Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
RTX Corp., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The profitability ratios demonstrate a period of initial improvement followed by a significant decline and subsequent recovery. Generally, the metrics experienced growth through the first half of 2023 before experiencing a marked downturn in the latter half of the year. A recovery phase is then observed, continuing into the first half of 2025.
- Gross Profit Margin
- The gross profit margin exhibited a gradual increase from 19.94% in March 2022 to 20.53% in March 2023. However, a substantial decrease occurred in September 2023, falling to 17.36%, and continued to 16.38% in June 2024. A recovery commenced in September 2024, reaching 20.13% by September 2025, indicating improved cost management or pricing strategies in the latter period.
- Operating Profit Margin
- Similar to the gross profit margin, the operating profit margin showed improvement, rising from 7.75% in March 2022 to a peak of 8.73% in March 2023. The decline observed in the latter half of 2023 was more pronounced, dropping to 4.79% in September 2023. The operating profit margin then demonstrated a consistent upward trend, culminating in 10.50% by December 2025, suggesting enhanced operational efficiency and cost control.
- Net Profit Margin
- The net profit margin mirrored the trends of the gross and operating profit margins. It increased from 6.47% in March 2022 to 8.08% in March 2023, before declining to 4.76% in September 2023. A recovery was evident, with the net profit margin reaching 7.60% by December 2025, indicating improved overall profitability.
- Return on Equity (ROE)
- ROE followed a similar pattern, increasing from 5.79% in March 2022 to 7.67% in June 2023, then decreasing to 4.59% in September 2023. The metric then recovered, reaching 10.32% by December 2025, suggesting improved efficiency in utilizing shareholder equity to generate profits.
- Return on Assets (ROA)
- ROA exhibited a comparable trend, rising from 2.63% in March 2022 to 3.43% in June 2023, followed by a decline to 1.96% in September 2023. The metric then showed a recovery, reaching 3.94% by December 2025, indicating improved efficiency in utilizing assets to generate profits.
The concurrent movements of these ratios suggest that the observed fluctuations are likely driven by factors impacting overall business performance rather than isolated events affecting specific areas. The significant decline in the latter half of 2023 warrants further investigation to determine the underlying causes, while the subsequent recovery indicates successful implementation of corrective measures or favorable market conditions.
Return on Sales
Return on Investment
Gross Profit Margin
RTX Corp., gross profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Gross margin | 4,717) | 4,580) | 4,376) | 4,116) | 4,235) | 4,034) | 3,580) | 3,561) | 4,009) | 714) | 3,797) | 3,569) | 3,567) | 3,487) | 3,458) | 3,156) | |||||
| Net sales | 24,238) | 22,478) | 21,581) | 20,306) | 21,623) | 20,089) | 19,721) | 19,305) | 19,927) | 13,464) | 18,315) | 17,214) | 18,093) | 16,951) | 16,314) | 15,716) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | 20.08% | 20.13% | 20.05% | 19.53% | 19.09% | 19.21% | 16.38% | 17.01% | 17.54% | 17.36% | 20.43% | 20.53% | 20.38% | 20.49% | 20.17% | 19.94% | |||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 4.79% | 1.10% | -0.32% | -2.09% | -2.99% | 3.13% | 9.47% | 10.04% | 9.93% | 9.09% | 6.65% | 7.20% | 5.26% | -1.41% | 2.74% | 3.20% | |||||
| Caterpillar Inc. | 30.05% | 31.65% | 32.64% | 33.92% | 34.49% | 34.33% | 34.29% | 33.59% | 33.04% | 31.71% | 30.44% | 28.74% | 26.91% | 26.14% | 25.52% | 25.71% | |||||
| Eaton Corp. plc | 37.59% | 38.10% | 38.16% | 38.45% | 38.20% | 37.83% | 37.53% | 37.06% | 36.36% | 35.54% | 34.51% | 33.64% | 33.19% | 32.83% | 32.55% | 32.36% | |||||
| GE Aerospace | 31.55% | 32.16% | 31.98% | 31.87% | 30.79% | 27.00% | 24.74% | 22.97% | 21.95% | 23.26% | 23.29% | 24.24% | 24.55% | 24.52% | 25.22% | 24.26% | |||||
| Honeywell International Inc. | 36.93% | 36.94% | 38.08% | 38.06% | 38.09% | 37.60% | 37.56% | 37.46% | 37.28% | 38.03% | 37.79% | 37.36% | 36.99% | 35.56% | 34.22% | 32.95% | |||||
| Lockheed Martin Corp. | 10.15% | 8.16% | 8.16% | 10.11% | 9.75% | 11.97% | 11.91% | 12.10% | 12.55% | 12.54% | 12.70% | 12.74% | 12.56% | 12.99% | 13.39% | 13.36% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Gross profit margin = 100
× (Gross marginQ4 2025
+ Gross marginQ3 2025
+ Gross marginQ2 2025
+ Gross marginQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × (4,717 + 4,580 + 4,376 + 4,116)
÷ (24,238 + 22,478 + 21,581 + 20,306)
= 20.08%
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the margin demonstrated a slight increasing trend, followed by a significant decline, and then a recovery towards the end of the period.
