RTX (RTX) investor relations material

Executive summary

• Achieved Q3 2025 sales of $22.5 billion, up 12% year-over-year and 13% organically, with double-digit growth in commercial OE, aftermarket, and defense across all segments.

• Adjusted segment operating profit rose 19% year-over-year, with margin expansion of 70 basis points and free cash flow doubling to $4.0 billion.

• Backlog reached a record $251 billion, up 13% year-over-year, with $37 billion in new awards and 25% expected to convert to revenue in the next 12 months.

• Net income attributable to common shareowners was $1.9 billion, with adjusted net income at $2.3 billion, up 19% year-over-year.

• Completed divestitures of Collins' actuation and flight control businesses, supporting strategic streamlining.

Financial highlights

• Q3 2025 adjusted sales were $22.5 billion, up 12% year-over-year and 13% organically.

• Adjusted segment operating profit was $2.97 billion, up 19% year-over-year, with margin expanding to 12.1%.

• Adjusted EPS was $1.70, up 17% year-over-year; GAAP EPS was $1.41.

• Free cash flow for Q3 was $4.0 billion, up 104% year-over-year.

• Returned $0.9 billion to shareholders and paid down $2.9 billion in debt.

Outlook and guidance

• Raised full-year 2025 adjusted sales guidance to $86.5–$87.0 billion, with organic growth outlook at 8–9%.

• Adjusted EPS guidance increased to $6.10–$6.20; free cash flow guidance maintained at $7.0–$7.5 billion.

• 25% of $251 billion backlog expected to be recognized as revenue over the next 12 months.

• Segment outlook: Collins up mid-single digits, Pratt & Whitney up low to mid-teens, Raytheon up low-single digits for adjusted sales and profit.

• Adjusted tax rate expected at ~19.3–19.5%; capex for 2025 expected at $2.5–$2.7 billion.