The US Majors reporting season continues with reporting in line with expectations.
Boeing
29 Jul 25. Boeing Reports Second Quarter Results
Second Quarter 2025
* 737 production reached 38 per month in the quarter
* Revenue increased to $22.7bn primarily reflecting 150 commercial deliveries
* GAAP loss per share of ($0.92) and core loss per share (non-GAAP)* of ($1.24)
* Operating cash flow of $0.2 bn and free cash flow (non-GAAP)* of ($0.2)bn
* Total company backlog grew to $619bn, including over 5,900 commercial airplanes
“Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,” said Kelly Ortberg, Boeing president and chief executive officer. “As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment.”
Cash and investments in marketable securities totaled $23.0bn, compared to $23.7bn at the beginning of the quarter, primarily driven by the debt repayment and free cash flow usage in the quarter. Debt was $53.3bn, down from $53.6bn at the beginning of the quarter due to the pay down of maturing debt. The company maintains access to credit facilities of $10.0bn, which remain undrawn. Total company backlog at quarter end was $619 bn.
Segment Results
Commercial Airplanes
Commercial Airplanes second quarter revenue of $10.9bn and operating margin of (5.1) percent primarily reflect higher deliveries. The 737 program increased the production rate to 38 per month in the quarter and plans to stabilize at that rate before requesting approval to increase to 42 per month later this year. The 787 program production rate is now at seven per month.
Commercial Airplanes booked 455 net orders in the quarter, including 120 787 and 30 777-9 airplanes for Qatar Airways and 32 787-10 airplanes for British Airways. Commercial Airplanes delivered 150 airplanes during the quarter, and backlog included over 5,900 airplanes valued at $522bn.
Defense, Space & Security
Defense, Space & Security second quarter revenue was $6.6bn. Second quarter operating margin of 1.7 percent reflects stabilizing operational performance. During the quarter, Defense, Space & Security captured an award from the U.S. Air Force to build four T-7A Red Hawk production representative aircraft and began ground testing on the first MQ-25 Stingray for the U.S. Navy. Backlog at Defense, Space & Security grew to $74bn with 22 percent representing orders from customers outside the U.S.
Global Services
Global Services second quarter revenue was $5.3bn. Second quarter operating margin of 19.9 percent reflects favorable performance and mix.
In the quarter, Global Services completed the sale of its maintenance, repair and overhaul facility at Gatwick Airport and secured a contract to provide P-8A aircraft training systems and support to the Republic of Korea Navy.
General Dynamics
23 Jul 25. General Dynamics Reports Second-Quarter 2025 Financial Results
* Revenue $13bn, up 8.9% from year-ago quarter
* Diluted EPS $3.74, up 14.7% from year-ago quarter
* $1.6bn cash from operating activities, 158% of net earnings
* Very strong order activity in Marine and Aerospace segments
General Dynamics (NYSE: GD) today reported second-quarter 2025 operating earnings of $1.3bn, or $3.74 per diluted share (EPS), on revenue of $13 bn. Compared with the year-ago quarter, revenue increased 8.9%, operating earnings increased 12.9%, and diluted EPS increased 14.7%. Operating margin of 10.0% was a 30-basis-point expansion from the year-ago quarter.
“During the first half of the year, each of our four segments achieved growth in revenue and earnings, with margins on a companywide basis expanding 50 basis points over the same period last year,” said Phebe Novakovic, chairman and chief executive officer. “Our strong cash flow and healthy backlog position us well to have a good second half.”
Cash and Capital Deployment
Net cash provided by operating activities in the quarter totaled $1.6bn, or 158% of net earnings. During the quarter, the company paid $402m in dividends, invested $198 m in capital expenditures, and reduced total debt by $897m. The company ended the quarter with $8.7bn in total debt and $1.5bn in cash and equivalents on hand.
