RTX Reports Q2 2024 Results
RTX reported strong Q2 2024 results with 8% sales growth to $19.7 billion and 10% organic sales growth. Adjusted EPS increased 9% to $1.41. The company generated $2.2 billion in free cash flow. RTX increased its 2024 outlook for adjusted sales to $78.75-$79.5 billion and adjusted EPS to $5.35-$5.45, but lowered free cash flow guidance to $4.7 billion.
Key highlights:
- Collins Aerospace sales up 10% with 25% adjusted operating profit growth
- Pratt & Whitney sales up 19% with 23% adjusted operating profit growth
- Raytheon sales down 2% but adjusted operating profit up 7%
- $206 billion backlog ($129B commercial, $77B defense)
- $918 million charge for expected resolution of legacy legal matters
RTX ha riportato risultati solidi per il secondo trimestre del 2024 con una crescita delle vendite dell'8% a 19,7 miliardi di dollari e una crescita organica delle vendite del 10%. L'utile per azione rettificato è aumentato del 9% a 1,41 dollari. L'azienda ha generato 2,2 miliardi di dollari di flusso di cassa libero. RTX ha aumentato le sue previsioni per il 2024 riguardo alle vendite rettificate a 78,75-79,5 miliardi di dollari e l'utile per azione rettificato a 5,35-5,45 dollari, ma ha abbassato le previsioni sul flusso di cassa libero a 4,7 miliardi di dollari.
Aspetti salienti:
- Le vendite di Collins Aerospace sono aumentate del 10% con una crescita del profitto operativo rettificato del 25%
- Le vendite di Pratt & Whitney sono aumentate del 19% con una crescita del profitto operativo rettificato del 23%
- Le vendite di Raytheon sono diminuite del 2% ma il profitto operativo rettificato è aumentato del 7%
- Un portafoglio ordini di 206 miliardi di dollari (129 miliardi commerciali, 77 miliardi per la difesa)
- 918 milioni di dollari di costo per la prevista risoluzione di questioni legali storiche
RTX reportó resultados sólidos para el segundo trimestre de 2024, con un crecimiento de ventas del 8% hasta 19.7 mil millones de dólares y un crecimiento orgánico de ventas del 10%. El EPS ajustado aumentó un 9% a 1.41 dólares. La compañía generó 2.2 mil millones de dólares en flujo de caja libre. RTX incrementó su perspectiva para 2024 respecto a las ventas ajustadas a 78.75-79.5 mil millones de dólares y el EPS ajustado a 5.35-5.45 dólares, pero redujo su guía de flujo de caja libre a 4.7 mil millones de dólares.
Aspectos destacados:
- Las ventas de Collins Aerospace aumentaron un 10% con un crecimiento del 25% en la utilidad operativa ajustada
- Las ventas de Pratt & Whitney aumentaron un 19% con un crecimiento del 23% en la utilidad operativa ajustada
- Las ventas de Raytheon disminuyeron un 2%, pero la utilidad operativa ajustada aumentó un 7%
- Un retraso de 206 mil millones de dólares (129 mil millones comerciales, 77 mil millones de defensa)
- Cargo de 918 millones de dólares por la resolución esperada de asuntos legales históricos
RTX는 2024년 2분기 실적에서 매출 8% 증가를 기록하며 197억 달러, 유기적 매출 10% 증가를 보였다고 보고했습니다. 조정된 주당순이익은 9% 증가하여 1.41달러에 달했습니다. 회사는 22억 달러의 자유 현금 흐름을 창출했습니다. RTX는 2024년 조정된 매출 전망을 7875억~7950억 달러로, 조정된 주당순이익을 5.35~5.45달러로 증가시켰지만, 자유 현금 흐름 가이던스는 47억 달러로 하향 조정했습니다.
주요 하이라이트:
- Collins Aerospace의 매출은 10% 증가하고 조정된 운영 이익은 25% 성장
- Pratt & Whitney 매출은 19% 증가하고 조정된 운영 이익은 23% 성장
- Raytheon의 매출은 2% 감소했지만 조정된 운영 이익은 7% 증가
- 2060억 달러의 잔여 주문 (상업용 1290억 달러, 방산용 770억 달러)
- 유산 법적 문제 해결 예상에 따른 9억 1800만 달러의 비용 발생
RTX a annoncé de solides résultats pour le deuxième trimestre 2024 avec une croissance des ventes de 8% atteignant 19,7 milliards de dollars et une croissance organique des ventes de 10%. Le bénéfice par action ajusté a augmenté de 9% pour atteindre 1,41 dollar. L'entreprise a généré 2,2 milliards de dollars de flux de trésorerie libre. RTX a revu à la hausse ses prévisions pour 2024 concernant les ventes ajustées à 78,75-79,5 milliards de dollars et le bénéfice par action ajusté à 5,35-5,45 dollars, mais a abaissé ses prévisions de flux de trésorerie libre à 4,7 milliards de dollars.
