RTX Corp
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.59%.
Did RTX Beat Earnings? Q1 2025 Results
RTX opened 2025 on firm footing, posting first-quarter revenue of $20.31 billion — up 5.2% year-over-year and ahead of the $19.80 billion consensus by 2.57% — while adjusted EPS of $1.47 cleared the $1.3672 estimate by 7.52%, reflecting disciplined execution across all three business segments. The standout driver was commercial aftermarket, which surged 21% on a consolidated basis as robust demand at both Pratt & Whitney and Collins Aerospace translated directly into margin expansion; adjusted segment operating margin climbed 120 basis points to 11.9%. Free cash flow swung sharply positive to $792 million from negative $125 million a year ago, underscoring improving operational momentum. RTX held its full-year outlook steady, targeting adjusted sales of $83 to $84 billion and adjusted EPS of $6.00 to $6.15, though the guidance carries an important asterisk: management explicitly excluded the impact of recently enacted tariffs, which the company estimates could weigh on operating profit by roughly $850 million — a disclosure that tempered investor enthusiasm despite the otherwise strong headline results.
- Commercial aftermarket up 21% year-over-year driven by continued demand and growth in commercial air traffic
- Pratt & Whitney commercial aftermarket up 28% driven by higher volume and favorable mix across Large Commercial Engines and Pratt Canada
- Collins Aerospace commercial aftermarket up 13% driven by continued growth in commercial air traffic
- Collins Aerospace defense sales up 10% driven by higher volume across multiple C4I programs, SAOC, and F-35
- 120 basis points of adjusted segment margin expansion
- 8% consolidated organic sales growth
“We are off to a strong start to 2025 with 8 percent organic sales growth and 10 percent adjusted EPS growth, including 120 basis points of segment margin expansion in Q1. Organic growth was broad based and led by strength in commercial aftermarket, which was up 21 percent year-over-year driven by continued demand for our industry leading products and solutions.”
RTX CEO, on the earnings call
Forward Guidance & Outlook
RTX maintained its 2025 full-year outlook: adjusted sales of $83.0-$84.0 billion including 4-6% organic growth, adjusted EPS of $6.00-$6.15, and free cash flow of $7.0-$7.5 billion. Importantly, the outlook does not incorporate the impact of recently enacted incremental U.S. and non-U.S. tariffs; management planned to provide additional details on potential tariff impacts during the Q1 2025 earnings call.
RTX YoY Financials
RTX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.