01—Abstract
Summary
Summary of the 10-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Total net sales increased by 9.8% to $88.6 billion in 2025, driven by organic growth across all business segments.
- Operating profit increased significantly to $9.3 billion, with the operating profit margin improving to 10.5%.
- Total backlog grew to $268 billion, signaling strong future revenue potential.
- Pratt & Whitney reported strong organic net sales growth of $4.8 billion, driven by commercial aftermarket, commercial OEM, and military sales.
- Raytheon saw an organic net sales increase of $1.7 billion, primarily from land and air defense systems programs.
- Collins Aerospace reported a 7% increase in net sales, driven by commercial aerospace aftermarket and defense sales.
- The 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 6, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $88.60B$80.74B | +9.7% |
| R&D Expenses | $2.81B$2.93B | −4.3% |
| SG&A Expenses | $6.09B$5.81B | +5.0% |
| Operating Expenses | $79.72B$74.07B | +7.6% |
| Operating Income | $9.30B$6.54B | +42.2% |
| Net Income | $6.73B$4.77B | +41.0% |
| EPS (Basic) | $5.02$3.58 | +40.2% |
| EPS (Diluted) | $4.96$3.55 | +39.7% |
| Shares Outstanding (Basic) | 1.34B1.33B | +0.7% |
| Shares Outstanding (Diluted) | 1.36B1.34B | +1.0% |
05—Questions
Frequently Asked Questions
What were the main drivers of RTX's revenue growth in 2025?
RTX's revenue growth in 2025 was primarily driven by organic sales increases across its three main segments: Pratt & Whitney (commercial aftermarket, commercial OEM, and military sales), Collins Aerospace (commercial aerospace aftermarket, defense, and commercial OEM sales), and Raytheon (land and air defense systems, naval power programs). Higher sales volumes and favorable business mix contributed significantly to this growth.
How did RTX manage its operating costs and profitability in light of economic pressures?
RTX improved its operating profit margin to 10.5% in 2025, up from 8.1% in 2024. This was achieved through increased sales volumes, favorable contract adjustments, and the absence of significant one-time charges incurred in the prior year. While facing higher material, component, and labor costs due to inflation and supply chain constraints, the company effectively managed these pressures through operational efficiencies and strategic initiatives, though a full offset of cost increases on fixed-price contracts remained a challenge.
What is the significance of the increased backlog for RTX?
The backlog grew to $268 billion as of December 31, 2025, from $218 billion at the end of 2024. This substantial increase, particularly driven by Pratt & Whitney's defense programs and Raytheon's defense systems, indicates strong future demand for RTX's products and services, providing visibility into sustained revenue generation.
What are the key challenges or risks highlighted in the filing that investors should be aware of?
Key challenges and risks include supply chain disruptions and cost increases due to inflation and geopolitical factors, reliance on U.S. government spending and contract performance, cybersecurity threats, the potential impact of regulatory changes, and issues related to human capital management and talent acquisition. The filing also details ongoing legal and compliance matters, including those related to deferred prosecution agreements and consent agreements.
06—Continue