RTX Corporation (RTX)
Description
RTX Corporation is a leading global provider of high-technology products and services to the aerospace and defense industries, operating through three principal segments: Collins Aerospace, Pratt & Whitney, and Raytheon.
Historical Reports
Financial Information
- Report Date
- 2025-04-24
- Report Period
- Q1 2025
- Debt
- $41.3 billion
- Debt History
- Debt increased by 0.1% from $41.261 billion at December 31, 2024 to $41.300 billion at March 31, 2025.
- Debt Trend
- Increasing
Profit Information
- Profit
- $1.625 billion
- Profit History
- Net income decreased by 6.7% from $1.743 billion in Q1 2024 to $1.625 billion in Q1 2025.
- Profit Trend
- Decreasing
Detailed Report
RTX Corporation Q1 2025 Financial Report
Report Date: 2025-04-24
Period Covered: Q1 2025 (Quarter ended March 31, 2025)
Form Type: 10-Q
Key Metrics
- Net Sales: $20.306 billion (up 5.2% y/y)
- Operating Profit: $2.035 billion (up 8.7% y/y)
- Net Income: $1.625 billion (down 6.7% y/y)
- Debt (Total): $41.3 billion (up 0.1% q/q)
- Cash & Equivalents: $5.157 billion
Profit & Debt Analysis
RTX delivered solid revenue growth driven by aftermarket and defense demand, notably in Pratt & Whitney and Collins Aerospace. Operating profit expanded as efficiency gains and favorable mix offset restructuring charges. Despite higher operating earnings, net income declined due to tax adjustments and absence of one-time gains recorded in Q1 2024. Debt remained essentially flat, supported by strong cash flows and liquidity.
Reasons for Variance
- Positive Drivers: Organic net sales up $1.001 billion; higher volumes in commercial aftermarket and defense engine deliveries.
- Margin Expansion: Operating profit rose $165 million, led by Collins and Pratt & Whitney.
- Headwinds: No repeat of prior-year one-time gains, higher tax expense, and additional restructuring costs.
Pros
- Well-diversified portfolio balancing commercial aerospace and defense.
- Robust free cash flow generation and $5.157 billion cash balance.
- Stable leverage with investment-grade credit ratings.
Cons
- Net income contraction due to non-recurring items and tax adjustments.
- Ongoing Pratt & Whitney powder-metal inspection program may elevate costs.
- Exposure to government budget cycles, geopolitical uncertainties, and supply-chain inflation.
Statistics Breakdown
Q1 2025 Segment & Revenue Breakdown
• Segment Net Sales (millions):
- Collins Aerospace: $7,217 (35.5% of total)
- Pratt & Whitney: $7,366 (36.3%)
- Raytheon: $6,340 (31.2%)
• Sales by Category:
- Product Sales: $14,591 (71.9%)
- Service Sales: $5,715 (28.1%)
• Customer Type:
- Commercial Aerospace: $17,483 (86.1%)
- Government (military & direct): $2,823 (13.9%)
Company Direction Insights
RTX is on a stable growth trajectory with organic sales up 5.2% and operating margins improving to 10.0% of sales. The company’s strong free cash flow supports capital investments, R&D spending, and shareholder returns. With total debt virtually unchanged and cash reserves above $5 billion, financial health remains robust underpinned by investment-grade ratings. Looking ahead, key opportunities lie in long-term maintenance contracts, next-generation engine programs, and increased global defense spending. Primary challenges include managing Pratt & Whitney’s powder-metal inspections, macroeconomic and supply-chain pressures, and sensitivity to defense budget cycles and geopolitical risk.