Orders and Backlog
Consolidated book-to-bill ratio, defined as orders divided by revenue, was 2.2-to-1 for the quarter. Book-to-bill was 2.4-to-1 for the defense segments and 1.3-to-1 for the aerospace segment. On a companywide basis, orders totaled $28.3bn. Backlog at the end of the quarter was $103.7bn. Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $57.5bn. Total estimated contract value, the sum of all backlog components, was $161.2bn.
Lockheed Martin
22 Jul 25. Lockheed Martin Reports Second Quarter 2025 Financial Results
* Sales of $18.2bn
* Recorded pre-tax losses on programs of $1.6 bn and other charges of $169m, which impacted earnings per share by $5.83
* Net earnings of $342m, or $1.46 per share, including impacts of program losses and other charges
* Cash from operations of $201m and free cash flow of $(150)m
* Returned $1.3bn of cash to shareholders through dividends and share repurchases
* Reaffirming 2025 guidance for sales and free cash flow
Lockheed Martin Corporation [NYSE: LMT] today reported second quarter 2025 sales of $18.2bn, compared to $18.1bn in the second quarter of 2024. Net earnings in the second quarter of 2025 were $342m, or $1.46 per share, including $1.6 bn of program losses and $169 m of other charges. This compares to $1.6bn, or $6.85 per share, in the second quarter of 2024. Cash from operations was $201m in the second quarter of 2025, compared to $1.9bn in the second quarter of 2024. Free cash flow was $(150) m in the second quarter of 2025, compared to $1.5bn in the second quarter of 2024.
“Over the course of the past few months, Lockheed Martin systems and platforms once again proved highly effective in combat operations and in deterring further aggression. Our F-35s, F-22s, PAC-3, THAAD, Aegis and many others, crewed by the soldiers, airmen, sailors, marines and guardians of the U.S. and its Allies, and supported by our own dedicated teammates, performed extremely well in the most crucial and challenging situations,” said Lockheed Martin Chairman, President and CEO Jim Taiclet. “Based in part on this record of performance as well as the promise of several advanced technologies in development, our U.S. and allied customers are asking us to elevate and accelerate many key programs. For example, several allied nations have recently announced additional F-35 purchases, the U.S. Army has awarded more than $1bn in missile-related contracts so far, and the U.S. Space Force is ordering additional GPS IIIF satellites. At the same time, our ongoing program review process identified new developments that caused us to re-evaluate the financial position on a set of major legacy programs. As a result, we are taking a number of charges this quarter to address these newly identified risks. We remain committed to delivering these critical capabilities that our customers are counting on and are fully focused on the growth inflection we expect as the result of heightened interest and demand for Lockheed Martin’s products and technologies.
“Overall, the company’s foundation remains solid and resilient. In the second quarter, sales of $18bn grew sequentially, as we continued to drive supply chain improvements and ramp capacity on needed deterrent capabilities. In addition, we invested $800m in infrastructure and innovation for growth and returned $1.3bn to shareholders through dividends and share repurchases. We are maintaining full year 2025 guidance for sales, cash from operations, capital expense, free cash flow, and share repurchases. The program charges taken in the quarter – which resulted from our ongoing rigorous monitoring and review processes – are a necessary step as we continue to take action to improve program execution. We’re investing in emerging technologies, and as a proven mission integrator, we remain well positioned to support critical programs like the Golden Dome for America. Our relentless focus on operational performance combined with our disciplined capital allocation strategy will enable us to deliver value to our shareholders, while providing the advanced solutions that America and its allies need to maintain peace through strength for decades to come.”
Program Losses and Other Charges
During the second quarter, the Company took important steps to address challenges on a classified program at its Aeronautics business segment and certain international helicopter programs at its Sikorsky business unit.. The Company also recognized other charges related to asset impairments and a tax matter as described below.
