Financial Data and Key Metrics Changes - Sales increased by 13% organically year over year, with adjusted segment operating profit up 19% and free cash flow at $4 billion for the quarter [3][4][14] - Adjusted earnings per share (EPS) rose 17% to $1.70, driven by segment operating profit growth [14][16] Business Line Data and Key Metrics Changes - Commercial aftermarket sales grew 18%, while commercial OE and defense sales both increased by 10% [13][14] - Collins sales were $7.6 billion, up 8% adjusted and 11% organically, with commercial OE sales up 16% and defense sales up 6% [20][21] - Pratt and Whitney sales reached $8.4 billion, up 16% on both adjusted and organic bases, with commercial aftermarket sales up 23% [22][24] - Raytheon sales were $7 billion, up 10% on both adjusted and organic bases, driven by higher volume in Land and Air Defense Systems [25][26] Market Data and Key Metrics Changes - Global demand for products and services remains strong, with commercial aerospace passenger air travel expected to grow by approximately 5% this year [4][5] - The book-to-bill ratio was 1.63, resulting in a backlog of $251 billion, up 13% year over year [5][28] Company Strategy and Development Direction - The company is focused on executing commitments and driving performance improvements through its core operating system, achieving 10% organic sales growth while keeping headcount flat [8][10] - Investments of over $600 million in capacity expansion projects are underway to support growth [10][12] - The company is innovating for future growth, including developing hybrid electric propulsion systems and next-generation braking systems [11][12] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year outlook for adjusted sales to a range of $86.5 billion to $87 billion, reflecting strong operational performance and end-market strength [16][18] - Free cash flow outlook remains at $7 billion to $7.5 billion for the year, with expectations for continued top-line growth and margin expansion [18][28] Other Important Information - The company completed the sale of the actuation business and the Collins Simmons Precision Products business for $765 million [15] - The company is experiencing a headwind from tariffs, impacting margins across segments [89] Q&A Session Summary Question: Confidence in delivering LEAP engines to Airbus - Management expressed confidence in supporting production ramps for Airbus and balancing material allocation to meet delivery targets [34][40] Question: Limitations to Raytheon segment growth - Management noted strong demand but emphasized the need for a healthy supply chain to meet production increases [44][50] Question: Margins in Collins and tariff impacts - Tariffs were identified as a key driver affecting margins, with ongoing efforts to mitigate these impacts [88][90] Question: Expectations for GTF compensation payments - The financial outlook for GTF compensation payments remains consistent, with planned payments for the fourth quarter [83][84] Question: Incremental margins and future growth in Raytheon - Management highlighted the potential for margin expansion driven by a favorable backlog mix and increased production efficiency [120][122]

RTX Corporation (NYSE: RTX stock) is lighting up pre-market trading today, jumping more than 6% following the aerospace and defense giant's impressive third-quarter earnings release. The Arlington-bas... ...

Defense company RTX raised its full-year outlook after posting higher third-quarter sales and profit. ...

Core Insights - RTX raised its full-year profit and revenue forecast, indicating confidence in managing tariff impacts due to increased demand for missiles and aftermarket services [1][4] - The company is benefiting from a shortage of new commercial jets, leading to increased sales in maintenance and repair services [2] - RTX's aerospace and avionics division, Collins Aerospace, reported a revenue increase of 8% year-over-year, reaching $7.62 billion [2] - Sales in the Pratt and Whitney unit rose 16% to $8.42 billion, driven by demand for engines for Airbus' A320neo jets [3] - The defense segment, particularly Raytheon, saw a 10% sales increase, largely due to demand for Patriot air defense systems amid geopolitical tensions [3] Financial Performance - RTX's total revenue for the third quarter increased by 12% to $22.48 billion [4] - The adjusted profit per share rose to $1.70, compared to $1.45 in the previous year [4] - The company now expects adjusted sales for the full year to be between $86.5 billion and $87 billion, up from a previous forecast of $84.75 billion to $85.5 billion [4] - The adjusted profit forecast for 2025 was raised to between $6.10 and $6.20 per share, from $5.80 to $5.95 [4]

