RTX exceeds 2024 sales and EPS expectations*; Expects continued sales, earnings, and cash flow growth in 2025
ARLINGTON, Va., Jan. 28, 2025 /PRNewswire/ — RTX (NYSE: RTX) reports fourth quarter 2024 results and announces 2025 outlook.
Fourth quarter 2024
Full year 2024
Outlook for full year 2025
“RTX delivered a very strong year of performance in 2024 with 11 percent organic sales growth* and 13 percent adjusted EPS growth*, including segment margin expansion* in all three businesses,” said RTX President and CEO Chris Calio.
“We have strong momentum heading into 2025 with a $218 billion backlog and unprecedented demand for our products and solutions. We remain focused on advancing our strategic priorities of executing on our commitments, innovating for growth and harnessing the breadth and scale of RTX, giving us confidence in our 2025 financial outlook.”
Fourth quarter 2024
RTX reported fourth quarter sales of $21.6 billion, up 9 percent over the prior year. GAAP EPS of $1.10 included $0.30 of acquisition accounting adjustments, $0.05 of restructuring, and $0.09 of other net significant and/or non-recurring charges. Adjusted EPS* of $1.54 was up 19 percent versus the prior year.
The company reported net income attributable to common shareowners in the fourth quarter of $1.5 billion which included $408 million of acquisition accounting adjustments, $61 million of restructuring, and $120 million of other net significant and/or non-recurring charges. Adjusted net income* of $2.1 billion was up 18 percent versus the prior year driven by growth in adjusted segment operating profit*, partially offset by higher taxes and lower pension income. Operating cash flow in the fourth quarter was $1.6 billion. Capital expenditures were $1.1 billion, resulting in free cash flow* of $0.5 billion.
Summary Financial Results – Operations Attributable to Common Shareowners
4th Quarter
Twelve Months
($ in millions, except EPS)
2024
2023
% Change
2024
2023
% Change
Reported
Sales
$ 21,623
$ 19,927
9 %
$ 80,738
$ 68,920
17 %
Net Income
$ 1,482
$ 1,426
4 %
$ 4,774
$ 3,195
49 %
EPS
$ 1.10
$ 1.05
5 %
$ 3.55
$ 2.23
59 %
Adjusted*
Sales
$ 21,623
$ 19,824
9 %
$ 80,808
$ 74,305
9 %
Net Income
$ 2,071
$ 1,753
18 %
$ 7,705
$ 7,263
6 %
EPS
$ 1.54
$ 1.29
19 %
$ 5.73
$ 5.06
13 %
Operating Cash Flow
$ 1,561
$ 4,711
(67) %
$ 7,159
$ 7,883
(9) %
Free Cash Flow*
$ 492
$ 3,906
(87) %
$ 4,534
$ 5,468
(17) %
Segment Results
Collins Aerospace
4th Quarter
Twelve Months
($ in millions)
2024
2023
% Change
2024
2023
% Change
Reported
Sales
$ 7,537
$ 7,120
6 %
$ 28,284
$ 26,253
8 %
Operating Profit
$ 1,106
$ 1,126
(2) %
$ 4,135
$ 3,825
8 %
ROS
14.7 %
15.8 %
(110)
bps
14.6 %
14.6 %
—
bps
Adjusted*
Sales
$ 7,537
$ 7,008
8 %
$ 28,284
$ 26,198
8 %
Operating Profit
$ 1,207
$ 1,035
17 %
$ 4,496
$ 3,896
15 %
ROS
16.0 %
14.8 %
120
bps
15.9 %
14.9 %
100
bps
Collins Aerospace had fourth quarter 2024 reported sales of $7,537 million, up 6 percent versus the prior year. The increase in sales was driven by a 13 percent increase in defense and a 12 percent increase in commercial aftermarket, partially offset by a 6 percent decrease in commercial OE. The increase in defense sales was driven by higher volume across multiple programs and platforms, including new programs awarded in 2024. The increase in commercial aftermarket sales was driven by continued growth in commercial air traffic, and the decrease in commercial OE sales was driven by lower narrow-body volume. Adjusted sales* of $7,537 million, were up 8 percent versus the prior year.