Aeronautics Classified Program – Aeronautics has experienced design, integration, and test challenges, as well as other performance issues on this program. These trends continued into 2025 and had a greater impact on schedule and costs than previously estimated. As a result, Aeronautics performed a comprehensive review of its program execution and management processes to achieve the technical requirements of the program, which was completed in the second quarter. Based on this review and ongoing discussions with the customer and suppliers, Aeronautics made significant changes to its processes and testing approach, resulting in significant updates to the program’s schedule and cost estimates. As a result, during the second quarter of 2025 the Company recognized additional pretax reach-forward losses of $950m on the program.
Canadian Maritime Helicopter Program (CMHP) – The Company is in ongoing discussions with the customer regarding a potential restructure to certain contractual terms and conditions and to expand the scope of work that would be beneficial to both parties. Communications with the customer during the second quarter of 2025 led to subsequent decisions made by the Company to focus on providing additional mission capabilities, enhanced logistical support, fleet life extension, and revised expectations regarding flight hours. As a result of revised cost and sales estimates for the program during the second quarter of 2025, the Company recognized additional pretax losses of $570m on this program in RMS’ financial results.
Türkish Utility Helicopter Program (TUHP) – The Company has been discussing a potential mutually agreeable framework to restructure the program, including changing the scope of work. In light of the status of the continuing discussions with the customer and the current status of the program, RMS revised its cost and sales estimates for this program. As a result, during the second quarter of 2025, the Company recognized additional pretax reach-forward losses of $95m on this program in RMS’ financial results.
Other Charges – During the second quarter of 2025, the company recognized a charge of $66m primarily for the write-off of fixed assets resulting from the U.S. Air Force’s Next Generation Air Dominance (NGAD) down-select decision. The company also recognized a charge of $103m related to uncertain tax positions as part of its income tax expense, resulting from the Internal Revenue Service’s proposed adjustments to its tax accounting method change for certain manufacturing contracts.
As previously described, business segment operating profit for the quarter ended June 29, 2025 included losses of $950m ($71 m, or $3.04 per share, after-tax) on a classified program at its Aeronautics business segment, and $570m ($428 m, or $1.83 per share, after-tax) on CMHP and $95m ($71m, or $0.30 per share, after-tax) on TUHP at its RMS business segment.
3. Impairment and other charges for the quarter ended June 29, 2025 included $66m ($52m, or $0.22 per share, after-tax) primarily for the write-off of fixed assets at its Aeronautics business segment.
4. Net earnings for the quarter ended June 29, 2025 included $103m of income tax expense related to uncertain tax positions.
Cash from operations in the second quarter of 2025 was $201m with free cash flow of $(150)m compared to $1.9bn with $1.5bn in free cash flow in the second quarter of 2024. The decrease in cash from operations was primarily due to an increase in working capital, which is defined as receivables, contract assets, and inventories less accounts payable and contract liabilities. This increase in working capital was driven by four main factors: production and invoice timing impacting receivables, primarily related to the F-35 program at Aeronautics; an increase in contract assets as a result of the timing of milestones, also primarily related to the F-35 program at Aeronautics; an increase in Sikorsky inventory at RMS; and billing cycles impacting contract liabilities primarily related to national security space programs at Space. The decrease in free cash flows was primarily due to these cash from operations drivers.
The company’s cash activities in the quarter ended June 29, 2025, included the following:
* paying cash dividends of $771m;
* paying $500 m to repurchase 1.0m shares;
* receiving net proceeds of $1.4bn from the issuance of commercial paper; and
* making a scheduled repayment of $142 m of long-term debt.
2025 Financial Outlook
The company’s financial outlook for 2025 and other sections of this news release contain forward-looking statements, which reflect the company’s judgment based on the information available at the time of this news release. The financial outlook for 2025 does not include the evolving impacts of tariffs or related recoveries, or Executive Orders issued by the Administration. Additionally, it is the company’s practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, future gains or losses related to changes in valuations of the company’s net assets and liabilities for deferred compensation plans or early-stage company investments, pension annuity contracts or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted.
