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RTX Beats on Q2 Earnings & Sales, Lowers '25 EPS View
ZACKS· 2025-07-22 14:55
Core Insights - RTX Corporation's second-quarter 2025 adjusted earnings per share (EPS) of $1.56 exceeded the Zacks Consensus Estimate of $1.45 by 7.6% and improved 10.6% from the previous year's $1.41, driven by growth in adjusted operating profit [1][2] - The company reported GAAP earnings of $1.22 per share, a significant increase from 8 cents in the prior-year quarter [1] Operational Performance - RTX's second-quarter sales reached $21.58 billion, surpassing the Zacks Consensus Estimate of $20.53 billion by 5.1% and reflecting a 9.4% increase from $19.72 billion in the second quarter of 2024 [3] - Total costs and expenses rose 6.4% year over year to $19.48 billion, while adjusted operating profit increased to $2.79 billion from $2.56 billion in the prior-year quarter [4] Segmental Performance - Collins Aerospace: Sales totaled $7.62 billion, up 8.9% year over year, driven by higher commercial aftermarket and defense sales [5] - Pratt & Whitney: Sales reached $7.63 billion, reflecting a 12.2% improvement, attributed to growth in commercial aftermarket and OEM businesses [6] - Raytheon: Sales amounted to $7 billion, up 6.4% year over year, driven by increased sales volume for defense systems [7] Financial Update - As of June 30, 2025, RTX had cash and cash equivalents of $4.78 billion, down from $5.58 billion as of December 31, 2024 [8] - Long-term debt totaled $38.26 billion, a decrease from $38.73 billion at the end of 2024 [10] - Net cash flow from operating activities was $1.76 billion, compared to $3.08 billion at the end of June 2024, and free cash flow totaled $0.72 billion, down from $2.07 billion [10] Guidance - RTX updated its 2025 financial guidance, now expecting adjusted EPS in the range of $5.80-$5.95, down from $6.00-$6.15, with the Zacks Consensus Estimate at $5.93 [11] - The sales projection for 2025 was raised to $84.75-$85.50 billion from the previous guidance of $83-$84 billion, with the Zacks Consensus Estimate at $84.13 billion [12]