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RTX posted Q2 adjusted EPS of $1.56 and sales of $21.58B, beating estimates and rising year over year.
All three segments - Collins, Pratt & Whitney, and Raytheon - contributed to the top-line growth.
RTX cut 2025 EPS guidance to $5.80-$5.95 but raised sales outlook to $84.75-$85.50 billion.
RTX Corporation’s (RTX - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41, driven by growth in adjusted operating profit.
Including one-time items, the company reported GAAP earnings of $1.22 per share, marking a significant improvement from 8 cents in the prior-year quarter.
The upside in GAAP earnings can be attributed to lower interest expense and higher operating profit.
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
The top-line improvement was driven by higher sales growth from all of RTX’s three business segments.
Total costs and expenses increased 6.4% year over year to $19.48 billion in the second quarter. The company generated an adjusted operating profit of $2.79 billion compared with $2.56 billion in the prior-year quarter.
RTX posted an interest expense of $457 million compared with $475 million in the prior-year period.
Segmental Performance
Collins Aerospace: Sales in this segment totaled $7.62 billion, up 8.9% year over year. This improvement can be primarily attributed to higher commercial aftermarket and defense sales. While continued growth in commercial air traffic drove commercial aftermarket sales growth, defense sales growth was driven by higher volume across multiple programs and platforms, including F-35 and the Survivable Airborne Operations Center program.
The segment’s adjusted operating profit totaled $1.25 billion compared with $1.15 billion in the year-ago quarter.
Pratt & Whitney: This segment’s sales totaled $7.63 billion, reflecting an improvement of 12.2% from the year-ago quarter’s reported number. This improvement can be attributed to sales growth in the commercial aftermarket and commercial OEM businesses. The increase in commercial aftermarket sales was driven by higher volume for Large Commercial Engines and favorable mix in Pratt Canada.
The adjusted operating profit totaled $608 million, up from $537 million in the year-ago quarter.
Raytheon: This segment recorded sales of $7 billion, up 6.4% year over year, driven by higher sales volume for land and air defense systems, including international Patriot and NASAMS as well as higher volume for naval programs, including SPY-6 and Evolved SeaSparrow Missile.
Adjusted operating profit amounted to $809 million compared with $709 million recorded in the corresponding period of 2024.
Financial Update
RTX had cash and cash equivalents of $4.78 billion as of June 30, 2025, compared with $5.58 billion as of Dec. 31, 2024.
The long-term debt totaled $38.26 billion as of June 30, 2025, down from $38.73 billion as of Dec. 31, 2024.
Net cash flow from operating activities was $1.76 billion as of June 30, 2025, compared with $3.08 billion at the end of June 2024.
Free cash flow totaled $0.72 billion compared with $2.07 billion at the end of June 2024.
Guidance
RTX partially updated its financial guidance for 2025.
The company now expects adjusted EPS to be in the band of $5.80-$5.95, down from the earlier guidance of $6.00-$6.15. The Zacks Consensus Estimate for 2025 EPS is pegged at $5.93, which lies near the low-end of the company’s updated guided range.
RTX raised its 2025 sales projection to the range of $84.75-$85.50 billion from the prior guidance of $83-$84 billion. The Zacks Consensus Estimate for the metric is pegged at $84.13 billion, which lies below the company’s newly guided range.
RTX still expects to generate free cash flow of $7.0-$7.5 billion for 2025.
The Boeing Company (BA - Free Report) is set to report second-quarter 2025 earnings on July 29, 2025, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at $1.47 per share. The consensus mark for sales is pinned at $21.62 billion, indicating year-over-year growth of 28.2%.
Embraer (ERJ - Free Report) is set to report second-quarter 2025 results soon.
The Zacks Consensus Estimate for ERJ’s earnings is pegged at 46 cents per share. The consensus estimate for sales is pinned at $1.67 billion, indicating year-over-year growth of 11.8%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2025 results on July 23, 2025, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.59 per share. The consensus estimate for sales is pinned at $12.35 billion, indicating year-over-year growth of 3.1%.