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company’s business segments and reconciles these amounts to the company’s consolidated financial results.
Aeronautics
Aeronautics’ sales during the quarter ended June 29, 2025 increased $143m, or 2%, compared to the same period in 2024. This increase was primarily attributable to higher sales of $470m on the F-35 program due to higher volume on production contracts. This increase was partially offset by a $360m unfavorable cumulative adjustment to sales driven by the loss on a classified contract as previously described.
Aeronautics’ operating profit during the quarter ended June 29, 2025 decreased $849m, or 113%, compared to the same period in 2024. The decrease was attributable to the previously described $950 m reach forward loss recognized on a classified contract, which was partially offset by a $90m increase on the F-35 program due to higher profit booking rate adjustments and volume as described above.
Missiles and Fire Control
MFC’s sales during the quarter ended June 29, 2025 increased $331m, or 11%, compared to the same period in 2024. This increase was primarily attributable to higher sales of $330m on tactical and strike missile programs due to production ramp-up on Joint Air-to-Surface Standoff Missile (JASSM), Long Range Anti-Ship Missile (LRASM) and precision fires programs.
MFC’s operating profit during the quarter ended June 29, 2025 increased $29m, or 6%, compared to the same period in 2024. This increase was attributable to three primary factors: a $35m increase from production ramp up as described above, and a $25m increase from favorable contract mix; partially offset by a $25m decrease in profit booking rate adjustments. The decrease in profit booking rate adjustments was primarily due to lower favorable profit adjustments on Patriot Advanced Capability-3 (PAC-3).
Rotary and Mission Systems
RMS’ sales during the quarter ended June 29, 2025 decreased $553m, or 12%, compared to the same period in 2024. The decrease was primarily attributable to lower net sales of $370m on Sikorsky helicopter programs due to the unfavorable cumulative adjustments to sales driven by recognizing losses on CMHP and TUHP as previously described, and lower production volume on Seahawk programs; and a $145m decrease on integrated warfare systems and sensors (IWSS) programs due to lower volume on radar and the Canadian Surface Combatant (CSC) programs
RMS’ operating profit during the quarter ended June 29, 2025 decreased $667m, or 135%, compared to the same period in 2024. This decrease was attributable to a $610m decrease in profit booking rate adjustments primarily due to a $570 m loss recognized on CMHP and a $95m loss recognized on TUHP as previously described.
Space
Space’s sales during the quarter ended June 29, 2025 increased $112m, or 4%, compared to the same period in 2024. This increase was primarily attributable to higher sales of $115m for commercial civil space programs primarily due to higher volume on the Orion program; and $80 m for strategic and missile defense programs due to higher volume on Next Generation Interceptor (NGI) and Fleet Ballistic Missile (FBM) programs. These increases were partially offset by a decrease of $95 m on national security space programs due to program lifecycle on the Next Generation Overhead Persistent Infrared (Next Gen OPIR) system.
Space’s operating profit during the quarter ended June 29, 2025 increased $16m, or 5%, compared to the same period in 2024. This increase was attributable to a $20m increase in profit booking rate adjustments primarily due to favorable performance at completion on certain commercial civil space programs.
Total equity earnings (ULA) represented approximately $10m, or 3%, of Space’s operating profit for both the quarter ended June 29, 2025, and the same period in 2024.
Income Taxes
The company’s effective income tax rate was 18.0% and 15.8% for the quarters ended June 29, 2025 and June 30, 2024. The higher effective income tax rate for the quarter was primarily attributable to increased interest expense on the company’s uncertain tax position partially offset by changes in pre-tax earnings due to program losses previously described. The rates for all periods benefited from tax deductions for foreign derived intangible income, research and development tax credits, dividends paid to the company’s defined contribution plans with an employee stock ownership plan feature and employee equity awards.
