Defense & Military
RTX Reports $268 Billion Backlog and Strong 2025 Financial Results
RTX reports record $268B backlog and strong 2025 results with $88.6B sales, 10% growth, and positive 2026 outlook amid aerospace and defense demand.
This article is based on an official press release from RTX.
RTX (formerly Raytheon Technologies) has reported robust financial results for the fourth quarter and full year of 2025, surpassing Wall Street expectations for both sales and earnings. According to the company’s official announcement released on January 27, 2026, RTX enters the new fiscal year with a record backlog of $268 billion. This surge is driven by sustained demand across commercial aerospace and global defense sectors.
Despite facing external political pressures regarding capital allocation and persistent supply chain constraints, the company has projected continued growth for 2026. Management highlighted significant progress in resolving the Pratt & Whitney powder metal engine issue, noting that aircraft-on-ground (AOG) rates have begun to decline from their 2025 peaks.
In a statement accompanying the results, RTX leadership emphasized their focus on balancing shareholder returns with the capital expenditures necessary to meet historic demand levels.
“We enter 2026 with great momentum and are well positioned to deliver our 2026 financial outlook. We remain focused on investing in new capabilities, expanding production capacity, and executing on our backlog to meet the growing needs of our customers.”
, Chris Calio, Chairman & CEO, RTX
RTX delivered strong growth across its primary metrics in 2025, driven by volume increases in both commercial original equipment (OE) and defense systems.
For the quarter ending December 31, 2025, RTX reported sales of $24.2 billion, marking a 12% increase on a reported basis and 14% organic growth year-over-year. Adjusted earnings per share (EPS) reached $1.55, a 1% increase compared to the previous year. The company also generated strong cash flow to close the year:
For the full year, sales totaled $88.6 billion, up 10% from 2024. Adjusted EPS for the year rose 10% to $6.29. Notably, free cash flow for the year reached $7.9 billion, an increase of $3.4 billion year-over-year, demonstrating improved operational efficiency despite the costs associated with the GTF engine fleet management plan.
Looking ahead, RTX has issued guidance for 2026 that suggests continued expansion. The company projects adjusted sales between $92.0 billion and $93.0 billion, representing organic sales growth of 5% to 6%. Adjusted EPS is expected to land in the range of $6.60 to $6.80. The company also anticipates robust cash generation, forecasting free cash flow between $8.25 billion and $8.75 billion for 2026. This outlook assumes continued recovery in the commercial aerospace sector and sustained defense spending.
Performance across RTX’s three main business segments in Q4 2025 reflected the broader industry trends of high demand and supply chain recovery.
A critical operational focus for RTX has been the management of the “powder metal” manufacturing defect affecting Pratt & Whitney GTF engines. CEO Chris Calio provided an update on the recovery efforts, stating that the company is “turning the corner.”
“Our financial and technical outlooks remain on track… AOGs did come down in Q4, and they’re down over 20% from the highs of 2025. So making good progress there.”
, Chris Calio, Chairman & CEO, RTX
Financial documents indicate that compensation payments to Airlines, which peaked at approximately $1 billion in 2025, are expected to moderate to roughly $700 million in 2026.
While the earnings report focuses on financial metrics, recent government documents and industry reports highlight the external environment shaping RTX’s future.
According to reports on the Trump administration’s “Golden Dome” initiative (Executive Order 14186), the U.S. is pursuing a multi-layer missile defense project with an initial funding injection of $24.4 billion. As the Manufacturers of the Patriot system and a partner on the Iron Dome, RTX is positioned as a potential beneficiary of this initiative.
However, the company also faces political scrutiny. A recent executive order regarding defense contractor capital allocation has targeted companies prioritizing buybacks over production capacity. In response to questions regarding this pressure, RTX management affirmed their commitment to the dividend while noting they invested over $10 billion in CapEx and R&D in 2025 to expand capacity.
The tension between record-breaking demand and political pressure on capital allocation is likely to define RTX’s narrative in 2026. While the $268 billion backlog guarantees revenue visibility for years, the “Golden Dome” initiative suggests that capacity, rather than demand, will be the primary constraint. RTX’s ability to navigate the political landscape, balancing shareholder returns with the government’s demand for rapid production scaling, will be critical. The reduction in GTF AOG rates is a positive signal that operational bottlenecks are clearing, potentially freeing up resources for the defense ramp-up. What is RTX’s current backlog? How is the Pratt & Whitney engine issue affecting the company? What is the “Golden Dome” initiative? Sources:
RTX Reports Record $268 Billion Backlog and Strong 2025 Results Amid Defense Sector Growth
2025 Financial-Results
Fourth Quarter 2025
Full Year 2025
2026 Outlook and Guidance
Segment Highlights and Operational Updates
GTF Engine Recovery
Strategic Context: Defense Initiatives and Policy
AirPro News Analysis
Frequently Asked Questions
RTX reported a record backlog of $268 billion entering 2026.
While the issue cost the company approximately $1 billion in airline compensation in 2025, aircraft-on-ground (AOG) rates are down 20% from their peak. Compensation costs are expected to drop to roughly $700 million in 2026.
It is a reported U.S. government missile defense project (Executive Order 14186) with $24.4 billion in initial funding, intended to protect the U.S. homeland. RTX, as a maker of Patriot and Iron Dome systems, is a key industry player in this domain.
Photo Credit: Reuters – Benoit Tessier