- Initial Trend (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the gross profit margin generally increased, moving from 19.94% to 20.38%. This indicates a strengthening ability to control production costs relative to sales during this timeframe. The highest point within this period was 20.49% in September 2022.
- Significant Decline (Mar 31, 2023 – Sep 30, 2023)
- A notable decrease in the gross profit margin occurred between March 31, 2023, and September 30, 2023. The margin fell from 20.53% to 17.36%, representing a substantial contraction. This decline coincided with a significant reduction in net sales during the September 30, 2023, quarter, suggesting potential challenges in maintaining profitability with lower sales volume.
- Recovery and Stabilization (Dec 31, 2023 – Dec 31, 2025)
- Following the decline, the gross profit margin began to recover. By December 31, 2023, it reached 19.09% and continued to rise, reaching 20.08% by December 31, 2025. While there were minor fluctuations, the margin generally stabilized within the 19% to 20% range during this period. The highest value in this recovery phase was 20.13% in September 2025.
- Net Sales Correlation
- The gross profit margin appears to be correlated with net sales. Periods of lower net sales, such as September 30, 2023, generally corresponded with lower gross profit margins. Conversely, periods of higher net sales often coincided with improved margins, although this relationship wasn't consistently direct.
Overall, the gross profit margin demonstrated a cyclical pattern over the analyzed period. The initial growth was followed by a sharp decline and then a period of recovery and relative stabilization. The observed fluctuations warrant further investigation into the underlying factors affecting both sales volume and production costs.
Operating Profit Margin
RTX Corp., operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating profit (loss) | 2,596) | 2,523) | 2,146) | 2,035) | 2,111) | 2,028) | 529) | 1,870) | 1,847) | (1,396) | 1,458) | 1,652) | 1,501) | 1,480) | 1,353) | 1,080) | |||||
| Net sales | 24,238) | 22,478) | 21,581) | 20,306) | 21,623) | 20,089) | 19,721) | 19,305) | 19,927) | 13,464) | 18,315) | 17,214) | 18,093) | 16,951) | 16,314) | 15,716) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | 10.50% | 10.25% | 9.95% | 8.20% | 8.10% | 7.94% | 3.94% | 5.32% | 5.17% | 4.79% | 8.63% | 8.73% | 8.07% | 7.93% | 7.81% | 7.75% | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 4.79% | -10.24% | -12.27% | -14.63% | -16.10% | -9.08% | -2.31% | -0.93% | -0.99% | -1.86% | -4.62% | -3.58% | -5.33% | -11.99% | -6.98% | -6.53% | |||||
| Caterpillar Inc. | 17.43% | 18.68% | 19.31% | 20.29% | 21.30% | 21.33% | 21.55% | 21.58% | 20.30% | 18.13% | 16.97% | 14.94% | 13.97% | 14.56% | 13.81% | 13.87% | |||||
| Eaton Corp. plc | 18.98% | 18.95% | 18.82% | 19.08% | 18.62% | 18.23% | 17.96% | 17.28% | 16.75% | 16.28% | 15.48% | 14.85% | 14.55% | 13.90% | 16.33% | 15.97% | |||||
| GE Aerospace | 26.03% | 26.24% | 25.57% | 25.46% | 23.29% | 16.88% | 13.80% | 10.44% | 8.49% | 8.08% | 6.92% | 7.40% | 6.05% | 7.05% | 8.12% | 7.31% | |||||
| Honeywell International Inc. | 14.88% | 18.65% | 19.22% | 19.26% | 19.33% | 19.23% | 19.68% | 19.65% | 19.32% | 20.09% | 19.73% | 19.05% | 18.12% | 17.55% | 17.31% | 17.37% | |||||
