RTX Corporation delivered a fourth-quarter 2025 performance that reflects solid top-line growth and stable profitability in a two-speed environment: defense programs and continued improvement in commercial aerospace demand. Revenue for Q4 2025 was $24.238 billion, up 12.09% year over year and 7.83% quarter over quarter, with a gross profit of $4.717 billion and a gross margin of 19.46%. Operating income was $2.306 billion (operating margin 9.51%), and net income reached $1.622 billion (net margin 6.69%), translating to an earnings per share (EPS) of $1.21. EBITDA stood at $3.856 billion, with an EBITDAR ratio of 15.9% for the quarter, signaling a healthy profitability runway even as mix shifts pressure margins modestly in the quarter.
RTX’s four-quarter trajectory in 2025 shows sustained revenue progression from $20.306 billion in Q1 to $24.238 billion in Q4, supported by a resilient defense exposure and a recovering commercial aerospace cycle. YoY revenue growth (~12%) outpaced some margin compression, with gross margins hovering near the low to mid-20% range across the year and EBITDA margins generally in the mid-teens. The company continued to generate meaningful EBIT and cash-flow-like earnings (EBITDA around $3.6–4.0 billion per quarter across the year), underscoring its ability to fund capital allocation, R&D, and ongoing program execution.
Looking ahead, RTX appears well-positioned to leverage a robust defense budget environment and an improving aftermarket services cycle, while navigating the cyclicality of commercial aerospace. Management commentary around cost discipline, continued progress on efficiency initiatives, and a focus on cash generation suggests the company intends to maintain a strong capital return program and pursue selective investments to sustain long-term growth. Investors should monitor defense program awards, engine program mix, supply-chain resilience, and potential inflationary pressures on input costs as key drivers of 2026 performance.