By Mike Stone and Aishwarya Jain Jan 27 (Reuters) – Aerospace and defense giant RTX posted a higher fourth-quarter revenue and profit on Tuesday, driven by a rise in sales for its engines and a strong appetite for commercial aircraft maintenance and repair services. Shares of RTX rose 1.7% in early trading in New York. RTX was helped by increased sales for its F135 turbofan engine, which powers all variants of Lockheed Martin's F-35, as well as continued maintenance demand for its decades‑old F100 engine. The defense supplier has been under pressure from U.S. President Donald Trump's tariffs on imports from major trade partners, including aluminum and steel, as well as supply chain snags in the aerospace industry. In July, RTX had said it expected $500 million in tariff costs in 2025. Chief Financial Officer Neil Mitchell said in an interview the company had about $600 million in tariff impacts for the year. In addition, earlier this month Trump signed an executive order linking share buybacks, dividends and executive compensation to weapons delivery schedules, a move that could add uncertainty around future capital returns. RTX paid $3.57 billion in dividends in 2025, up 11.1% from the previous year. In a social media post Trump singled out Raytheon, saying RTX's weapons unit's government contracts could be at risk if it failed to curb stock buybacks. In an post earnings call management told investors "We remain committed to the dividend. We're comfortable, we can accommodate both that and the investment needs that come with delivering the current backlog and the potential future volumes on key programs." In 2026 the company plans a $500 million increase in investments in facilities that make munitions, Mitchell said. In August, the company's engine business, Pratt and Whitney, bagged a $2.8 billion contract for 141 F135 engines. It also received a $1.6 billion F135 sustainment contract in December. The unit, which also makes engines for Airbus' A320neo jets, posted a 25% rise in adjusted sales during 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. Adjusted sales at RTX's aerospace and avionics business Collins rose 3% in the fourth quarter while its defense arm, Raytheon, reported a 7% rise during the same period. RTX forecast 2026 adjusted sales in the range of $92 billion to $93 billion, the midpoint of which was slightly ahead of Wall Street expectations of $92.46 billion, according to data compiled by LSEG. It reported a total revenue of $24.24 billion for the quarter ended December 31, up about 12% from a year earlier. Excluding items, its per-share profit stood at $1.55 in the quarter, compared with $1.54 a year earlier. (Reporting by Aishwarya Jain in Bengaluru and Mike Stone in Washington; Editing by Krishna Chandra Eluri)
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