Points clés :
- Les ventes de Collins Aerospace ont augmenté de 10% avec une croissance du bénéfice opérationnel ajusté de 25%
- Les ventes de Pratt & Whitney ont augmenté de 19% avec une croissance du bénéfice opérationnel ajusté de 23%
- Les ventes de Raytheon ont diminué de 2% mais le bénéfice opérationnel ajusté a augmenté de 7%
- Un carnet de commandes de 206 milliards de dollars (129 milliards commerciaux, 77 milliards défense)
- Charge de 918 millions de dollars pour la résolution attendue d'affaires juridiques anciennes
RTX berichtete über starke Ergebnisse im Q2 2024 mit 8% Umsatzwachstum auf 19,7 Milliarden Dollar und 10% organischem Umsatzwachstum. Der bereinigte Gewinn pro Aktie stieg um 9% auf 1,41 Dollar. Das Unternehmen erzielte einen freien Cashflow von 2,2 Milliarden Dollar. RTX hob die Prognose für 2024 bezüglich des bereinigten Umsatzes auf 78,75 - 79,5 Milliarden Dollar und den bereinigten Gewinn pro Aktie auf 5,35 - 5,45 Dollar an, senkte jedoch die Prognose für den freien Cashflow auf 4,7 Milliarden Dollar.
Wichtige Highlights:
- Die Umsätze von Collins Aerospace stiegen um 10% mit einem bereinigten Betriebsgewinnwachstum von 25%
- Die Umsätze von Pratt & Whitney stiegen um 19% mit einem bereinigten Betriebsgewinnwachstum von 23%
- Die Umsätze von Raytheon sanken um 2%, der bereinigte Betriebsgewinn stieg jedoch um 7%
- Auftragsbestand von 206 Milliarden Dollar (129 Milliarden kommerziell, 77 Milliarden Verteidigung)
- 918 Millionen Dollar Belastung für die erwartete Lösung von Altlasten in Rechtsangelegenheiten
- 8% sales growth to $19.7 billion, with 10% organic sales growth
- 9% increase in adjusted EPS to $1.41
- $2.2 billion in free cash flow generated
- Increased 2024 outlook for adjusted sales and EPS
- Collins Aerospace sales up 10% with 25% adjusted operating profit growth
- Pratt & Whitney sales up 19% with 23% adjusted operating profit growth
- Strong $206 billion backlog ($129B commercial, $77B defense)
- Lowered 2024 free cash flow guidance to $4.7 billion from $5.7 billion
- $918 million charge for expected resolution of legacy legal matters
- Raytheon segment sales down 2% year-over-year
- $575 million charge related to anticipated termination of a fixed price development contract at Raytheon
RTX's Q2 2024 results demonstrate solid performance with some notable highlights and challenges. Reported sales increased 8% to
The adjusted EPS of
However, investors should note the significant legal charges of
On a segment basis:
- Collins Aerospace showed strong growth with a 10% increase in sales and 25% increase in adjusted operating profit.
- Pratt & Whitney demonstrated impressive sales growth of 19% and a 23% increase in adjusted operating profit.
- Raytheon faced challenges with a 3% decrease in reported sales, though adjusted operating profit increased by 7%.
The company's increased outlook for adjusted sales and EPS suggests management's confidence in the underlying business strength, despite the legal challenges. However, investors should carefully consider the impact of these legal settlements on future cash flows and potential reputational risks.
The legal matters disclosed in RTX's Q2 2024 results are significant and warrant careful attention. The company has made progress in resolving several outstanding legal issues, resulting in a substantial EPS charge of
- Expected deferred prosecution agreement with the Department of Justice (DOJ) and an administrative order with the SEC regarding improper payments in Middle East contracts since 2012.
- Anticipated deferred prosecution agreement and False Claims Act settlement with the DOJ concerning defective pricing claims on certain legacy Raytheon Company contracts.
- Voluntarily disclosed export controls violations, primarily related to the integration of Rockwell Collins and Raytheon Company.
The total charge recorded for these matters is
While these settlements will resolve significant legal uncertainties, they also highlight past compliance issues within the company and its acquisitions. Investors should consider the potential long-term implications on RTX's reputation and future contract opportunities, particularly in sensitive markets or with government entities.
The company's proactive approach in disclosing and resolving these issues may be viewed positively from a governance perspective. However, the substantial financial impact and the need for improved compliance measures should not be overlooked. Future scrutiny of RTX's business practices, especially in international markets, may increase as a result of these settlements.
