The defense supplier is under pressure from US President Donald Trump’s tariffs on imports from major trading partners, including aluminum and steel, and supply chain problems in the aerospace industry.In July, RTX had said it expected $500 million in tariff costs by 2025. Chief Financial Officer Neil Mitchell said in an interview that the company had about $600 million in rate impacts for the year.
In addition, Trump signed an executive order earlier this month that tied stock buybacks, dividends and executive compensation to weapons delivery schedules, a move that could increase uncertainty around future capital returns.
RTX paid $3.57 billion in dividends in 2025, an increase of 11.1% from the previous year.
In a social media post, Trump singled out Raytheon and said RTX’s weapons unit’s government contracts could be at risk if it fails to curb stock buybacks. In a post-earnings call, management told investors: “We remain committed to the dividend. We feel comfortable we can meet both that dividend and the capital expenditure needs associated with delivering the current backlog and potential future volumes for key programs.”
By 2026, the company plans a $500 million increase in investments in facilities that make ammunition, Mitchell said. In August, the company’s engines division, Pratt and Whitney, won a $2.8 billion contract for 141 F135 engines. It also received a $1.6 billion F135 maintenance contract in December.
The unit, which also makes engines for Airbus’ A320neo jets, posted a 25% increase in adjusted sales in the fourth quarter.
Arlington, Virginia-based RTX also benefited from strong demand for its maintenance and repair services as a shortage of new commercial aircraft has pushed airlines to fly older, more cost-intensive fleets.
RTX’s Collins aerospace and aviation division’s adjusted revenue rose 3% in the fourth quarter, while its defense arm, Raytheon, reported a 7% increase in the same period.
RTX forecast 2026 adjusted revenue in the range of $92 billion to $93 billion, with the midpoint slightly higher than Wall Street expectations of $92.46 billion, according to data compiled by LSEG.
It reported total revenue of $24.24 billion for the quarter ended December 31, up about 12% from a year earlier.
Excluding items, earnings per share this quarter were $1.55, compared to $1.54 a year earlier.
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