Investors in Raytheon Technologies (NYSE: RTX) likely already know that the aerospace and defense giant has a stated goal of hitting $10 billion in free cash flow (FCF) in 2025. They have likely already priced the stock accordingly. Whether those investors believe the company can reach that goal or not probably plays some role in the stock's movement from quarter to quarter.

Recent earnings results shed some fresh light on the matter, so let's look at them in the context of the investment case for the stock. 

CEO Greg Hayes discussed the 2025 guidance on the earnings call, telling investors that $9 billion in FCF was a more realistic aspiration now. The downplaying of expectations isn't due to anything related to operational performance or end-market conditions. Defense spending and commercial aerospace are in growth mode right now, and Raytheon booked a whopping $86 billion in orders in 2022, leaving it with a $175 billion backlog. 

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Source Fool.com