RTX updates 2025 free cash flow commitment to reflect estimated GTF impact

RTX is providing an update on the impact to the Pratt & Whitney GTF fleet arising from the previously disclosed rare condition in powder metal used to manufacture certain engine parts. “As a result of recent updates to this matter, RTX will recognize a third quarter charge which will impact reported sales and earnings for the year,” the company stated. RTX reaffirms 2020 to 2025 RTX sales growth and margin expansion commitments and updates 2025 free cash flow commitment to reflect estimated impact of Pratt & Whitney powder metal matter. Expects cash impact of approximately $1.5B during 2025, resulting in estimated RTX 2025 free cash flow of approximately $7.5B. Reaffirms $33 – $35B capital return commitment to shareowners from the merger through 2025. “We are focused on addressing the challenges arising from the powder metal manufacturing issue,” said RTX Chairman and CEO Greg Hayes. “We will never compromise on the safe operation of our fleet, which is why the Pratt & Whitney team has worked diligently to develop its fleet management plan. At the same time, we recognize this is an extremely difficult situation for our customers, and we are proactively taking steps to support and mitigate the operational impact to them.” RTX Executive Vice President & Chief Financial Officer, Neil Mitchill, stated “The financial charges related to the powder metal manufacturing issue, that will be recognized this quarter, reflect the impact of this matter and how we expect to support our customers. That said, the financial position of RTX remains strong, and we remain well positioned to execute on our strategic priorities.”