RTX has increased its full-year financial projections following a strong second-quarter performance, citing a significant rise in its defense backlog and increased sales across multiple business units. The company now anticipates adjusted sales between $95.0 billion and $96.0 billion, an upward revision from the previous estimate of $92.5 billion to $93.5 billion.
The defense segment contributed heavily to the updated outlook, with the total backlog reaching $289 billion. This figure includes $119 billion in defense orders and $170 billion in commercial orders, representing a 22 percent year-over-year increase. CEO Chris Calio described the demand as robust and noted that the company is well-positioned to execute on this backlog while expanding capacity and introducing new technologies.
Raytheon, the company’s weapons and defense systems unit, recorded the most significant growth among its three main segments. Sales for the unit rose 18 percent to $8.3 billion, supported by higher volumes in land and air defense systems, naval programs, and air and space defense platforms. Specific programs such as Patriot, Standard Missile, and AMRAAM led the increase.
Raytheon’s operating profit also jumped 29 percent to $1.0 billion, attributed to favorable program mix and improved productivity.
Pratt & Whitney sales increased 16 percent to $8.9 billion. Commercial aftermarket revenue climbed 25 percent, while military sales rose 23 percent, largely due to higher volume on the F135 engine used in the F-35 fighter jet. Collins Aerospace sales grew 8 percent to $8.2 billion, with commercial original equipment sales rising 26 percent and commercial aftermarket revenue increasing 10 percent.
Financially, adjusted earnings per share rose 21 percent to $1.89, while GAAP earnings per share came in at $1.57. Free cash flow for the quarter reached $2.9 billion. The company raised its full-year adjusted earnings per share guidance to $7.10-$7.25, up from $6.70-$6.90, and increased free cash flow guidance to $8.50 billion-$8.75 billion.