Raytheon Technologies(RTX) - 2025 Q1 - Quarterly Results

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].