RTX
RTX Corp
Industrials • CIK: 0000101829
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Market Cap
$246.02B
P/E (TTM)
36.5x
Rev Growth (TTM)
+9.7%
Net Margin (TTM)
7.6%
FCF Yield (TTM)
3.0%
FCF Margin (TTM)
8.4%
Filing Intelligence
6.0/10
10-K filed Feb 6, 2026 • FY 2025
Executive Summary
RTX demonstrated improved operating profit in 2025, driven by organic growth across its segments and the absence of significant prior-year charges, alongside gains from business divestitures.. The...
Key Concerns
- ●The company faces margin pressures from increasing material and labor costs, particularly on fixed-price contracts, and notes uncertainty...
- ●Significant increase in contract assets and liabilities suggests complex contract accounting, warranting further review.
- ●Environmental remediation liabilities of $0.8 billion are accrued, with no material adverse effect expected on financial condition.
Cash Flow Health
Free Cash Flow6/8 positive
TTM$7.4B
Q4 '25
$3.0B-22%
Q3 '25
$3.9B+2112%
FCF Margin
TTM8.4%
Q4 '2512.6%-28%
Sector: 4.9%Above Avg
OCF Margin11.9%
OCF/NI1.57x
CapEx Coverage4.0x
FCF Yield3.0%
FCF Growth (2Y)+19%
Cash Conversion Cycle
51 days
DSO: 51+DIO: –−DPO: –
Capital Allocation & Returns
Growth Focused
Total Shareholder YieldTTM
TTM1.5%
Div Yield1.5%
+Buyback (TTM)0.0%
Prioritizing reinvestment over distributions
Dividend & Payout Metrics
Dividend Yield (TTM)1.5%
FCF Payout Ratio48.1%
Free Cash Flow (TTM)$7.4B
Stock Repurchases (TTM)$50.0M
Capital Return / FCF48.7%
Est. Dividends Paid (TTM)$3.6B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
7.1%
Stable
+0.0% YoY+4.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
8.5%
8Q: 8.2%
Asset Turnover
0.53x
8Q: 0.51x
Leverage (1+D/E)
1.53x
D/E: 0.53x
DuPont: 6.9% ≈ 7.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
5.44x
8Q:5.21x
+77.4%
Invested Cap Turn
0.84x
8Q:0.80x
+17.2%
CapEx Intensity
2.5%
8Q:2.1%
CapEx/Depreciation
0.60x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $88.6B | $24.2B↑7.8% | $22.5B↑4.2% | $21.6B↑6.3% | $20.3B↓6.1% | $21.6B↑7.6% | $20.1B↑1.9% | $19.7B↑2.2% | $19.3B |
Operating Income | $9.3B | $2.6B↑2.9% | $2.5B↑17.6% | $2.1B↑5.5% | $2.0B↑1935.0% | $100.0M↓95.1% | $2.0B↑283.4% | $529.0M↓71.7% | $1.9B |
Net Income | $6.7B | $1.6B↓15.4% | $1.9B↑15.8% | $1.7B↑7.9% | $1.5B↑3.6% | $1.5B↑0.7% | $1.5B↑1226.1% | $111.0M↓93.5% | $1.7B |
Operating Cash Flow | $10.6B | $4.2B↓10.2% | $4.6B↑912.9% | $458.0M↓64.9% | $1.3B↓16.4% | $1.6B↓38.1% | $2.5B↓7.7% | $2.7B↑699.1% | $342.0M |
Free Cash Flow | $7.4B | $3.0B↓21.9% | $3.9B↑2112.4% | $-194.0M↓128.2% | $688.0M↑109.8% | $328.0M↓82.2% | $1.8B↓9.8% | $2.0B↑808.7% | $-288.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
36.5x
Volatile
8Q: 116.1x-42698%
Valuation Lenses
Earnings
36.5x
vs – sector
Cash Flow
37.3x
EV/FCF vs –
Growth-Adj
0.9xPEG
Undervalued for growth
Quality-Adj
5.1P/E per %ROIC
ROIC: 7.1%
Shareholder Returns
Dividend
1.5%
Buyback
0.0%
Total Yield
1.5%
Market Cap$246.02B
EV$277.84B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
73/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
10.7%
8Q:–
Return on Invested Capital (ROIC)Top 25%
7.1%
8Q:–
+4.1%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 8.5%
Asset Turnover: 0.53x
Earnings Quality
Cash Conversion
1.57x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin–
Capital Efficiency
Invested Capital Turnover0.84x
Working Capital
Cash Conversion Cycle51 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
69/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
9.7%
OpInc Growth YoY
2496.0%
EPS Growth YoY
39.7%
FCF 3Y CAGR
19.2%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
—
Operating
10.5%
Above Avg in sector
Net
7.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+0.8 pts
FCF: 8.4% | Net: 7.6%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Adequate
Net Debt / EBITDA
–Net Debt: $26.07B
Interest Coverage
–
Balance sheet risk & solvency analysis