Key Takeaways
- American Airlines (AAL) missed Q4 2025 adjusted EPS and revenue estimates, reporting $0.16 adjusted EPS against an estimated $0.34, and revenue of $13.999 billion versus an estimated $14.02 billion, citing a government shutdown impact.
- RTX Corp (RTX) delivered a strong Q4 2025 performance, beating adjusted EPS and sales expectations, with adjusted EPS of $1.55 compared to an estimated $1.47, and sales of $24.24 billion against an estimated $22.63 billion.
- General Motors (GM) exceeded Q4 2025 adjusted EPS estimates at $2.51 versus $2.28 but slightly missed on net sales and revenue, while announcing a new $6 billion share repurchase authorization.
- Northrop Grumman (NOC) beat Q4 2025 adjusted EPS and sales, reporting $7.23 adjusted EPS and $11.71 billion in sales, but issued a 2026 adjusted EPS outlook of $27.40 to $27.90, falling below the $28.96 estimate.
- Kimberly-Clark (KMB) reported a 2.1% organic sales growth in Q4 and boosted its quarterly dividend to $1.28 per share.
American Airlines (AAL) reported a challenging fourth quarter for 2025, with adjusted earnings per share of $0.16, significantly below the estimated $0.34. Revenue also came in slightly under expectations at $13.999 billion against an estimated $14.02 billion. The airline attributed a negative impact on Q4 revenue to a government shutdown. Looking ahead, American Airlines anticipates 2026 adjusted EPS to be between $1.70 to $2.70, with an outlook for Q1 revenue growth of 7-10%.
In contrast, defense and aerospace giant RTX Corp (RTX) posted a strong fourth quarter for 2025, surpassing analyst expectations. The company reported adjusted EPS of $1.55, beating the $1.47 estimate. Adjusted sales reached $24.24 billion, well above the $22.63 billion estimate, driven by robust performance in its key segments. Pratt & Whitney sales hit $9.50 billion, exceeding the $8.47 billion estimate, and Collins Aerospace Systems sales were $7.74 billion against an estimated $7.45 billion. RTX also reported strong free cash flow of $3.20 billion, surpassing the $2.51 billion estimate. For 2026, RTX projects adjusted EPS between $6.60 to $6.80 and adjusted sales of $92.0 billion to $93.0 billion, generally aligning with analyst estimates. The company also expects 2026 free cash flow to be between $8.25 billion to $8.75 billion.
Fellow defense contractor Northrop Grumman (NOC) also delivered a beat on its Q4 2025 earnings, with adjusted EPS of $7.23 against an estimated $6.98. Sales for the quarter reached $11.71 billion, slightly above the $11.63 billion estimate. However, the company's 2026 outlook for adjusted EPS, projected at $27.40 to $27.90, fell short of the $28.96 analyst estimate. Similarly, its 2026 sales forecast of $43.50 billion to $44.00 billion was below the $44.14 billion estimate. Northrop Grumman anticipates 2026 free cash flow between $3.10 billion to $3.50 billion and capital expenditures around $1.65 billion.
Automotive giant General Motors (GM) reported Q4 2025 adjusted EPS of $2.51, exceeding the $2.28 estimate. While net sales and revenue of $45.29 billion slightly missed the $45.37 billion estimate, the company's adjusted EBIT of $2,843 million surpassed the $2,723 million estimate. Vehicle sales for the quarter were 937,000 units, below the estimated 994,576 units. General Motors also announced a new $6 billion share repurchase authorization. For 2026, the company projects adjusted EPS between $11 to $13 and net income between $10.3 billion to $11.7 billion, generally in line with analyst expectations. Its outlook for adjusted EBIT in 2026 is set between $13 billion to $15 billion.
Consumer goods company Kimberly-Clark (KMB) also released its Q4 results, reporting adjusted EPS of $1.86 and net sales of $4.08 billion. The company saw organic sales growth of 2.1% in the quarter. Kimberly-Clark boosted its quarterly dividend to $1.28 per share from $1.26 per share. For 2026, it anticipates adjusted free cash flow of about $2 billion and capital expenditures accelerating to approximately $1.3 billion.
In broader economic news, recent data from the UK indicates a slightly more constructive economic environment. Inflation has shown an uptick, while labor data, retail sales, and GDP figures have modestly surprised to the upside. As a result, some banks are now revising their Q4 growth expectations higher for the UK.
Geopolitical developments also remain in focus. The European Union is hoping to propose a ban on Russian nuclear materials "in due course," though it currently does not have a specific timeline for such a measure. Finland's Prime Minister emphasized that China's cooperation with Russia supports Russia's ability to continue the war in Ukraine, urging China's President Xi to influence Putin and reduce economic cooperation with Russia to help end the conflict. Meanwhile, Ukrainian President Zelenskyy expressed hopes for Ukraine to become an EU member by 2027, seeking support from existing members.
In other news, Saudi Arabia is reportedly turning to wealthy families to help plug funding gaps. Additionally, the EU announced that sensitive agricultural products would be excluded from its trade deal with India, with the bloc ready to recalibrate India import quotas if distortions arise.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.