| Lockheed Martin Corp. | 10.30% | 8.31% | 8.29% | 10.24% | 9.87% | 12.08% | 11.98% | 12.20% | 12.59% | 12.57% | 12.80% | 12.78% | 12.65% | 13.15% | 13.47% | 13.50% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Operating profit (loss)Q4 2025
+ Operating profit (loss)Q3 2025
+ Operating profit (loss)Q2 2025
+ Operating profit (loss)Q1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × (2,596 + 2,523 + 2,146 + 2,035)
÷ (24,238 + 22,478 + 21,581 + 20,306)
= 10.50%
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally positive trend over the observed period, though with notable fluctuations. Initial values ranged from 7.75% to 8.07% in the first four quarters of 2022, indicating a modest increase. This upward momentum continued into the first half of 2023, peaking at 8.73% before experiencing a significant decline in the third quarter.
- Overall Trend
- From the beginning of the period through December 2025, the operating profit margin generally increased. However, this increase was not linear, and was punctuated by a substantial decrease in the third quarter of 2023.
- 2023 Volatility
- The year 2023 was characterized by considerable volatility in the operating profit margin. After a high of 8.73% in the first quarter, the margin decreased to 8.63% in the second quarter. A dramatic drop to 4.79% occurred in the third quarter, followed by a recovery to 5.17% in the fourth quarter. This suggests potential operational challenges or external factors impacting profitability during that period.
- Post-2023 Improvement
- Following the volatility of 2023, the operating profit margin demonstrated a consistent upward trend. It rose from 5.32% in the first quarter of 2024 to 10.50% in the fourth quarter of 2025. This represents a substantial improvement in profitability over the two-year period. The margin increased from 3.94% in the second quarter of 2024 to 9.95% in the second quarter of 2025, and continued to 10.25% and 10.50% in subsequent quarters.
The most recent values indicate a strong and improving operating profitability, with the margin reaching 10.50% by the end of the observed period. The recovery from the 2023 dip suggests successful implementation of corrective measures or a favorable shift in market conditions.
Net Profit Margin
RTX Corp., net profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to common shareowners | 1,622) | 1,918) | 1,657) | 1,535) | 1,482) | 1,472) | 111) | 1,709) | 1,426) | (984) | 1,327) | 1,426) | 1,422) | 1,387) | 1,304) | 1,084) | |||||
| Net sales | 24,238) | 22,478) | 21,581) | 20,306) | 21,623) | 20,089) | 19,721) | 19,305) | 19,927) | 13,464) | 18,315) | 17,214) | 18,093) | 16,951) | 16,314) | 15,716) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | 7.60% | 7.67% | 7.35% | 5.63% | 5.91% | 5.97% | 3.12% | 4.90% | 4.64% | 4.76% | 7.88% | 8.08% | 7.75% | 6.76% | 6.84% | 6.47% | |||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 2.50% | -12.20% | -14.18% | -16.58% | -17.77% | -10.88% | -4.68% | -2.81% | -2.86% | -3.74% | -6.08% | -5.86% | -7.41% | -13.75% | -8.69% | -8.00% | |||||
| Caterpillar Inc. | 13.89% | 15.17% | 15.83% | 16.63% | 17.59% | 17.15% | 17.46% | 17.65% | 16.18% | 14.35% | 13.53% | 12.10% | 11.85% | 13.70% | 13.19% | 13.02% | |||||
| Eaton Corp. plc | 14.89% | 14.74% | 15.11% | 15.55% | 15.25% | 15.31% | 15.12% | 14.38% | 13.87% | 13.24% | 12.30% | 12.00% | 11.86% | 11.36% | 11.70% | 11.21% | |||||
