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RTX Q3 2025 Results Overview

On October 21, 2025, RTX (NYSE: RTX) announced its financial results for the third quarter of 2025, showcasing significant growth across key performance metrics. The quarter marked a period of robust sales, strong operational performance, and elevated forecasts for the remainder of the fiscal year.

Key Financial Highlights

• - Sales Performance: RTX achieved third quarter sales of $22.5 billion, reflecting a 12% year-over-year increase. When adjusted to exclude the impact of divestitures, this sales increase reaches 13% organically.
• - Earnings Per Share (EPS): The GAAP EPS for the quarter stood at $1.41, inclusive of acquisition accounting adjustments and restructuring costs. Furthermore, the adjusted EPS grew by 17% compared to the previous year, hitting $1.70.
• - Operating Cash Flow: The company reported an impressive operating cash flow of $4.6 billion, contributing to a free cash flow of $4.0 billion for the quarter.
• - Backlog: RTX’s backlog remains strong at $251 billion, which includes $148 billion in commercial and $103 billion in defense commitments.
• - Capital Management: During the quarter, RTX returned $0.9 billion to shareholders while successfully reducing its debt by $2.9 billion and completing the divestiture of Collins’ actuation and flight control business.

Adjusted Sales and EPS Outlook

The impressive performance prompted RTX to upgrade its full-year outlook for both adjusted sales and earnings per share. The updated projections suggest:

• - Adjusted sales for 2025 are now anticipated between $86.5 billion and $87.0 billion, up from prior estimates of $84.75 billion to $85.5 billion.
• - Organic sales growth expectations have also increased to between 8% and 9%, changing the prior range of 6% to 7%.
• - Adjusted EPS projections have been raised to a range of $6.10 to $6.20, an upgrade from the previous forecast of $5.80 to $5.95.
• - The company has confirmed a free cash flow estimate of $7.0 to $7.5 billion for the year.

Segment Performance

RTX operates through three main business segments, each demonstrating notable growth:
1. Collins Aerospace: Reported sales increased by 8% to $7.6 billion, attributed mainly to a 16% rise in commercial original equipment sales and strong performance in defense contracts.
2. Pratt & Whitney: Achieved a 16% growth in sales to $8.4 billion. The segment benefited from increased deliveries of commercial engines and robust demand in the military sector.
3. Raytheon: Saw a 10% increase in sales to $7.0 billion, fueled by higher demand for land and air defense systems.

Executive Insights

Chris Calio, Chairman and CEO of RTX, expressed optimism regarding the company’s trajectory:

"Strong execution in the third quarter enabled us to deliver double-digit organic sales growth across all three segments and our sixth consecutive quarter of year-over-year adjusted segment margin expansion. We also received $37 billion of new awards in the quarter, reflecting robust global demand for our products and supporting long-term growth for RTX."

The continued demand for RTX's innovative solutions positions the company well for the future, and management remains committed to leveraging its $251 billion backlog and accelerating output to meet the growing needs of its clientele. Investments in next-generation products and services are essential to maintaining competitive advantage and fulfilling future demands.

Conclusion

As RTX concludes the third quarter of 2025 with inviting growth metrics, elevated EPS outlook, and strength in operational segments, stakeholders recognize the robust foundation for future success. The company's proactive measures in capital management and commitment to innovation indicate a promising trajectory as it moves into the final quarters of the fiscal year.