RTX Corp. posted stronger-than-expected fourth-quarter results and said the intensifying Iran conflict has sharply increased demand for its missile and munitions products, setting the stage for further earnings momentum as the company heads into its first-quarter report on April 21.
For Q4 2025, RTX reported adjusted earnings per share of $1.55, beating consensus by 5.4%, and revenue of $24.24 billion, up 12.1% from a year earlier and ahead of estimates. Free cash flow surged to $3.195 billion, a 549% year‑over‑year jump, driven in part by robust military aftermarket activity and production. Pratt & Whitney was a standout, with military revenues rising 30% and commercial aftermarket sales up 21%, while the Raytheon segment’s adjusted operating profit climbed 22% as missile volumes grew.
Management and analysts point to a record $268 billion backlog and an industrywide scramble for munitions as the immediate catalysts. RTX said munitions output across critical programs increased 20% in 2025 and that output for SM‑6 and Tomahawk missiles will rise again in 2026. Management expects Raytheon’s adjusted operating profit to improve by $200 million to $300 million versus the prior year in 2026, a signal that margin expansion from higher munition volumes is already contributing to the company’s recovery.
The company also disclosed two contract wins that underscore the demand surge. Pratt & Whitney secured a $6.6 billion F135 engine contract covering production lots 18–19, supporting the firm’s military engine pipeline. Separately, Raytheon received a $966.7 million contract modification for its AN/TPY‑2 radar system from the Missile Defense Agency, reinforcing near‑term revenue visibility tied to missile defense programs.
Investors will get an early read on whether the momentum continues when RTX reports Q1 2026 results before the market opens on April 21. Street estimates compiled ahead of the print peg Q1 adjusted EPS at about $1.51 versus a $1.47 Q1 2025 actual, and Q1 revenue at roughly $21.58 billion. For the full year, consensus in the note called for adjusted EPS of $6.70 on revenue of about $92.5 billion, implying modest year‑over‑year growth assuming the current production ramp holds.
CEO Chris Calio emphasized the company’s operational stance on the recent earnings call, saying, “We understand that our products are critical to national security. And I can tell you across the organization, we absolutely feel the responsibility and urgency to deliver more and to deliver it faster.” With Melius Research and other brokers highlighting the Middle East conflict as a durable demand driver, the next quarter will test whether RTX can convert geopolitical urgency and its record backlog into sustained margin and cash‑flow improvement.