Aerospace and defence company RTX has indicated that its full year 2025 earnings could suffer an impact of approximately $850m because of the tariffs implemented by US President Donald Trump.
The caution comes as the company reports robust operational and financial results for the first quarter of 2025.
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In the quarter ending 31 March 2025, RTX reported net sales of $20.30bn, up 8% organically excluding divestitures from $19.30bn year-over-year.
The adjusted segment profit for the company reached $2.5bn, marking an 18% increase, with a 120 basis point expansion in the adjusted segment margin.
RTX reported a backlog valued at $217bn, reflecting an 8% growth. The company also secured over $19bn in new awards.
Net income attributable to common shareowners of $1.53bn, marking a 10% rise from the $1.70bn reported in the same quarter of the previous year.
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By GlobalDataThis performance includes adjustments related to acquisitions and restructuring.
Diluted earnings per share (EPS) stood at $1.14 in Q1 2025, compared to $1.28 in the corresponding quarter of 2024.
In the quarter, operating cash flow stood at $1.3bn. After accounting for capital expenditures of $0.5bn, the free cash flow amounted to $0.8bn.
RTX president and CEO Chris Calio said: “We are off to a strong start to 2025 with 8% organic sales growth and 10% adjusted EPS growth, including 120 basis points of segment margin expansion in Q1. Organic growth was broad based and led by strength in commercial aftermarket, which was up 21% year-over-year driven by continued demand for our industry leading products and solutions.
“The current environment is clearly very dynamic, but our company is well positioned to perform operationally and our teams remain focused on executing on our commitments and delivering our robust backlog.”
Segment wise, Collins Aerospace saw its reported and adjusted sales reach $7.217bn, a rise of 8% compared to the same period in the previous year. Its operating profit increased by 28%, reaching $1.088bn.
Pratt & Whitney’s first-quarter reported and adjusted sales amounted to $7.366bn, showing a 14% increase from the prior year. The operating profit was reported at $580m, which is a significant 41% rise from the previous year.
Raytheon’s first-quarter reported and adjusted sales were at $6.340bn, which represents a 5% decline from the same quarter in the previous year. This reduction was primarily due to the effects of divesting its Cybersecurity, Intelligence and Services business at the end of the first quarter of 2024.
Consequently, its operating profit for this quarter was $678m, down by 32%, largely because of the absence of a one-time net gain of $375m from the sale of that business in the prior year.
In full year 2025, RTX anticipates adjusted sales to range between $83.0bn and $84.0bn, with an adjusted EPS forecast of $6.00 to $6.15 and free cash flow expected to be between $7.0bn and $7.5bn.
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