| GE Aerospace | 20.57% | 19.99% | 20.43% | 19.41% | 18.67% | 14.28% | 9.25% | 5.96% | 14.68% | 15.08% | 13.91% | 12.35% | 0.31% | -8.10% | -6.18% | -6.70% | |||||
| Honeywell International Inc. | 12.63% | 15.07% | 14.30% | 14.51% | 14.82% | 15.01% | 15.49% | 15.52% | 15.43% | 14.87% | 15.08% | 14.54% | 14.00% | 15.38% | 14.74% | 15.30% | |||||
| Lockheed Martin Corp. | 6.69% | 5.73% | 5.85% | 7.66% | 7.51% | 9.36% | 9.48% | 9.73% | 10.24% | 10.29% | 10.48% | 8.60% | 8.69% | 9.07% | 7.33% | 9.45% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net income (loss) attributable to common shareownersQ4 2025
+ Net income (loss) attributable to common shareownersQ3 2025
+ Net income (loss) attributable to common shareownersQ2 2025
+ Net income (loss) attributable to common shareownersQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × (1,622 + 1,918 + 1,657 + 1,535)
÷ (24,238 + 22,478 + 21,581 + 20,306)
= 7.60%
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values demonstrated a generally positive trend, followed by a significant decline, and subsequent recovery, ultimately concluding with a stabilization around the 7% mark.
- Initial Growth (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the net profit margin increased from 6.47% to 7.75%. This indicates improving profitability during this period, potentially driven by factors such as increased sales volume, cost efficiencies, or favorable pricing strategies. The increase, while positive, was not consistently linear, suggesting varying degrees of success in each quarter.
- Decline and Volatility (Mar 31, 2023 – Sep 30, 2023)
- The period from March 31, 2023, through September 30, 2023, witnessed a substantial decrease in the net profit margin. Starting at 8.08%, it fell to 4.76% by September 30, 2023. The negative value of -984 US$ in millions for net income attributable to common shareowners in September 2023 is a key driver of this decline. This suggests a period of significant challenges, potentially including increased costs, decreased sales, or one-time adverse events.
- Recovery and Stabilization (Dec 31, 2023 – Dec 31, 2025)
- Following the decline, the net profit margin began to recover, reaching 4.90% by March 3, 2024, and continuing to improve through June 30, 2025, peaking at 7.67%. The margin then slightly decreased to 7.60% by December 31, 2025. This recovery suggests successful implementation of corrective measures or a return to more favorable market conditions. The stabilization around the 7.6% level in the final two quarters indicates a potential new normal for profitability.
- Quarterly Variations
- Significant quarterly variations were observed throughout the period. The low point of 3.12% in June 30, 2024, represents a notable dip within the recovery phase, warranting further investigation. Conversely, the peak of 8.08% in March 31, 2023, highlights a period of strong profitability. These fluctuations suggest sensitivity to seasonal factors, economic conditions, or specific company initiatives.
Overall, the net profit margin demonstrates a cyclical pattern of growth, decline, recovery, and stabilization. The substantial decline in profitability during the September 2023 quarter is a key area of concern, while the subsequent recovery and stabilization suggest resilience and effective management responses.