Northrop Grumman
22 Jul 25. Northrop Grumman Reports Second Quarter 2025 Financial Results
- Sales increase 9 percent sequentially to $10.4bn
- Operating margin rate of 13.8 percent; segment operating margin rate1 of 11.8 percent
- Diluted earnings per share (EPS) of $8.15, inclusive of a $1.04 EPS benefit from the training services divestiture completed in the quarter
- Returned over $700m to shareholders in Q2 through share repurchases and dividends
- Company raises 2025 guidance for key financial metrics
Northrop Grumman Corporation (NYSE: NOC) reported second quarter 2025 sales increased 1 percent to $10.4bn, as compared with $10.2bn in the second quarter of 2024. Second quarter 2025 net earnings totaled $1.2bn, or $8.15 per diluted share, as compared with $940 m, or $6.36 per diluted share, in the second quarter of 2024. Second quarter 2025 net earnings reflect strong segment operating performance and a net after-tax benefit of $150m, or $1.04 per diluted share, related to the previously announced divestiture of our training services business.
“The Northrop Grumman team delivered a strong second quarter, with increased sales and outstanding operating performance,” said Kathy Warden, chair, chief executive officer and president. “We are working with our customers to accelerate capability delivery to enable their vision of peace through strength. We continue to see growing demand globally for our broad range of product offerings, which resulted in 18% international sales growth in the quarter. With confidence in our team and our ability to deliver for our customers, we are increasing our fullyear guidance for segment operating income, EPS and free cash flow.”
Second quarter 2025 sales increased $133m, or 1 percent, primarily driven by higher sales at Mission Systems, Defense Systems and Aeronautics Systems, partially offset by lower sales at Space Systems due, in part, to the wind-down of work on certain Space programs, as discussed in our segment operating results below. Operating Income and Margin Rate Second quarter 2025 operating income increased $335m, or 31 percent, primarily due to the training services divestiture, including a $231m gain on sale and $19m of unallocated corporate expense for unallowable state taxes and transaction costs. Operating income also increased due to $118 m of higher segment operating income and a $57m increase in the FAS/CAS operating adjustment, partially offset by a $52m increase in nondivestiture-related unallocated corporate expense driven by changes in deferred state taxes and a prior year increase of $26m in our estimated recovery of certain environmental remediation costs.
Operating margin rate increased to 13.8 percent from 10.7 percent reflecting the items above. Segment Operating Income and Margin Rate1 Second quarter 2025 segment operating income increased $118m, or 11 percent, due to higher operating income at Mission Systems, Defense Systems and Aeronautics Systems, partially offset by lower operating income at Space Systems. Segment operating margin rate increased to 11.8 percent from 10.8 percent, due to higher operating margin rates at all four sectors. Federal and Foreign Income Taxes Second quarter 2025 income tax expense increased $47m, or 23 percent, due to higher earnings before income taxes, partially offset by a lower effective tax rate (ETR).
The second quarter 2025 ETR decreased to 17.7 percent from 18.0 percent in the prior year period primarily due to lower interest expense on unrecognized tax benefits and higher research credits, partially offset by additional income tax expense related to nondeductible goodwill in the divested training services business. Net Earnings Second quarter 2025 net earnings increased $234m, or 25 percent, primarily due to the $335m increase in operating income described above, partially offset by a $47m increase in income tax expense, a $30m reduction in the non-operating FAS pension benefit and higher interest expense.
