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October 22, 2025 • 3 min read
Aerospace and defense giant RTX Corp recently filed its third-quarter financial report for 2025, offering a detailed look at its performance. In this post, we'll dive into the key numbers from the latest 10-Q filing to understand the company's financial trajectory.
RTX reported a robust third quarter, with total net sales climbing 12% to $22.5 billion, up from $20.1 billion in the same period last year. This growth wasn't just at the top line; the company's profitability also saw a significant boost. Net income attributable to common shareholders jumped 30% to $1.9 billion, translating to diluted earnings per share (EPS) of $1.41, a healthy increase from last year's $1.09.
This flow diagram provides a visual breakdown of how RTX's revenue is generated and allocated across its various costs, ultimately leading to its net income for the quarter.
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In the chart, the Unallocated Revenue represents the removal of inter-segment sales. This is an accounting adjustment to ensure that revenue from transactions between RTX's own divisions isn't counted twice in the consolidated results.
A key strength in this quarter's report is that all three of RTX's major business segments contributed to the growth and showed improved profitability.
Pratt & Whitney: This segment, renowned for its aircraft engines, was the star performer in terms of growth. It posted a 16% increase in sales to $8.4 billion. Its operating profit margin also improved to 8.9% from 7.7% a year ago, indicating better operational efficiency.
Raytheon: The defense-focused segment delivered a solid 10% sales growth, reaching $7.0 billion. More impressively, its operating profit margin expanded significantly from 10.1% to 12.2%, driven by strong performance on its programs.
Collins Aerospace: A major supplier of everything from avionics to cabin interiors, Collins Aerospace saw sales grow by 8% to $7.6 billion. It also continues to be a profit engine for the company, boasting the highest operating margin of the three at 16.5%, up from 15.0% last year.
Beyond the income statement, RTX appears to be strengthening its financial foundation. The company generated $6.4 billion in cash from operations over the first nine months of 2025, an increase from $5.6 billion in the prior year. It has also been paying down its obligations, with total debt reduced by over $2 billion since the end of 2024 to $39.1 billion.
In summary, RTX's Q3 2025 filing paints a picture of a company firing on all cylinders. Broad-based sales growth, expanding margins across all key segments, and strong cash flow signal solid operational execution. As the company navigates the dual demands of a recovering commercial aerospace market and heightened global defense spending, these results position it on a firm footing. The key challenge, as with others in the industry, will be managing complex global supply chains and executing on its massive backlog of government and commercial contracts.
Last updated: October 22, 2025