RTX delivers solid operational performance and
Second quarter 2024
- Reported sales of
, up 8 percent versus prior year and up 10 percent on an organic* basis$19.7 billion - Adjusted sales* of
, up 8 percent versus prior year$19.8 billion - GAAP EPS was
and included$0.08 of acquisition accounting adjustments and$0.29 of other net significant and/or non-recurring items and restructuring, including$1.04 of restructuring and other non-recurring items, a$0.03 charge related to the expected resolution of several legacy legal matters, and a$0.68 charge related to a fixed priced development contract with a foreign customer at Raytheon$0.33 - Adjusted EPS* of
, up 9 percent versus prior year$1.41 - Operating cash flow of
; Free cash flow* of$2.7 billion $2.2 billion - Company backlog of
; including$206 billion of commercial and$129 billion of defense$77 billion - Realized
of incremental RTX gross cost synergies$120 million
Updates outlook for full year 2024
- Adjusted sales* of
-$78.75 , up from$79.5 billion -$78.0 $79.0 billion - Adjusted EPS* of
-$5.35 , up from$5.45 -$5.25 $5.40 - Free cash flow* of approximately
, down from approximately$4.7 billion $5.7 billion
"RTX delivered strong operational performance in the second quarter, with 10 percent organic sales* growth, adjusted margin* expansion across all three segments and
"With a
Second quarter 2024
RTX reported second quarter sales of
The company reported net income attributable to common shareowners in the second quarter of
Legacy Legal Matters
The Company has made progress in the quarter on resolving several outstanding legal matters which has resulted in an EPS charge of
Summary Financial Results – Operations Attributable to Common Shareowners
2nd Quarter | |||||
($ in millions, except EPS) | 2024 | 2023 | % Change | ||
Reported | |||||
Sales | $ 19,721 | $ 18,315 | 8 % | ||
Net Income | $ 111 | $ 1,327 | (92) % | ||
EPS | $ 0.08 | $ 0.90 | (91) % | ||
Adjusted* | |||||
Sales | $ 19,791 | $ 18,315 | 8 % | ||
Net Income | $ 1,895 | $ 1,895 | — % | ||
EPS | $ 1.41 | $ 1.29 | 9 % | ||
Operating Cash Flow | $ 2,733 | $ 719 | 280 % | ||
Free Cash Flow* | $ 2,196 | $ 193 | 1038 % |
Segment Results
Collins Aerospace
2nd Quarter | |||||
($ in millions) | 2024 | 2023 | % Change | ||
Reported | |||||
Sales | $ 6,999 | $ 6,384 | 10 % | ||
Operating Profit | $ 1,118 | $ 899 | 24 % | ||
ROS | 16.0 % | 14.1 % | 190 | bps | |
Adjusted* | |||||
Sales | $ 6,999 | $ 6,384 | 10 % | ||
Operating Profit | $ 1,145 | $ 915 | 25 % | ||
ROS | 16.4 % | 14.3 % | 210 | bps |
Collins Aerospace had second quarter 2024 reported sales of
Collins Aerospace reported operating profit of
Pratt & Whitney
2nd Quarter | |||||
($ in millions) | 2024 | 2023 | % Change | ||
Reported | |||||
Sales | $ 6,802 | $ 5,701 | 19 % | ||
Operating Profit | $ 542 | $ 230 | 136 % | ||
ROS | 8.0 % | 4.0 % | 400 | bps | |
Adjusted* | |||||
Sales | $ 6,802 | $ 5,701 | 19 % | ||
Operating Profit | $ 537 | $ 436 | 23 % | ||
ROS | 7.9 % | 7.6 % | 30 | bps |
Pratt & Whitney had second quarter 2024 reported sales of
Pratt & Whitney reported operating profit of
Raytheon
2nd Quarter | |||||
($ in millions) | 2024 | 2023 | % Change | ||
Reported | |||||
Sales | $ 6,511 | $ 6,700 | (3) % | ||
Operating Profit | $ 127 | $ 644 | (80) % | ||
ROS | 2.0 % | 9.6 % | (760) | bps | |
Adjusted* | |||||
Sales | $ 6,581 | $ 6,700 | (2) % | ||
Operating Profit | $ 709 | $ 662 | 7 % | ||
ROS | 10.8 % | 9.9 % | 90 | bps |
Raytheon had second quarter 2024 reported sales of
Raytheon reported operating profit of
*Adjusted net sales, organic sales, adjusted operating profit (loss) and margin, adjusted segment operating profit (loss) and margin, adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate and free cash flow are non-GAAP financial measures. When we provide our expectation for adjusted net sales, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures (expected diluted EPS and expected cash flow from operations) is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. See "Use and Definitions of Non-GAAP Financial Measures" below for information regarding non-GAAP financial measures.
About RTX
With more than 185,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of
Conference Call on the Second Quarter 2024 Financial Results
RTX's financial results conference call will be held on Thursday, July 25, 2024 at 8:00 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call.
