TLDR
- RTX Corp stock reached an all-time high of $171.81, gaining 38.49% year-to-date and 26.43% over six months
- The company raised its full-year profit forecast to $6.10-$6.20 per share and revenue guidance to $86.5-$87 billion despite $500 million in expected tariff costs
- Third quarter revenue rose 12% to $22.48 billion, beating analyst expectations of $21.31 billion
- Defense unit Raytheon saw 10% sales growth driven by Patriot air defense systems, while Pratt & Whitney engine sales jumped 16%
- Shares climbed 6.3% in premarket trading after the company beat Wall Street expectations for Q3 results
RTX Corp shares reached an all-time high of $171.81 on Tuesday. The aerospace and defense company delivered a performance that sent its stock up 6.3% before the opening bell.
The stock has climbed 38.49% year-to-date. Over the past six months, shares gained 26.43%.
RTX raised its full-year profit forecast on Tuesday morning. The company now expects adjusted earnings between $6.10 and $6.20 per share for 2025, up from its previous range of $5.80 to $5.95.
Revenue guidance also got a boost. The new forecast calls for full-year sales between $86.5 billion and $87 billion, compared to the earlier projection of $84.75 billion to $85.5 billion.
The updated outlook comes despite ongoing tariff pressures. RTX expects to absorb $500 million in tariff costs this year following President Donald Trump’s global trade actions.
Back in July, the company had actually cut its profit outlook due to these tariff concerns. The turnaround in just three months shows how strong demand has been for RTX products.
Defense Business Powers Growth
Third quarter results crushed expectations across the board. Total revenue hit $22.48 billion, a 12% increase from the prior year.
Analysts had been expecting $21.31 billion. Adjusted earnings per share came in at $1.70, beating the consensus estimate of $1.41.
The Raytheon defense unit posted a 10% sales increase. Patriot air defense systems drove most of that growth, with these weapons seeing heavy use in Ukraine.
Pratt & Whitney, which makes engines for Airbus A320neo jets, saw sales jump 16% to $8.42 billion. The Collins Aerospace division brought in $7.62 billion, up 8% year-over-year.
Maintenance Services Benefit From Fleet Age
The aviation side of the business is getting a lift from an unexpected source. A shortage of new commercial jets means airlines are keeping older planes in service longer.
Those aging fleets need more maintenance and repairs. RTX’s aftermarket services business has been cashing in on this trend.
The company makes GTF engines and competes with CFM International. Demand from planemakers ramping up production has helped both engine manufacturers.
RTX CFO Neil Mitchill addressed recent speculation about government stakes in defense contractors. “We’re not having those conversations with the government,” he told Reuters.
Instead, discussions focus on capacity expansion. The government wants more production capability from its defense suppliers.
The company maintains a market cap of $215 billion. It has paid dividends for 55 consecutive years.
Revenue growth over the last twelve months reached 15.44%. The Arlington, Virginia-based company now employs its workforce across multiple business units serving both commercial and defense customers.
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