Did RTX raise, lower, or maintain its 2025 guidance?

The filing presents the full-year 2025 outlook as adjusted sales of $83.0–84.0 billion (including 4–6% organic growth), adjusted EPS of $6.00–6.15, and free cash flow of $7.0–7.5 billion. The release does not describe these figures as raised or lowered relative to prior guidance, so the outlook should be read as presented in this filing.

How much of the EPS result was affected by non-recurring or acquisition-related items?

GAAP EPS of $1.14 included $0.27 of acquisition accounting adjustments and $0.06 of restructuring and other net significant or non-recurring items, for a total impact of $0.33 per share. Adjusted EPS, which excludes these items, was $1.47. Net income attributable to common shareowners was $1.5 billion on a GAAP basis versus $2.0 billion adjusted.

Why did Raytheon's reported profit decline so sharply?

Raytheon's reported operating profit fell 32% to $678 million, mainly because Q1 2024 included a $375 million net gain on the sale of the Cybersecurity, Intelligence and Services business. On an adjusted basis, Raytheon's operating profit rose 8%, driven by favorable mix and productivity, partly offset by the loss of the divested business's profit. Reported sales fell 5%, but organic sales grew 2%.

What is the main risk to the outlook that management flagged?

The outlook excludes the impact of recently enacted incremental U.S. and non-U.S. tariffs. Management said it would provide additional details on potential tariff impacts during the Q1 2025 earnings call. The forward-looking statements also cite the powder metal issue affecting the PW1100G-JM GTF engine fleet as a continuing risk.

Is the improvement in cash flow sustainable?

Operating cash flow rose to $1.3 billion from $342 million, and free cash flow reached $792 million from negative $125 million. Part of the improvement reflects a $373 million increase in contract liabilities and lower year-over-year pressure from the prior period. Free cash flow also reflects capital expenditures of $513 million. Management reaffirmed a full-year free cash flow target of $7.0–7.5 billion, which implies substantial cash generation in the remaining quarters.

RTX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 22, 2025. Cited figures are marked; the original filing is the authoritative source.

RTX Corporation reported first quarter 2025 results on April 22, 2025, with sales of $20.3 billion^a (up 5% reported, 8% organic excluding divestitures) and adjusted EPS of $1.47 (up 10%).

GAAP EPS was $1.14^b, burdened by $0.27 of acquisition accounting adjustments and $0.06 of restructuring and other non-recurring items. Operating cash flow was $1.3 billion and free cash flow was $0.8 billion, a sharp improvement from negative $125 million a year earlier. Backlog reached $217 billion, including $125 billion commercial and $92 billion defense, and the company returned $0.9 billion to shareowners.

Growth was broad-based and led by Commercial Aftermarket, which rose 21%^c year over year, with Pratt & Whitney aftermarket up 28% and Collins aftermarket up 13%. Adjusted segment margin expanded about 120 basis points to 11.9%. Raytheon was the exception, with reported sales down 5% due to the divestiture of its Cybersecurity, Intelligence and Services business, though organic sales grew 2%.

Reported operating profit at Raytheon fell 32% against a prior-year $375 million^d divestiture gain. The full-year 2025 outlook was reaffirmed in ranges of $83.0 to $84.0 billion in adjusted sales (4% to 6% organic growth), $6.00 to $6.15 in adjusted EPS, and $7.0 to $7.5 billion in free cash flow.

Management explicitly excluded the impact of recently enacted incremental U.S. and non-U.S. tariffs, and said it would provide details on the potential tariff impact on the earnings call. Investors should watch that tariff disclosure, along with the gap between reported and adjusted EPS and the ongoing powder metal and GTF engine matter referenced in the forward-looking statements.

02—Key points

Key Highlights

Q1 2025 sales of $20.3B, up 5% reported and 8% organic excluding divestitures, with aftermarket strength leading growth
Adjusted EPS of $1.47, up 10% year over year; GAAP EPS of $1.14 included $0.33 of combined acquisition accounting and non-recurring charges
Free cash flow of $0.8B versus negative $125M in Q1 2024, driven by operating cash flow of $1.3B
Commercial aftermarket up 21% year over year, with Pratt & Whitney aftermarket up 28% and Collins aftermarket up 13%
Adjusted segment operating margin expanded about 120 basis points to 11.9%, led by Collins and Pratt & Whitney
Backlog of $217B ($125B commercial, $92B defense) provides multi-year revenue visibility
2025 outlook reaffirmed for adjusted sales of $83–84B, adjusted EPS of $6.00–6.15, and free cash flow of $7.0–7.5B, excluding the impact of newly enacted tariffs

03—Questions

Frequently Asked Questions

Did RTX raise, lower, or maintain its 2025 guidance?
The filing presents the full-year 2025 outlook as adjusted sales of $83.0–84.0 billion (including 4–6% organic growth), adjusted EPS of $6.00–6.15, and free cash flow of $7.0–7.5 billion. The release does not describe these figures as raised or lowered relative to prior guidance, so the outlook should be read as presented in this filing.
How much of the EPS result was affected by non-recurring or acquisition-related items?
GAAP EPS of $1.14 included $0.27 of acquisition accounting adjustments and $0.06 of restructuring and other net significant or non-recurring items, for a total impact of $0.33 per share. Adjusted EPS, which excludes these items, was $1.47. Net income attributable to common shareowners was $1.5 billion on a GAAP basis versus $2.0 billion adjusted.
Why did Raytheon's reported profit decline so sharply?
Raytheon's reported operating profit fell 32% to $678 million, mainly because Q1 2024 included a $375 million net gain on the sale of the Cybersecurity, Intelligence and Services business. On an adjusted basis, Raytheon's operating profit rose 8%, driven by favorable mix and productivity, partly offset by the loss of the divested business's profit. Reported sales fell 5%, but organic sales grew 2%.
What is the main risk to the outlook that management flagged?
The outlook excludes the impact of recently enacted incremental U.S. and non-U.S. tariffs. Management said it would provide additional details on potential tariff impacts during the Q1 2025 earnings call. The forward-looking statements also cite the powder metal issue affecting the PW1100G-JM GTF engine fleet as a continuing risk.
Is the improvement in cash flow sustainable?
Operating cash flow rose to $1.3 billion from $342 million, and free cash flow reached $792 million from negative $125 million. Part of the improvement reflects a $373 million increase in contract liabilities and lower year-over-year pressure from the prior period. Free cash flow also reflects capital expenditures of $513 million. Management reaffirmed a full-year free cash flow target of $7.0–7.5 billion, which implies substantial cash generation in the remaining quarters.

04—Continue

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