Use and Definitions of Non-GAAP Financial Measures
RTX Corporation ("RTX" or "the Company") reports its financial results in accordance with accounting principles generally accepted in
Non-GAAP measure | Definition |
Adjusted net sales | Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinafter referred to as "net significant and/or non-recurring items"). |
Organic sales | Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items. |
Adjusted operating | Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items. Adjusted operating profit margin represents adjusted operating profit (loss) as a percentage of adjusted net sales. |
Segment operating | Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding Acquisition Accounting Adjustments2, the FAS/CAS operating adjustment3, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other). |
Adjusted segment sales | Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and/or non-recurring items. |
Adjusted segment | Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and/or non-recurring items. Adjusted segment operating profit margin represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other). |
Adjusted net income | Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items. |
Adjusted earnings per | Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items. |
Adjusted effective tax rate | Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items. |
Free cash flow | Free cash flow represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTX's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX's common stock and distribution of earnings to shareowners. |
1 Net significant and/or non-recurring items represent significant nonoperational items and/or significant operational items that may occur at irregular intervals. |
2 Acquisition Accounting Adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable. |
3 The FAS/CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under |
When we provide our expectation for adjusted net sales, organic sales, adjusted operating profit (loss) and margin, adjusted segment operating profit (loss) and margin, adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Cautionary Statement Regarding Forward-Looking Statements This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward- looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide RTX Corporation ("RTX") management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid and are not statements of historical fact. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "goals," "objectives," "confident," "on track," "designed to" and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, anticipated benefits to RTX of its segment realignment, pending disposition of Collins' actuation and flight control business, the merger (the "merger") between United Technologies Corporation ("UTC") and Raytheon Company ("Raytheon") or the spin-offs by UTC of Otis Worldwide Corporation and Carrier Global Corporation into separate independent companies (the "separation transactions") in 2020, targets and commitments (including for share repurchases or otherwise), and other statements that are not solely historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward- looking statements contained in the
RTX Corporation | ||||||||
Condensed Consolidated Statement of Operations | ||||||||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||
(Unaudited) | (Unaudited) | |||||||
(dollars in millions, except per share amounts; shares in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Net Sales | $ 19,721 | $ 18,315 | $ 39,026 | $ 35,529 | ||||
Costs and expenses: | ||||||||
Cost of sales | 16,141 | 14,518 | 31,885 | 28,163 | ||||
Research and development | 706 | 729 | 1,375 | 1,336 | ||||
Selling, general, and administrative | 1,449 | 1,600 | 2,843 | 2,963 | ||||
Total costs and expenses | 18,296 | 16,847 | 36,103 | 32,462 | ||||
Other income (expense), net | (896) | 25 | (524) | 113 | ||||
Operating profit | 529 | 1,493 | 2,399 | 3,180 | ||||
Non-service pension income | (374) | (447) | (760) | (891) | ||||
Interest expense, net | 475 | 333 | 880 | 648 | ||||
Income before income taxes | 428 | 1,607 | 2,279 | 3,423 | ||||
Income tax expense | 253 | 248 | 361 | 583 | ||||
Net income | 175 | 1,359 | 1,918 | 2,840 | ||||
Less: Noncontrolling interest in subsidiaries' earnings | 64 | 32 | 98 | 87 | ||||
Net income attributable to common shareowners | $ 111 | $ 1,327 | $ 1,820 | $ 2,753 | ||||
Earnings Per Share attributable to common shareowners: | ||||||||
Basic | $ 0.08 | $ 0.91 | $ 1.37 | $ 1.89 | ||||
Diluted | $ 0.08 | $ 0.90 | $ 1.36 | $ 1.87 | ||||
Weighted Average Shares Outstanding: | ||||||||
Basic shares | 1,331.8 | 1,457.5 | 1,330.5 | 1,459.9 | ||||
Diluted shares | 1,342.1 | 1,468.7 | 1,339.7 | 1,471.5 |
RTX Corporation | |||||||||||
Segment Net Sales and Operating Profit (Loss) | |||||||||||
Quarter Ended | Six Months Ended | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||
June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||
(dollars in millions) | Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | |||
Net Sales | |||||||||||
Collins Aerospace | $ 6,999 | $ 6,999 | $ 6,384 | $ 6,384 | $ 13,672 | $ 13,672 | $ 12,504 | $ 12,504 | |||
Pratt & Whitney | 6,802 | 6,802 | 5,701 | 5,701 | 13,258 | 13,258 | 10,931 | 10,931 | |||
Raytheon | 6,511 | 6,581 | 6,700 | 6,700 | 13,170 | 13,240 | 12,992 | 12,992 | |||
Total segments | 20,312 | 20,382 | 18,785 | 18,785 | 40,100 | 40,170 | 36,427 | 36,427 | |||
Eliminations and other | (591) | (591) | (470) | (470) | (1,074) | (1,074) | (898) | (898) | |||
Consolidated | $ 19,721 | $ 19,791 | $ 18,315 | $ 18,315 | $ 39,026 | $ 39,096 | $ 35,529 | $ 35,529 | |||
Operating Profit (Loss) | |||||||||||
Collins Aerospace | $ 1,118 | $ 1,145 | $ 899 | $ 915 | $ 1,967 | $ 2,193 | $ 1,796 | $ 1,818 | |||
Pratt & Whitney | 542 | 537 | 230 | 436 | 954 | 967 | 645 | 870 | |||
Raytheon | 127 | 709 | 644 | 662 | 1,123 | 1,339 | 1,215 | 1,246 | |||
Total segments | 1,787 | 2,391 | 1,773 | 2,013 | 4,044 | 4,499 | 3,656 | 3,934 | |||
Eliminations and other | (36) | (36) | (16) | (26) | (41) | (41) | 35 | (43) | |||
Corporate expenses and other | (930) | (7) | (59) | (28) | (1,026) | (32) | (102) | (68) | |||
FAS/CAS operating adjustment | 212 | 212 | 284 | 284 | 426 | 426 | 573 | 573 | |||
Acquisition accounting | (504) | — | (489) | — | (1,004) | — | (982) | — | |||
Consolidated | $ 529 | $ 2,560 | $ 1,493 | $ 2,243 | $ 2,399 | $ 4,852 | $ 3,180 | $ 4,396 | |||
Segment Operating Profit Margin | |||||||||||
Collins Aerospace | 16.0 % | 16.4 % | 14.1 % | 14.3 % | 14.4 % | 16.0 % | 14.4 % | 14.5 % | |||
Pratt & Whitney | 8.0 % | 7.9 % | 4.0 % | 7.6 % | 7.2 % | 7.3 % | 5.9 % | 8.0 % | |||
Raytheon | 2.0 % | 10.8 % | 9.6 % | 9.9 % | 8.5 % | 10.1 % | 9.4 % | 9.6 % | |||
Total segment | 8.8 % | 11.7 % | 9.4 % | 10.7 % | 10.1 % | 11.2 % | 10.0 % | 10.8 % |
RTX Corporation | |||
Condensed Consolidated Balance Sheet | |||
June 30, 2024 | December 31, 2023 | ||
(dollars in millions) | (Unaudited) | (Unaudited) | |
Assets | |||
Cash and cash equivalents | $ 6,011 | $ 6,587 | |
Accounts receivable, net | 10,252 | 10,838 | |
Contract assets | 13,581 | 12,139 | |
Inventory, net | 13,047 | 11,777 | |
Other assets, current | 6,334 | 7,076 | |
Total current assets | 49,225 | 48,417 | |
Customer financing assets | 2,320 | 2,392 | |
Fixed assets, net | 15,693 | 15,748 | |
Operating lease right-of-use assets | 1,664 | 1,638 | |
Goodwill | 53,347 | 53,699 | |
Intangible assets, net | 34,503 | 35,399 | |
Other assets | 4,417 | 4,576 | |
Total assets | $ 161,169 | $ 161,869 | |
Liabilities, Redeemable Noncontrolling Interest, and Equity | |||
Short-term borrowings | $ 231 | $ 189 | |
Accounts payable | 10,939 | 10,698 | |
Accrued employee compensation | 2,065 | 2,491 | |
Other accrued liabilities | 17,048 | 14,917 | |
Contract liabilities | 17,665 | 17,183 | |
Long-term debt currently due | 1,617 | 1,283 | |
Total current liabilities | 49,565 | 46,761 | |
Long-term debt | 40,303 | 42,355 | |
Operating lease liabilities, non-current | 1,415 | 1,412 | |
Future pension and postretirement benefit obligations | 2,264 | 2,385 | |
Other long-term liabilities | 6,941 | 7,511 | |
Total liabilities | 100,488 | 100,424 | |
Redeemable noncontrolling interest | 31 | 35 | |
Shareowners' Equity: | |||
Common stock | 37,295 | 37,040 | |
Treasury stock | (27,080) | (26,977) | |
Retained earnings | 51,488 | 52,154 | |
Accumulated other comprehensive loss | (2,718) | (2,419) | |
Total shareowners' equity | 58,985 | 59,798 | |
Noncontrolling interest | 1,665 | 1,612 | |
Total equity | 60,650 | 61,410 | |
Total liabilities, redeemable noncontrolling interest, and equity | $ 161,169 | $ 161,869 |