Collins Aerospace reported operating profit of $1,106 million, down 2 percent versus the prior year. This included a $155 million charge related to the impairment of contract fulfillment costs which was partially offset by a $99 million gain on the sale of the Hoist & Winch business. Q4 2023 included a benefit of $112 million from a customer settlement. On an adjusted basis, operating profit* of $1,207 million was up 17 percent versus the prior year. Operationally, the increase was driven by drop through on higher commercial aftermarket and defense volume, which was partially offset by lower commercial OE volume and unfavorable commercial OE mix.
Pratt & Whitney
4th Quarter
Twelve Months
($ in millions)
2024
2023
% Change
2024
2023
% Change
Reported
Sales
$ 7,569
$ 6,439
18 %
$ 28,066
$ 18,296
NM
Operating Profit (loss)
$ 504
$ 382
32 %
$ 2,015
$ (1,455)
NM
ROS
6.7 %
5.9 %
80
bps
7.2 %
(8.0) %
NM
Adjusted*
Sales
$ 7,569
$ 6,439
18 %
$ 28,066
$ 23,697
18 %
Operating Profit
$ 717
$ 405
77 %
$ 2,281
$ 1,688
35 %
ROS
9.5 %
6.3 %
320
bps
8.1 %
7.1 %
100
bps
NM = Not Meaningful
Pratt & Whitney had fourth quarter 2024 reported and adjusted sales of $7,569 million, up 18 percent versus the prior year. The increase was driven by a 31 percent increase in commercial OE, a 17 percent increase in commercial aftermarket, and an 8 percent increase in military. The increase in commercial sales was driven by increased deliveries and favorable OE mix in Large Commercial Engines, and higher commercial aftermarket volume. The increase in military sales was driven by higher volume on F135 production, the F135 Engine Core Upgrade program, and F135 sustainment, which was partially offset by lower sustainment volume across legacy platforms, including the F100 and F117.
Pratt & Whitney reported operating profit of $504 million, up 32 percent versus the prior year. The increase was driven by favorable volume and mix in Large Commercial Engines OE, favorable mix in Pratt Canada aftermarket, and drop through on higher commercial aftermarket and military volume. Pratt & Whitney also benefited from an approximately $70 million insurance recovery. Reported operating profit included a $157 million charge related to a customer bankruptcy. On an adjusted basis, operating profit* of $717 million, was up 77 percent versus the prior year.
Raytheon
4th Quarter
Twelve Months
($ in millions)
2024
2023
% Change
2024
2023
% Change
Reported
Sales
$ 7,157
$ 6,886
4 %
$ 26,713
$ 26,350
1 %
Operating Profit
$ 824
$ 604
36 %
$ 2,594
$ 2,379
9 %
ROS
11.5 %
8.8 %
270
bps
9.7 %
9.0 %
70
bps
Adjusted*
Sales
$ 7,157
$ 6,886
4 %
$ 26,783
$ 26,350
2 %
Operating Profit
$ 728
$ 618
18 %
$ 2,728
$ 2,434
12 %
ROS
10.2 %
9.0 %
120
bps
10.2 %
9.2 %
100
bps
Raytheon had fourth quarter 2024 reported and adjusted sales of $7,157 million, up 4 percent versus the prior year. The increase in sales was driven by higher volume on land and air defense systems, including Global Patriot, NASAMS and counter-UAS programs, as well as higher volume from the restart of contracts with a Middle East customer. This was partially offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business completed in the first quarter of 2024 and lower volume on air and space defense systems. Excluding the impact of the divestiture, sales were up 10 percent versus the prior year*.
Raytheon reported operating profit of $824 million, up 36 percent versus the prior year. The increase was driven by drop through on higher volume, improved net productivity, and favorable mix which was partially offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business. Reported operating profit included a $102 million benefit related to reserve adjustments associated with the restart of contracts with a Middle East customer. On an adjusted basis, operating profit* of $728 million was up 18 percent versus the prior year.
*Adjusted net sales (also referred to as adjusted 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 (also referred to as adjusted 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
RTX is the world’s largest aerospace and defense company. With more than 185,000 global employees, we push 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 for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia.
Conference Call on the Fourth Quarter 2024 Financial Results
RTX’s financial results conference call will be held on Tuesday, January 28, 2025 at 8:30 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 the United States (“GAAP”). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company’s ongoing business performance. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non-GAAP financial measures:
