RTX Corp. (NYSE:RTX)

Gross Profit Margin

The gross profit margin exhibits a general upward trend starting from 15.08% in March 2020, increasing gradually and reaching a peak around 20.53% in June 2023. Following this peak, there is a notable decline, dropping to 16.38% by December 2024, before recovering slightly to 19.53% in March 2025. This indicates initial improvement in core profitability with some recent volatility.

Operating Profit Margin

The operating profit margin initially showed negative values, with -3.34% in March 2020 and -3.59% in June 2020, before improving significantly to positive territory from September 2020 onward. It peaked at 8.73% in June 2023. Subsequently, there is a downward correction, reaching as low as 3.94% in December 2024, followed by a rebound to 8.20% in March 2025. This pattern suggests operational efficiency improvements were made, although recent fluctuations indicate some operational challenges.

Net Profit Margin

The net profit margin mirrors the operating profit margin's trend. It started with negative figures, -6.22% and -4.44% in the early periods of 2020, then turned positive from September 2020, steadily increasing to 8.08% by June 2023. Declines followed, reaching a low of 3.12% in December 2024, but recovering to 5.63% by March 2025. This shows an overall improvement in bottom-line profitability with recent periods of pressure.

Return on Equity (ROE)

The ROE also reflects a recovery from negative values, starting at -4.88% in March 2020 and moving into positive territory from September 2020. It increases steadily to 7.67% in June 2023, followed by some volatility with a decline to 3.83% in December 2024, and a rebound to 7.48% by March 2025. This indicates enhanced shareholder value generation over time with recent fluctuations.

Return on Assets (ROA)

The ROA follows a similar positive turnaround from a negative position of -2.17% in March 2020 to a peak of 3.43% in June 2023. Then it experiences a decline to 1.40% in December 2024 and some recovery to 2.79% in March 2025. This pattern suggests improved asset utilization efficiency with recent variability.

The analysis of the quarterly financial data reveals several notable trends and patterns in the company's performance over the reported periods.

Gross Margin (US$ in millions)

The gross margin experienced fluctuations, ranging from a low of 714 million in September 2023 to a peak of 4235 million projected for March 2025. Initially, the gross margin values show variability, with notable increases post-2020. From March 2021 onwards, the gross margin demonstrates an overall upward trend, despite some quarterly declines, suggesting improvements in production efficiency or pricing power over time.

Net Sales (US$ in millions)

Net sales display a general growth trend across the quarters, rising from 11,360 million in March 2020 to a projected 20,306 million by March 2025. Periodic declines are observed, such as in September 2023 (13,464 million), but these appear to be temporary setbacks amid an otherwise rising trajectory. The data indicate strong sales recovery and growth momentum, especially visible in the latter periods with peaks nearing 21,623 million in December 2024.

Gross Profit Margin (%)

The gross profit margin percentages reveal a steady increase in profitability ratios, moving from approximately 13.98% in June 2020 to an anticipated 19.53% in March 2025. Although there are some quarters with margin dips (notably around late 2023 and early 2024), the general upward slope suggests improved cost management or enhanced value generation from sales over time. The margin stabilizes around 20% during 2022 and 2023 before slightly fluctuating in later quarters.

Overall, the financial metrics portray a company that has been progressively increasing its sales volumes and gross margin values, with profit margins moving towards steadier and higher percentages. This indicates effective operational performance and potential gains in competitive positioning in the marketplace. Temporary deviations in the data reflect typical quarterly variability but do not undermine the broader positive trend visible in the reviewed periods.

Operating Profit (Loss) Trends

The operating profit exhibits significant volatility over the observed periods. Starting with a positive figure of 1,295 million USD in March 2020, there is a sharp decline to a loss of 3,760 million USD in June 2020. Following this trough, operating profit recovers steadily through 2020 and 2021, peaking around 1,343 million USD in September 2021 and maintaining relatively stable values above 1,300 million USD through mid-2022. In late 2022 and early 2023, operating profits further increase, reaching a peak of 1,652 million USD in March 2023. However, the trend reverses sharply in June 2023 with a loss of 1,396 million USD again, followed by recovery phases that show fluctuating operating profits ranging from 529 million USD to 2,111 million USD towards early 2025.

