Oct 21 (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.