Q2 2025 RTX Corp Earnings Call Transcript
Key Points
- RTX Corp (RTX) reported a 9% organic sales growth year over year, with a notable 16% increase in commercial aftermarket sales.
- The company achieved a book-to-bill ratio of 1.86, indicating strong demand and a growing backlog now standing at $236 billion.
- RTX Corp (RTX) secured significant orders, including over 1,000 GTF engine orders and $5 billion in integrated air and missile defense awards.
- The company is expanding its regional partnerships in Europe, enhancing its production capabilities and market reach.
- RTX Corp (RTX) raised its dividend by 8%, reflecting confidence in its long-term cash generation capabilities and commitment to returning capital to shareholders.
- Free cash flow for the quarter was approximately breakeven, impacted by a four-week work stoppage at Pratt & Whitney.
- The company faces a $500 million tariff cost for 2025, despite mitigation efforts, which affects its earnings outlook.
- Adjusted EPS outlook was revised down to a range of $5.80 to $5.95 due to tariff headwinds, from a prior range of $6 to $6.15.
- Pratt & Whitney's operating profit growth expectations were lowered due to the impact of tariffs and the work stoppage.
- RTX Corp (RTX) is dealing with ongoing supply chain challenges, particularly in structural castings and isothermal forgings, which could impact production and MRO output.
Good day, ladies and gentlemen, and welcome to the RTX second quarter 2025 earnings conference call. My name is Lateef and I will be your operator for today. As a reminder, this conference is being recorded for replay purposes.
On the call today are Chris Calio, Chairman and Chief Executive Officer; Neil Mitchill, Chief Financial Officer; and Nathan Ware, Vice President of Investor Relations. This call is being webcast live on the internet, and there is a presentation available for download from RTXâs website at www.rtx.com.
Please note, except where otherwise noted, the company will speak to results from continuing operations excluding acquisition accounting adjustments and net non-recurring and or significant items often referred to by management as other significant items.
The company also reminds listeners that the earnings and cash flow expectations and any other forward-looking statements provided in this call are subject to risk and uncertainties. RTX SEC filings, including its forms 8-K, 10-Q and 10-K provide
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