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RTX Beats Q3 Estimates, Raises 2025 Outlook on Defense and Aftermarket Strength

A $251 billion backlog with robust cash flow signal resilience against earlier tariff pressures.

Lockheed Martin logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration
Northrop Grumman logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration
Servicemen of the 24th Mechanized Brigade, named after King Danylo, of the Ukrainian Armed Forces load missiles for a BM-21 Grad multiple-launch rocket system as they prepare to fire toward Russian troops, on a front line, amid Russia's attack on Ukraine, near the town of Chasiv Yar in Donetsk region, Ukraine February 23, 2025. Oleg Petrasiuk/Press Service of the 24th King Danylo Separate Mechanized Brigade of the Ukrainian Armed Forces/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY./File Photo
RTX logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • Quarterly revenue rose 12% to $22.478 billion and adjusted EPS reached $1.70, both ahead of estimates.
  • RTX lifted its 2025 adjusted sales outlook to $86.5–$87.0 billion and now guides adjusted EPS of $6.10–$6.20.
  • Collins Aerospace sales grew 8% to $7.62 billion, Pratt & Whitney rose 16% to $8.42 billion, and Raytheon advanced 10% on higher Patriot system demand.
  • New awards totaled $37 billion in the quarter, supporting a $251 billion backlog spanning commercial and defense programs.
  • Operating cash flow was $4.639 billion with free cash flow of $4.025 billion, as RTX reaffirmed $7.0–$7.5 billion FCF for 2025, returned $900 million to shareholders, reduced debt by $2.9 billion, and completed a Collins divestiture.