Rtx Corp (NYSE:RTX) stock rose 0.18% (As on January 28, 11:33:38 AM UTC-4, Source: Google Finance) after the company said it is “well positioned” to deliver on its 2026 outlook, as the world’s largest aerospace and defense group highlighted plans to expand its production capacity amid soaring demand for its missiles and aftermarket services. Buoyed by a recent uptick in geopolitical tensions, RTX’s defense unit has seen an increased call for its land and air defense systems, including its Patriot missiles. The division, Raytheon, posted a 7% rise in fourth-quarter sales versus a year earlier to $7.66 billion, pushing operating profit up by a similar rate to $885 million. RTX noted that revenue would bolstered by the restart of contracts “with a Middle East customer,” but did not provide further details about the client. At the same time, RTX has been buoyed by a combination of planemakers ramping up production and services for maintaining jets for cost-conscious airlines. Collins Aerospace, RTX’s avionics business, notched a 3% climb in quarterly sales to $7.74 billion, driving up profits by 27% to $1.4 billion. Meanwhile, sales at Pratt & Whitney, which churns out engines for Airbus’ A32neo planes, rose by 25% to roughly $9.5 billion. Operating profit also grew by 53% to $773 million. FY 25 Free cash flow was $7.9 billion, a significant increase of $3.4 billion from the previous year. The company’s backlog grew to $268 billion, a 23% increase year-over-year, with $138 billion of new awards received in 2025, resulting in a book-to-bill ratio of 1.56.
Further, the company also invested over $10 billion in capital expenditures and company/customer-funded research and development, demonstrating its commitment to innovation and capacity expansion. A significant milestone was achieved in Q4 with the European Union certification of the GTF Advantage engine.
RTX in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.55, beating the analysts’ estimates for the adjusted earnings per share of $1.47. The company had reported the adjusted revenue growth of 12 percent to $24.24 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $22.63 billion.
Looking ahead to 2026, RTX provided a positive outlook with adjusted sales projected at $92.0-$93.0 billion, representing organic growth of 5-6%. RTX Corp said it anticipates that adjusted earnings per share in its 2026 fiscal year will be between $6.60 and $6.80, compared with estimates of $6.70.