RTX Corp Q1 Sales Up 10% to $22.1B, Backlog Hits $271B
RTX Corp reported Q1 adjusted sales of $22.1 billion, a 10% organic increase, and adjusted EPS of $1.78, up 21% year-over-year. The company logged a record $271 billion backlog, up 25% year-over-year, and lifted full-year sales guidance to $92.5–93.5 billion and EPS to $6.70–6.90.
1. Q1 Performance Exceeds Expectations
RTX Corp delivered adjusted sales of $22.1 billion, up 10% organically, alongside adjusted EPS of $1.78, a 21% year-over-year increase. Free cash flow rose by $500 million to $1.3 billion, reflecting strong cash generation across aerospace and defense segments.
2. Record Backlog and Order Growth
The company reported a record $271 billion backlog, up 25% year-over-year, supported by a book-to-bill ratio of 1.14 and sustained demand in missile systems and engine programs. Commercial OE and aftermarket sales grew 6% and 14%, respectively, while defense sales climbed 9%.
3. Upgraded Full-Year Outlook
RTX Corp raised its full-year adjusted sales forecast to a range of $92.5–93.5 billion and increased its EPS outlook to $6.70–6.90, underpinned by robust order inflows and margin expansion. Segment operating profit rose 14% to $2.9 billion, driven by improved efficiencies.
4. Supply Chain Constraints and Investment Plans
Management highlighted supply chain bottlenecks in rocket motors and microelectronics, as well as a 130 basis point tariff headwind on Collins margins. The firm plans significant investments in capacity expansion and long-term supplier partnerships to support production ramp-ups.