RTX (RTX) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, January 27, 2026 astatine 9:20 AM CST 49 min read

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Jan. 27, 2026, 8:30 a.m. ET

• Chief Executive Officer — Chris Calio

• Chief Financial Officer — Neil Mitchill

• Vice President, Investor Relations — Nathan Ware

Chris Calio: Thank you, and bully morning, everyone. Delivered beardown sales, adjusted EPS, and escaped currency travel successful the 4th quarter, underscoring our momentum and absorption connected execution crossed RTX. For the afloat year, adjusted income were $88.6 billion, up $9 cardinal twelvemonth implicit twelvemonth oregon 11% organically. Driven by 10% maturation successful commercialized OE, 18% maturation successful commercialized aftermarket, and 8% maturation successful defense. Adjusted EPS of $6.29 was up 10% twelvemonth implicit twelvemonth connected driblet done from higher sales. And escaped currency travel was a robust $7.9 billion, up $3.4 cardinal twelvemonth implicit year. Our show continues to beryllium driven by the durable request for our products and services, and operational improvements enabled by our halfway operating system.

On the orders front, we ended 2025 with a afloat twelvemonth publication to measure of 1.56, resulting successful different grounds backlog of $268 billion, up 23% twelvemonth implicit twelvemonth with astir $161 cardinal of commercialized orders, and $107 cardinal of defence awards. On the commercialized broadside of the business, our backlog is up 29% twelvemonth implicit twelvemonth driven by increasing craft accumulation rates, and resilient rider aerial travel. Orders and commitments during the twelvemonth included 1,500 GTF engines, and implicit 2,400 Pratt Canada engines. On the defence side, our publication to measure for the twelvemonth was a precise beardown 1.31, and included respective important 4th fourth awards.

For example, Raytheon booked $1.2 cardinal to proviso Spain with further Patriot aerial and rocket defence systems. It was besides awarded a $1.2 cardinal declaration for Tamir rocket production, with enactment to beryllium executed successful our precocious completed Camden, Arkansas facility. Raytheon booked $40 cardinal of awards successful the year, and their planetary backlog premix is present 47%, up 3 points from 2024. At Pratt, the subject concern booked $2.2 cardinal successful sustainment contracts to enactment aggregate engines including the F135, and the F119.

And astatine Collins successful the 4th quarter, the concern was awarded a $438 cardinal declaration from the FAA to present radar systems for the broader radar strategy replacement program, which volition assistance modernize the US aerial postulation power system. So overall, a precise beardown twelvemonth of orders crossed the company, highlighting the increasing request of our products and services and mounting america up precise good heading into 2026. Neil volition locomotion you done the details of the 4th fourth and our 2026 outlook successful a fewer minutes, but first, fto maine concisely remark connected the operating situation that we spot today.