RTX Corp (RTX) Q3 2024 Earnings Call Highlights: Strong Organic Growth and Record Backlog ...

GuruFocus News
4 min read

In This Article:

  • Organic Sales Growth: 8% in the third quarter.

  • Segment Margin Expansion: 100 basis points increase.

  • Free Cash Flow: $2 billion in the quarter.

  • Capital Returned to Shareholders: $10.3 billion through accelerated share repurchase program.

  • Backlog: Record $221 billion with a book-to-bill of 1.8.

  • Adjusted Sales: $20.1 billion, up 6% overall and 8% organically.

  • Commercial Aftermarket Growth: 11% increase.

  • Defense Sales Growth: 10% increase organically.

  • Segment Operating Profit: $2.4 billion, up 16%.

  • Adjusted Earnings Per Share (EPS): $1.45, up 16% from the prior year.

  • GAAP Earnings Per Share: $1.09.

  • Full-Year Adjusted Sales Outlook: Increased to $79.25 billion to $79.75 billion.

  • Full-Year Adjusted EPS Outlook: Increased to $5.50 to $5.58.

  • Collins Sales: $7.1 billion, up 6% adjusted and organic.

  • Pratt & Whitney Sales: $7.2 billion, up 14% adjusted and organic.

  • 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

  • RTX Corp (NYSE:RTX) reported strong third-quarter performance with 8% organic sales growth driven by robust demand in commercial aftermarket and defense sectors.

  • The company achieved a 100 basis points expansion in segment margin and generated $2 billion in free cash flow.

  • RTX Corp (NYSE:RTX) raised its full-year outlook for adjusted sales and EPS, reflecting confidence in continued strong performance.

  • The company completed an accelerated share repurchase program, returning $10.3 billion to shareholders, and is on track to meet its capital return commitment.

  • 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

  • Collins Aerospace experienced an 8% decline in commercial OE sales due to lower narrowbody volume and unfavorable mix, impacting overall performance.

  • The company faces ongoing challenges with the GTF engine program, requiring careful management of spares and production to meet delivery targets.

  • RTX Corp (NYSE:RTX) is dealing with supply chain and inflation challenges, which could impact future production and cost structures.

  • The company has adjusted its full-year outlook for Collins Aerospace, reflecting lower commercial OE volume and associated absorption impacts.

  • RTX Corp (NYSE:RTX) is navigating productivity challenges at Raytheon, with some programs experiencing headwinds that could affect future margins.

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