Net Sales Behavior

Net sales display an overall upward trajectory during the period under consideration. The sales volume begins at 11,360 million USD in March 2020 and generally increases, albeit with some fluctuations. Notable dips occur in March 2022 (15,716 million USD) and again in September 2023 (13,464 million USD), but the sales figures recover subsequently. From June 2023 onwards, net sales climb steadily, reaching a peak of 21,623 million USD as of March 2025. This demonstrates solid top-line growth across the majority of the reported quarters.

Operating Profit Margin Analysis

The operating profit margin data is incomplete for the early periods but provides insight from late 2020 forward. The margin transitions from negative values around -3.3% to -3.6% in late 2020 to positive and increasing values through 2021 and 2022, exceeding 8% in several quarters. This indicates improved operational efficiency or favorable revenue-cost structures during those periods. There is a temporary decline in the margin to around 4.79% in June 2023, which corresponds with the recorded loss in operating profit. The margin recovers moderately afterward, ranging between approximately 4% and 8% towards early 2025, reflecting varying profitability levels but generally maintaining positive operational performance.

Overall Observations

The data suggests that the company experienced substantial operational challenges during the mid-2020 period, as seen in the large operating loss and negative profit margins. Subsequently, there is a strong recovery and stabilization in profitability and sales, with growth in net sales supporting improvements in operating profit and margins through 2021 and 2022. The volatility observed in 2023, marked by a return to operating losses and dips in sales, indicates some renewed operational or market pressures. Nonetheless, by early 2025, the company appears to regain momentum with higher sales and restored operating profits, albeit with some fluctuation in margin levels. These patterns highlight a cyclical nature of performance with phases of recovery and setbacks.

Net Income (Loss) Attributable to Common Shareowners

The net income demonstrates significant volatility over the analyzed periods. A notable large loss of -3835 million USD occurred in June 2020, followed by a recovery and consistent positive net income from September 2020 through June 2023, where values generally ranged between approximately 686 million USD and 1426 million USD. However, a sharp decline reappeared in September 2023 with a loss of -984 million USD before rebounding again in the subsequent quarters. The periods from March 2024 to March 2025 exhibit fluctuations with positive net incomes, albeit with some quarters showing relatively low figures, notably 111 million USD in September 2024, indicating ongoing instability in profitability.

Net Sales

Net sales show a generally upward trend with some fluctuations. There was growth from 11,360 million USD in March 2020 to a peak of 18,315 million USD in June 2023, reflecting overall positive sales momentum despite intermediate fluctuations. A notable dip to 13,464 million USD occurred in September 2023, followed by a strong recovery in December 2023 and continuing increases through March 2025. This pattern suggests volatility in sales volumes or pricing, but the long-term trend remains positive with higher sales figures toward the end of the period.

Net Profit Margin

Net profit margin data, available from September 2020 onwards, reveals a transition from negative margins (-6.22% in September 2020 and -4.44% in December 2020) to sustained positive margins starting March 2021. Margins peaked at 8.08% in June 2023 before experiencing a decline to 4.76% in September 2023, correlating with the net income loss observed in the same period. There is evidence of recovery towards the end of the timeline, with margins stabilizing around 5.63% by March 2025. Overall, the margin trend reflects initial losses followed by improved operational profitability with intermittent setbacks.

