RTX Faces Slowdown in Second Half Amid Strategic Shifts at Pratt & Whitney
Raytheon Technologies (RTX) reported strong first-half performance with 16% organic sales growth and raised its full-year outlook. However, the company warned of a significant slowdown expected in the second half due to difficult year-over-year comparisons, particularly affecting its Pratt & Whitney division. On its earnings call, management confirmed that organic growth is projected to drop from 13% in H1 to around 5% in H2. The decline at Pratt & Whitney stems from a strategic decision to prioritize repair operations over new engine production amid ongoing challenges with the GTF engine fleet. This shift has led to an 8% decrease in new engine sales for Q2 and a negative full-year forecast. The company emphasized that this trade-off is necessary but costly, aiming to reduce aircraft-on-ground incidents by improving maintenance output. Investors are now closely watching whether RTX can manage the bottleneck without permanently impacting future growth from high-margin service revenue.
Tickers: $RTX
Topics: aerospace business_strategy earnings_call growth_forecast