RTX jumps as solid third quarter drives full-year forecasts higher

Investing.com -- RTX lifted its full-year outlook on Tuesday after the U.S. aerospace and defense firm reported third-quarter results that topped market expectations driven by strong demand for its missiles and aftermarket services.

The company’s shares jumped more than 6% in premarket trading.

The company posted Q3 earnings per share (EPS) of $1.70, beating consensus estimates of $1.41. Revenue jumped 11% year-on-year to $22.5 billion, ahead of the $21.27 billion forecast by analysts.

Collins Aerospace, the company’s aerospace and avionics division, generated $7.62 billion in revenue for the quarter, up 8% from a year earlier.

Sales at the Pratt & Whitney engine unit climbed 16% to $8.42 billion, driven by strong demand for Airbus A320neo engines.

Raytheon, the group’s defense business, posted a 10% rise in sales, supported by higher demand for its Patriot air defense systems, which continue to see active deployment in Ukraine.

"Strong execution in the third quarter enabled us to deliver double-digit organic sales growth across all three segments and our sixth consecutive quarter of year-over-year adjusted segment margin expansion," said RTX Chairman and CEO Chris Calio. "We also received $37 billion of new awards in the quarter, reflecting robust global demand for our products and supporting long-term growth for RTX."

"We remain focused on executing on our $251 billion backlog and increasing our output to support the ramp across critical programs, while investing in next-generation products and services that meet the needs of our customers," he added.

For full-year 2025, Raytheon Technologies raised its earnings outlook to a range of $6.10 to $6.20 per share, up from its prior forecast of $5.80 to $5.95, compared with a consensus estimate of $5.95.

The company also expects revenue of $86.5 billion to $87.5 billion, higher than its previous range of $84.75 billion to $85.5 billion.

Organic sales growth is now projected at 8% to 9%, up from a prior estimate of 6% to 7%.