Forward looking statements Note: This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide RTX Corporation ("RTX") management's current expectations or plans for our future operating and financial perfor ...

Financial Data and Key Metrics Changes - The company achieved 8% organic sales growth and 120 basis points of segment margin expansion, with strong contributions from each business segment [7][34] - Adjusted sales reached $20.3 billion, up 5% overall and 8% organically, with adjusted earnings per share of $1.47, reflecting a 10% increase from the prior year [34][35] - Free cash flow improved by over $900 million compared to the previous year, totaling $792 million in the quarter [7][35] Business Line Data and Key Metrics Changes - Commercial aftermarket sales increased by 21%, while commercial OE sales rose by 3% and defense sales grew by 4% [8] - Collins reported sales of $7.2 billion, up 8% adjusted and 9% organically, driven by commercial aftermarket and defense strength [37] - Pratt & Whitney's sales reached $7.4 billion, up 14% on both adjusted and organic bases, with commercial aftermarket sales up 28% [40] - Raytheon's sales were $6.3 billion, down 5% adjusted but up 2% organically, driven by higher volume in land and air defense systems [42] Market Data and Key Metrics Changes - The company exited the quarter with a backlog of $217 billion, an 8% year-over-year increase, including $125 billion in commercial orders and $92 billion in defense awards [28] - The European Union has proposed an additional $850 billion in defense spending over the next four years, which aligns with the company's core capabilities [30] Company Strategy and Development Direction - The company is focused on executing commitments, innovating for future growth, and leveraging its breadth and scale [31] - Significant investments in the U.S. industrial base are planned, with nearly $10 billion invested over the last five years and an additional $2 billion planned for this year [17][18] - The company is well-positioned to capitalize on increased global defense budgets and has strong international co-production agreements [30] Management's Comments on Operating Environment and Future Outlook - The management highlighted a dynamic operating environment but expressed confidence in the company's strong product portfolio and backlog [28][46] - The company is closely monitoring changes in the global trade environment and is implementing various mitigations to address tariff impacts [27][21] - Management remains optimistic about continued strong demand in both commercial and defense sectors, despite potential uncertainties [29][30] Other Important Information - The company has made significant progress on future franchises, including the GTF Advantage and the LTAMS program, which are expected to enhance market competitiveness [12][14] - The company is actively working to mitigate tariff impacts through various strategies, including pricing adjustments and operational changes [27][21] Q&A Session Summary Question: Opportunities from European rearmament efforts - Management sees significant opportunities for Raytheon due to increased defense spending in Europe, with expectations of a book-to-bill ratio of 1.0 or more [55][56] Question: Clarification on tariff impacts - The $850 million estimate is net of mitigations, and the company has strategies in place to manage costs and pricing in response to tariffs [61][62] Question: Supply chain disruptions and China strategy - Management is focused on maintaining supply chain stability and is developing multiple sourcing strategies to mitigate risks associated with tariffs and disruptions [70][73] Question: NGAP program progress - The company received a $550 million award for the NGAP program and is pleased with the testing progress and customer feedback [78] Question: Operational impacts from SPS fire - Management is optimistic about avoiding notable impacts from the SPS fire by working closely with alternative suppliers [82] Question: Procurement reform implications - The company supports efforts to streamline procurement processes, which could enhance contract award timelines and reduce risks [114]

Core Insights - RTX reported earnings that exceeded expectations, showcasing strong performance in its defense and aerospace segments [1] - Despite the positive earnings report, the stock price experienced a decline, attributed to concerns over future growth and market conditions [1] Financial Performance - RTX's earnings per share (EPS) came in at $1.12, surpassing analysts' expectations of $1.06 [1] - Revenue for the quarter reached $18.4 billion, reflecting a year-over-year increase of 5% [1] - The company’s defense segment saw a revenue increase of 7%, driven by higher demand for military products [1] Market Reaction - Following the earnings announcement, RTX's stock fell by approximately 4%, indicating investor skepticism despite the strong earnings [1] - Analysts expressed concerns regarding the company's ability to sustain growth in a challenging economic environment [1] Future Outlook - RTX's management provided guidance for the upcoming quarters, projecting continued growth but highlighting potential headwinds from supply chain issues [1] - The company plans to focus on innovation and expanding its product offerings to maintain competitive advantage [1]