Return on Equity (ROE)
RTX Corp., ROE calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to common shareowners | 1,622) | 1,918) | 1,657) | 1,535) | 1,482) | 1,472) | 111) | 1,709) | 1,426) | (984) | 1,327) | 1,426) | 1,422) | 1,387) | 1,304) | 1,084) | |||||
| Shareowners’ equity | 65,245) | 64,514) | 62,398) | 61,516) | 60,156) | 61,114) | 58,985) | 60,485) | 59,798) | 69,596) | 72,480) | 72,795) | 72,632) | 70,187) | 70,441) | 72,462) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | 10.32% | 10.22% | 9.85% | 7.48% | 7.94% | 7.72% | 3.83% | 5.75% | 5.34% | 4.59% | 7.67% | 7.61% | 7.16% | 6.36% | 6.34% | 5.79% | |||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 40.98% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | 41.67% | 44.89% | 50.57% | 55.01% | 55.37% | 55.04% | 64.26% | 63.77% | 53.02% | 44.48% | 45.85% | 39.18% | 42.25% | 47.28% | 42.96% | 38.07% | |||||
| Eaton Corp. plc | 21.04% | 20.84% | 21.10% | 21.27% | 20.52% | 19.71% | 18.99% | 17.63% | 16.90% | 16.29% | 15.10% | 14.72% | 14.45% | 14.26% | 14.12% | 13.35% | |||||
| GE Aerospace | 46.60% | 42.86% | 40.54% | 36.34% | 33.90% | 33.11% | 25.51% | 11.77% | 34.63% | 35.27% | 30.77% | 27.72% | 0.62% | -18.56% | -12.75% | -12.20% | |||||
| Honeywell International Inc. | 34.01% | 36.52% | 35.52% | 32.59% | 30.64% | 32.65% | 34.13% | 34.81% | 35.68% | 31.42% | 31.52% | 30.89% | 29.74% | 30.36% | 28.96% | 28.58% | |||||
| Lockheed Martin Corp. | 74.65% | 67.95% | 78.82% | 82.34% | 84.26% | 92.71% | 109.09% | 101.89% | 101.24% | 75.11% | 76.41% | 58.97% | 61.86% | 49.05% | 41.16% | 62.10% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
ROE = 100
× (Net income (loss) attributable to common shareownersQ4 2025
+ Net income (loss) attributable to common shareownersQ3 2025
+ Net income (loss) attributable to common shareownersQ2 2025
+ Net income (loss) attributable to common shareownersQ1 2025)
÷ Shareowners’ equity
= 100 × (1,622 + 1,918 + 1,657 + 1,535)
÷ 65,245 = 10.32%
2 Click competitor name to see calculations.
Return on Equity (ROE) for the analyzed period demonstrates considerable fluctuation, generally trending upwards with notable exceptions. Initial values indicate a gradual increase from 5.79% in March 2022 to a peak of 7.67% in June 2023. A significant decline is then observed in September 2023, falling to 4.59%, followed by a partial recovery to 5.34% by December 2023. The ROE then exhibits a renewed upward trajectory, reaching 10.32% by December 2025, with interim peaks of 9.85% and 10.22% in September and December 2025 respectively. The volatility suggests sensitivity to changes in net income and/or shareowners’ equity.
- Overall Trend
- The overarching trend is positive, with the ROE increasing from approximately 5.8% to over 10% across the analyzed timeframe. However, this increase is not linear and is punctuated by periods of substantial decline, particularly in the latter half of 2023.
- Net Income Impact
- A substantial decrease in net income is evident in September 2023, resulting in a negative value. This directly correlates with the lowest ROE value observed during the period. Conversely, periods of strong net income, such as the consistent values around US$1.4 billion in 2022 and the peak of US$1.918 billion in September 2025, coincide with higher ROE figures.
- Shareowners’ Equity Impact
- Shareowners’ equity generally remained stable between March 2022 and June 2023, fluctuating within a relatively narrow range. A significant decrease in equity is observed between June 2023 and December 2023, coinciding with the initial decline in ROE following the peak in June 2023. Equity then stabilizes and begins to increase, supporting the subsequent ROE recovery.
- Recent Performance
- The most recent quarters (March 2024 through December 2025) demonstrate a clear upward trend in ROE, indicating improved profitability relative to equity. The ROE has increased from 3.83% in March 2024 to 10.32% in December 2025, suggesting positive momentum.
The observed fluctuations in ROE warrant further investigation into the underlying drivers of both net income and shareowners’ equity to understand the factors influencing the company’s profitability and shareholder returns.