Cash Flows
Second quarter 2025 net cash provided by operating activities decreased $557m as compared with the same period in 2024 primarily due to $1.0bn of higher net cash taxes, due, in part, to a $500m federal tax refund received in the prior year, partially offset by improved trade working capital largely driven by the timing of vendor payments and customer collections. Second quarter 2025 free cash flow1 decreased $468 m, or 42 percent, principally due to a decrease in net cash from operating activities, partially offset by lower capital expenditures. Awards and Backlog Second quarter 2025 net awards totaled $7.4bn and backlog totaled $89.7bn. Significant second quarter new awards include $1.8bn for restricted programs (primarily at Mission Systems, Aeronautics Systems and Space Systems), $0.5bn for F-35 (primarily at Mission Systems), $0.3bn for the Guided Multiple Launch Rocket System (GMLRS) program, and $0.2bn for Triton. Segment Operating Results Effective July 1, 2024, the company realigned the Strategic Deterrent Systems (SDS) division, which includes the Sentinel program, from Space Systems to Defense Systems. Effective January 1, 2025, the company realigned the Strike and Surveillance Aircraft Solutions (SSAS) business unit from Defense Systems to Aeronautics Systems. These realignments are reflected in the financial information contained in this report.
AERONAUTICS SYSTEMS
Sales
Second quarter 2025 sales increased $54m, or 2 percent, primarily due to higher volume on B-21 and ramp-up on the E-130J TACAMO program, partially offset by lower volume on restricted programs and a decrease on F/A-18 as production nears completion. Operating Income Second quarter 2025 operating income increased $9m, or 3 percent, primarily due to higher sales. Operating margin rate of 10.3 percent was comparable with the prior year period.
DEFENSE SYSTEMS
Sales
Second quarter 2025 sales increased $132m, or 7 percent, principally due to higher sales on the Sentinel program and military ammunition programs. Operating Income Second quarter 2025 operating income increased $62m, or 32 percent, primarily due to a higher operating margin rate and higher sales. Operating margin rate increased to 12.7 percent from 10.3 percent primarily due to higher net EAC adjustments, including a $76m favorable EAC adjustment on the EMD phase of the Sentinel program largely related to our expectations for achieving certain contract incentives.
MISSION SYSTEMS
Sales
Second quarter 2025 sales increased $384m, or 14 percent, primarily due to the timing of a restricted award, which liquidated inventory purchased in advance of the award to support customer schedule, as well as higher volume on marine systems, international ground-based radar, advanced technologies and navigation systems programs. Operating Income Second quarter 2025 operating income increased $80m, or 22 percent, due to higher sales and a higher operating margin rate. Operating margin rate increased to 14.0 percent from 13.0 percent, primarily due to higher net EAC adjustments driven by improved production efficiencies and program performance largely on airborne radar programs.
SPACE SYSTEMS
Sales
Second quarter 2025 sales decreased $356m, or 12 percent, primarily due to winddown of work on the restricted space and Next Generation Interceptor (NGI) programs, which reduced sales by $283 m, as well as lower volume on Space Development Agency (SDA) satellite programs due to the timing of materials. Operating Income Second quarter 2025 operating income decreased $24 m, or 8 percent, primarily due to lower sales, partially offset by a higher operating margin rate. Operating margin rate increased to 10.6 percent from 10.1 percent principally due to higher net EAC adjustments.
RTX
22 Jul 25. RTX (NYSE: RTX) reports second quarter 2025 results.
Second quarter 2025
* Sales of $21.6bn, up 9 percent versus prior year, and up 9 percent organically* excluding divestitures
* GAAP EPS of $1.22, including $0.28 of acquisition accounting adjustments and $0.06 of restructuring and other net significant and/or non-recurring items
* Adjusted EPS* of $1.56, up 11 percent versus prior year
* Operating cash flow of $0.5bn; free cash outflow* of $0.1bn
* Company backlog of $236bn, including $144bn of commercial and $92bn of defense
* Returned $0.9bn of capital to shareowners and raised the quarterly dividend 8 percent
* Reached agreement to sell Collins’ Simmonds Precision Products business for $765m
Updates outlook for full year 2025
* Outlook reflects strong first half operational performance and incorporates the expected impact of tariffs and changes associated with recently enacted tax legislation
* Adjusted sales* of $84.75 – $85.5bn, up from $83.0 – $84.0 bn
* Organic sales growth* of 6 to 7 percent, up from 4 to 6 percent
* Adjusted EPS* of $5.80 – $5.95, down from $6.00 – $6.15
* Confirms free cash flow* of $7.0 – $7.5bn
“We continued our momentum in the second quarter with organic sales and profit growth* across all three segments, including 16 percent commercial aftermarket growth,” said RTX Chairman and CEO Chris Calio. “Our backlog grew to $236 bn, up 15 percent versus prior year, and we secured major awards for our geared turbofan engines and integrated air and missile defense capabilities in the quarter. Our updated outlook reflects strong operational performance in the first half and incorporates our current assessment of the impact of tariffs. We are focused on delivering on the strong growth in our commercial and defense end markets and remain well positioned to drive long term profitable growth.”
