Rtx Corp (NYSE:RTX) stock fell 2.08% (As on July 22, 1:00:00 AM UTC-4, Source: Google Finance) after the company lowers its full-year adjusted earnings per share guidance, despite reporting strong second-quarter results that exceeded analyst expectations. RTX reported negative free cash flow of $72 million for the quarter, compared to positive $2.20 billion in the same period last year. This fell short of analyst expectations of positive $564.6 million. The company’s backlog grew to $236 billion, representing a 15% increase compared to the previous year. Adjusted net income was of $2.1 billion was up 12 percent versus the prior year driven by growth in adjusted segment operating profit. Operating cash flow generated in the second quarter was $0.5 billion and was impacted by the four week work stoppage that occurred at Pratt & Whitney in the quarter. Capital expenditures were $0.5 billion for the quarter.

Moreover, Collins Aerospace second quarter 2025 reported and adjusted sales of $7,622 million were up 9 percent versus the prior year. Excluding the impact of divestitures, the increase in sales was driven by a 13 percent increase in commercial aftermarket, an 11 percent increase in defense, and a 1 percent increase in commercial OE. The increase in commercial aftermarket sales was driven by continued growth in commercial air traffic. The increase in defense sales was driven by higher volume across multiple programs and platforms, including F-35 and the Survivable Airborne Operations Center program. Lower commercial OE volume on the 737 MAX program was more than offset by higher commercial OE volume on other platforms, including the 787. Pratt & Whitney second quarter reported and adjusted sales of $7,631 million were up 12 percent versus the prior year and includes the four week work stoppage that occurred in the quarter. Raytheon second quarter reported sales of $7,001 million were up 8 percent versus the prior year.

RTX in the second quarter of FY25 has reported the adjusted earnings per share of $1.56, beating the analysts’ estimates for the adjusted earnings per share of $1.45. The company had reported the adjusted revenue growth of 9 percent to $21.58 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $20.64 billion.

The aerospace and defense company now expects adjusted earnings per share of $5.80 to $5.95 for 2025, down from its previous forecast of $6.00 to $6.15. The new guidance falls below the average analyst estimate of $5.98.

RTX raised its sales outlook, projecting adjusted sales between $84.75 billion and $85.5 billion, up from its earlier forecast of $83 billion to $84 billion. The company maintained its free cash flow guidance of $7 billion to $7.5 billion.