In This Article:
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Organic Sales Growth: 8% in the third quarter.
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Segment Margin Expansion: 100 basis points increase.
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Free Cash Flow: $2 billion in the quarter.
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Capital Returned to Shareholders: $10.3 billion through accelerated share repurchase program.
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Backlog: Record $221 billion with a book-to-bill of 1.8.
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Adjusted Sales: $20.1 billion, up 6% overall and 8% organically.
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Commercial Aftermarket Growth: 11% increase.
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Defense Sales Growth: 10% increase organically.
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Segment Operating Profit: $2.4 billion, up 16%.
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Adjusted Earnings Per Share (EPS): $1.45, up 16% from the prior year.
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GAAP Earnings Per Share: $1.09.
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Full-Year Adjusted Sales Outlook: Increased to $79.25 billion to $79.75 billion.
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Full-Year Adjusted EPS Outlook: Increased to $5.50 to $5.58.
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Collins Sales: $7.1 billion, up 6% adjusted and organic.
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Pratt & Whitney Sales: $7.2 billion, up 14% adjusted and organic.
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Raytheon Sales: $6.4 billion, down 1% adjusted, up 5% organically.
Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RTX Corp (NYSE:RTX) reported strong third-quarter performance with 8% organic sales growth driven by robust demand in commercial aftermarket and defense sectors.
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The company achieved a 100 basis points expansion in segment margin and generated $2 billion in free cash flow.
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RTX Corp (NYSE:RTX) raised its full-year outlook for adjusted sales and EPS, reflecting confidence in continued strong performance.
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The company completed an accelerated share repurchase program, returning $10.3 billion to shareholders, and is on track to meet its capital return commitment.
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RTX Corp (NYSE:RTX) reported a record backlog of $221 billion, with significant new orders in defense and commercial sectors, indicating strong future growth potential.
Negative Points
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Collins Aerospace experienced an 8% decline in commercial OE sales due to lower narrowbody volume and unfavorable mix, impacting overall performance.
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The company faces ongoing challenges with the GTF engine program, requiring careful management of spares and production to meet delivery targets.
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RTX Corp (NYSE:RTX) is dealing with supply chain and inflation challenges, which could impact future production and cost structures.
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The company has adjusted its full-year outlook for Collins Aerospace, reflecting lower commercial OE volume and associated absorption impacts.
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RTX Corp (NYSE:RTX) is navigating productivity challenges at Raytheon, with some programs experiencing headwinds that could affect future margins.