RTX Corporation | |||||||
Condensed Consolidated Statement of Cash Flows | |||||||
Quarter Ended June 30, | Six Months Ended June 30, | ||||||
(Unaudited) | (Unaudited) | ||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | |||
Operating Activities: | |||||||
Net income | $ 175 | $ 1,359 | $ 1,918 | $ 2,840 | |||
Adjustments to reconcile net income to net cash flows provided by (used in) | |||||||
Depreciation and amortization | 1,072 | 1,044 | 2,131 | 2,078 | |||
Deferred income tax provision (benefit) | 299 | (371) | 185 | (700) | |||
Stock compensation cost | 111 | 112 | 223 | 212 | |||
Net periodic pension and other postretirement income | (328) | (390) | (666) | (778) | |||
Gain on sale of business, net of transaction costs | — | — | (415) | — | |||
Change in: | |||||||
Accounts receivable | 156 | 263 | 587 | (699) | |||
Contract assets | (479) | (232) | (1,457) | (1,430) | |||
Inventory | (715) | (602) | (1,361) | (1,322) | |||
Other current assets | 442 | (108) | 217 | (634) | |||
Accounts payable and accrued liabilities | 1,463 | (639) | 1,245 | (149) | |||
Contract liabilities | 566 | 32 | 512 | 255 | |||
Other operating activities, net | (29) | 251 | (44) | 183 | |||
Net cash flows provided by (used in) operating activities | 2,733 | 719 | 3,075 | (144) | |||
Investing Activities: | |||||||
Capital expenditures | (537) | (526) | (1,004) | (1,046) | |||
Dispositions of businesses, net of cash transferred | — | — | 1,283 | — | |||
Increase in other intangible assets | (155) | (160) | (318) | (314) | |||
(Payments) receipts from settlements of derivative contracts, net | (28) | 58 | (29) | 45 | |||
Other investing activities, net | (13) | 5 | 28 | 113 | |||
Net cash flows used in investing activities | (733) | (623) | (40) | (1,202) | |||
Financing Activities: | |||||||
Proceeds from long-term debt | — | 3 | — | 2,974 | |||
Repayment of long-term debt | (750) | (3) | (1,700) | (3) | |||
Change in commercial paper, net | — | 897 | — | 470 | |||
Change in other short-term borrowings, net | 65 | (46) | 43 | (24) | |||
Dividends paid on common stock | (823) | (844) | (1,592) | (1,634) | |||
Repurchase of common stock | (44) | (596) | (100) | (1,158) | |||
Other financing activities, net | (32) | (39) | (242) | (157) | |||
Net cash flows (used in) provided by financing activities | (1,584) | (628) | (3,591) | 468 | |||
Effect of foreign exchange rate changes on cash and cash equivalents | (4) | 18 | (12) | 19 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 412 | (514) | (568) | (859) | |||
Cash, cash equivalents and restricted cash, beginning of period | 5,646 | 5,946 | 6,626 | 6,291 | |||
Cash, cash equivalents and restricted cash, end of period | 6,058 | 5,432 | 6,058 | 5,432 | |||
Less: Restricted cash, included in Other assets, current and Other assets | 47 | 41 | 47 | 41 | |||
Cash and cash equivalents, end of period | $ 6,011 | $ 5,391 | $ 6,011 | $ 5,391 |
RTX Corporation | |||||||
Reconciliation of Adjusted (Non-GAAP) Results | |||||||
Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin | |||||||
Quarter Ended June 30, | Six Months Ended June 30, | ||||||
(Unaudited) | (Unaudited) | ||||||
(dollars in millions - Income (Expense)) | 2024 | 2023 | 2024 | 2023 | |||
Collins Aerospace | |||||||
Net sales | $ 6,999 | $ 6,384 | $ 13,672 | $ 12,504 | |||
Operating profit | $ 1,118 | $ 899 | $ 1,967 | $ 1,796 | |||
Restructuring | (12) | (5) | (18) | (8) | |||
Segment and portfolio transformation costs | (15) | (11) | (33) | (14) | |||
Charge associated with initiating alternative titanium sources (5) | — | — | (175) | — | |||
Adjusted operating profit | $ 1,145 | $ 915 | $ 2,193 | $ 1,818 | |||
Adjusted operating profit margin | 16.4 % | 14.3 % | 16.0 % | 14.5 % | |||
Pratt & Whitney | |||||||
Net sales | $ 6,802 | $ 5,701 | $ 13,258 | $ 10,931 | |||
Operating profit | $ 542 | $ 230 | $ 954 | $ 645 | |||
Restructuring | (15) | (25) | (33) | (44) | |||
Insurance settlement | 20 | — | 20 | — | |||
Charges related to a customer insolvency (4) | — | (181) | — | (181) | |||
Adjusted operating profit | $ 537 | $ 436 | $ 967 | $ 870 | |||
Adjusted operating profit margin | 7.9 % | 7.6 % | 7.3 % | 8.0 % | |||
Raytheon | |||||||
Net sales | $ 6,511 | $ 6,700 | $ 13,170 | $ 12,992 | |||
Contract termination (2) | (70) | — | (70) | — | |||
