RTX posts 9% Q2 organic sales growth but cuts 2025 EPS outlook
Aerospace and defence company RTX has experienced a notable increase in reported and adjusted sales to $21.58bn in the second quarter (Q2) of fiscal 2025 (FY25). Sales are up 9% organically, excluding divestitures.
Earnings per share (EPS) for RTX stood at $1.22 in Q2 FY25. This figure includes adjustments amounting to $0.28 due to acquisition accounting and an additional $0.06 stemming from restructuring and other significant or non-recurring factors.
Net income attributable to common shareholders of RTX was reported at $1.66bn for Q2, considering $0.4bn related to acquisition accounting adjustments and a further $0.1bn associated with restructuring and other significant or non-recurring items.
The company’s three businesses, Raytheon, Collins Aerospace and Pratt & Whitney, cater to a range of customers in the commercial aerospace and defence industries.
Sales of Raytheon climbed 8% to $7bn over the quarter, driven by the increasing demand for international Patriot and NASAMS systems, alongside a rise in naval programme sales, including SPY-6 and the Evolved SeaSparrow Missile.
Collins Aerospace also witnessed a positive trend with its Q2 adjusted sales escalating 9% to $7.62bn when compared to 2024’s figures.
Pratt & Whitney’s performance during the same period saw a 12% increase in adjusted sales totalling $7.63bn, despite experiencing a four-week work stoppage within the quarter.
RTX chairman and CEO Chris Calio stated: “We continued our momentum in the second quarter with organic sales and profit growth across all three segments, including 16% commercial aftermarket growth. Our backlog grew to $236bn, up 15% versus the prior year, and we secured major awards for our geared turbofan engines and integrated air and missile defence capabilities in the quarter.”
RTX has revised its full year financial outlook with adjusted sales now projected between $84.75bn and $85.5bn, up from the previously estimated range of $83bn to $84bn.
The company also raised its organic sales growth to between 6% and 7% in FY25, an improvement from the earlier forecast of between 4% and 6%.
Adjusted EPS projections have been lowered to a range between $5.80 and $5.95 from the initial forecast of $6 to $6.15.
The updated financial outlook also took into consideration potential impacts from tariffs and modifications resulting from recent tax legislation changes.
“Our updated outlook reflects strong operational performance in the first half and incorporates our current assessment of the impact of tariffs. We are focused on delivering on the strong growth in our commercial and defence end markets and remain well-positioned to drive long-term profitable growth,” Chris Calio added.
Collins Aerospace recently divested its flight control and actuation (FCA) operations to French aerospace company Safran.
