RTX Soars on Commercial Aviation Resurgence and Aftermarket Strength

Robust Quarterly Performance Exceeds Expectations

RTX Corporation has demonstrated impressive financial resilience in the third quarter of 2025, with 12% year-over-year revenue growth reaching $22.5 billion and earnings per share climbing 17% to $1.70. The aerospace and defense giant surpassed Wall Street projections on both top and bottom lines, signaling a strong recovery in the commercial aviation sector that continues to gain momentum.

Dual Engine Growth Drives Results

The company’s success stems from synchronized strength across both its major business segments. Collins Aerospace reported significant production increases, while Pratt & Whitney achieved 6% growth in large commercial engine deliveries. According to CEO Chris Calio, “We continue to see positive OE production trends,” highlighting how original equipment manufacturing and aftermarket services are reinforcing each other in the current market environment.

The commercial aftermarket business remains particularly robust, supported by what Calio describes as RTX’s “large and growing installed base.” This includes over $100 billion of out-of-warranty content at Collins and increased maintenance, repair, and overhaul (MRO) activities across the company‘s service network. The low retirement rate of aircraft fleets—only 1.5% of the V2500 fleet retired this year—further sustains this aftermarket strength.

Strategic Partnerships with Aircraft Manufacturers

RTX’s alignment with major airframers appears well-coordinated despite earlier challenges. Chief Financial Officer Neil Mitchill acknowledged that “at the beginning of 2025, there was a little bit of inventory in the channel,” but emphasized that “a lot of that is behind us. And so we’re pretty synchronized with Boeing and delivery schedule.”, according to market developments

Regarding Airbus collaboration, Calio stated the company will “continue to work very closely with Airbus to make sure that they have what they need down the stretch of the year.” The company also expressed optimism about Boeing’s planned production increases for the 737 MAX, indicating confidence in the narrowbody market recovery.

Navigating Margin Challenges and Tariff Impacts

Despite the positive revenue trends, RTX faces some headwinds. The company noted that higher production rates for Boeing’s 787 widebody aircraft present margin challenges for Collins Aerospace. Additionally, tariffs created approximately $90 million in negative impact during the third quarter, though management has identified mitigation strategies.

“A number of mitigations have been identified, but that’s really the key driver there and what’s dragging down the margins,” Mitchill explained regarding the tariff effects. In response to these pressures, both Pratt & Whitney and Collins Aerospace are implementing aggressive pricing strategies that reflect the value of their products and sustained market demand.

Market Response and Future Outlook

Investors have responded enthusiastically to RTX’s performance, with shares rising more than 8% following the earnings announcement. Analyst sentiment appears equally positive, with Vertical Research Partners’ Robert Stallard noting that “with the backlog growth matching the sales growth in 3Q, RTX looks well placed to continue this momentum heading into 2026.”

The company’s strategic positioning suggests continued strength in both commercial original equipment and aftermarket segments. As aircraft utilization rates increase and fleet renewal cycles progress, RTX’s extensive product portfolio and service capabilities position it to capitalize on the ongoing aviation industry recovery well into the next year., as additional insights

Looking toward 2026, Calio confirmed that RTX will maintain its aggressive approach to catalog pricing, citing both the value the company delivers and sustained market demand. This confidence, combined with operational execution and strategic partnerships, suggests RTX is well-positioned for continued growth in the evolving aerospace landscape.

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