RTX posted stronger revenue and profit for the fourth quarter, citing heightened demand for its engines and robust commercial aircraft maintenance activity. The company said adjusted sales at its Pratt & Whitney engine business climbed sharply, supported by recent contract awards and sustained servicing needs for older engines.
Pratt & Whitney benefited from increased shipments of the F135 turbofan that powers all variants of Lockheed Martin's F-35, and from continued maintenance demand for the F100 engine, which has been in service for decades. In August, the engine unit secured a $2.8 billion contract for 141 F135 engines, and in December it received a $1.6 billion sustainment contract for the F135. The unit also produces engines for Airbus A320neo aircraft and reported a 25% rise in adjusted sales during the quarter.
Collins Aerospace, RTX's aerospace and avionics segment, saw adjusted sales increase by 3% in the quarter, while the Raytheon defense business reported a 7% rise in adjusted sales over the same period. The company attributed part of the MRO strength to a shortage of new commercial aircraft, which has led airlines to operate older, more maintenance-intensive fleets.
For the quarter ended December 31, RTX reported total revenue of $24.24 billion, an increase of roughly 12% from the prior year. On an adjusted basis, earnings per share were $1.55, compared with $1.54 a year earlier. For full-year 2025, RTX paid $3.57 billion in dividends, an increase of 11.1% from the previous year.
Looking ahead, RTX provided a 2026 adjusted sales guidance range of $92 billion to $93 billion. The midpoint of that range was slightly ahead of the $92.46 billion consensus compiled by LSEG.
At the same time, the company faces potential uncertainty around capital returns following a recent executive order from the White House that ties share buybacks, dividends and executive compensation to weapons delivery schedules. The order specifically called out Raytheon and warned that government contracts could be at risk if the unit did not restrain stock buybacks. That policy development could influence RTX's future decisions on share repurchases and dividend policy.
Contextual note: The company highlighted that MRO demand remains elevated due to slower deliveries of new aircraft, which has pushed carriers to continue operating aging fleets that require more intensive maintenance.