RTX Reports Strong Q3 2025 Earnings Driven by Aftermarket and Commercial Aviation Demand

Robust Quarterly Performance

RTX reportedly achieved significant financial growth in the third quarter of 2025, with sources indicating a 12% year-over-year revenue increase to $22.5 billion. According to the company’s earnings report, earnings per share jumped 17% to $1.70, surpassing Wall Street analysts’ expectations for both revenue and net income.

Robust Quarterly Performance
Commercial Aerospace Momentum
Aftermarket Strength and Fleet Dynamics
Collaboration with Aircraft Manufacturers
Tariff Impacts and Pricing Strategy
Market Response and Analyst Outlook

Commercial Aerospace Momentum

During an October 21 earnings call, RTX CEO Chris Calio stated that the company continues to see positive original equipment production trends. Analysts suggest this momentum is reflected in increased production at both Collins Aerospace and Pratt & Whitney, with the latter experiencing 6% growth in large commercial engine deliveries. The report indicates that commercial aftermarket business remained strong, supported by what Calio described as RTX’s “large and growing installed base.”

Aftermarket Strength and Fleet Dynamics

The company’s commercial aftermarket segment demonstrated particular resilience, according to the earnings report. Calio noted that aircraft retirements have remained low, with only 1.5% of the V2500 fleet retired so far this year. Sources indicate that Pratt & Whitney Canada, which maintains nearly 70,000 engines in service, has posted more than 15% growth year-to-date in the commercial aftermarket segment.

Collaboration with Aircraft Manufacturers

Regarding commercial aircraft deliveries, Calio stated that RTX feels “pretty good” about the current situation. According to reports, the company is working closely with Airbus to ensure supply chain alignment through year-end. The CEO also expressed satisfaction with Boeing‘s plans to ramp up production of the 737 MAX narrowbody jet.

CFO Neil Mitchill acknowledged that inventory challenges earlier in 2025 have largely been resolved, stating that the company is now “pretty synchronized with Boeing and delivery schedule.” However, analysts suggest that the mix of higher 787 widebody jet production presents some margin challenges for Collins Aerospace, though rates are reportedly returning to levels the company has capacity to handle.

Tariff Impacts and Pricing Strategy

In response to analyst questions about tariff effects, Mitchill indicated that Collins Aerospace experienced approximately $90 million in impacts during the third quarter. According to the report, while mitigation strategies have been identified, tariffs remain a key factor affecting margins. Calio stated that both Pratt & Whitney and Collins are pricing aggressively this year in response to strong market demand and tariff impacts, with plans to continue this approach into 2026.

Market Response and Analyst Outlook

Investors have reportedly responded positively to RTX’s third-quarter results, with the company’s share price rising more than 8% following the earnings announcement. Analysts appear optimistic about RTX’s trajectory, with Robert Stallard of Vertical Research Partners noting in an October 21 client note that “with the backlog growth matching the sales growth in 3Q, RTX looks well placed to continue this momentum heading into 2026.”

The strong performance across RTX’s business units, particularly in the context of original equipment manufacturer and aftermarket segments, suggests continued recovery and growth in the commercial aerospace sector, according to industry observers.

References & Further Reading

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