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RTX
FY2025 Q3
Raised
RTX Corporation earnings call
Buzzberg read
Raised full-year adjusted sales and EPS guidance
RTX reported a strong Q3 with 13% organic sales growth, raised full-year guidance, and highlighted robust commercial aftermarket and defense demand. Key cross-company signals include supply chain improvements for GTF engines (castings and forgings) and record munitions orders at Raytheon. Raised FY2025 adjusted sales guidance to $86.5-87B (from $84.75-85.5B) and EPS to $6.10-6.20 (from $5.80-5.95); FCF guidance maintained at $7-7.5B.
Buzzberg read Raised full-year adjusted sales and EPS guidance RTX reported a strong Q3 with 13% organic sales growth, raised full-year guidance, and highlighted robust commercial aftermarket and defense demand. Key cross-company signals include supply chain improvements for GTF engines (castings and forgings) and record munitions orders at Raytheon. Raised FY2025 adjusted sales guidance to $86.5-87B (from $84.75-85.5B) and EPS to $6.10-6.20 (from $5.80-5.95); FCF guidance maintained at $7-7.5B. Read full analysisCollapse analysis
RTX reported a strong Q3 with 13% organic sales growth, raised full-year guidance, and highlighted robust commercial aftermarket and defense demand. Key cross-company signals include supply chain improvements for GTF engines (castings and forgings) and record munitions orders at Raytheon. Raised FY2025 adjusted sales guidance to $86.5-87B (from $84.75-85.5B) and EPS to $6.10-6.20 (from $5.80-5.95); FCF guidance maintained at $7-7.5B.
- Commercial aftermarket grew 18% in Q3, with Collins parts and repair up 13% and Pratt aftermarket up 23% on heavier shop visits.
- Raytheon booked $16B in orders, including record AMRAAM order and $2.5B GEM-T; international backlog now 44% of total.
- PW1100 GTF MRO output on track for ~30% growth in FY2025, with record Gate 3 starts and improving supply of isothermal forgings (+16%) and structural castings (+29%).
Revenue$22.478BReported
EPS$1.70Reported
Gross margin20.38%Reported
Operating margin11.22%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
Raytheon backlog hits record $72 billion
Demand
GEM-T and AMRAAM orders surge, AMRAAM books largest order in 30-year history
Show 3 more callouts
Operations
Pratt & Whitney MRO output on track for 30% growth
Margins
GTF negative engine margin headwind unchanged at $150-200M
Cash Flow
Free cash flow baseline of $8-8.5 billion, long-term conversion 90-100%
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $22.478B | Reported |
| EPS | $1.70 | Reported |
| Gross margin | 20.38% | Reported |
| Operating margin | 11.22% | Reported |
| Free cash flow | $4.025B | Reported |
| Capex | $0.614B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2025 | $6.10–$6.20 | $6.15 | Raised |
| Free cash flow | FY2025 | $7B–$7.5B | $7.25B | Maintained |
| Revenue | FY2025 | $86.5B–$87B | $86.75B | Raised |
AI, capex & demand read
Management read
Confident
Management consistently highlighted strong demand, raised guidance, and expressed confidence in executing on strategic priorities and future growth.
Management AI read
Management discussed using data analytics and AI tools to improve productivity, decision-making, and output across the company, with specific examples such as the AMRAAM program deploying proprietary digital AI tools to more than double output year-to-date. They also mentioned developing AI tools to support munitions and OE production rates, GTF MRO output, and sales and inventory planning.
Investment and capacity
The company is investing over $600 million this year in expansion projects, including $300 million at Raytheon to increase capacity for missile programs like the Standard Missile franchise. They plan to continue investing in defense capacity, automation, and R&D, with a focus on the long-term demand signal.
all 3 named companies below
Companiesreturns since call
Customers
Customers
Neil Mitchell
RTX's Collins business is aligned with Boeing's production rate increases for the 737 and 787, implying stable demand but no surprise.
Evidence
“We're pretty synchronized with Boeing and their delivery schedule.”
Customers
Chris Calio
PW1100 GTE MRO output is on track for ~30% growth in FY2025, enabled by record-high Gate 3 starts in Q3 and material flow improvements in isothermal forgings (+16% YoY) and structural castings (+29% YoY). — Improvements in these critical castings and forgings indicate the aviation supply chain is gradually healing, reducing a key bottleneck for GTF engine repairs and new engine deliveries.
Evidence
“We're going to continue to work very closely with Airbus to make sure that they have what they need down the stretch of the year.”
Supply chain
Supply chain
Chris Calio
PW1100 GTE MRO output is on track for ~30% growth in FY2025, enabled by record-high Gate 3 starts in Q3 and material flow improvements in isothermal forgings (+16% YoY) and structural castings (+29% YoY). — Improvements in these critical castings and forgings indicate the aviation supply chain is gradually healing, reducing a key bottleneck for GTF engine repairs and new engine deliveries.
Evidence
“We saw another quarter of solid progress with growth in isothermal forgings up 16% and structural castings up 29% year over year.”
External signals
Supply-chain alpha · 2returns since call
PW1100 GTE MRO output is on track for ~30% growth in FY2025, enabled by record-high Gate 3 starts in Q3 and material flow improvements in isothermal forgings (+16% YoY) and structural castings (+29% YoY).
Raytheon booked $2.1B for AMRAAM, the largest order in its 30-year history, and $2.5B for GEM-T, with international backlog reaching 44% of total.
Evidence
“We booked over 8 billion of orders for munitions, including approximately 2.5 billion for GEMT and 2.1 billion for AMRAAM, the largest order in the 30-year history of that program.”
Methodology & coverage
Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.