Adjusted net sales | $ 6,581 | $ 6,700 | $ 13,240 | $ 12,992 | |||
Operating profit | $ 127 | $ 644 | $ 1,123 | $ 1,215 | |||
Restructuring | (7) | (17) | (16) | (24) | |||
Contract termination (2) | (575) | — | (575) | — | |||
Gain on sale of business, net of transaction and other related costs (3) | — | — | 375 | — | |||
Segment and portfolio transformation costs | — | (1) | — | (7) | |||
Adjusted operating profit | $ 709 | $ 662 | $ 1,339 | $ 1,246 | |||
Adjusted operating profit margin | 10.8 % | 9.9 % | 10.1 % | 9.6 % | |||
Eliminations and Other | |||||||
Net sales | $ (591) | $ (470) | $ (1,074) | $ (898) | |||
Operating profit (loss) | $ (36) | $ (16) | $ (41) | $ 35 | |||
Gain on sale of land | — | — | — | 68 | |||
Charges related to a customer insolvency (4) | — | 10 | — | 10 | |||
Adjusted operating loss | $ (36) | $ (26) | $ (41) | $ (43) | |||
Corporate expenses and other unallocated items | |||||||
Operating loss | $ (930) | $ (59) | $ (1,026) | $ (102) | |||
Restructuring | (2) | (21) | (3) | (22) | |||
Tax audit settlements (6) | — | — | (68) | — | |||
Legal matters (1) | (918) | — | (918) | — | |||
Segment and portfolio transformation costs | (3) | (10) | (5) | (12) | |||
Adjusted operating loss | $ (7) | $ (28) | $ (32) | $ (68) | |||
FAS/CAS Operating Adjustment | |||||||
Operating profit | $ 212 | $ 284 | $ 426 | $ 573 | |||
Acquisition Accounting Adjustments | |||||||
Operating loss | $ (504) | $ (489) | $ (1,004) | $ (982) | |||
Acquisition accounting adjustments | (504) | (489) | (1,004) | (982) | |||
Adjusted operating profit | $ — | $ — | $ — | $ — | |||
RTX Consolidated | |||||||
Net sales | $ 19,721 | $ 18,315 | $ 39,026 | $ 35,529 | |||
Total net significant and/or non-recurring items included in Net sales above (2) | (70) | — | (70) | — | |||
Adjusted net sales | $ 19,791 | $ 18,315 | $ 39,096 | $ 35,529 | |||
Operating profit | $ 529 | $ 1,493 | $ 2,399 | $ 3,180 | |||
Restructuring | (36) | (68) | (70) | (98) | |||
Acquisition accounting adjustments | (504) | (489) | (1,004) | (982) | |||
Total net significant and/or non-recurring items included in Operating profit | (1,491) | (193) | (1,379) | (136) | |||
Adjusted operating profit | $ 2,560 | $ 2,243 | $ 4,852 | $ 4,396 |
(1) | Total net significant and/or non-recurring items in the table above for the quarter and six months ended June 30, 2024 includes charges of |
(2) | Total net significant and/or non-recurring items in the table above for the quarter and six months ended June 30, 2024 includes a pre-tax charge of |
(3) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a pre-tax gain, net of transaction and other related costs, of |
(4) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2023 includes a net pre-tax charge of |
(5) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a net pre-tax charge of |
(6) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a tax benefit of |
RTX Corporation | |||||||
Reconciliation of Adjusted (Non-GAAP) Results | |||||||
Adjusted Income, Earnings Per Share, and Effective Tax Rate | |||||||
Quarter Ended | Six Months Ended | ||||||
(Unaudited) | (Unaudited) | ||||||
(dollars in millions - Income (Expense)) | 2024 | 2023 | 2024 | 2023 | |||
Net income attributable to common shareowners | $ 111 | $ 1,820 | $ 2,753 | ||||
Total Restructuring | (36) | (68) | (70) | (98) | |||
Total Acquisition accounting adjustments | (504) | (489) | (1,004) | (982) | |||
Total net significant and/or non-recurring items included in Operating profit (1)(2)(3)(4)(5)(6) | (1,491) | (193) | (1,379) | (136) | |||
Significant and/or non-recurring items included in Non-service Pension Income | |||||||
Non-service pension restructuring | (3) | — | (5) | (2) | |||
Pension curtailment related to sale of business (3) | — | — | 9 | — | |||
Significant non-recurring and non-operational items included in Interest Expense, Net | |||||||
Tax audit settlements (6) | — | — | 78 | — | |||
Tax effect of restructuring and net significant and/or non-recurring items above | 257 | 165 | 216 | 266 | |||
Significant and/or non-recurring items included in Income Tax Expense | |||||||
Tax audit settlements (6) | — | — | 296 | — | |||
Significant and/or non-recurring items included in Noncontrolling Interest | |||||||
Noncontrolling interest share of customer insolvency charges (4) | — | 17 | — | 17 | |||
