RTX Earnings: Record Backlog Meets Supply Chain Reality

Описание: RTX is sitting on a goldmine of demand, driven by a recovering aerospace sector and rising global defense budgets. However, the Q4 2025 earnings reveal a critical tension: the company has a massive order backlog, but the real challenge lies in accelerating delivery speeds while managing soaring supply chain costs.

Key Earnings Highlights:
Revenue hit $24.24 billion, fueled by strong commercial aftermarket services and defense deliveries.
Free Cash Flow was impressive at $3.19 billion, showing efficient capital management despite heavy investment.
Operating Cash Flow covered Net Income by 1.57x, proving high quality of earnings.
The backlog has swelled to record levels ($268B), providing clear revenue visibility for years to come.
Margins faced pressure from supply chain friction, though high-margin aftermarket services provided a buffer.

The core investment thesis for RTX revolves around its execution capability. As a duopoly player in engines and a leader in defense systems, RTX has immense pricing power and a massive moat. The company is currently transitioning from a period of technical fixes (specifically the GTF engines) to scale execution, where unlocking the value of the backlog depends entirely on operational efficiency and supply chain throughput.

Key Risks to Watch:
Continued supply chain bottlenecks could delay deliveries and bloat inventory costs.
Fixed-price defense contracts may suffer margin compression if material inflation persists.
High R&D spending (over 15% of gross profit) weighs on short-term margins, though necessary for long-term dominance.

Full analysis: https://www.100baggers.club/company/RTX

---
Follow Us:
YouTube: @Milton-f7e
Twitter/X: @Miltons2Cents

Disclaimer: This video is for educational and informational purposes only and does not constitute investment advice. All analysis is based on publicly available information. Investing involves risk. Please do your own research.