ARLINGTON, Va., Oct. 21, 2025 /PRNewswire/ -- RTX (NYSE:RTX) reports third quarter 2025 results.
Third quarter 2025
Sales of $22.5 billion, up 12 percent versus prior year, and up 13 percent organically* excluding divestitures
GAAP EPS of $1.41, including $0.29 of acquisition accounting adjustments, $0.01 cent of restructuring, and a $0.01 benefit from other net significant and/or non-recurring items
Adjusted EPS* of $1.70, up 17 percent versus prior year
Operating cash flow of $4.6 billion; free cash flow* of $4.0 billion
Company backlog of $251 billion, including $148 billion of commercial and $103 billion of defense
Returned $0.9 billion of capital to shareowners and paid down $2.9 billion of debt
Completed the divestiture of Collins' actuation and flight control business
Updates outlook for full year 2025
Adjusted sales* of $86.5 - $87.0 billion, up from $84.75 - $85.5 billion
Organic sales growth* of 8 to 9 percent, up from 6 to 7 percent
Adjusted EPS* of $6.10 - $6.20, up from $5.80 - $5.95
Confirms free cash flow* of $7.0 - $7.5 billion
"Strong execution in the third quarter enabled us to deliver double-digit organic sales growth* across all three segments and our sixth consecutive quarter of year-over-year adjusted segment margin expansion*," said RTX Chairman and CEO Chris Calio. "We also received $37 billion of new awards in the quarter, reflecting robust global demand for our products and supporting long-term growth for RTX."
"Based on our year-to-date performance and ongoing demand strength, we are raising our full year outlook for adjusted sales* and EPS*. We remain focused on executing on our $251 billion backlog and increasing our output to support the ramp across critical programs, while investing in next-generation products and services that meet the needs of our customers."
*Adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), segment operating profit (loss) and margin percentage (ROS), adjusted segment sales, adjusted segment operating profit (loss) and margin percentage (ROS), adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate, and free cash flow are non-GAAP financial measures. When we provide our expectation for adjusted net sales (also referred to as adjusted sales), adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures (expected diluted EPS and expected cash flow from operations) is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. See "Use and Definitions of Non-GAAP Financial Measures" below for information regarding non-GAAP financial measures.
Third quarter 2025
RTX third quarter reported and adjusted sales were $22.5 billion, up 12 percent over the prior year. GAAP EPS of $1.41 included $0.29 of acquisition accounting adjustments, $0.01 of restructuring, and a $0.01 benefit from other net significant and/or non-recurring items. Adjusted EPS* of $1.70 was up 17 percent versus the prior year.
The company reported net income attributable to common shareowners in the third quarter of $1.9 billion which included $0.4 billion of acquisition accounting adjustments. Adjusted net income* of $2.3 billion was up 19 percent versus the prior year driven by adjusted segment operating profit growth* across all three segments. Operating cash flow in the third quarter was $4.6 billion and capital expenditures were $0.6 billion, resulting in free cash flow* of $4.0 billion.
Summary Financial Results, Operations Attributable to Common Shareowners
3rd Quarter
($ in millions, except EPS)
2025
2024
% Change
Reported
Sales
$ 22,478
$ 20,089
12 %
Net Income
$ 1,918
$ 1,472
30 %
EPS
$ 1.41
$ 1.09
29 %
Adjusted*
Sales
$ 22,478
$ 20,089
12 %
Net Income
$ 2,311
$ 1,948
19 %
EPS
$ 1.70
$ 1.45
17 %
Operating Cash Flow
$ 4,639
$ 2,523
84 %
Free Cash Flow*
$ 4,025
$ 1,971
104 %
Segment Results
Collins Aerospace
3rd Quarter
($ in millions)
2025
2024
% Change
Reported
Sales
$ 7,621
$ 7,075
8 %
Operating Profit
$ 1,260
$ 1,062
19 %
ROS
16.5 %
15.0 %
150
bps
Adjusted*
Sales
$ 7,621
$ 7,075
8 %
Operating Profit
$ 1,194
$ 1,096
9 %
ROS
15.7 %
15.5 %
20
bps
Collins Aerospace third quarter 2025 reported and adjusted sales of $7,621 million were up 8 percent versus the prior year. Excluding the impact of divestitures, the increase in adjusted sales* was driven by a 16 percent increase in commercial OE, a 13 percent increase in commercial aftermarket and a 6 percent increase in defense. The increase in commercial OE sales was driven primarily by higher volume on narrowbody platforms. The increase in commercial aftermarket sales was driven by growth in parts and repairs and retrofit activity. The increase in defense sales was driven by higher volume across multiple programs and platforms, including the Survivable Airborne Operations Center.
Collins Aerospace reported operating profit of $1,260 million was up 19 percent versus the prior year. Reported operating profit included a gain on the sale of the actuation and flight control business. On an adjusted basis, operating profit* of $1,194 million was up 9 percent versus the prior year. Drop through on higher commercial aftermarket, defense, and commercial OE volume and lower R&D expense more than offset the impact of unfavorable commercial OE mix and higher tariffs across the business.
