RTX
RTX's revenue rose 9.7% to $88.6 billion in fiscal 2025. Its operating margin was 10.5%, up from 8.1% a year earlier. Free cash flow was $7.9 billion, up 75.1%. It paid out $3.6 billion in dividends and buybacks, 46% of free cash flow. The diluted share count rose 0.9%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What RTX does
RTX is an aerospace and defense company that sells systems and services to commercial, military and government customers worldwide. It has three main segments. Collins Aerospace makes aircraft systems such as power systems, flight controls, landing gear, avionics and complete cabin interiors, and provides spare parts, repairs and other aftermarket services. Pratt & Whitney designs, makes and services aircraft engines, including the GTF engine family that powers the Airbus A320neo family and the F135 engine for the F-35 fighter jet. Raytheon makes missiles, air and missile defense systems, radars and sensors, including the Patriot system and Tomahawk and AMRAAM missiles.
The U.S. government is RTX's largest customer, representing a substantial majority of its defense sales, and all three segments also have substantial international sales. Boeing and Airbus are Collins' largest commercial customers, with combined sales of 16% of Collins segment sales in 2025, before discounts and incentives. Airbus accounted for 29% of Pratt & Whitney segment sales in 2025, also before discounts and incentives. Total backlog, meaning firm orders not yet filled, was $268 billion at the end of 2025. RTX says all of its businesses face significant competition from U.S. and foreign companies.
As of December 31, 2025, RTX had approximately 180,000 employees in 52 countries, including approximately 54,000 engineering professionals, with 69% of its employees in the U.S. It makes and services its products in approximately 225 facilities in approximately 25 countries.
Its biggest risks, as it describes them
- Changes in U.S. government defense spending, and the risks of its government contracts, including cost overruns on fixed-price work.
- Its dependence on the health of the commercial aerospace industry.
- A product safety or quality failure, such as the powder metal problem that forced extra inspections of its GTF engines.
- Supply chain disruptions and shortages of materials that have caused delays and higher costs.
- Political and economic risks in its international business, including sanctions, export rules and conflicts in the Middle East.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2016 to 2025, earnings per share fell 2.3% a year and net income grew 3.2% a year, as new shares raised the share count by 64% and diluted each share's earnings.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value RTX yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from RTX's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from RTX's fiscal 2025 free cash flow of $7.9B, net cash of −$29.7B at December 31, 2025 and 1,356 million diluted shares, from its filings. The scenarios are fitted to RTX: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 9.7% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Aerospace & Defense); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $197.48
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from RTX's earnings per share of $6.16 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 28.2×, the middle of RTX's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $197.48
- Value at this multiple, against the last close
- —
- RTX's P/E at the last close
- 32.1×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| BoeingBA | $188.31 | $2.81 | 67.0× |
| GE AerospaceGE | $288.43 | $8.66 | 33.3× |
| RTXRTX | $197.48 | $6.16 | 32.1× |
| General DynamicsGD | $357.04 | $15.45 | 23.1× |
| Lockheed MartinLMT | $635.20 | $28.15 | 22.6× |
Balance sheet
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 8.8 | 7.0 | 7.3 | 6.4 | 8.2 |
| Debt incl. finance leases | 31.5 | 31.9 | 43.8 | 41.3 | 37.9 |
| Net debt (negative means net cash) | 22.7 | 24.9 | 36.5 | 34.9 | 29.7 |
| Net debt to EBITDA | 2.3x | 2.6x | 4.7x | 3.2x | 2.2x |
| Debt to equity | 0.4x | 0.4x | 0.7x | 0.7x | 0.6x |
| Interest coverage | 3.9x | 4.3x | 2.4x | 3.5x | 5.0x |
| Current ratio | 1.2x | 1.1x | 1.0x | 1.0x | 1.0x |
| Quick ratio | 0.9x | 0.8x | 0.8x | 0.7x | 0.8x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought RTX shares on the open market, and 9 insiders sold $40.4 million.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Aug 18, 2026 | Ramsaran MaharajhEVP and General Counsel | Sold | 13,655 | $223.92 | $3.1 million | Form 4 |
