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CLAIM #52382 · RTX Corporation (RTX) · 2024Q4 earnings call · Jan 28, 2025 · due Dec 31, 2025

This also includes CapEx where we expect to invest between $2.5 billion and $2.7 billion during the year as we continue to expand capacity and accelerate automation efforts to support our long-term organic growth.

Neil Mitchill · CFO

PENDING
graded after results covering Dec 31, 2025 are reported

How to check this claim

Look at: Capital expenditures for fiscal year 2025

It came true if: Full-year capex between $2.5 billion and $2.7 billion

Where: Company cash flow statement (10-K / Q4 2025 earnings release)

In context

count. And finally, we also expect a $0.16 headwind from other items, which is primarily comprised of $0.06 of higher corporate expenses as we invest in our digital systems and capabilities and $0.05 of higher taxes. All of this brings us to our adjusted EPS outlook range of $6 to $6.15 per share. Moving to our cash walk. The first piece of our year-over-year growth comes from segment operating profit and working capital. Combined, this will drive an operational improvement of approximately $2.3 billion. Specific to working capital, we expect a year-over-year improvement of approximately $1.3 billion, with the majority coming from inventory and contract assets as we deliver commercial OE product, achieve defense delivery milestones and improve our supplier inputs and material throughput. This also includes CapEx where we expect to invest between $2.5 billion and $2.7 billion during the year as we continue to expand capacity and accelerate automation efforts to support our long-term organic growth. Next, the onetime legal and contract matters that we paid last year will not repeat in 2025, resulting in a tailwind of approximately $1.5 billion. We also see a headwind of approximately $900 million, primarily driven by the absence of an R&D tax-related benefit in the prior year and higher cash taxes in 2025. Finally, we expect powder metal compensation impacts to be between $1.1 billion and $1.3 billion, which is up around $100 million year-over-year at the midpoint. All in, we expect free cash flow to be between $7 billion to $7.5 billion in 2025. With that, let's turn to Slide 10, and I'll provide some details for the segment outlooks. Starting with Collins. We expect full year sales to be up low single-digits on an adjusted basis and up mid-single-digits organically. As I already no

Verify independently

SEC filings for RTX · Claim quote is verbatim from the 2024Q4 earnings call.