RTX reported $22.5 billion in fiscal 2025 third-quarter sales, up 12 percent from the prior-year period and 13 percent organically, excluding divestitures.
In an earnings release published Tuesday, the Arlington, Virginia-based aerospace and defense contractor said it recorded a total backlog of $251 billion, with $103 billion attributed to its defense segment.
The company recorded $4 billion in free cash flow for the quarter and $1.70 in adjusted earnings per share, up 17 percent year-over-year. GAAP EPS came in at $1.41, including acquisition accounting adjustments and other nonrecurring items.
RTX returned $0.9 billion of capital to shareholders during the quarter and reduced debt by $2.9 billion, while raising its full-year 2025 outlook for adjusted sales and earnings per share.
Q3 Sales Results of 3 Business Segments
RTX’s Collins Aerospace business posted $7.6 billion in third-quarter sales, an 8 percent increase compared with the prior-year period. The growth was driven by a 16 percent rise in commercial original equipment, a 13 percent growth in commercial aftermarket and a 6 percent increase in defense sales.
Pratt & Whitney reported $8.4 billion in Q3 sales, up 16 percent from the same period the previous year, supported by 23 percent growth in commercial aftermarket, 15 percent growth in military programs and a 5 percent rise in commercial OE.
The defense contractor’s Raytheon business generated $7 billion in quarterly sales, marking a 10 percent year-over-year increase. The growth was attributed to higher volumes across Patriot, SM-6 and Evolved SeaSparrow Missile programs, as well as multiple classified naval programs.
RTX Defense Segment Performance
At an earnings call Tuesday, RTX Chairman and CEO Christopher Calio told analysts that the company continues to be “exceptionally well positioned to meet the growing needs” of U.S. and international customers with respect to integrated air and missile defense and munitions.
The company’s defense operations reported a book-to-bill ratio of 1.63 and $37 billion in new awards for the quarter, including $23 billion from defense programs.
Raytheon secured over $8 billion in munitions contracts, including a $2.5 billion GEM-T missile order supporting multiple international customers and a $2.1 billion order for advanced medium-range air-to-air missiles, or AMRAAM. The company also received a counter-drone Coyote contract from the U.S. Army. According to Calio, Raytheon has developed a non-kinetic Coyote payload designed to defeat drone swarms.
In military propulsion, Pratt & Whitney booked over $3 billion in new awards for the F135 engine, including the Lot 18 production contract.
Calio on RTX’s Strategic Priorities
During the call, Calio highlighted RTX’s continued progress on its strategic priorities: executing on commitments, innovating for future growth and advancing digital transformation.
Through the third quarter, RTX achieved 10 percent organic sales growth while maintaining a flat headcount, contributing to six consecutive quarters of margin expansion. The company also invested over $600 million in manufacturing expansion projects this year, including a $300 million investment at Raytheon’s Redstone missile integration facility in Huntsville, Alabama, which Calio said will boost site capacity by 50 percent and “support the growing demand for our naval programs, including the standard missile franchise.”
When it comes to innovation, the chief executive said RTX is advancing several next-generation technologies. According to Calio, Collins Aerospace is nearing certification of a new braking system for the A321XLR aircraft, while Raytheon achieved major milestones with its AMRAAM and StormBreaker effector programs.
“The AMRAAM team successfully completed the longest ever air-to-air shot from a fifth-generation fighter. And the StormBreaker team in just 50 days, designed, developed and tested a new ground launch demonstrator version of this air-launched effector, which will expand the capabilities and future applications for this product,” he said during the call.
Calio also mentioned RTX’s increasing use of artificial intelligence and data analytics to improve productivity and speed up the decision-making process.
“For example, the Raytheon AMRAAM team has deployed multiple proprietary digital AI tools to proactively identify production bottlenecks and reduce rework, which has contributed to output more than doubling year-to-date through Q3 on the program,” he stated.
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