Raytheon Technologies(US:RTX)2025-10-21 10:56Financial 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].