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July 23, 2025 • 3 min read
Aerospace and defense giant RTX Corp. has just released its financial results for the second quarter of 2025, and the report tells a story of broad growth and shifting fortunes among its key business units. In this post, we'll dive into the numbers from their latest 10-Q filing to see how the company is performing and what's driving the results.
For the quarter ending June 30, 2025, RTX reported total net sales of $21.6 billion, a healthy 9.5% increase from the $19.7 billion reported in the same quarter last year. This growth indicates strong demand across its markets. After accounting for the cost of sales, the company was left with a gross profit of $4.4 billion.
To better visualize how RTX's revenue is transformed into profit, let's look at the flow of their income statement for the quarter.
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After deducting operating expenses—which include $697 million for research and development (R&D) and $1.6 billion for selling, general, and administrative (SG&A) costs—the company posted an operating income of $2.1 billion. This resulted in a net income of $1.7 billion, a significant jump from the $175 million in Q2 2024. It's important to note that the prior-year's results were heavily impacted by a $0.9 billion charge for legal matters, making this year's comparison look exceptionally strong.
RTX operates through three primary business segments, and each had a unique story this quarter.
Collins Aerospace: This segment, which provides everything from avionics and landing gear to cabin interiors, saw its revenue climb 9% to $7.6 billion. It remains the company's most profitable unit by margin, posting an operating profit of $1.2 billion, although its operating margin saw a slight compression from 16.0% to 15.4%.
Pratt & Whitney: The renowned engine manufacturer reported a strong 12% increase in sales to $7.6 billion. However, its operating profit fell 9% to $492 million. This decline squeezed its operating margin from 8.0% down to 6.4%, likely reflecting ongoing challenges and investment costs.
Raytheon: The defense-focused segment, known for its missiles, radar systems, and cybersecurity solutions, grew sales by 8% to $7.0 billion. The most dramatic change was in its profitability. Operating profit soared to $805 million from just $127 million a year ago. This turnaround is primarily due to the absence of the significant legal charge that suppressed last year's results, bringing its operating margin to a robust 11.5%.
A key strength for RTX is its diversified revenue stream, with a solid mix of government and commercial clients. When we break it down, government-related sales make up a slight majority of the business. Sales to the U.S. government, foreign military sales (FMS), and direct sales to foreign governments collectively accounted for approximately 53% of total revenue. The remaining 47% came from commercial aerospace and other commercial customers. This balance helps shield the company from downturns in any single market, providing a stable foundation for growth.
RTX's second-quarter performance showcases the power of its diversified portfolio. Strong top-line growth across all segments is a positive sign. While the Raytheon segment's profitability has impressively rebounded, the margin pressure at Pratt & Whitney highlights a key area for investors to watch. The company's ability to manage costs and production in its engine division will be crucial for its overall financial health in the coming quarters.
Last updated: July 23, 2025