Financial Performance - RTX reported Q3 2025 sales of $22.5 billion, a 12% increase compared to the prior year, with organic sales growth of 13% excluding divestitures[6]. - Adjusted EPS for Q3 2025 was $1.70, up 17% year-over-year, while GAAP EPS was $1.41, reflecting acquisition accounting adjustments[7]. - Net sales for Q3 2025 reached $22,478 million, a 11.9% increase from $20,089 million in Q3 2024[28]. - Operating profit for Q3 2025 was $2,523 million, up 24.4% from $2,028 million in Q3 2024[28]. - Net income attributable to common shareholders for Q3 2025 was $1,918 million, representing a 30.3% increase from $1,472 million in Q3 2024[28]. - Adjusted net income attributable to common shareowners for the quarter was $2,311 million, compared to $1,948 million in the prior year, reflecting a 18.6% increase[34]. - The operating profit margin for the quarter was 11.2%, up from 10.1% in the same quarter of 2024[36]. - The effective tax rate for the quarter was 17.7%, down from 19.5% in the same quarter of 2024[34]. Cash Flow and Shareholder Returns - The company achieved operating cash flow of $4.6 billion and free cash flow of $4.0 billion in Q3 2025[8]. - RTX returned $0.9 billion to shareholders and paid down $2.9 billion of debt during the quarter[6]. - Free cash flow for the quarter was $4,025 million, significantly higher than $1,971 million in the same quarter of 2024, marking a 103.1% increase[38]. - Dividends paid in the quarter were $910 million, compared to $823 million in the same quarter of 2024, representing an increase of 10.6%[31]. Segment Performance - Collins Aerospace reported Q3 sales of $7,621 million, an 8% increase year-over-year, driven by a 16% rise in commercial OE sales[11]. - Pratt & Whitney's Q3 sales were $8,423 million, up 16% year-over-year, with a 23% increase in commercial aftermarket sales[16]. - Raytheon reported Q3 sales of $7,045 million, a 10% increase year-over-year, driven by higher volume in land and air defense systems[18]. - Collins Aerospace segment net sales for Q3 2025 were $7,621 million, an increase from $7,075 million in Q3 2024[29]. - Pratt & Whitney segment net sales for Q3 2025 were $8,423 million, up from $7,239 million in Q3 2024[29]. - Raytheon segment net sales for Q3 2025 reached $7,045 million, compared to $6,386 million in Q3 2024[29]. - Segment operating profit for the quarter was $2,870 million, compared to $2,266 million in the same quarter of 2024, representing a 26.7% increase[36]. Guidance and Backlog - The company raised its full-year 2025 adjusted sales guidance to $86.5 - $87.0 billion, up from $84.75 - $85.5 billion, and adjusted EPS guidance to $6.10 - $6.20, up from $5.80 - $5.95[6]. - RTX's backlog reached $251 billion, comprising $148 billion in commercial and $103 billion in defense contracts[6]. - The company received $37 billion in new awards in Q3 2025, indicating strong global demand for its products[4]. Costs and Expenses - Total costs and expenses for Q3 2025 were $20,018 million, a 9.9% increase from $18,195 million in Q3 2024[28]. - Research and development expenses for Q3 2025 totaled $684 million, a decrease of 8.9% compared to $751 million in Q3 2024[28]. - Total current liabilities rose to $53,234 million as of September 30, 2025, compared to $51,499 million at December 31, 2024, indicating a 3.4% increase[30]. - Long-term debt decreased to $38,260 million as of September 30, 2025, from $38,726 million at December 31, 2024, showing a reduction of 1.2%[30]. - Total assets increased to $168,672 million as of September 30, 2025, up from $162,861 million at December 31, 2024, representing a growth of 3.3%[30]. - Total equity increased to $66,359 million as of September 30, 2025, compared to $61,923 million at December 31, 2024, reflecting an increase of 7.3%[30]. Charges and Gains - The nine months ended September 30, 2025 included a net pre-tax charge of approximately $0.1 billion related to a customer bankruptcy, primarily concerning contract asset exposures[46]. - A pre-tax charge of $34 million was recorded for the expected settlement of a litigation matter at Pratt & Whitney during the nine months ended September 30, 2024[46]. - A pre-tax gain of $0.1 billion was recorded for the completed sale of the actuation and flight control business at Collins during the nine months ended September 30, 2025[46]. - The nine months ended September 30, 2024 included charges of $0.9 billion related to the resolution of several outstanding legal matters, including accruals for defective pricing claims and improper payments[47].

Accessibility StatementSkip Navigation RTX delivers 12% sales growth with strong operational performance; Raises 2025 outlook for adjusted sales* and adjusted EPS*, confirms free cash flow* ARLINGTON, Va., Oct. 21, 2025 /PRNewswire/ --Â RTX (NYSE: RTX) reports third quarter 2025 results. Third quarter 2025 Updates outlook for full year 2025 "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- ...