Second quarter 2025
RTX second quarter reported and adjusted sales were $21.6bn, up 9 percent over the prior year. GAAP EPS of $1.22 included $0.28 of acquisition accounting adjustments, and $0.06 of restructuring and other net significant and/or non-recurring items. Adjusted EPS* of $1.56 was up 11 percent versus the prior year.
The company reported net income attributable to common shareowners in the second quarter of $1.7bn which included $0.4bn of acquisition accounting adjustments and $0.1bn of restructuring and other net significant and/or non-recurring items. Adjusted net income* of $2.1bn was up 12 percent versus the prior year driven by growth in adjusted segment operating profit.
Operating cash flow in the second quarter was $0.5bn and was impacted by the four week work stoppage that occurred at Pratt & Whitney in the quarter. Capital expenditures were $0.5bn, resulting in free cash outflow of $0.1bn.
Collins Aerospace
Collins Aerospace second quarter 2025 reported and adjusted sales of $7,622m 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.
Collins Aerospace reported operating profit of $1,173 m was up 5 percent versus the prior year. On an adjusted basis, operating profit* of $1,249 m was up 9 percent versus the prior year. Drop through on higher commercial aftermarket and defense volume, favorable defense mix, and lower R&D expense more than offset unfavorable commercial OE mix and the impact of higher tariffs across the business.
Pratt & Whitney
Pratt & Whitney second quarter reported and adjusted sales of $7,631m were up 12 percent versus the prior year and includes the four week work stoppage that occurred in the quarter. The sales growth was driven by a 19 percent increase in commercial aftermarket and a 15 percent increase in commercial OE. The increase in commercial aftermarket was driven by higher volume in Large Commercial Engines and favorable mix in Pratt Canada, while the growth in commercial OE was driven by favorable mix in Large Commercial Engines and higher volume in Pratt Canada. Military sales were flat driven by lower F135 volume, including the impact of contract award timing.
Pratt & Whitney reported operating profit of $492m was down 9 percent versus the prior year. Reported operating profit included a charge of approximately $100m related to a customer bankruptcy. On an adjusted basis, operating profit of $608m was up 13 percent versus the prior year. The increase was driven by favorable commercial OE mix, drop through on higher commercial aftermarket volume, and lower R&D expense which more than offset the impact of commercial aftermarket mix, higher tariffs across the business, and the four week work stoppage.
Raytheon
Raytheon second quarter reported sales of $7,001m were up 8 percent versus the prior year. This increase was driven by higher volume on land and air defense systems, including international Patriot and NASAMS as well as higher volume on naval programs, including SPY-6 and Evolved SeaSparrow Missile. This growth was partially offset by lower development program volume within air and space defense systems. Adjusted sales of $7,001 m were up 6 percent versus prior year. Raytheon reported operating profit of $805m was up versus the prior year primarily due to a $575m charge related to a contract matter initiated in Q2 2024. On an adjusted basis, operating profit of $809m was up 14 percent versus the prior year driven primarily by favorable program mix, including international Patriot, and higher volume.
