“Looking at it by channel at the RTX level and adjusting for divestitures, we now expect commercial aftermarket sales to grow low teens, up from our prior outlook of around 10% growth.”

In context

“.22 and included $0.28 of acquisition accounting adjustments and $0.06 of restructuring and other items. As expected, free cash flow was an outflow of $72 million. This included approximately $250 million for powder metal related compensation and $175 million related to tariff impacts. So overall, our first half results were strong, driven by end market demand and execution across all 3 segments. Now let's turn to Slide 6, and I'll take you through our outlook. Starting with the top line. Given our strong first half performance, we are increasing our full year adjusted sales outlook to a range of $84.75 billion to $85.5 billion up from our prior range of $83 billion to $84 billion. This translates to between 6% and 7% organic sales growth for the year, up from our prior range of 4% to 6%. Looking at it by channel at the RTX level and adjusting for divestitures, we now expect commercial aftermarket sales to grow low teens, up from our prior outlook of around 10% growth. On the commercial OE side, sales are expected to grow high single digits year-over-year, up from our prior outlook of mid-single digits. And we continue to expect defense sales to grow mid-single digits across the company. On the bottom line, we continue to improve our ability to mitigate tariff headwinds, including expanding USMCA coverage, qualifying additional parts for military duty-free exemptions and maximizing the use of free trade zones in addition to the items that Chris mentioned. As a result, our current assessment of 2025 tariff costs, net of mitigation is around $500 million, with approximately $125 million already incurred in the first half of the year. In addition, we see the associated cash impact to be around $600 million for the full year, again, a notable improvement. W”