Group 1 - RTX Corp. is recognized as one of the best defense stocks in Goldman Sachs' portfolio [1] - Raytheon, a business unit of RTX, is expanding its Andover, Massachusetts facility with a $53 million investment to enhance the production of Lower Tier Air and Missile Defense Sensor (LTAMDS) [1][2] - The LTAMDS radar system is designed to counter advanced threats, including hypersonic weapons, and the expansion aims to accelerate delivery to both U.S. and international customers [1][2] Group 2 - Tom Laliberty, president of Land and Air Defense Systems at Raytheon, emphasized that the investment is crucial for meeting the increasing global demand for LTAMDS [2] - RTX Corp. is one of the largest aerospace and defense companies globally, with three main business units: Raytheon, Collins Aerospace, and Pratt & Whitney [2] - Raytheon specializes in advanced capabilities such as integrated air and missile defense, smart weapons, and hypersonics [2]

Market Overview - U.S. stock futures are down following a rally on Monday, with major indices showing slight declines pre-market [1][3] - The federal government shutdown is impacting billions of dollars worth of projects, affecting the economy and people's lives [1] Earnings Watch - Investors are focused on earnings reports from major companies including Netflix, Coca-Cola, Philip Morris, and RTX Corp, which will influence market sentiment for the week [2][4][14] - Netflix shares are up 0.27% pre-market, with expectations for strong third-quarter results [5] - Coca-Cola shares are up 0.10% pre-market, with a favorable price trend despite lower performance metrics [5] - Philip Morris shares are down 0.04% pre-market ahead of its earnings call [4] - RTX Corp shares are up 0.49% pre-market, with high scores in Momentum and Quality [14] Treasury Yields and Market Sentiment - The 10-year Treasury bond yield is at 3.97%, while the two-year bond yield is at 3.45% [3] - Market expectations indicate a 98.9% likelihood of the Federal Reserve cutting interest rates in the upcoming October meeting [3] Stock Performance - Major indices showed gains on Monday, with the Nasdaq Composite up 1.37%, S&P 500 up 1.07%, and Dow Jones up 1.12% [8] - Pre-market performance shows declines for SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF [3] Retail Investor Behavior - Retail investors have been net buyers of U.S. stocks in 23 of the last 26 weeks, with significant purchases noted last week [10] - The VIX score indicates higher volatility, yet the S&P 500 remains near all-time highs [10][11]

Market Overview - U.S. stock futures are down following a rally on Monday, with major indices showing slight declines pre-market [1] - The federal government shutdown is impacting billions of dollars worth of projects, affecting the economy and people's lives [1] Earnings Watch - Investors are focused on earnings reports from major companies including Netflix, Coca-Cola, Philip Morris, and RTX Corp, which will influence market sentiment for the week [2] - Netflix shares are up 0.27% pre-market, with expectations for strong third-quarter results [5] - Coca-Cola shares are up 0.10% pre-market, anticipating its third-quarter results [5] - Philip Morris shares are down 0.04% pre-market ahead of its earnings call [4] - RTX Corp shares are up 0.49% pre-market, with investors awaiting its third-quarter results [14] Treasury Yields and Market Sentiment - The 10-year Treasury bond yield is at 3.97%, while the two-year bond yield is at 3.45% [3] - Market expectations indicate a 98.9% likelihood of the Federal Reserve cutting interest rates in the upcoming October meeting [3] Stock Performance - Major indices showed the following pre-market changes: Dow Jones -0.19%, S&P 500 -0.13%, Nasdaq 100 -0.16%, Russell 2000 -0.27% [3] - The SPDR S&P 500 ETF Trust (SPY) is down 0.07% at $670.79, while the Invesco QQQ Trust ETF (QQQ) is down 0.36% at $611.18 [3] Analyst Insights - Retail investors have been net buyers of U.S. stocks for 23 of the last 26 weeks, with the largest purchase in five months occurring last week [10] - The VIX score nearly hit 29, indicating higher volatility, yet the S&P 500 remains near all-time highs [10][11]

Core Insights - Defense stocks may present a buying opportunity as the government shutdown continues, with analysts suggesting potential upward revisions in outlooks once funding clarity is restored [1][3][4] Market Performance - Defense stocks have underperformed during the government shutdown, with the iShares U.S. Aerospace & Defense ETF (ITA) and Invesco Aerospace & Defense ETF (PPA) remaining flat while the S&P 500 rose nearly 2% [2] - Northrop Grumman (NOC) shares have decreased about 1% since the shutdown began but have increased approximately 28% in 2025, outperforming the S&P 500's nearly 15% rise [5][9] Analyst Recommendations - Analysts from Morgan Stanley recommend buying defense stocks with muted outlooks, anticipating upward revisions as government funding issues are resolved [3][7] - Companies such as Northrop Grumman, Lockheed Martin (LMT), and RTX Corp. (RTX) are expected to report earnings soon, with analysts predicting conservative outlooks due to the ongoing shutdown [7][8] Future Expectations - The White House Economic Advisor indicated that the government shutdown is likely to end soon, which could positively impact defense stocks [9]