Q1 2025 RTX Corp Earnings Call Transcript
Key Points
- RTX Corp (RTX) reported an 8% organic sales growth in the first quarter of 2025.
- The company achieved a 120 basis points expansion in segment margins, with strong contributions from all business segments.
- Commercial aftermarket sales increased by 21%, and defense sales grew by 4% year-over-year.
- RTX Corp (RTX) generated strong free cash flow, improving by $900 million compared to the previous year.
- The company made significant progress in its innovation pipeline, including FAA certification for the GTF Advantage and advancements in the LTAMDS program.
- RTX Corp (RTX) faces potential cost impacts of $850 million due to tariffs, which could affect profitability if they remain in place.
- The company has not included potential tariff impacts in its outlook for the year, indicating uncertainty in financial projections.
- There are concerns about supply chain disruptions due to tariffs, which could impact operational efficiency.
- The Raytheon segment experienced a 5% decline in adjusted sales due to the divestiture of the Cybersecurity business.
- The company is closely monitoring the dynamic global trade environment, which poses risks to its operations and financial performance.
Good day, ladies and gentlemen, and welcome to the RTX first-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, President 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 RTX's 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 nonrecurring 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 risks and uncertainties.
RTX SEC filings, including its forms 8-K, 10-Q, and 10-K,
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