Executive Summary
RTX Corporation delivered a solid QQ3 2025 performance, underscored by resilient demand across its three operating segments (Collins Aerospace, Pratt & Whitney, and Raytheon) and robust cash generation. Revenue reached $22.48 billion, up 11.89% year over year (YoY) and 4.16% quarter over quarter (QoQ), with gross profit of $4.58 billion and a gross margin of approximately 20.38%. The company reported an operating income of $2.57 billion (operating margin ~11.42%) and net income of $2.16 billion (net margin ~9.63%), translating to diluted EPS of $1.41-$1.42. Cash flow metrics remain attractive, with operating cash flow per share of $3.46 and free cash flow per share of $3.00, supporting a dividend payout of 47.4% of net income and a cash per share position of $4.45. Management commentary continues to emphasize the favorable long-cycle dynamics of defense spending and the ongoing recovery in commercial aerospace, while acknowledging near-term competitive and supply-chain pressures. Overall, RTX strengthens its balance sheet (debt ratio ~0.24, interest coverage ~5.5x) and remains positioned to fund strategic investments and shareholder returns, even as macro and program execution risks persist.
Key Performance Indicators
Key Insights
Revenue: $22.478B in Q3 2025, YoY +11.89%, QoQ +4.16%
Gross Profit: $4.58B, Margin ~20.38%
Operating Income: $2.57B, Margin ~11.42%
Net Income: $2.164B, Margin ~9.63%
EPS (Diluted): $1.41
YoY EPS growth: +29.09%, QoQ EPS growth: +14.52%
Operating Cash Flow per Share: $3.46
Free Cash Flow per Share: $3.00
Cash per Share: $4.45
Dividend Payout Ratio: 47.4%
Current Ratio: 1.07, Quick Ratio: 0.81
Debt Ratio: 0.24, Interest Coverage: 5.48x
Backlog/OrderIntake not disclosed in the provided material; f...
Financial Highlights
Revenue: $22.478B in Q3 2025, YoY +11.89%, QoQ +4.16%
Gross Profit: $4.58B, Margin ~20.38%
Operating Income: $2.57B, Margin ~11.42%
Net Income: $2.164B, Margin ~9.63%
EPS (Diluted): $1.41
YoY EPS growth: +29.09%, QoQ EPS growth: +14.52%
Operating Cash Flow per Share: $3.46
Free Cash Flow per Share: $3.00
Cash per Share: $4.45
Dividend Payout Ratio: 47.4%
Current Ratio: 1.07, Quick Ratio: 0.81
Debt Ratio: 0.24, Interest Coverage: 5.48x
Backlog/OrderIntake not disclosed in the provided material; focus remains on cash generation and program execution
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
22.48B |
11.89% |
4.16% |
| Gross Profit |
4.58B |
13.53% |
4.66% |
| Operating Income |
2.57B |
26.58% |
21.89% |
| Net Income |
2.16B |
47.01% |
30.60% |
| EPS |
1.42 |
29.09% |
14.52% |
Key Financial Ratios
operatingProfitMargin
10.9%
operatingCashFlowPerShare
$3.46
dividendPayoutRatio
47.4%
Management Commentary
No earnings call transcript data provided in the input. Consequently, transcript highlights and quotes could not be extracted. When available, we will extract management themes on strategy, operations, and market conditions, with direct quotes and contextual significance.
Forward Guidance
No explicit forward guidance was included in the provided data. In a qualitative scenario, RTX’s outlook would hinge on (1) defense budget trajectories and budgetary appropriations that support Collins Aerospace and Raytheon programs, (2) commercial aerospace recovery pace and engine demand for Pratt & Whitney, and (3) execution of large programs and service revenue growth. Investors should monitor defense capex cycles, supplier resilience, and RTX’s ability to convert backlog into revenue while maintaining favorable free cash flow and margin discipline. If management communicates conservative scenarios, expect emphasis on cash generation, deleveraging, and potential capital returns; if upside guidance is provided, it would likely center on higher FCF, improved operating leverage, and backlog acceleration across services and aftermarket channels.