Net Income (Loss) Attributable to Common Shareowners

The net income figures exhibit significant volatility over the analyzed period. An initial sharp loss of -3835 million US dollars occurred in the second quarter of 2020, followed by a recovery phase with positive income from the third quarter of 2020 through the first quarter of 2023. During this recovery, net income generally increased, peaking at 1426 million US dollars at multiple points, including December 2022 and December 2023. However, a notable dip occurred in the third quarter of 2023 with a loss of -984 million US dollars. The trend resumed positivity in the subsequent quarters, though with considerable fluctuations, including a relatively low net income of 111 million US dollars in the third quarter of 2024 before rising again to 1482 and 1535 million US dollars by March 2025.

Shareowners’ Equity

Shareowners' equity displayed overall growth from 39,411 million US dollars at the first quarter of 2020 to a peak above 73,000 million US dollars in the fourth quarter of 2020 and again in the first quarter of 2022 and 2023. After this peak period, equity saw a declining trend starting mid-2023, with values decreasing steadily to approximately 59,156 million US dollars by March 2025. The decline after 2023 suggests potential distribution, losses, or other equity-reducing activities possibly impacting the balance sheet during this period.

Return on Equity (ROE)

ROE data, though partially missing for early periods, shows negative returns in the third and fourth quarters of 2020 (-4.88% and -3.74% respectively), correlating with the large losses recorded in net income. From the first quarter of 2021, ROE turned positive and demonstrated a consistent upward trend, reaching a high of 7.94% in the second quarter of 2025. Despite some fluctuations, ROE remained generally strong from 2021 onward, indicating improved profitability in relation to equity. Notable dips occurred in the fourth quarter of 2023 (4.59%) and third quarter of 2024 (3.83%), mirroring the unstable net income during those quarters.

Summary of Trends and Insights

The company experienced a turbulent financial performance starting in early 2020, characterized by a significant loss impacting both net income and ROE negatively. A recovery period followed, with increasing net income and improving ROE suggesting enhanced operational results and profitability. Shareowners’ equity grew substantially during the initial recovery, supporting stronger financial positioning.

Starting around mid-2023, fluctuations in net income and a steady decline in shareholders’ equity indicate renewed challenges, possibly from operational or market changes. Despite this, ROE continued to record positive values with some variability, highlighting resilience in generating returns on equity amid fluctuating profits and equity bases.

The financial data reveals several noteworthy trends concerning net income attributable to common shareowners, total assets, and return on assets (ROA) over the observed quarterly periods.

Net Income (Loss) Attributable to Common Shareowners

Net income figures demonstrate considerable volatility across the quarters. Initially, a significant loss occurred in June 2020, marking the lowest point in this series. Subsequent quarters show a recovery trend with positive net income starting from September 2020 and generally increasing through December 2021. The periods from March 2022 to December 2023 reveal mostly stable and positive earnings, with values remaining in the range of approximately 1300 to 1500 million US dollars. However, a sharp negative deviation appears again in the third quarter of 2023, followed by a rapid rebound to positive earnings in the following quarter. The data from March 2024 to March 2025 reflects maintained profitability, albeit with some fluctuations, indicating resilience despite occasional setbacks.

Total Assets

Total assets exhibit relative stability throughout the timeline, with minor fluctuations within the range of approximately 158,000 to 164,000 million US dollars. There is no evident trend of significant growth or contraction, suggesting steady asset management or a stable asset base. Periods of slight increase and decrease alternate, but overall, total assets maintain a consistent level without major disruptions.

Return on Assets (ROA)

ROA data, though partially missing in early periods, displays a clear recovery and improvement trend from September 2020 onwards. Following negative values reported until December 2020, ROA turns positive in March 2021 and continues to rise, reaching peaks above 3% during late 2022 and early 2023. After peaking, ROA experiences a decline around late 2023 but remains positive, fluctuating mostly between 1.4% and 2.93% in subsequent quarters. This indicates increased effectiveness in utilizing assets to generate earnings as the periods progress.

In summary, the financial performance indicates recovery from initial substantial losses, with net income and ROA improving and stabilizing while total assets hold steady. The occasional negative net income spikes suggest episodic challenges, but the general trajectory reflects enhanced profitability and asset utilization efficiency over the observed quarters.