Pratt & Whitney
3rd Quarter
($ in millions)
2025
2024
% Change
Reported
Sales
$ 8,423
$ 7,239
16 %
Operating Profit
$ 751
$ 557
35 %
ROS
8.9 %
7.7 %
120
bps
Adjusted*
Sales
$ 8,423
$ 7,239
16 %
Operating Profit
$ 751
$ 597
26 %
ROS
8.9 %
8.2 %
70
bps
Pratt & Whitney third quarter reported and adjusted sales of $8,423 million were up 16 percent versus the prior year. The sales growth was driven by a 5 percent increase in commercial OE, a 23 percent increase in commercial aftermarket, and a 15 percent increase in military. The increase in commercial OE sales was driven by higher volume in large commercial engines and favorable mix in Pratt Canada, while the increase in commercial aftermarket was driven by higher volume in both large commercial engines and Pratt Canada. Military sales were driven by the F135 program, including higher volume associated with the Lot 18 contract award in the quarter.
Pratt & Whitney reported operating profit of $751 million was up 35 percent versus the prior year. Adjusted operating profit* of $751 million was up 26 percent versus the prior year. The increase was driven by drop through on higher commercial aftermarket and military volume which more than offset the impact from increased large commercial OE deliveries, higher SG&A expense, and higher tariffs across the business.
Raytheon
3rd Quarter
($ in millions)
2025
2024
% Change
Reported
Sales
$ 7,045
$ 6,386
10 %
Operating Profit
$ 859
$ 647
33 %
ROS
12.2 %
10.1 %
210
bps
Adjusted*
Sales
$ 7,045
$ 6,386
10 %
Operating Profit
$ 859
$ 661
30 %
ROS
12.2 %
10.4 %
180
bps
Raytheon third quarter reported and adjusted sales of $7,045 million were up 10 percent versus the prior year. This increase was driven by higher volume on land and air defense systems, including international Patriot as well as higher volume on naval programs, including multiple classified programs, SM-6, and Evolved SeaSparrow Missile.
Raytheon reported operating profit of $859 million was up 33 percent versus the prior year primarily driven by favorable program mix, including international Patriot, improved net productivity, and higher volume. Adjusted operating profit* of $859 million was up 30 percent versus the prior year.
About RTXRTX is the world's largest aerospace and defense company. With approximately 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses, Collins Aerospace, Pratt & Whitney, and Raytheon, we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia.
Conference Call on the Third Quarter 2025 Financial ResultsRTX's financial results conference call will be held on Tuesday, October 21, 2025 at 8:30 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call.
Use and Definitions of Non-GAAP Financial MeasuresRTX Corporation ("RTX" or "the Company") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non-GAAP financial measures:
Non-GAAP measure
Definition
Adjusted net sales /
Adjusted sales
Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinafter referred to as "net significant and/or non-recurring items").
Organic sales
Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items.
Adjusted operating profit
(loss) and margin
percentage (ROS)
Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items. Adjusted operating profit margin percentage represents adjusted operating profit (loss) as a percentage of adjusted net sales.
Segment operating profit
(loss) and margin
percentage (ROS)
Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding acquisition accounting adjustments2, the FAS/CAS operating adjustment3, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin percentage represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other).
Adjusted segment sales
Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and/or non-recurring items.
Adjusted segment operating
profit (loss) and margin
percentage (ROS)
Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and/or non-recurring items. Adjusted segment operating profit margin percentage represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other).
Adjusted net income
Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.
Adjusted earnings per
share (EPS)
Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.
Adjusted effective tax rate
Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.
Free cash flow
Free cash flow represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTX's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX's common stock, and distribution of earnings to shareowners.
1 Net significant and/or non-recurring items represent significant nonoperational items and/or significant operational items that may occur at irregular intervals.