Textron
24 Jul 25. Textron Reports Second Quarter 2025 Results
* EPS of $1.35; adjusted EPS of $1.55, up from $1.54 in the prior year
* Revenues of $3.7bn, up 5.4%, or $189m, compared to the prior year
* $214 m returned to shareholders through share repurchases in the second quarter
* 2025 cash outlook raised to the range of $900m to $1.0 bn
Textron Inc. (NYSE: TXT) today reported second quarter 2025 income from continuing operations of $1.35 per share, flat with the second quarter of 2024. Adjusted income from continuing operations, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $1.55 per share for the second quarter of 2025, compared to $1.54 per share in the second quarter of 2024.
“In the quarter, we saw revenue growth in both our commercial aircraft and helicopter businesses, as well as in Bell’s FLRAA program, now known as the MV-75,” said Textron Chairman and CEO Scott C. Donnelly. “At Textron Aviation, operations continued to improve as production ramped.”
Cash Flow
Net cash provided by operating activities of the manufacturing group for the second quarter was $395m, compared to $383m last year. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $336m for the second quarter, compared to $320m last year.
In the quarter, Textron returned $214m to shareholders through share repurchases. Year to date, Textron has returned $429m to shareholders through share repurchases.
Outlook
Textron reiterated its expectation for full-year 2025 GAAP earnings per share from continuing operations to be in the range of $5.19 to $5.39, or $6.00 to $6.20 on an adjusted basis, which is reconciled to GAAP in an attachment to this release. Manufacturing cash flow before pension contributions, a non-GAAP measure, is now expected to be in the range of $900m to $1.0bn, up $100m from the previous outlook. This updated outlook incorporates the expected impact associated with recently enacted U.S. tax legislation.
Second Quarter Segment Results
Textron Aviation
Textron Aviation’s revenues were $1.5bn, up $42m from last year’s second quarter, reflecting higher aircraft revenues of $35m and higher aftermarket parts and services revenues of $7m.
Textron Aviation delivered 49 jets in the quarter, up from 42 in the second quarter of 2024, and 34 commercial turboprops, down from 44 in last year’s second quarter.
Segment profit was $180m in the second quarter, down $15m from a year ago, primarily due to the mix of aircraft sold and higher warranty costs, partially offset by the favorable impact of manufacturing efficiencies and higher pricing, net of inflation.
Textron Aviation backlog at the end of the second quarter was $7.85bn.
Bell
Bell revenues were $1.0bn, up $222m from the second quarter of 2024. The revenue increase in the quarter was driven by higher military revenues of $149m, primarily due to higher volume from the U.S. Army’s MV-75 program, and higher commercial revenues of $73m, primarily due to the mix of aircraft sold. Bell delivered 32 commercial helicopters in the quarter, flat with 32 in last year’s second quarter.
Segment profit of $80m was down $2m from last year’s second quarter, primarily reflecting higher research and development costs, partially offset by higher volume and mix.
Bell backlog at the end of the second quarter was $6.9bn.
Textron Systems
Textron Systems revenues were $321m, down $2m from last year’s second quarter.
Segment profit of $40m was up $5m, compared with the second quarter of 2024, primarily due to lower selling and administrative expense.
Textron Systems backlog at the end of the second quarter was $2.2bn.
Industrial
Industrial revenues were $839m, down $75m from last year’s second quarter, largely at Textron Specialized Vehicles where revenues decreased $66m, reflecting the impact from the disposition of the Powersports business in the second quarter of 2025 and lower volume.
Segment profit of $54m was up $12m from the second quarter of 2024, primarily reflecting the impact from the disposition of the Powersports business and the benefit of cost reductions from restructuring activities, partially offset by lower volume and mix.
Textron eAviation
Textron eAviation segment revenues were $8 m in the second quarter of 2025, as compared to $9m in last year’s second quarter, and segment loss was $16m, as compared with a segment loss of $18m in the second quarter of 2024.
Finance
Finance segment revenues were $15m, and profit was $8m in the second quarter of 2025, as compared to segment revenues of $12m and profit of $7m in the second quarter of 2024.