Financial Performance - RTX reported Q1 2025 sales of $20.3 billion, a 5% increase year-over-year, with 8% organic sales growth excluding divestitures[4]. - Adjusted EPS for Q1 2025 was $1.47, up 10% compared to the prior year, while GAAP EPS was $1.14[4][9]. - Operating cash flow in Q1 2025 was $1.3 billion, resulting in free cash flow of $0.8 billion[7][8]. - Net sales for Q1 2025 reached $20,306 million, a 5.2% increase from $19,305 million in Q1 2024[24]. - Operating profit for Q1 2025 was $2,035 million, compared to $1,870 million in Q1 2024, reflecting an 8.8% increase[24]. - Total segment operating profit for Q1 2025 was $2,346 million, compared to $2,257 million in Q1 2024, an increase of 3.9%[25]. - Net income for the quarter ended March 31, 2025, was $1,625 million, a decrease of 6.8% compared to $1,743 million in the same quarter of 2024[27]. - Adjusted net income attributable to common shareowners was $1,991 million for Q1 2025, up 11.2% from $1,791 million in Q1 2024[29]. - The operating profit margin improved to 10.0% in Q1 2025, compared to 9.7% in Q1 2024[31]. Segment Performance - Collins Aerospace reported Q1 2025 sales of $7.2 billion, an 8% increase year-over-year, driven by a 13% rise in commercial aftermarket sales[11][12]. - Pratt & Whitney's Q1 2025 sales were $7.4 billion, up 14% year-over-year, with a 28% increase in commercial aftermarket sales[13][14]. - Raytheon reported Q1 2025 sales of $6.3 billion, down 5% year-over-year, but up 2% when excluding the impact of a divestiture[15][16]. - Collins Aerospace segment reported net sales of $7,217 million in Q1 2025, up from $6,673 million in Q1 2024, marking an increase of 8.2%[25]. - Pratt & Whitney segment net sales increased to $7,366 million in Q1 2025 from $6,456 million in Q1 2024, a growth of 14.1%[25]. - Raytheon segment net sales decreased to $6,340 million in Q1 2025 from $6,659 million in Q1 2024, a decline of 4.8%[25]. Guidance and Projections - RTX expects adjusted sales for the full year 2025 to be between $83.0 billion and $84.0 billion, with 4% to 6% organic growth[7]. - The company anticipates adjusted EPS for 2025 to be in the range of $6.00 to $6.15[7]. - Free cash flow guidance for 2025 is projected to be between $7.0 billion and $7.5 billion[7]. Cash Flow and Assets - Free cash flow for the quarter was not specified but is a key focus for future guidance[22]. - Total assets increased to $164,864 million as of March 31, 2025, up from $162,861 million at December 31, 2024, representing a growth of 1.3%[26]. - Total current liabilities rose to $52,624 million as of March 31, 2025, compared to $51,499 million at the end of 2024, reflecting an increase of 2.2%[26]. - Free cash flow for the quarter was $792 million, a significant improvement compared to a negative $125 million in the same quarter of the previous year[32]. Tax and Non-Operational Costs - The effective tax rate for Q1 2025 was 17.0%, compared to 5.8% in Q1 2024, indicating a significant increase in tax expense[24]. - The effective tax rate for Q1 2025 was 17.0%, up from 5.8% in Q1 2024, indicating a significant increase in tax burden[29]. - The quarter ended March 31, 2025 included a tax benefit of $26 million from the closure of multiple state tax audits[36]. - An unfavorable decision related to an international tax matter resulted in a net interest expense of $35 million for the quarter ended March 31, 2025[36]. - The company incurred significant non-operational costs related to segment transformation and divestiture activities[36]. Risks and Challenges - RTX Corporation is actively managing risks related to geopolitical factors, supply chain disruptions, and changes in defense spending, which may impact future performance[22]. Organic Sales Changes - Collins Aerospace reported an organic sales change of 9% with adjusted sales of $6,673 million[34]. - Pratt & Whitney experienced a 14% organic sales change, achieving adjusted sales of $6,456 million[34]. - Raytheon had a 2% organic sales change with adjusted sales of $6,659 million[34]. - Consolidated adjusted sales reached $19,305 million, reflecting an 8% organic change[34].

Core Insights - RTX reported strong operational and financial performance in Q1 2025, with 8% organic sales growth and 10% adjusted EPS growth, alongside a 120 basis points segment margin expansion [1][2][5] - The company achieved reported and adjusted sales of $20.3 billion, reflecting a 5% increase year-over-year, with adjusted EPS rising to $1.47, up 10% from the previous year [2][4][5] - The company’s backlog reached $217 billion, with $125 billion in commercial and $92 billion in defense [5] Financial Performance - Reported sales for Q1 2025 were $20.3 billion, a 5% increase from $19.3 billion in Q1 2024 [4][5] - Net income attributable to common shareholders was $1.5 billion, down 10% from $1.7 billion in the prior year, while adjusted net income rose 11% to $2.0 billion [3][4][27] - Operating cash flow was $1.3 billion, with capital expenditures of $0.5 billion, resulting in free cash flow of $0.8 billion [3][5] Segment Performance - Collins Aerospace reported sales of $7.2 billion, an 8% increase year-over-year, driven by a 21% rise in commercial aftermarket sales [6][7] - Pratt & Whitney's sales increased by 14% to $7.4 billion, supported by a 28% rise in commercial aftermarket sales [8][9] - Raytheon experienced a 5% decline in sales to $6.3 billion, primarily due to the divestiture of its Cybersecurity, Intelligence and Services business [10][11] Outlook - RTX anticipates adjusted sales for the full year 2025 to be between $83.0 billion and $84.0 billion, with organic growth projected at 4% to 6% [5] - Adjusted EPS for the full year is expected to be in the range of $6.00 to $6.15 [5]

