Aerospace conglomerate RTX, through its Pratt & Whitney segment, delivered fewer engines for commercial aircraft in the latest quarter than the prior-year period, after a nearly monthlong work stoppage at two of the company's facilities in Connecticut disrupted operations.
Large commercial engine (LCE) shipments in the second quarter fell by 3.8pc to 227 on the year, the company said in its latest earnings call. RTX — comprised of Pratt & Whitney, Collins Aerospace and Raytheon — produces the PW11100G geared turbofan (GTF) engine, which is used to power Airbus' A320neo aircraft family.
Pratt & Whitney workers backed by the International Association of Machinists and Aerospace Workers (IAMAW) went on strike in May at the subsidiary's sites in East Hartford and Middletown, Connecticut, that support engine programs for both the A320neo and Lockheed Martin's F-35 fighter jet.
Still, RTX raised its full-year adjusted revenue outlook, which primarily reflects easing tariff headwinds such as the US-UK trade deal that carved out exemptions for aerospace components, the company said. Revenues for 2025 are now expected to fall between $84.75bn-85.5bn from prior forecasts of $83bn-84bn.
RTX now expects to incur $500mn of tariff-related costs in 2025 after mitigation efforts, for which $125mn already has been accounted, after previously forecasting a full-year $850mn profit hit. The new estimate is based on assumptions that country-specific duty rates do not change after 1 August.
Quarterly deliveries of military engines rose by 8.1pc to 40 units on the year. Engine shipments from Pratt & Whitney Canada, which sells into the business, regional and general aviation end markets, increased by 9.9pc to 521 in the same timeframe.
The company continues to work through its GTF fleet management program, seeking to reduce the number of aircraft that have been grounded because of a "powder metal" issue. Maintenance, repair and overhaul (MRO) output increased by 22pc year-over-year, supported by a 12pc uptick in isothermal forging output in the same timeframe.
Still, RTX cautioned that the allocation of isothermal forgings and structural castings between spares for aftermarket services and new builds for Airbus' ramp-up targets remains a balancing act.
Collins Aerospace's supply chains have shown improvement with overdue line items down by 25pc so far this year, RTX said. That bodes well for Boeing, for which Collins produces heat exchangers that have snarled production of the airframers' main widebody model — the 787 Dreamliner.
RTX's quarterly profit rose to nearly $1.7bn from $111mn in the prior-year period, when one-time charges related to legal settlements ate into the company's earnings. Revenues grew by 9.4pc to $21.6bn in the same timeframe.
