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Mar 31
Raytheon Q1 2025 Earnings Report
Raytheon reported strong Q1 2025 results with growth in adjusted EPS and revenue driven by commercial aftermarket strength.
Key Takeaways
RTX delivered a solid first quarter with adjusted EPS up 10%, strong free cash flow of $792 million, and revenue growth across Collins Aerospace and Pratt & Whitney segments. Raytheon saw a decline in reported sales due to a prior year divestiture.
Adjusted EPS increased 10% year-over-year to $1.47.
Revenue grew to $20.3 billion, up 5% from the prior year.
Commercial aftermarket demand drove organic sales growth of 8%.
Free cash flow reached $792 million, a significant improvement from negative $125 million last year.
Raytheon
Raytheon
Raytheon Revenue by Segment
Revenue by Segment
Collins Aerospace Revenue
CapyFin.comPratt & Whitney Revenue
CapyFin.comRaytheon Revenue
CapyFin.com Forward Guidance
RTX expects adjusted sales between $83.0–$84.0 billion, adjusted EPS between $6.00–$6.15, and free cash flow between $7.0–$7.5 billion for full year 2025, not accounting for new tariffs.
Positive Outlook
- Organic growth forecasted between 4–6%.
- Adjusted EPS guided at $6.00–$6.15.
- Free cash flow expected to reach $7.0–$7.5 billion.
- Commercial aftermarket remains strong.
- Backlog of $217 billion supports long-term revenue.
Challenges Ahead
- Guidance excludes impacts from newly enacted tariffs.
- Higher tax rate impacted net income growth.
- Pratt & Whitney facing supply chain constraints.
- Raytheon's divestiture reduced segment revenue.
- Potential headwinds from geopolitical and regulatory risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income