Defence manufacturer RTX beat estimates for sales and earnings per share last quarter, and has raised its sales guidance after strong increases across all segments.
The company reported sales of US$21.6 billion, a 9% year-over-year increase and passing estimates of $20.65 billion. Its adjusted earnings per share were $1.56, rising 11% and beating estimates of $1.43.
“We continued our momentum in the second quarter with organic sales and profit growth across all three segments, including 16% commercial aftermarket growth,” said RTX CEO Chris Calio.
“Our backlog grew to US$236 billion, up 15% versus [the] prior year, and we secured major awards for our geared turbofan engines and integrated air and missile defense capabilities in the quarter.”
RTX’s adjusted net income rose by 12% year-over-year to US$2.12 billion. Operating cash flow dropped by 83% to $458 million, which the company said was impacted by a four-week strike at Pratt & Whitney in May.
Pratt & Whitney’s sales were up 12% to US$7.63 billion. Operating profit dropped by 9% due to a $100 million charge from a customer bankruptcy, but adjusted operating profit rose by 13% to $608 million.
Collins Aerospace saw sales grow by 9% to US$7.62 billion, while its adjusted operating profit was up 9% to $1.25 billion.
Raytheon sales increased by 8% to US$7.00 billion. While reported operating profit was up 534% due to $575 million from its contracts, adjusted operating profit rose by 14% to $809 million.
Raytheon was awarded a US$74 million United States Navy contract to produce guided missile launching systems earlier this month, and a $250 million contract from Mitsubishi to provide missile kits in June.
The company’s full-year guidance now projects adjusted sales of US$84.75-85.5 billion, above the $83-84 billion previously expected. Adjusted earnings per share will be $5.80-5.95, however, down from $6.00-6.15. This guidance includes the likely impact of U.S. tariff policies, RTX said.
RTX’s (NYSE: RTX) share price closed at US$156.49, up from its previous close at $149.17. Its market capitalisation is $209.06 billion.
