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RTX's quarterly profit rises on strong demand for aircraft parts, repair
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RTX's quarterly profit rises on strong demand for aircraft parts, repair
Jan 28, 2025 4:26 AM

Jan 28 (Reuters) - Aerospace and defense major RTX

posted a rise in quarterly profit on Tuesday, as demand

for its aircraft parts and repair services benefited from

airlines flying older, maintenance-intensive planes to cope with

a jet shortage.

Supply chain snags and the resulting lack of certain

components are hampering production of new commercial jets,

forcing airlines to keep their aged fleets in service to meet

booming demand for travel.

Taking the shine off RTX's strong quarter, however, the

company's 2025 adjusted sales forecast of between $83 billion

and $84 billion fell short of analysts' average estimates of

$84.47 billion, according to data compiled by LSEG.

Though the incoming administration led by U.S. President

Donald Trump is likely to increase defense spending, investors

are concerned about potential budget cuts under the newly formed

Department of Government Efficiency (DOGE) headed by billionaire

Elon Musk.

Some analysts have underplayed those concerns, arguing

Trump's recent comments on acquiring Greenland and taking over

the Panama Canal should support the case for increased defense

spending.

RTX's Pratt and Whitney unit, which produces engines for

Airbus' A320neo jets and competes with CFM International, posted

a sales rise of 18% on a profit of $504 million for the fourth

quarter.

The unit is currently navigating an issue with its Geared

Turbofan (GTF) engines and is conducting an inspection drive for

potentially flawed components, leading to the grounding of

hundreds of planes in recent months.

Revenue at the company's aerospace and avionics arm Collins

Aerospace rose 6% in the reported quarter.

Raytheon, RTX's defense unit, reported a 36% rise in

operating profit due to robust demand for its Patriot defense

system used on the battlefield in Ukraine to counter missile

threats from Russia.

A prolonged Russia-Ukraine war and ongoing conflicts in the

Middle East have led countries to bolster their defense

spending, stoking higher demand for arms and weaponry.

The Arlington, Virginia-based company reported a 9% rise in

quarterly total revenue to $21.62 billion.

It reported a net income of $1.48 billion, or $1.10 per

share, compared with $1.43 billion, or $1.05 a share, a year

earlier.

(Reporting by Utkarsh Shetti in Bengaluru and Mike Stone in

Washington; Editing by Devika Syamnath)

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