Return on Assets (ROA)
RTX Corp., ROA calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to common shareowners | 1,622) | 1,918) | 1,657) | 1,535) | 1,482) | 1,472) | 111) | 1,709) | 1,426) | (984) | 1,327) | 1,426) | 1,422) | 1,387) | 1,304) | 1,084) | |||||
| Total assets | 171,079) | 168,672) | 167,139) | 164,864) | 162,861) | 164,822) | 161,169) | 160,187) | 161,869) | 162,443) | 162,161) | 161,636) | 158,864) | 158,225) | 159,017) | 159,366) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | 3.94% | 3.91% | 3.68% | 2.79% | 2.93% | 2.86% | 1.40% | 2.17% | 1.97% | 1.96% | 3.43% | 3.43% | 3.27% | 2.82% | 2.81% | 2.63% | |||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 1.33% | -6.57% | -6.89% | -7.36% | -7.56% | -5.79% | -2.41% | -1.60% | -1.62% | -2.11% | -3.32% | -3.03% | -3.60% | -6.14% | -3.90% | -3.60% | |||||
| Caterpillar Inc. | 9.01% | 9.89% | 10.45% | 11.70% | 12.30% | 12.38% | 13.21% | 13.43% | 11.81% | 10.50% | 9.79% | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | |||||
| Eaton Corp. plc | 9.91% | 9.66% | 9.69% | 10.04% | 9.89% | 9.60% | 9.27% | 8.83% | 8.37% | 8.03% | 7.37% | 7.23% | 7.03% | 6.67% | 6.58% | 6.30% | |||||
| GE Aerospace | 6.69% | 6.29% | 6.19% | 5.64% | 5.32% | 4.93% | 3.85% | 2.14% | 5.81% | 6.45% | 5.89% | 5.33% | 0.12% | -3.23% | -2.38% | -2.48% | |||||
| Honeywell International Inc. | 6.42% | 7.57% | 7.29% | 7.57% | 7.59% | 7.73% | 8.34% | 8.72% | 9.20% | 8.83% | 8.75% | 8.73% | 7.97% | 8.92% | 8.16% | 8.29% | |||||
| Lockheed Martin Corp. | 8.38% | 6.97% | 7.14% | 9.71% | 9.59% | 12.02% | 12.23% | 12.33% | 13.19% | 12.29% | 12.39% | 10.41% | 10.84% | 11.28% | 9.09% | 12.06% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
ROA = 100
× (Net income (loss) attributable to common shareownersQ4 2025
+ Net income (loss) attributable to common shareownersQ3 2025
+ Net income (loss) attributable to common shareownersQ2 2025
+ Net income (loss) attributable to common shareownersQ1 2025)
÷ Total assets
= 100 × (1,622 + 1,918 + 1,657 + 1,535)
÷ 171,079 = 3.94%
2 Click competitor name to see calculations.
Return on Assets (ROA) exhibited a generally positive trend over the observed period, though with notable fluctuations. Initial values demonstrated consistent growth from March 2022 through December 2022, followed by a significant decline, and subsequent recovery. The most recent periods indicate a strengthening ROA, reaching a peak in September 2025.
- Initial Growth Phase (Mar 31, 2022 – Dec 31, 2022)
- ROA increased from 2.63% in March 2022 to 3.27% by December 2022. This indicates improving profitability relative to the asset base during this timeframe. The increases, while incremental, suggest efficient asset utilization and effective earnings generation.
- Significant Decline (Mar 31, 2023 – Sep 30, 2023)
- A substantial decrease in ROA occurred between March 2023 and September 2023, falling from 3.43% to 1.96%. This decline was driven by a significant net loss reported in September 2023, which negatively impacted overall profitability. The asset base remained relatively stable during this period, suggesting the loss was the primary driver of the ROA reduction.
- Recovery and Subsequent Growth (Dec 31, 2023 – Dec 31, 2025)
- Following the decline, ROA began a recovery trend, reaching 2.17% in March 2024. Continued growth was observed through December 2025, culminating in a peak of 3.94%. This recovery coincides with a return to consistent net income and a moderate increase in total assets. The most recent periods demonstrate a strengthening relationship between net income and the asset base, resulting in improved ROA.
- Recent Performance (Sep 30, 2024 – Dec 31, 2025)
- The period from September 2024 to December 2025 shows a particularly strong performance, with ROA increasing from 2.86% to 3.94%. This suggests a sustained improvement in the company’s ability to generate earnings from its assets. The increase in net income attributable to common shareowners was more pronounced than the increase in total assets, contributing to the higher ROA.
Overall, the ROA demonstrates a cyclical pattern with a clear recovery phase. While the decline in the first half of 2023 was significant, the subsequent performance indicates a return to a more favorable profitability profile.