported a 7% increase in net sales, driven by commercial aerospace aftermarket and defense sales.
- 7The company continues to invest in research and development, with company-funded R&D at $2.8 billion and customer-funded R&D at $4.9 billion.