| Jul 28, 2026 | Kevin G DaSilvaSenior VP and Treasurer | Sold | 2,250 | $216.93 | $488,092 | Form 4 |
| Jul 27, 2026 | Tracy A AtkinsonDirector | Sold | 2,295 | $218.05 | $500,425 | Form 4 |
| Jul 24, 2026 | Troy D BrunkPresident, Collins Aerospace | Sold | 8,557 | $210.30 | $1.8 million | Form 4 |
| Jul 24, 2026 | Kevin G DaSilvaSenior VP and Treasurer | Sold | 4,760 | $213.62 | $1.0 million | Form 4 |
| Feb 23, 2026 | Dantaya M WilliamsEVP & Chief HR Officer | Sold | 12,713 | $202.83 | $2.6 million | Form 4 |
| Feb 19, 2026 | Christopher T. CalioChairman, President and CEO, Director | Sold | 63,568 | $203.80 | $13.0 million | Form 4 |
| Feb 19, 2026 | Neil G. Mitchill JREVP, Chief Financial Officer | Sold | 35,755 | $205.57 | $7.4 million | Form 4 |
| Feb 19, 2026 | Ramsaran MaharajhEVP and General Counsel | Sold | 15,124 | $204.65 | $3.1 million | Form 4 |
| Feb 13, 2026 | Kevin G DaSilvaSenior VP and Treasurer | Sold | 8,136 | $201.30 | $1.6 million | Form 4 |
| Feb 12, 2026 | Shane G EddyPresident, P&w | Sold | 17,527 | $199.16 | $3.5 million | Form 4 |
| Feb 10, 2026 | Amy L JohnsonSenior VP and Controller | Sold | 8,088 | $195.03 | $1.6 million | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Fail | Pass | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Pass | Pass |
| Current ratio rose | Fail | Fail | Pass |
| Share count didn't rise | Pass | Pass | Fail |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | 5 of 8 | 7 of 8 | 7 of 8 |
| Accruals ratio | −2.9% | −1.5% | −2.3% |
Compare
Put RTX side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| RTX | FY25 | 9.7% | 10.5% | 9.0% | 7.8% | 2.2x | 7 | |
| Boeing | FY25 | 34.5% | 4.8% | −2.1% | 13.5% | 4.0x | 6 | Compare |
| Lockheed Martin | FY25 | 5.6% | 10.3% | 9.2% | 27.1% | 1.9x | 5 | Compare |
| General Dynamics | FY25 | 10.1% | 10.2% | 7.5% | 14.4% | 1.0x | 8 | Compare |
| GE Aerospace | FY25 | 18.5% | — | 15.8% | 35.8% | 0.7x | 5 | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 57.2 | 59.8 | 34.7 | 45.3 | 56.6 | 64.4 | 67.1 | 68.9 | 80.7 | 88.6 |
| Revenue growth | 2.0% | 4.5% | −42.0% | 30.7% | 24.8% | 13.8% | 4.2% | 2.8% | 17.1% | 9.7% |
| Gross profit | 26.9 | 28.8 | — | — | — | — | — | — | — | — |
| Research and development | 2.4 | 2.4 | 1.9 | 2.5 | 2.6 | 2.7 | 2.7 | 2.8 | 2.9 | 2.8 |
| Operating income | 8.2 | 8.1 | 2.9 | 4.9 | −1.9 | 5.1 | 5.5 | 3.6 | 6.5 | 9.3 |
| Net income | 5.1 | 4.6 | 5.3 | 5.5 | −3.5 | 3.9 | 5.2 | 3.2 | 4.8 | 6.7 |
| Diluted EPS (US$) | 6.12 | 5.70 | 6.50 | 6.41 | −2.59 | 2.56 | 3.50 | 2.23 | 3.55 | 4.96 |
| Diluted shares (millions) | 826 | 799 | 810 | 864 | 1,358 | 1,508 | 1,486 | 1,435 | 1,344 | 1,356 |
| Cash flow | ||||||||||
| Cash from operations | 6.4 | 5.6 | 2.7 | 5.8 | 4.3 | 7.1 | 7.2 | 7.9 | 7.2 | 10.6 |
| Capital expenditure | 1.7 | 2.0 | 1.5 | 1.9 | 1.8 | 2.1 | 2.3 | 2.4 | 2.6 | 2.6 |
| Free cash flow | 4.7 | 3.6 | 1.2 | 4.0 | 2.5 | 5.0 | 4.9 | 5.5 | 4.5 | 7.9 |
| Dividends paid | 2.1 | 2.1 | 2.2 | 2.4 | 2.7 | 3.0 | 3.1 | 3.2 | 3.2 | 3.6 |
| Share buybacks | 2.3 | 1.5 | 0.3 | 0.2 | 0.0 | 2.3 | 2.8 | 12.9 | 0.4 | 0.1 |
| Acquisitions | 0.7 | 0.2 | 15.0 | 0.0 | 0.4 | 1.1 | 0.1 | 0.0 | 0.0 | 0.0 |
| Stock-based compensation | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 | 0.4 | 0.5 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 7.2 | 9.0 | 3.7 | 4.9 | 9.7 | 8.8 | 7.0 | 7.3 | 6.4 | 8.2 |
| Debt incl. finance leases | 23.9 | 27.5 | 45.5 | 43.3 | 31.8 | 31.5 | 31.9 | 43.8 | 41.3 | 37.9 |
| Total assets | 89.7 | 96.9 | 134.2 | 139.6 | 162.2 | 161.4 | 158.9 | 161.9 | 162.9 | 171.1 |
| Total liabilities | 60.2 | 65.4 | 93.5 | 95.3 | 88.3 | 86.7 | 84.7 | 100.4 | 100.9 | 103.9 |
| Shareholders' equity | 27.6 | 29.6 | 38.4 | 41.8 | 72.2 | 73.1 | 72.6 | 59.8 | 60.2 | 65.2 |
| Margins and ratios | ||||||||||
| Gross margin | 47.0% | 48.1% | — | — | — | — | — | — | — | — |
| Operating margin | 14.4% | 13.6% | 8.3% | 10.8% | −3.3% | 8.0% | 8.2% | 5.2% | 8.1% | 10.5% |
| Net margin | 8.8% | 7.6% | 15.2% | 12.2% | −6.2% | 6.0% | 7.8% | 4.6% | 5.9% | 7.6% |
| Free cash flow margin | 8.2% | 6.0% | 3.5% | 8.7% | 4.5% | 7.8% | 7.3% | 7.9% | 5.6% | 9.0% |
| Return on capital | 14.2% | 10.8% | 2.4% | 5.3% | −1.7% | 4.3% | 4.9% | 3.2% | 5.4% | 7.8% |
| Return on equity | 18.4% | 15.9% | 15.5% | 13.8% | −6.2% | 5.3% | 7.1% | 4.8% | 8.0% | 10.7% |
| Return on assets | 5.7% | 4.9% | 4.6% | 4.0% | −2.3% | 2.4% | 3.2% | 2.0% | 2.9% | 4.0% |
| Net debt to EBITDA | 1.6x | 1.8x | 8.8x | 5.0x | 9.8x | 2.3x | 2.6x | 4.7x | 3.2x | 2.2x |