RTX 8-K: Smart Summary
92% reduction- RTX Corporation reported second quarter 2025 net sales of $21.6B, up 8% versus prior year, with GAAP EPS from continuing operations of $1.47 and Adjusted EPS of $1.55, up 12% versus prior year.
- The company generated $2.7B in cash flow from operations and $2.2B in free cash flow in Q2 2025.
- RTX raised its full year 2025 Adjusted EPS outlook to $6.00–$6.15 (from $5.85–$6.00) and free cash flow outlook to approximately $7.5B (from approximately $7B).
Item 2.02: Results of Operations and Financial Condition
Financial Highlights
- Net sales: $21.6B in Q2 2025, up 8% versus prior year on a reported basis and up 7% on an organic basis
- YTD net sales: $42.4B in H1 2025, up 9% versus prior year on a reported basis and up 8% on an organic basis
- GAAP operating profit: $2B in Q2 2025; Adjusted operating profit: $2.3B
- GAAP net income attributable to common shareowners from continuing operations: $2B in Q2 2025
- Adjusted net income from continuing operations: $2.1B in Q2 2025
- GAAP EPS from continuing operations: $1.47 in Q2 2025; Adjusted EPS: $1.55, up 12% versus prior year
- YTD Adjusted EPS: $3.00, up 14% versus prior year
- Adjusted segment operating margin: 11.4%, up 100 basis points versus prior year
- Effective tax rate: 17.9% GAAP; 18.7% adjusted for Q2 2025
- Cash flow from operations: $2.7B in Q2 2025; $3.8B YTD
- Free cash flow: $2.2B in Q2 2025; $2.9B YTD
Segment Results
- Collins Aerospace: Q2 2025 net sales of $7.7B, up 8% reported / up 7% organic versus prior year; Adjusted segment operating profit of $1.1B, up 11% versus prior year; Adjusted segment operating margin of 14.3%, up 40 basis points versus prior year; growth driven by higher volume across Commercial Aftermarket, Commercial OEM, and Defense, partially offset by lower Interiors volume
- Pratt & Whitney: Q2 2025 net sales of $7.7B, up 10% reported / up 9% organic versus prior year; Adjusted segment operating profit of $530M, up 13% versus prior year; Adjusted segment operating margin of 6.9%, up 30 basis points versus prior year; growth driven by higher volume in Commercial Aftermarket and Military, partially offset by lower Commercial OEM volume
- Raytheon: Q2 2025 net sales of $6.7B, up 7% reported / up 7% organic versus prior year; Adjusted segment operating profit of $814M, up 14% versus prior year; Adjusted segment operating margin of 12.1%, up 80 basis points versus prior year; growth driven by higher volume across all lines of business
- Consolidated backlog at end of Q2 2025: $217B, an increase of approximately $20B versus prior year
Capital Allocation
- Total debt at end of Q2 2025: $35.5B
- Cash and cash equivalents at end of Q2 2025: $7.8B
- Q2 2025 capital returned to shareowners: approximately $1.1B, comprising dividends of approximately $800M and share repurchases of approximately $300M
- H1 2025 capital returned to shareowners: approximately $2.2B, comprising dividends of approximately $1.5B and share repurchases of approximately $700M
Management Commentary
- Chris Calio, RTX President and Chief Executive Officer
- "RTX delivered another strong quarter as we continue to benefit from the significant secular tailwinds in both our defense and commercial aerospace businesses."
- "We had excellent operational execution across the portfolio with strong top-line performance and 100 basis points of year-over-year adjusted segment operating margin expansion, and we are raising our adjusted EPS and free cash flow guidance for the full year."
Guidance
- Full year 2025 net sales: approximately $83–$84B (unchanged), up ~8% versus prior year
- Full year 2025 Adjusted EPS: $6.00–$6.15 (raised from prior range of $5.85–$6.00)
- Full year 2025 free cash flow: approximately $7.5B (raised from prior outlook of approximately $7B)
- Full year 2025 cash flow from operations: approximately $9B (raised from prior outlook of approximately $8.5B)
- Collins Aerospace full year outlook: net sales of approximately $29.5–$30B; Adjusted segment operating margin of approximately 14.5%–15.0%
- Pratt & Whitney full year outlook: net sales of approximately $29.5–$30B; Adjusted segment operating margin of approximately 7.25%–7.75%
- Raytheon full year outlook: net sales of approximately $25.5–$26B; Adjusted segment operating margin of approximately 12.0%–12.5%
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