RTX Corporation kicked off 2025 with a strong first quarter, marked by solid sales growth, margin expansion, and significantly improved cash flow, reinforcing its momentum and strategic execution across both commercial and defense segments.

Total sales rose to $20.3 billion, up 5% year-over-year and 8% on an organic basis, excluding currency effects and divestitures. Adjusted earnings per share (EPS) climbed 10% to $1.47, while operating cash flow surged to $1.3 billion, a sharp turnaround from $342 million a year earlier. Free cash flow also rebounded to $792 million, compared to a negative $125 million in Q1 2024. The company returned $0.9 billion to shareholders and ended the quarter with a robust $217 billion backlog—including $125 billion in commercial and $92 billion in defense commitments.

Segment-wise, Collins Aerospace reported $7.2 billion in sales, up 8%, with operating profit increasing 28% to $1.09 billion. Notably, commercial aftermarket sales surged 21%, contributing to a 15.1% margin, up from 12.7%. Pratt & Whitney also performed strongly, delivering $7.4 billion in sales, up 14%, and operating profit of $580 million, a 41% improvement, with margins climbing to 7.9%.

Raytheon’s results were mixed; reported sales fell 5% to $6.3 billion due to the CIS business divestiture, but excluding this, sales rose 2%. Reported operating profit dropped 32% due to the absence of last year’s one-time gain; however, adjusted profit grew 8%, maintaining a stable 10.7% operating margin.

Overall, consolidated operating profit rose to $2.04 billion, and segment-adjusted margins improved to 11.9%, reflecting 120 basis points of expansion. RTX also made progress on deleveraging, reducing its debt-to-capitalization ratio to 39% from 40% at the end of 2024.

Looking ahead, RTX reaffirmed its full-year guidance, projecting adjusted sales of $83.0–$84.0 billion, adjusted EPS between $6.00 and $6.15, and free cash flow of $7.0–$7.5 billion. However, management cautioned that the outlook does not yet reflect potential impacts from newly enacted tariffs.

In summary, RTX delivered a strong operational start to 2025, supported by broad-based organic growth, margin enhancement, and a strong backlog, all while continuing to return capital to shareholders and managing costs in a dynamic global environment.