RTX has updated its 2025 outlook after reporting strong third-quarter results.
Adjusted sales for the full year are expected to be $86.5bn-$87bn, up from $84.75bn-$85.5bn. This would translate to organic sales growth of 8-9%, up from 6-7%. Adjusted earnings per share were raised to $6.10-$6.2, up from $5.80-$5.95.
In this year's third quarter, the company’s sales were up 12% year over year to $22.5bn. Net income soared 30% to $1.9bn for the quarter, and earnings per share came in at $1.41, up from $1.09 a year prior.
“We remain focused on executing on our $251bn 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,” said RTX chair and CEO Chris Calio.
The positive results were driven by growth across all three of RTX's business segments, including the commercial engine subsidiary Pratt & Whitney.
The commercial engine OEM reported sales of $8.4bn for the third quarter, up 16% year over year, with operating profits climbing 35% to $751 million.
An increase in engine sales and commercial aftermarket activity drove Pratt & Whitney’s increase in total sales. This offset tariff impact as well as higher general and administrative expenses.
During the company’s earnings call, management said MRO output was driving aftermarket services demand for its geared turbofan (GTF) engine.
Last week, Pratt & Whitney received type certification from the European Union Aviation Safety Agency (EASA) for its GTF Advantage engine. This followed the FAA approving the engine in February this year.
The upgraded engine for the A320neo family aircraft delivers 4% more takeoff thrust at sea-level airports and 8% more at high-altitude airports, along with better fuel efficiency.
Management said on the call that there is “a lot of demand” for both spare and original GTF engines, with both remaining relatively unchanged compared to previous quarters.
The company said it expects to see increased GTF sales during the fourth quarter, compared with the same period last year.
“We’ll face a bit more of a headwind from higher negative engine margins in the quarter,” management said. “Still, we anticipate a reasonable balance of spares and the usual strong fourth-quarter aftermarket performance from Pratt.”
Additionally, RTX’s aerospace technology division Collins Aerospace reported $7.6bn in sales, up 8%. Operating profits were up 9% to $1.2bn.
Raytheon’s third-quarter sales were up 10% to $7bn and operating profits were $859 million, up 33%.
The company generated a free cash flow of $4bn for the quarter, double the same period last year.