RTX Technologies’ Backlog Boom vs. Tariff Trouble: What Lies Ahead For The Defense Major? 

Raytheon Technologies Corporation reported a strong first quarter, delivering 8% organic sales growth, 120 basis points of segment margin expansion, and a $900 million improvement in free cash flow compared to the prior year. Commercial aftermarket sales rose 21%, commercial original equipment sales increased 3% despite a tough comparison, and defense sales grew by 4%. Segment profitability was supported by volume increases, cost reduction activities, and a favorable defense sales mix, leading to 18% growth in segment operating profit. Adjusted earnings per share increased 10% year-over-year, although higher tax rates and share count partially offset profit gains. Free cash flow was $792 million, including compensation-related outflows tied to powder metal issues. Each business segment reported margin expansion, with Collins Aerospace and Pratt & Whitney benefiting from strong aftermarket demand and Raytheon achieving margin improvements despite a cybersecurity business divestiture.