2 Acquisition accounting adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable.
3 The FAS/CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment.
When we provide our expectation for adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), adjusted segment operating profit (loss) and margin percentage (ROS), adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Cautionary Statement Regarding Forward-Looking Statements This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide RTX Corporation ("RTX") management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid and are not statements of historical fact. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "goals," "objectives," "confident," "on track," "designed to, " "commit," "commitment" and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, targets and commitments (including for share repurchases or otherwise), and other statements which are not solely historical facts. All forward-looking statements involve risks, uncertainties, changes in circumstances and other factors that are hard to predict and may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, as amended. Such risks, uncertainties and other factors include, without limitation: (1) the effect of changes in economic, capital market and political conditions in the U.S. and globally; (2) changes in U.S. government defense spending, national priorities and policy positions; (3) our performance on our contracts and programs, including our ability to control costs and our dependence on U.S. government approvals for certain international contracts; (4) challenges in the development, certification, production, delivery, support and performance of RTX's advanced technologies and new products and services and the realization of the anticipated benefits; (5) challenges of operating in RTX's highly-competitive industries both domestically and abroad; (6) our reliance on U.S. and non-U.S. suppliers and commodity markets, including cost increases and disruptions in the delivery of materials and services to RTX or our suppliers; (7) changes in trade policies, implementation of sanctions, imposition of tariffs (and counter-tariffs) and other trade measures and restrictions, foreign currency fluctuations, and sales methods; (8) the economic conditions of the aerospace industry; (9) the ability of RTX to attract, train, qualify, and retain qualified personnel and maintain its culture and high ethical standards, and the ability of our personnel to continue to operate our facilities and businesses around the world; (10) the scope, nature, timing and challenges of managing and completing acquisitions, investments, divestitures and other transactions; (11) compliance with legal, environmental, regulatory and other requirements in the U.S. and other countries in which RTX and its businesses operate; (12) the outcome of pending, threatened and future legal proceedings, investigations, audits and other contingencies; (13) the previously-disclosed deferred prosecution agreements entered into between the Company and the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order imposed on the Company, and the related investigations by the SEC and DOJ, and the consent agreement between the Company and the Department of State; (14) RTX's ability to engage in desirable capital-raising or strategic transactions; (15) the timing and scope of future repurchases by RTX of its common stock or declarations of cash dividends, which may be discontinued, accelerated, suspended or delayed at any time due to various factors; (16) realizing expected benefits from, incurring costs for, and successfully managing, strategic initiatives such as cost reduction, restructuring, digital transformation and other operational initiatives; (17) additional tax exposures due to new tax legislation or other developments in the U.S. and other countries in which RTX and its businesses operate; (18) the identified rare condition in powder metal used to manufacture certain Pratt & Whitney engine parts requiring accelerated removals and inspections of a significant portion of the PW1100G-JM Geared Turbofan (GTF) fleet; (19) changes in production volumes of one or more of our significant customers as a result of business, labor, or other challenges, and the resulting effect on its or their demand for our products and services; (20) an RTX product safety failure, quality issue or other failure affecting RTX's or its customers' or suppliers' products or systems; (21) cybersecurity, including cyber-attacks on RTX's information technology infrastructure, products, suppliers, customers and partners, and cybersecurity-related regulations; (22) insufficient indemnity or insurance coverage; (23) artificial intelligence and other technological developments; (24) our intellectual property and certain third-party intellectual property; (25) threats to RTX facilities and personnel, or those of its suppliers or customers, as well as public health crises, damaging weather, acts of nature or other similar events outside of RTX's control that may affect RTX or its suppliers or customers; (26) the effect of changes in accounting estimates for our programs on our financial results; (27) the effect of changes in pension and other postretirement plan estimates and assumptions and contributions; (28) an impairment of goodwill and other intangible assets; (29) the effects of climate change and climate-related regulations, customer and market demands, products and technologies; and (30) the intended qualification of (1) the United Technologies Corporation (UTC) and Raytheon Company merger as a tax-free reorganization and (2) the spin-offs by UTC of Otis Worldwide Corporation and Carrier Global Corporation into separate independent companies and other internal restructurings as tax-free to us (formerly known as UTC) and former UTC shareowners, in each case, for U.S. federal income tax purposes. For additional information on identifying factors that may cause actual results to differ materially from those stated in forward-looking statements, see the reports of RTX filed with or furnished to the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and RTX assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
RTX Corporation
Condensed Consolidated Statement of Operations
Quarter EndedSeptember 30,
Nine Months EndedSeptember 30,
(Unaudited)
(Unaudited)
(dollars in millions, except per share amounts; shares in millions)
2025
2024
2025
2024
Net Sales
$ 22,478
$ 20,089
$ 64,365
$ 59,115
Costs and expenses:
Cost of sales
17,898
16,055
51,293
47,940
Research and development
684
751
2,018
2,126
Selling, general, and administrative
1,436
1,389
4,457
4,232
Total costs and expenses
20,018
18,195
57,768
54,298
Other income (expense), net
63
134
107
(390)
Operating profit
2,523
2,028
6,704
4,427
Non-service pension income
(364)
(374)
(1,081)
(1,134)
Interest expense, net
449
496
1,349
1,376
Income before income taxes
2,438
1,906
6,436
4,185
Income tax expense
432
371
1,080
732
Net income
2,006
1,535
5,356
3,453
Less: Noncontrolling interest in subsidiaries' earnings
88
63
246
161
Net income attributable to common shareowners
$ 1,918
$ 1,472
$ 5,110
$ 3,292
Earnings Per Share attributable to common shareowners:
Basic
$ 1.43
$ 1.10
$ 3.81
$ 2.47
Diluted
$ 1.41
$ 1.09
$ 3.77
$ 2.45
Weighted Average Shares Outstanding:
Basic shares
1,343.1
1,333.2
1,340.2
1,331.4
Diluted shares
1,358.4
1,346.2
1,354.7
1,341.8
RTX Corporation
Segment Net Sales and Operating Profit (Loss)
Quarter Ended
Nine Months Ended
(Unaudited)
(Unaudited)
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
(dollars in millions)
Reported
Adjusted
Reported
Adjusted
Reported
Adjusted
Reported
Adjusted
Net Sales
