[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4486 followers Created: 2025-07-23 12:55:42 UTC $RTX RTX Corporation Earnings Call Key Highlights: (2/2) ✈️ Segment Results: Collins Aerospace Collins posted Q2 sales of $XXX billion, up X% organically, with strong performance in commercial aftermarket (+13%) and defense (+11%); OE sales rose 1%. Aftermarket strength driven by XX% growth in mods and upgrades, XX% in parts/repair, and X% in provisioning; defense growth led by F-35 and SAOC programs. Adjusted operating profit rose $XXX million YoY to $XXX billion, supported by favorable mix and R&D reductions despite tariff headwinds. Full-year outlook raised to high single-digit organic growth (from mid-single digit), with operating profit growth now guided at $275–$350 million (down from $500–$600 million) due to tariffs. 🛩️ Segment Results: Pratt & Whitney Pratt reported $XXX billion in Q2 sales, up XX% organically, led by commercial aftermarket (+19%) and OE (+15%), with military flat due to contract timing. Operating profit increased $XX million to $XXX million, with growth driven by favorable OE mix, higher aftermarket volume, and lower R&D expense, partially offset by tariffs and the May strike. Full-year organic sales growth outlook raised to low double digits; operating profit growth now guided at $200–$275 million (down from $325–$400 million), again reflecting tariff drag. Strong momentum expected in H2 from MRO recovery, favorable mix, and F135 Lots 18–19 contract finalization. 🛰️ FAA Modernization and Adjacent Growth Areas RTX sees multiyear growth potential in FAA modernization following $XXXX billion in reconciliation funding, with key opportunities in radar upgrades and tower automation. Collins is well-positioned with leading market share in installed FAA radar base and proprietary ground-control equipage for aircraft. These initiatives complement existing avionics product lines and open additional revenue streams in domestic infrastructure modernization. 🏦 Capital Allocation and Portfolio Optimization RTX completed the $XXX billion sale of its actuation business and announced a $XXX million divestiture of Collins’ Simmonds Precision Products unit, as part of its strategic focus on core capabilities. Proceeds will be used to strengthen the balance sheet and enhance shareholder returns. RTX raised its dividend by 8%, expecting to return $XX billion to shareholders since the merger through year-end 2025. Management reiterated its long-term capital return strategy: growing the dividend while returning excess capital to shareholders. 📊 Updated 2025 Guidance Adjusted full-year sales outlook raised to $84.75–$85.5 billion (from $83–$84 billion), reflecting 6–7% organic growth vs. 4–6% previously. Adjusted EPS outlook revised to $5.80–$5.95 (from $6.00–$6.15), incorporating $XXXX of tariff headwind partially offset by $XXXX of operating outperformance. Free cash flow guidance maintained at $7–$7.5 billion, with strong H2 driven by profit growth, working capital improvements, and contract milestone receipts (e.g., F135). Tariff-related cash outflows of ~$600 million expected in 2025, with mitigation benefits from newly passed tax legislation and R&D expensing provisions. 📈 Long-Term Margin and Free Cash Flow Outlook Raytheon segment margin neared XX% in Q2, supported by international program mix (Patriot, NASAMS), with management reaffirming trajectory toward 12%+ over time. Pratt expected to deliver sequential margin expansion through 2027, driven by aftermarket growth, favorable OE mix, V2500 strength, and GTF Advantage rollout. RTX expects operational FCF of ~$8.5 billion in 2025 when adjusting for one-time powder metal compensation, with multiyear tailwinds in aftermarket, defense, and tax reform. Company reiterated confidence in achieving sustained FCF growth with a long-term target exceeding $XX billion beyond 2027. XXX engagements  **Related Topics** [quarterly earnings](/topic/quarterly-earnings) [$rtx](/topic/$rtx) [stocks industrials](/topic/stocks-industrials) [stocks defense](/topic/stocks-defense) [Post Link](https://x.com/LongYield/status/1948004091151425876)
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LongYield @LongYield on x 4486 followers
Created: 2025-07-23 12:55:42 UTC
$RTX RTX Corporation Earnings Call Key Highlights: (2/2)
✈️ Segment Results: Collins Aerospace
Collins posted Q2 sales of $XXX billion, up X% organically, with strong performance in commercial aftermarket (+13%) and defense (+11%); OE sales rose 1%.
