RTX Corporation Reports 5.2% Revenue Growth to $20.3 Billion in Q1 2025

RTX Corporation reported its financial results for the first quarter of 2025, revealing a total net sales of $20.3 billion, a 5.2% increase from $19.3 billion in the same period last year. The growth was primarily driven by a $1.5 billion organic increase in sales, with notable contributions from Pratt & Whitney, which saw a $0.9 billion rise, and Collins Aerospace, which added $0.6 billion. However, the overall sales figures were impacted by a $0.5 billion decrease due to the divestiture of the Cybersecurity, Intelligence and Services (CIS) business in early 2024.

Operating profit for the quarter reached $2.0 billion, up from $1.9 billion a year earlier, resulting in an operating profit margin of 10.0%. The increase in operating profit was attributed to improved performance across segments, particularly in Collins Aerospace, which reported a 28% rise in operating profit to $1.1 billion. Pratt & Whitney also experienced a significant increase, with operating profit rising 41% to $580 million. In contrast, Raytheon’s operating profit fell by 32% to $678 million, largely due to the absence of a prior year gain from the sale of the CIS business.

In terms of operational metrics, RTX's total assets increased to $164.9 billion as of March 31, 2025, compared to $162.9 billion at the end of 2024. The company reported cash and cash equivalents of $5.2 billion, down from $5.6 billion at the end of the previous year. The total debt stood at $41.3 billion, slightly up from $41.3 billion, while total equity rose to $63.3 billion from $61.9 billion. The company’s total debt to total capitalization ratio improved to 39% from 40%.

Looking ahead, RTX anticipates continued growth driven by strong demand in both commercial and defense sectors. The company noted that approximately 25% of its remaining performance obligations, valued at $217 billion, are expected to be recognized as revenue over the next 12 months. However, RTX also faces challenges, including ongoing supply chain disruptions and inflationary pressures that could impact future profitability. The company is actively pursuing strategic initiatives to mitigate these risks and enhance operational efficiency.

Overall, RTX's first-quarter results reflect a solid performance amid a complex operating environment, with a focus on leveraging its diverse portfolio to drive future growth while navigating external challenges.