The three-week strike involving 3,000 Pratt & Whitney engine workers in the US is expected to limit cash flow for the company in the second quarter of 2025. However, RTX CEO Chris Calio believes the company can recover financially during the remainder of the year.
On May 27, 2025, around 3,000 machinists at Pratt & Whitney in Connecticut ratified a new four-year collective bargaining agreement, officially ending their three-week strike.
Speaking at the Bernstein 41st Annual Strategic Decisions Conference 2025, held on May 28, 2025, Calio warned that the second quarter of 2025 would see a negative cash flow due to the strike.
“There was an impact, of course, with the stoppage on our ability to ship all the GTF and F135 engines that were in our plan,” Calio said. “So that’s something we’re going to have to recover throughout the balance of the year.”
Calio told the Bernstein Strategic Decisions Conference that the second quarter of 2025 will see a negative cash flow due to the strike.
However, Calio also noted that RTX plans to “continue to get their people back ramped up, get engines back out the door,” and the company believes the impact of the strike is “recoverable within the full year”.
“From an earnings perspective, I would just say probably neutral in the quarter given the mix of Net Energy Metering (NEM) avoidance on new engines and spare engines,” Calio said. “But again, good to have everyone aligned and back to delivering to our customers on the commercial and defense sides.”
During the conference, Calio said that the company’s backlog is valued at $217 billion, with $125 billion coming from commercial sectors and the rest from defense. The company continues to project a free cash flow of $7 billion to $7.5 billion for the year.
“Every day our employees get up with the mission to protect and connect the world, and they’re very passionate about that,” said Calio, adding that the demand for the company’s products “is exceptionally strong.”