Aftermarket strength driven by XX% growth in mods and upgrades, XX% in parts/repair, and X% in provisioning; defense growth led by F-35 and SAOC programs.
Adjusted operating profit rose $XXX million YoY to $XXX billion, supported by favorable mix and R&D reductions despite tariff headwinds.
Full-year outlook raised to high single-digit organic growth (from mid-single digit), with operating profit growth now guided at $275–$350 million (down from $500–$600 million) due to tariffs.
🛩️ Segment Results: Pratt & Whitney
Pratt reported $XXX billion in Q2 sales, up XX% organically, led by commercial aftermarket (+19%) and OE (+15%), with military flat due to contract timing.
Operating profit increased $XX million to $XXX million, with growth driven by favorable OE mix, higher aftermarket volume, and lower R&D expense, partially offset by tariffs and the May strike.
Full-year organic sales growth outlook raised to low double digits; operating profit growth now guided at $200–$275 million (down from $325–$400 million), again reflecting tariff drag.
Strong momentum expected in H2 from MRO recovery, favorable mix, and F135 Lots 18–19 contract finalization.
🛰️ FAA Modernization and Adjacent Growth Areas
RTX sees multiyear growth potential in FAA modernization following $XXXX billion in reconciliation funding, with key opportunities in radar upgrades and tower automation.
Collins is well-positioned with leading market share in installed FAA radar base and proprietary ground-control equipage for aircraft.
These initiatives complement existing avionics product lines and open additional revenue streams in domestic infrastructure modernization.
🏦 Capital Allocation and Portfolio Optimization
RTX completed the $XXX billion sale of its actuation business and announced a $XXX million divestiture of Collins’ Simmonds Precision Products unit, as part of its strategic focus on core capabilities.
Proceeds will be used to strengthen the balance sheet and enhance shareholder returns.
RTX raised its dividend by 8%, expecting to return $XX billion to shareholders since the merger through year-end 2025.
Management reiterated its long-term capital return strategy: growing the dividend while returning excess capital to shareholders.
📊 Updated 2025 Guidance
Adjusted full-year sales outlook raised to $84.75–$85.5 billion (from $83–$84 billion), reflecting 6–7% organic growth vs. 4–6% previously.
Adjusted EPS outlook revised to $5.80–$5.95 (from $6.00–$6.15), incorporating $XXXX of tariff headwind partially offset by $XXXX of operating outperformance.
Free cash flow guidance maintained at $7–$7.5 billion, with strong H2 driven by profit growth, working capital improvements, and contract milestone receipts (e.g., F135).
Tariff-related cash outflows of ~$600 million expected in 2025, with mitigation benefits from newly passed tax legislation and R&D expensing provisions.
📈 Long-Term Margin and Free Cash Flow Outlook
Raytheon segment margin neared XX% in Q2, supported by international program mix (Patriot, NASAMS), with management reaffirming trajectory toward 12%+ over time.
Pratt expected to deliver sequential margin expansion through 2027, driven by aftermarket growth, favorable OE mix, V2500 strength, and GTF Advantage rollout.
RTX expects operational FCF of ~$8.5 billion in 2025 when adjusting for one-time powder metal compensation, with multiyear tailwinds in aftermarket, defense, and tax reform.
Company reiterated confidence in achieving sustained FCF growth with a long-term target exceeding $XX billion beyond 2027.
XXX engagements
Related Topics quarterly earnings $rtx stocks industrials stocks defense