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RTX Beats on Q2 Earnings & Sales, Lowers '25 EPS View
Key Takeaways
RTX Corporation’s (RTX - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41, driven by growth in adjusted operating profit.
Including one-time items, the company reported GAAP earnings of $1.22 per share, marking a significant improvement from 8 cents in the prior-year quarter.
The upside in GAAP earnings can be attributed to lower interest expense and higher operating profit.
RTX Corporation Price, Consensus and EPS Surprise
RTX Corporation price-consensus-eps-surprise-chart | RTX Corporation Quote
Operational Performance
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
The top-line improvement was driven by higher sales growth from all of RTX’s three business segments.
Total costs and expenses increased 6.4% year over year to $19.48 billion in the second quarter. The company generated an adjusted operating profit of $2.79 billion compared with $2.56 billion in the prior-year quarter.
RTX posted an interest expense of $457 million compared with $475 million in the prior-year period.
Segmental Performance
Collins Aerospace: Sales in this segment totaled $7.62 billion, up 8.9% year over year. This improvement can be primarily attributed to higher commercial aftermarket and defense sales. While continued growth in commercial air traffic drove commercial aftermarket sales growth, defense sales growth was driven by higher volume across multiple programs and platforms, including F-35 and the Survivable Airborne Operations Center program.
The segment’s adjusted operating profit totaled $1.25 billion compared with $1.15 billion in the year-ago quarter.
Pratt & Whitney: This segment’s sales totaled $7.63 billion, reflecting an improvement of 12.2% from the year-ago quarter’s reported number. This improvement can be attributed to sales growth in the commercial aftermarket and commercial OEM businesses. The increase in commercial aftermarket sales was driven by higher volume for Large Commercial Engines and favorable mix in Pratt Canada.
The adjusted operating profit totaled $608 million, up from $537 million in the year-ago quarter.
Raytheon: This segment recorded sales of $7 billion, up 6.4% year over year, driven by higher sales volume for land and air defense systems, including international Patriot and NASAMS as well as higher volume for naval programs, including SPY-6 and Evolved SeaSparrow Missile.
Adjusted operating profit amounted to $809 million compared with $709 million recorded in the corresponding period of 2024.
Financial Update
RTX had cash and cash equivalents of $4.78 billion as of June 30, 2025, compared with $5.58 billion as of Dec. 31, 2024.
The long-term debt totaled $38.26 billion as of June 30, 2025, down from $38.73 billion as of Dec. 31, 2024.
Net cash flow from operating activities was $1.76 billion as of June 30, 2025, compared with $3.08 billion at the end of June 2024.
Free cash flow totaled $0.72 billion compared with $2.07 billion at the end of June 2024.
Guidance
RTX partially updated its financial guidance for 2025.
The company now expects adjusted EPS to be in the band of $5.80-$5.95, down from the earlier guidance of $6.00-$6.15. The Zacks Consensus Estimate for 2025 EPS is pegged at $5.93, which lies near the low-end of the company’s updated guided range.
RTX raised its 2025 sales projection to the range of $84.75-$85.50 billion from the prior guidance of $83-$84 billion. The Zacks Consensus Estimate for the metric is pegged at $84.13 billion, which lies below the company’s newly guided range.
RTX still expects to generate free cash flow of $7.0-$7.5 billion for 2025.
Zacks Rank
RTX currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense Releases
The Boeing Company (BA - Free Report) is set to report second-quarter 2025 earnings on July 29, 2025, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at $1.47 per share. The consensus mark for sales is pinned at $21.62 billion, indicating year-over-year growth of 28.2%.
Embraer (ERJ - Free Report) is set to report second-quarter 2025 results soon.
The Zacks Consensus Estimate for ERJ’s earnings is pegged at 46 cents per share. The consensus estimate for sales is pinned at $1.67 billion, indicating year-over-year growth of 11.8%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2025 results on July 23, 2025, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.59 per share. The consensus estimate for sales is pinned at $12.35 billion, indicating year-over-year growth of 3.1%.