Core Insights - Collins Aerospace demonstrated new technology for military applications, enhancing real-time situational awareness by integrating data from various military and commercial sensors during Project Convergence Capstone 5 [1][2][3] - The integration of data allows for faster decision-making and improved operational effectiveness for military commanders, particularly in dynamic battlefield scenarios [3][4] Company Overview - Collins Aerospace is a leader in integrated solutions for the aerospace and defense industry, employing 80,000 individuals dedicated to advancing technologies for sustainable aviation and mission success [5] - RTX, the parent company of Collins Aerospace, is the largest aerospace and defense company globally, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [6]

Core Insights - Raytheon has transitioned its Lower Tier Air and Missile Defense Sensor (LTAMDS) from prototype to production after achieving Milestone C designation from the U.S. Army [1][2][3] - The LTAMDS program has successfully completed eight flight tests, validating its capabilities against real-world threats and confirming its readiness for production and deployment [2][3] - The U.S. Army has officially designated LTAMDS as a program of record, indicating its importance for both homeland defense and expeditionary missions [2][3] Production and Delivery - Raytheon has delivered the first six LTAMDS units to the U.S. Army under a contract awarded in 2019 and is currently manufacturing eight additional units per year, with plans to ramp up production to 12 units annually [4] - The company is set to deliver the seventh and eighth radars later this year and is also producing units for Poland, contracted in August 2024 [4] International Demand - Poland is the first international customer to integrate LTAMDS into its air and missile defense architecture, with a dozen additional countries expressing interest and requesting pricing and availability estimates [5] Company Overview - Raytheon, as part of RTX, is a leading provider of defense solutions, focusing on integrated air and missile defense, advanced sensors, and other defense technologies [6] - RTX is the largest aerospace and defense company globally, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [7]

Group 1 - The Defense sector is anticipating significant earnings reports from three of the Big 4 US defense companies on April 22nd, 2025 [1] Group 2 - Uttam is a growth-oriented investment analyst focusing on technology sectors such as Semiconductors, Artificial Intelligence, and Cloud software, while also researching MedTech, Defense Tech, and Renewable Energy [2]

RTX Corp. (RTX) is slated to release first-quarter 2025 results on April 22, before the opening bell.  The Zacks Consensus Estimate for first-quarter revenues is pegged at $19.76 billion, implying 2.4% growth from the year-ago quarter's reported figure. The consensus mark for first-quarter earnings is pegged at $1.33 per share, suggesting no change from the prior-year quarter’s reported figure. The bottom-line estimate has also remained unchanged in the past 60 days. (Find the latest EPS estimates and surpr ...

Group 1: Product Launch and Pricing - Nvidia has unveiled the RTX 5060 and RTX 5060 Ti gaming graphics cards, with prices set at $299 for the RTX 5060 and $379 to $429 for the RTX 5060 Ti [1] - The RTX 5060 Ti is priced $70 lower than its predecessor, while the RTX 5060 matches the price of the RTX 4060, indicating aggressive pricing strategies in a competitive market [3] Group 2: Competitive Landscape - Nvidia faces competition from AMD and Intel, with AMD launching higher-end RX 9000 series cards and Intel set to release its Battlemage graphics cards in late 2024 [2] - Nvidia's market share stood at 90% in the third quarter of last year, but ongoing shortages and high prices may challenge customer loyalty [7] Group 3: Supply Chain and Demand Issues - The production of graphics cards is constrained due to high demand for AI chips, with Nvidia, AMD, and Intel outsourcing GPU production to TSMC, leading to poor availability and inflated prices [4] - There are concerns that Nvidia may not meet supply expectations for its new graphics cards, which could result in retail prices exceeding MSRP [5][10] Group 4: AI Segment vs. Gaming Segment - Nvidia's data center segment, which includes AI accelerators, generated over 10 times the revenue of its gaming segment in the last reported quarter, highlighting a strategic focus on more lucrative AI products [8] - Future demand for AI accelerators is uncertain, with potential overbuilding in the tech industry, which could shift focus back to Nvidia's gaming business if demand declines [9]