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RTX Corporation’s RTX first-quarter 2025 adjusted earnings per share (EPS) of $1.47 beat the Zacks Consensus Estimate of $1.35 by 8.9%. The bottom line also improved 9.7% from the year-ago quarter’s level of $1.34, driven by growth in adjusted segment operating profit. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Including one-time items, the company reported GAAP earnings of $1.14 per share, marking a deterioration of 11% from $1.28 in the prior-year quarter.
The decline can be attributed to lower non-service pension income, along with higher interest and income tax expenses.
RTX Corporation price-consensus-eps-surprise-chart | RTX Corporation Quote
RTX’s first-quarter sales totaled $20.31 billion, which surpassed the Zacks Consensus Estimate of $19.71 billion by 3%. The top line also surged a solid 5.2% from $19.31 billion recorded for the first quarter of 2024.
The top-line improvement was driven by higher sales growth from RTX’s Pratt & Whitney and Collins Aerospace business segments.
Total costs and expenses increased 2.6% year over year to $18.28 billion in the first quarter. The company generated an adjusted operating profit of $2.66 billion compared with $2.29 billion in the prior-year quarter.
RTX posted an interest expense of $443 million compared with $405 million in the prior-year period.
Collins Aerospace: Sales in this segment totaled $7.22 billion, up 8% year over year. This improvement can be primarily attributed to higher commercial aftermarket and defense sales. While higher commercial aftermarket sales were driven by continued growth in commercial air traffic, higher defense sales could be attributed to higher volumes across multiple programs and platforms.
The segment’s adjusted operating profit totaled $1.23 billion compared with $1.05 billion in the year-ago quarter.
Pratt & Whitney: This segment’s sales totaled $7.37 billion, reflecting an improvement of 14% from the year-ago quarter’s reported number. This improvement can be attributed to sales growth in the commercial aftermarket, commercial OEM as well as military businesses. The increase in commercial aftermarket sales was driven by higher volume and favorable mix across both Large Commercial Engines and Pratt Canada, while increased deliveries drove the growth in commercial OEM sales. The increase in military sales was driven by increased engine deliveries on the Tanker program and higher volume on the F135 Engine Core Upgrade program.
The adjusted operating profit totaled $590 million, up from $430 million in the year-ago quarter.
Raytheon: This segment recorded sales of $6.34 billion, down 5% year over year, primarily due to the impact of the divestiture of the Cybersecurity, Intelligence and Services business completed at the end of first-quarter 2024.
The segment’s adjusted operating profit amounted to $678 million compared with $630 million recorded in the corresponding period of 2024.
RTX had cash and cash equivalents of $5.16 billion as of March 31, 2025, compared with $5.58 billion as of Dec. 31, 2024.
The long-term debt totaled $38.24 billion as of March 31, 2025, down from $38.73 billion as of Dec. 31, 2024.
Net cash flow from operating activities was $1.31 billion as of March 31, 2025, compared with $0.34 billion at the end of March-2024.
Free cash flow totaled $792 million at the end of the first quarter of 2025 against free cash outflow worth $125 million at the end of March 2024.
RTX reiterated its financial guidance for 2025.
The company still expects adjusted EPS to be in the band of $6.00-$6.15. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.13, which lies higher than the midpoint of the company’s guided range.
RTX continues to project 2025 sales in the band of $83-$84 billion. The Zacks Consensus Estimate for the metric is pegged at $84.28 billion, which lies above the company’s guided range.
RTX still expects to generate free cash flow of $7.0-$7.5 billion for 2025.
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Boeing Company BA is set to report first-quarter 2025 earnings on April 23, 2025, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at $1.54 per share. The consensus mark for sales is pinned at $19.29 billion, indicating year-over-year growth of 16.4%.
Embraer ERJ is set to report first-quarter 2025 results soon.
The Zacks Consensus Estimate for ERJ’s earnings is pegged at 28 cents per share. The consensus estimate for sales is pinned at $1.12 billion, indicating year-over-year growth of 24.7%.
General Dynamics Corporation GD is set to report first-quarter 2025 results on April 23, 2025, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.47 per share, indicating year-over-year growth of 20.5%. The consensus estimate for sales is pinned at $11.94 billion, indicating year-over-year growth of 11.3%.
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This article originally published on Zacks Investment Research (zacks.com).
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