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RTX Reports Q2 2025 Results

RTX Corporation, a leader in the aerospace and defense sector, has announced its financial results for the second quarter of 2025, revealing impressive sales growth and operational performance. With total sales reaching $21.6 billion, the company reported a 9% increase year-on-year, comfortably beating analysts' expectations. This performance underscores the strong demand in both commercial and defense markets.

Financial Highlights

During this quarter, RTX reported significant progress across various financial metrics. The GAAP earnings per share (EPS) stood at $1.22, which included acquisition-related adjustments and restructuring costs. Meanwhile, the adjusted EPS climbed to $1.56, marking an 11% increase compared to the prior year. Operating cash flow for the quarter was $0.5 billion, while the company experienced a free cash outflow of $0.1 billion due to a four-week work stoppage in one of its key operational areas, Pratt & Whitney.

The firm maintains a robust backlog amounting to $236 billion, which includes $144 billion from commercial ventures and $92 billion related to defense contracts. Additionally, RTX returned $0.9 billion to its shareholders and announced an 8% increase in its quarterly dividend, showcasing its commitment to returning value amidst strong performance.

Strategic Outlook

RTX’s CEO, Chris Calio, noted that the company has maintained its momentum from previous quarters, achieving organic sales and profit growth across its diverse segments. “Our backlog has grown by 15% compared to last year, and we have secured substantial contracts for our advanced turbofan engines and integrated air defense capabilities,” he commented.

The company has updated its outlook for the full year 2025, taking into account promising early-year operational performance. Adjusted sales are projected to be between $84.75 billion and $85.5 billion, a significant increase from earlier estimates of $83.0 billion to $84.0 billion. Additionally, expected organic sales growth has been revised upward to 6% to 7%, up from 4% to 6%.

Segment Performance

Collins Aerospace

The Collins Aerospace sector achieved reported sales of $7.6 billion, which is a 9% year-on-year increase. Driving this growth was a significant uptick in commercial aftermarket services, alongside increased defense sales. Operating profit in this segment rose by 9% to $1.25 billion, indicating efficient cost management and favorable sales mix.

Pratt & Whitney

Pratt & Whitney reported a 12% increase in sales to $7.6 billion, despite facing challenges such as a work stoppage. The division benefitted from a strong rise in commercial aftermarket demand, which increased by 19%. Adjusted operating profit in this segment rose to $608 million, indicative of strong operational leverage despite the incurred challenges.

Raytheon

Raytheon’s sales reached $7.0 billion, up 8% compared to the previous year, reflecting higher volumes in land and air defense systems. This segment showed a dramatic increase in operating profit, surging to $805 million, which is a stark improvement compared to the previous quarter where it only recorded $127 million.

Conclusion

RTX’s Q2 2025 results highlight its resilience and ability to capitalize on the growing demand in both commercial and defense sectors. The increased backlog, strategic contract wins, and shareholder returns not only reflect the company’s solid operational footing but also set a strong foundation for future growth. As RTX continues to innovate and meet market demands, it remains a key player in shaping the future of aerospace and defense.