# RTX (RTX) Q2 2025 Financial Results Summary
RTX (NYSE: RTX) released its second quarter 2025 results on July 22, 2025, reporting robust financial performance driven by strong sales and operational gains.
### Key Financial Highlights:
– **Sales**:
– Reported sales of **$21.6 billion**, representing a **9% increase** from Q2 2024.
– Organic sales growth of **9%**, excluding divestitures.
– **Earnings Per Share (EPS)**:
– GAAP EPS of **$1.22**, which includes **$0.28** related to acquisition accounting adjustments and **$0.06** linked to restructuring or non-recurring items.
– Adjusted EPS of **$1.56**, up **11%** compared to Q2 2024.
– **Net Income**:
– Net income attributable to common shareowners reached **$1.7 billion**, compared to **$111 million** in Q2 2024 (not meaningful change).
– Adjusted net income was **$2.1 billion**, increasing by **12%** from the previous year’s quarter.
– **Cash Flow**:
– Operating cash flow recorded at **$0.5 billion**.
– Free cash outflow of **$0.1 billion** (compared to a significant inflow in the prior year).
– **Backlog**:
– Total backlog rose to **$236 billion**, with **$144 billion** from commercial and **$92 billion** from defense, marking a **15% increase** compared to the prior year.
– **Capital Return**:
– Total capital returned to shareholders was **$0.9 billion**.
– Quarterly dividend increased by **8%**.
### Segment Performance:
1. **Collins Aerospace**:
– Sales of **$7.6 billion**, up **9%** year-over-year.
– Operating profit of **$1.2 billion**, an increase of **5%**.
– Notable growth in commercial aftermarket sales, up **13%**.
2. **Pratt & Whitney**:
– Reported sales of **$7.6 billion**, reflecting a **12% increase**.
– Operating profit of **$492 million**, down **9%**, primarily due to charges related to customer bankruptcy. On an adjusted basis, operating profit climbed **13%** to **$608 million**.
3. **Raytheon**:
– Achieved sales of **$7.0 billion**, a **8% rise**.
– Operating profit significantly increased to **$805 million**, up from **$127 million**, which constitutes an increase of **534%**.
– Adjusted operating profit rose by **14%** compared to the prior year.
### Updated 2025 Outlook:
– Increased adjusted sales forecast to **$84.75 – $85.5 billion**, up from **$83.0 – $84.0 billion**.
– Organic sales growth projection raised to **6-7%**, previously **4-6%**.
– Full-year adjusted EPS expectation of **$5.80 – $5.95**, slightly down from **$6.00 – $6.15**.
– Free cash flow guidance remains confirmed at **$7.0 – $7.5 billion**.
### Additional Notes:
– RTX has successfully negotiated the sale of Collins’ Simmonds Precision Products business for **$765 million**.
– The company experienced a work stoppage at Pratt & Whitney impacting cash flow.
### Conclusion
RTX’s second quarter results indicate a solid operational performance with significant growth metrics across all segments. The company exhibits strong demand in both commercial and defense markets, supported by a robust backlog and increased shareholder returns.
For further financial insight, RTX’s conference call discussing these results will be accessible on their website.
| 2nd Quarter 2025 | 2nd Quarter 2024 | Six Months Ended 2025 | Six Months Ended 2024 | |
|---|---|---|---|---|
| Net Sales | $ 21,581 | $ 19,721 | $ 41,887 | $ 39,026 |
| Costs and expenses: | ||||
| Cost of sales | $ 17,205 | $ 16,141 | $ 33,395 | $ 31,885 |
| Research and development | 697 | 706 | 1,334 | 1,375 |
| Selling, general, and administrative | 1,573 | 1,449 | 3,021 | 2,843 |
| Total costs and expenses | 19,475 | 18,296 | 37,750 | 36,103 |
| Other income (expense), net | 40 | -896 | 44 | -524 |
| Operating profit | 2,146 | 529 | 4,181 | 2,399 |
| Non-service pension income | -351 | -374 | -717 | -760 |
| Interest expense, net | 457 | 475 | 900 | 880 |
| Income before income taxes | 2,040 | 428 | 3,998 | 2,279 |
| Income tax expense | 315 | 253 | 648 | 361 |
| Net income | 1,725 | 175 | 3,350 | 1,918 |
| Less: Noncontrolling interest in subsidiaries’ earnings | 68 | 64 | 158 | 98 |
| Net income attributable to common shareowners | $ 1,657 | $ 111 | $ 3,192 | $ 1,820 |
| Earnings Per Share attributable to common shareowners: | ||||
| Basic | $ 1.24 | $ 0.08 | $ 2.38 | $ 1.37 |
| Diluted | $ 1.22 | $ 0.08 | $ 2.36 | $ 1.36 |
| Weighted Average Shares Outstanding: | ||||
| Basic shares | 1,340.6 | 1,331.8 | 1,338.8 | 1,330.5 |
| Diluted shares | 1,354.0 | 1,342.1 | 1,352.9 | 1,339.7 |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $ 4,782 | $ 5,578 |
| Accounts receivable, net | 12,385 | 10,976 |
| Contract assets, net | 15,686 | 14,570 |
| Inventory, net | 14,012 | 12,768 |
| Other assets, current | 7,792 | 7,241 |
| Total current assets | 54,657 | 51,133 |
| Customer financing assets | 2,104 | 2,246 |
| Fixed assets, net | 16,205 | 16,089 |
| Operating lease right-of-use assets | 1,869 | 1,864 |
| Goodwill | 53,327 | 52,789 |
| Intangible assets, net | 32,748 | 33,443 |
| Other assets | 6,229 | 5,297 |
| Total assets | $ 167,139 | $ 162,861 |
| Liabilities, Redeemable Noncontrolling Interest, and Equity | ||
| Short-term borrowings | $ 1,635 | $ 183 |
| Accounts payable | 13,433 | 12,897 |
| Accrued employee compensation | 2,133 | 2,620 |
| Other accrued liabilities | 15,861 | 14,831 |
| Contract liabilities | 19,186 | 18,616 |
| Long-term debt currently due | 2,084 | 2,352 |
| Total current liabilities | 54,332 | 51,499 |
| Long-term debt | 38,259 | 38,726 |
| Operating lease liabilities, non-current | 1,617 | 1,632 |
| Future pension and postretirement benefit obligations | 2,038 | 2,104 |
| Other long-term liabilities | 6,646 | 6,942 |
| Total liabilities | 102,892 | 100,903 |
| Redeemable noncontrolling interest | 41 | 35 |
| Shareowners’ Equity: | ||
| Common stock | 37,680 | 37,434 |
| Treasury stock | -26,995 | -27,112 |
| Retained earnings | 54,104 | 53,589 |
| Accumulated other comprehensive loss | -2,391 | -3,755 |
| Total shareowners’ equity | 62,398 | 60,156 |
| Noncontrolling interest | 1,808 | 1,767 |
| Total equity | 64,206 | 61,923 |
| Total liabilities, redeemable noncontrolling interest, and equity | $ 167,139 | $ 162,861 |
