RTX (RTX) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $20.3 billion, up 5% year-over-year and 8% organically, with strong growth at Pratt & Whitney and Collins Aerospace, and robust commercial aftermarket demand.

• Adjusted segment profit was $2.5 billion, up 18% year-over-year, with 120 basis points of margin expansion; adjusted EPS rose 10% to $1.47, while GAAP EPS was $1.14.

• Backlog reached $217 billion, up 8% year-over-year, with $125 billion in commercial and $92 billion in defense orders.

• Major program milestones included FAA certification for GTF Advantage and LTAMDS moving to production.

• Net income attributable to common shareowners was $1.5 billion, with adjusted net income up 11% to $2.0 billion.

Financial highlights

• Adjusted sales were $20.3 billion, up 5% (8% organically); segment operating profit was $2.5 billion, up 18% year-over-year.

• Adjusted EPS was $1.47, up from $1.34 year-over-year; GAAP EPS was $1.14.

• Free cash flow improved to $0.8 billion, with operating cash flow at $1.3 billion and capital expenditures of $0.5 billion.

• Returned $0.9 billion to shareholders in Q1 2025, mainly via dividends.

• Adjusted segment operating profit margin expanded by 120 basis points to 11.9%.

Outlook and guidance

• 2025 adjusted sales guidance is $83.0–$84.0 billion, with 4–6% organic growth and adjusted EPS of $6.00–$6.15.

• Free cash flow expected at $7.0–$7.5 billion; capex spending of $2.5–$2.7 billion.

• Segment outlook: Collins Aerospace and Raytheon up low-single digits, Pratt & Whitney up high-single digits in sales and profit.

• Outlook excludes potential impacts from tariffs, which could affect operating profit by up to $850 million if implemented at current rates.

• Full-year 2025 cash impact from the Pratt & Whitney powder metal matter estimated at $1.1–$1.3 billion.