Raytheon Technologies Corporation (RTX) Financial Results Summary
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RTX (RTX) Q3 2025 Financial Results Summary
ARLINGTON, Va., October 21, 2025 – RTX (NYSE: RTX) reports third quarter 2025 results, demonstrating robust performance across its business segments.
Summary of Financial Results
- Sales:
- Reported sales reached $22.5 billion, a 12% increase compared to Q3 2024.
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Organic sales growth was 13%, excluding divestitures.
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Earnings Per Share (EPS):
- GAAP EPS of $1.41, which includes several accounting adjustments:
- $0.29 from acquisition accounting adjustments.
- $0.01 from restructuring costs.
- $0.01 net benefit from other non-recurring items.
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Adjusted EPS of $1.70, up 17% from the previous year.
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Cash Flow:
- Operating cash flow totaled $4.6 billion.
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Free cash flow amounted to $4.0 billion.
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Net Income:
- Net income attributable to common shareholders was $1.9 billion, reflecting a 30% increase from Q3 2024.
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Adjusted net income reached $2.3 billion, an increase of 19% year-over-year.
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Company Backlog:
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The total backlog stood at $251 billion, composed of $148 billion in commercial and $103 billion in defense.
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Capital Returns:
- Returned $0.9 billion to shareholders.
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Paid down $2.9 billion of debt.
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Dividends:
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Dividends paid for the quarter were $910 million, up from $823 million year-over-year.
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Divestiture:
- Completed the divestiture of Collins’ actuation and flight control business.
Segment Performance
Collins Aerospace
- Sales: Achieved $7.6 billion, up 8% from Q3 2024.
- Operating Profit: Reached $1.26 billion, reflecting a 19% increase compared to last year.
- Adjusted operating profit increased by 9% to $1.194 billion.
Pratt & Whitney
- Sales: Increased by 16% to $8.423 billion.
- Operating Profit: Rose 35% to $751 million, driven by significant increases in various sales categories:
- Commercial OE sales grew by 5%.
- Commercial aftermarket sales jumped 23%.
- Military sales rose 15%.
- Adjusted operating profit increased by 26% to $751 million.
Raytheon
- Sales: Reported $7.045 billion, a 10% increase year-over-year.
- Operating Profit: Up 33% to $859 million.
- Adjusted operating profit increased by 30%.
Outlook for Full Year 2025
- Adjusted Sales: Revised forecast to between $86.5 billion and $87.0 billion, from previously projected $84.75 to $85.5 billion.
- Organic Sales Growth: Adjusted forecast to between 8% and 9%, up from 6% to 7%.
- Adjusted EPS: Revised to between $6.10 and $6.20, from prior expectations of $5.80 to $5.95.
- Free Cash Flow: Confirmed at $7.0 to $7.5 billion for the year.
CEO Remarks: Chris Calio emphasized strong execution leading to double-digit sales growth across segments, and highlighted a robust global demand evidenced by acquiring $37 billion in new awards during the quarter.
Summary of Adjusted Financial Metrics
- Adjusted EPS YoY Growth: Up 17%.
- Adjusted Net Income YoY Growth: Up 19%.
- Sales Growth: 12% year-over-year.
Overall, RTX exhibits a strong financial performance with all major metrics showcasing improvement compared to the same quarter last year, supporting a positive outlook for future growth.
Condensed Consolidated Statement of Operations
| Quarter Ended September 30, | |||
|---|---|---|---|
| ($ in millions, except EPS) | 2025 | 2024 | % Change |
| Net Sales | $22,478 | $20,089 | 12% |
| Costs and expenses: | |||
| – Cost of sales | $17,898 | $16,055 | |
| – Research and development | $684 | $751 | |
| – Selling, general, and administrative | $1,436 | $1,389 | |
| – Total costs and expenses | $20,018 | $18,195 | |
| Other income (expense), net | $63 | $134 | |
| Operating profit | $2,523 | $2,028 | |
| – Non-service pension income | -$364 | -$374 | |
| – Interest expense, net | $449 | $496 | |
| Income before income taxes | $2,438 | $1,906 | |
| – Income tax expense | $432 | $371 | |
| Net income | $2,006 | $1,535 | |
| – Less: Noncontrolling interest in subsidiaries’ earnings | $88 | $63 | |
| Net income attributable to common shareowners | $1,918 | $1,472 | |
| Earnings Per Share attributable to common shareowners: | |||
| – Basic | $1.43 | $1.10 | |
| – Diluted | $1.41 | $1.09 | |
| Weighted Average Shares Outstanding: | |||
| – Basic shares | 1,343.1 | 1,333.2 | |
| – Diluted shares | 1,358.4 | 1,346.2 |
Condensed Consolidated Balance Sheet
| (dollars in millions) | September 30, 2025 | December 31, 2024 |
|---|---|---|
| -Unaudited | -Unaudited | |
| Assets | ||
| Cash and cash equivalents | $5,966 | $5,578 |
| Accounts receivable, net | $12,837 | $10,976 |
| Contract assets, net | $16,604 | $14,570 |
| Inventory, net | $13,806 | $12,768 |
| Other assets, current | $7,905 | $7,241 |
| Total current assets | $57,118 | $51,133 |
| Customer financing assets | $2,071 | $2,246 |
| Fixed assets, net | $16,325 | $16,089 |
| Operating lease right-of-use assets | $1,899 | $1,864 |
| Goodwill | $53,311 | $52,789 |
| Intangible assets, net | $32,260 | $33,443 |
| Other assets | $5,688 | $5,297 |
| Total assets | $168,672 | $162,861 |
| Liabilities, Redeemable Noncontrolling Interest, | ||
| and Equity | ||
| Short-term borrowings | $215 | $183 |
| Accounts payable | $14,552 | $12,897 |
| Accrued employee compensation | $2,937 | $2,620 |
| Other accrued liabilities | $14,835 | $14,831 |
| Contract liabilities | $20,111 | $18,616 |
| Long-term debt currently due | $584 | $2,352 |
| Total current liabilities | $53,234 | $51,499 |
| Long-term debt | $38,260 | $38,726 |
| Operating lease liabilities, non-current | $1,650 | $1,632 |
| Future pension and postretirement | ||
| benefit obligations | $1,981 | $2,104 |
| Other long-term liabilities | $7,154 | $6,942 |
| Total liabilities | $102,279 | $100,903 |
| Redeemable noncontrolling interest | $34 | $35 |
| Shareowners’ Equity: | ||
| Common stock | $37,869 | $37,434 |
| Treasury stock | -$26,937 | -$27,112 |
| Retained earnings | $56,014 | $53,589 |
| Accumulated other comprehensive loss | -$2,432 | -$3,755 |
| Total shareowners’ equity | $64,514 | $60,156 |
| Noncontrolling interest | $1,845 | $1,767 |
| Total equity | $66,359 | $61,923 |
| Total liabilities, redeemable | $168,672 | $162,861 |
| noncontrolling interest, and equity |
