RTX Corporation (NYSE:RTX) shares rose 8% Tuesday after the company posted stronger-than-expected third-quarter 2025 results and raised its full-year outlook.
Sales climbed 12% year over year to $22.478 billion, beating the $21.314 billion estimate. Adjusted EPS of $1.70 topped the $1.41 estimate, while GAAP EPS was $1.41, including $0.29 of acquisition accounting adjustments, $0.01 of restructuring, and a $0.01 benefit from other nonrecurring items.
Operating cash flow reached $4.639 billion, and free cash flow totaled $4.025 billion. RTX reported a backlog of $251 billion, with $148 billion in commercial and $103 billion in defense orders.
The company returned $900 million to shareholders, paid down $2.9 billion of debt, and completed the sale of Collins’ actuation and flight control business.
Collins Aerospace sales rose 8% to $7.621 billion, driven by higher commercial OE, aftermarket, and defense demand. Adjusted operating profit increased 9% to $1.194 billion, helped by volume gains that offset unfavorable mix and higher tariffs.
Pratt & Whitney sales grew 16% to $8.423 billion, and adjusted profit rose 26% to $751 million, supported by higher aftermarket and military volume, including the F135 program.
Raytheon sales advanced 10% to $7.045 billion, with adjusted profit up 30% to $859 million on strength in air and naval defense systems.
“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 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,” he added.
Outlook
RTX raised its 2025 adjusted EPS outlook to $6.10–$6.20 from $5.80–$5.95, versus a $5.95 estimate, and lifted its adjusted sales forecast to $86.5–$87.0 billion from $84.75–$85.5 billion, above the $85.579 billion estimate. The company reaffirmed free cash flow guidance of $7.0–$7.5 billion.