Headlines
RTX raises 2025 forecast as strong demand offsets tariff worries
Published by Global Banking and Finance Review
Posted on October 21, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 21, 2025
2 min readLast updated: January 21, 2026
RTX raises its 2025 profit forecast due to strong aerospace and defense demand, despite tariff concerns. Collins Aerospace and Pratt and Whitney report significant sales growth.
By Utkarsh Shetti and Mike Stone
(Reuters) -RTX raised its full-year profit and revenue forecast on Tuesday, as the aerospace and defense giant signals confidence in its ability to weather the impact of tariffs in the wake of rising demand for its missiles and aftermarket services.
The Trump administration's trade war had pushed RTX to slash its profit outlook in July and expect $500 million in tariff costs this year.
But a shortage of new commercial jets has continued to drive sales at maintenance and repair service providers such as RTX, who are banking on airlines flying older, cost-intensive fleets.
RTX, which makes the GTF engines and competes with CFM International, has also benefited due to booming demand from planemakers as they ramp up production.
The company's aerospace and avionics division Collins Aerospace posted a revenue of $7.62 billion in the quarter, up 8% from a year earlier.
Sales at its Pratt and Whitney unit, which produces engines for Airbus' A320neo jets, rose 16% to $8.42 billion.
The company's defense segment has also seen continued strength due to strong demand amid rapidly escalating geopolitical tensions.
Raytheon, RTX's defense unit, reported a 10% rise in sales, predominantly from higher sales for its Patriot air defense systems which are being used on the battlefield in Ukraine.
RTX now expects its full-year adjusted sales between $86.5 billion and $87 billion, from its previous forecast of between $84.75 billion to $85.5 billion.
It also raised its adjusted profit forecast to between $6.10 and $6.20 per share for 2025, from $5.80 to $5.95.
The Arlington, Virginia-based company's total revenue rose 12% to $22.48 billion in the third quarter.
Its adjusted per-share profit was $1.70, compared with $1.45 last year.
(Reporting by Utkarsh Shetti in Bengaluru and Mike Stone in Washington; Editing by Krishna Chandra Eluri)
Revenue growth refers to the increase in a company's sales over a specific period, indicating its ability to expand its business and market share.
The aerospace industry encompasses the design, development, and production of aircraft, spacecraft, and related systems and equipment.
The defense segment refers to the part of a company's operations that focuses on military and defense-related products and services.
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