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
Revenue
Increasing
22.48B
QoQ: 4.16% | YoY: 11.89%
Gross Profit
Increasing
4.58B
20.38% margin
QoQ: 4.66% | YoY: 13.53%
Operating Income
Increasing
2.57B
QoQ: 21.89% | YoY: 26.58%
Net Income
Increasing
2.16B
QoQ: 30.60% | YoY: 47.01%
EPS
Increasing
1.42
QoQ: 14.52% | YoY: 29.09%
Revenue Trend
Margin Analysis
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
Gross Profit Margin
Fair
20.40%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
10.90%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
8.53%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.14%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.97%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.07
Current ratio meets minimum requirements but limited cushion