AI Takeaway
RTX delivered strong FY2025 results with revenue rising 9.7% to $88.6B and operating income surging 42.2% to $9.3B, driven by robust demand across its defense and commercial aerospace segments.
Revenue
$88.6B
++9.74% YoY
EPS (Basic)
$5.02
++40.22% YoY
Operating Income
$9.3B
++42.25% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
RTX grew total revenue by 9.7% year-over-year to $88.6B in FY2025, reflecting strong demand in both commercial aerospace and defense end markets. This broad-based growth signals healthy order activity and backlog execution.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income jumped 42.2% to $9.3B, with operating margin expanding approximately 240 basis points to 10.5% from 8.1% in the prior year. This improvement suggests RTX successfully managed costs relative to revenue growth.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Operating cash flow surged 47.6% to $10.6B, while investing outflows narrowed to -$1.3B, implying free cash flow of approximately $9.3B. This robust cash generation supports debt service, dividends, and strategic investments.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockRTX carries a debt-to-equity ratio of 1.59, indicating significant financial leverage. With financing cash outflows of $7.5B in FY2025, a substantial portion of operating cash flow is directed toward debt obligations, limiting financial flexibility. Rising interest rates could further increase borrowing costs.
Source: Source: 10-K Balance Sheet & Cash Flow Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.55 versus the $1.48 analyst consensus — a +4.6% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $88.6B | $80.74B | +9.74% |
Operating Income | $9.3B | $6.54B | +42.25% |
Net Income | $6.73B | $4.77B | +41.01% |
EPS (Basic) | $5.02 | $3.58 | +40.22% |
EPS (Diluted) | $4.96 | $3.55 | +39.72% |
R&D Expense | $2.81B | $2.93B | -4.33% |
SG&A Expense | $6.09B | $5.81B | +4.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $171.08B | $162.86B | +5.05% |
Current Assets | $60.33B | $51.13B | +17.99% |
Total Liabilities | $103.94B | $100.9B | +3.01% |
Current Liabilities | $58.78B | $51.5B | +14.15% |
Stockholders' Equity | $65.25B | $60.16B | +8.46% |
Cash & Equivalents | $7.43B | $5.58B | +33.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $10.57B | $7.16B | +47.60% |
Investing Cash Flow | $-1.26B | $-1.53B | +17.54% |
Financing Cash Flow | $-7.49B | $-6.62B | -13.13% |
Share Buybacks | $50M | $444M | -88.74% |
D&A | $4.38B | $4.36B | +0.32% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 10.5% | 8.1% | +2.40% |
Net Margin | 7.6% | — | — |
ROE | 10.3% | — | — |
ROA | 3.9% | — | — |
Current Ratio | $1.026 | — | — |
Debt to Equity | $1.593 | — | — |
Other companies in Aerospace & Defense
RTX delivered strong FY2025 results with revenue of $88.6B (up 9.7% YoY) and net income of $6.7B (up 41.0% YoY). Operating income surged 42.2% to $9.3B, and operating cash flow jumped 47.6% to $10.6B, reflecting broad-based operational improvement.
RTX's earnings growth in FY2025 was driven by strong revenue growth of 9.7% combined with significant operating leverage, as operating margin expanded from 8.1% to 10.5%. The company also benefited from robust demand in both commercial aerospace and defense end markets, while managing R&D and cost structures effectively.
Key risks for RTX include high financial leverage (debt-to-equity of 1.59), a tight current ratio of just 1.03 that limits short-term liquidity, and significant dependence on U.S. and allied government defense contracts. Additionally, a 4.3% decline in R&D spending raises questions about long-term innovation investment.
RTX's financial health shows improvement in profitability and cash generation, with operating cash flow of $10.6B and cash balances growing 33.3% to $7.4B. However, the current ratio of 1.03 and debt-to-equity of 1.59 indicate the company carries meaningful leverage and limited short-term liquidity buffer.
No — RTX significantly reduced share buybacks in FY2025, spending only $50M compared to $444M in the prior year, an 88.7% decline. This suggests the company prioritized debt management and other capital allocation priorities over returning cash to shareholders through repurchases.