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5 Revealing Analyst Questions From RTX’s Q4 Earnings Call

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Raytheon's Q4 results were met with a positive market response, driven by robust growth across its commercial and defense businesses. Management pointed to double-digit gains in commercial original equipment and aftermarket sales, as well as increased defense orders and backlog, as the primary contributors. CEO Chris Calio highlighted progress in operational execution, with output rising notably in critical programs and backlog reaching a record $268 billion. Additionally, investments in capacity and digitalization were credited for improved productivity and cost management across manufacturing sites.

Is now the time to buy RTX? Find out in our full research report (it’s free for active Edge members).

RTX (RTX) Q4 CY2025 Highlights:

  • Revenue: $24.24 billion vs analyst estimates of $22.65 billion (12.1% year-on-year growth, 7% beat)
  • Adjusted EPS: $1.55 vs analyst estimates of $1.47 (5.3% beat)
  • Adjusted EBITDA: $4.13 billion vs analyst estimates of $3.59 billion (17% margin, 14.9% beat)
  • Adjusted EPS guidance for the upcoming financial year 2026 is $6.70 at the midpoint, in line with analyst estimates
  • Operating Margin: 10.7%, in line with the same quarter last year
  • Organic Revenue rose 14% year on year (beat)
  • Market Capitalization: $269.6 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From RTX’s Q4 Earnings Call

  • Peter Arment (Baird) asked about the GTF fleet management plan. CEO Chris Calio confirmed technical and financial targets remain on track, noting a 20% reduction in aircraft-on-ground rates and higher MRO output.

  • Ronald Epstein (Bank of America) inquired about increased government scrutiny and capital allocation. Calio emphasized a commitment to ramping production and maintaining dividends, while supporting Department of Defense transformation goals.

  • Kristine Liwag (Morgan Stanley) questioned portfolio strategy and potential asset monetization. Calio stated Raytheon's scale and breadth are competitive advantages, with continued investment in core technologies and manufacturing capacity favored over divestitures.

  • Robert Stallard (RBC Capital Markets) probed the conservatism in Pratt & Whitney’s OEM guidance. CFO Neil Mitchill explained the balance between supporting fleet growth and managing engine mix, with growth expected in both new installations and aftermarket services.

  • Scott Dorsley (Deutsche Bank) asked why Pratt’s aftermarket growth is forecast to slow. Mitchill cited steady V2500 shop visits, legacy engine retirements, and continued growth in GTF aftermarket, with margin expansion expected as durability and pricing improve.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of commercial aircraft production increases and aftermarket service uptake, (2) the ability to ramp defense output and convert backlog efficiently amid global supply chain pressures, and (3) the impact of digital factory investments and cost reductions on segment margins. Progress in integrating new MRO partners and capacity expansions will also be key to sustaining growth.

RTX currently trades at $201.34, up from $194.13 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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