Noncontrolling interest share of charges related to an insurance settlement | (7) | — | (7) | — | |||
Less: Impact on net income attributable to common shareowners | (1,784) | (568) | (1,866) | (935) | |||
Adjusted net income attributable to common shareowners | $ 3,686 | $ 3,688 | |||||
Diluted Earnings Per Share | $ 0.08 | $ 0.90 | $ 1.36 | $ 1.87 | |||
Impact on Diluted Earnings Per Share | (1.33) | (0.39) | (1.39) | (0.64) | |||
Adjusted Diluted Earnings Per Share | $ 1.41 | $ 1.29 | $ 2.75 | $ 2.51 | |||
Effective Tax Rate | 59.1 % | 15.4 % | 15.8 % | 17.0 % | |||
Impact on Effective Tax Rate | 38.4 % | (2.1) % | (3.0) % | (1.3) % | |||
Adjusted Effective Tax Rate | 20.7 % | 17.5 % | 18.8 % | 18.3 % |
(1) | Total net significant and/or non-recurring items in the table above for the quarter and six months ended June 30, 2024 includes charges of |
(2) | Total net significant and/or non-recurring items in the table above for the quarter and six months ended June 30, 2024 includes a pre-tax charge of |
(3) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a pre-tax gain, net of transaction and other related costs, of |
(4) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2023 includes a net pre-tax charge of |
(5) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a net pre-tax charge of |
(6) | Total net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a tax benefit of |
RTX Corporation | |||||||
Reconciliation of Adjusted (Non-GAAP) Results | |||||||
Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin | |||||||
Quarter Ended June 30, | Six Months Ended June 30, | ||||||
(Unaudited) | (Unaudited) | ||||||
(dollars in millions - Income (Expense)) | 2024 | 2023 | 2024 | 2023 | |||
Net Sales | $ 19,721 | $ 18,315 | $ 39,026 | $ 35,529 | |||
Reconciliation to segment net sales: | |||||||
Eliminations and other | 591 | 470 | 1,074 | 898 | |||
Segment Net Sales | $ 20,312 | $ 18,785 | $ 40,100 | $ 36,427 | |||
Reconciliation to adjusted segment net sales: | |||||||
Net significant and/or non-recurring items (1) | (70) | — | (70) | — | |||
Adjusted Segment Net Sales | $ 20,382 | $ 18,785 | $ 40,170 | $ 36,427 | |||
Operating Profit | $ 529 | $ 1,493 | $ 2,399 | $ 3,180 | |||
Operating Profit Margin | 2.7 % | 8.2 % | 6.1 % | 9.0 % | |||
Reconciliation to segment operating profit: | |||||||
Eliminations and other | 36 | 16 | 41 | (35) | |||
Corporate expenses and other unallocated items | 930 | 59 | 1,026 | 102 | |||
FAS/CAS operating adjustment | (212) | (284) | (426) | (573) | |||
Acquisition accounting adjustments | 504 | 489 | 1,004 | 982 | |||
Segment Operating Profit | $ 1,787 | $ 1,773 | $ 4,044 | $ 3,656 | |||
Segment Operating Profit Margin | 8.8 % | 9.4 % | 10.1 % | 10.0 % | |||
Reconciliation to adjusted segment operating profit: | |||||||
Restructuring | (34) | (47) | (67) | (76) | |||
Net significant and/or non-recurring items (1)(2)(3)(4)(5) | (570) | (193) | (388) | (202) | |||
Adjusted Segment Operating Profit | $ 2,391 | $ 2,013 | $ 4,499 | $ 3,934 | |||
Adjusted Segment Operating Profit Margin | 11.7 % | 10.7 % | 11.2 % | 10.8 % |
(1) | Total net significant and/or non-recurring items in the table above for the quarter and six months ended June 30, 2024 includes a pre-tax charge of |
(2) | Net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a pre-tax gain, net of transaction and other related costs, of |
(3) | Net significant and/or non-recurring items in the table above for the six months ended June 30, 2023 includes a net pre-tax charge of |
(4) | Net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a net pre-tax charge of |
(5) | Net significant and/or non-recurring items in the table above for the six months ended June 30, 2024 includes a tax benefit of |
RTX Corporation | |||
Free Cash Flow Reconciliation | |||
Quarter Ended June 30, | |||
(Unaudited) | |||
(dollars in millions) | 2024 | 2023 | |
Net cash flows provided by operating activities | $ 2,733 | $ 719 | |
Capital expenditures | (537) | (526) | |
Free cash flow | $ 2,196 | $ 193 | |
Six Months Ended June 30, | |||
(Unaudited) | |||
(dollars in millions) | 2024 | 2023 | |
Net cash flows provided by (used in) operating activities | $ 3,075 | $ (144) | |
Capital expenditures | (1,004) | (1,046) | |
Free cash flow | $ 2,071 | $ (1,190) |
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SOURCE RTX
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