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RTX Soars to New Heights with Record Backlog and Sales Surge in Q1 2024

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Michael Chen

April 23, 2024 - 10:55 am

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RTX Reports Record Backlog and Robust Sales Growth in Q1 2024

ARLINGTON, Va., April 23, 2024 /PRNewswire/ -- RTX (NYSE: RTX), a leading technology and defense company, released its first-quarter financial results for 2024, revealing impressive gains that reflect the company's continued growth and solid market position. The financial records show a strong 12% sales increase to $19.3 billion, a substantial gain compared to the previous year's performance. Both reported and organic bases contributed equally to this growth.

The company's financial health has been further solidified by a GAAP EPS (Earnings Per Share) of $1.28, marking a notable increase of 32% from the prior year. This rise encompasses various financial activities, including $0.29 from acquisition accounting adjustments, a $0.23 benefit from significant and/or non-recurring items and restructuring, and an adjusted EPS of $1.34, which is a 10% rise over the previous year.

In terms of cash flow, RTX reported a steady operating cash flow of $0.3 billion, while the free cash outflow stood at a controlled $0.1 billion. These figures are complemented by the gross proceeds of $1.3 billion from the divestiture of Raytheon's Cybersecurity, Intelligence, and Services business. Echoing its strong financial posture, RTX boasts an unparalleled company backlog of $202 billion, which includes $125 billion from commercial sources and $77 billion from defense contracts.

Building on Momentum: RTX's Steadfast Growth Strategy

In the words of RTX President and Chief Operating Officer Chris Calio, "RTX saw strong momentum in the first quarter, delivering 12 percent organic sales growth and winning over $25 billion in new orders across our businesses." He highlighted the company's focus on delivering for customers and shareholders, indicating that their GTF fleet management plans are on track and contributing to this upward trajectory.

Amid one of the most demanding periods in its history, RTX celebrates a record $202 billion backlog and a product and service portfolio that’s meticulously aligned with customer priorities. The company's dedication to execution, performance, margin expansion, and the CORE operating system paves the way for sustained growth. Investments in operational modernization, digital transformation, and technological innovation are considered vital to RTX's future success.

Unwavering Optimism: Reaffirmation of RTX's Full Year Outlook

For the year ahead, RTX remains confident, reaffirming its full-year outlook with projected sales of $78.0 to $79.0 billion, an adjusted EPS of $5.25 to $5.40, and an expected free cash flow of approximately $5.7 billion. Their affirmative outlook is backed by the significant business wins in the first quarter, reflecting RTX's capacity to capitalize on market opportunities and maintain a strong performance trajectory.

Financial Performance Highlights: A Closer Look at RTX's Quarter

The financial figures for the first quarter reveal several performance highlights that stand out. Sales reached $19.3 billion, reflecting a substantial 12% growth over the prior year. The net income attributable to common shareholders amounted to $1.7 billion, which included $389 million of acquisition accounting adjustments, a $285 million benefit from tax audit settlements, and a net gain of $241 million related to the Cybersecurity, Intelligence, and Services divestiture.

The balance sheet also reflected a charge of $175 million associated with initiating alternative titanium sources, along with $44 million in restructuring and other significant and/or non-recurring charges. When adjusted for non-recurring items, the net income stood at a stable $1.8 billion. Capital expenditures were reported at $467 million, resulting in a free cash flow outflow of $125 million for the first quarter of 2024.

Delving Into Defense: Significant Contracts and Bookings

RTX's defense sector marked the quarter with numerous significant bookings, demonstrating the company's substantial presence and trust in the industry. Classified bookings at Raytheon reached $1.6 billion, while $1.2 billion was secured for Germany Patriot production. Other notable contracts included NATO GEM-T production at $818 million, international GEM-T production at $623 million, Ukraine NASAMS production at $282 million, and additional international GEM-T production contracts totaling $251 million.

Segment Success Stories: A Comprehensive Overview

The company's Collins Aerospace segment showcased an exceptional quarter with reported sales of $6.673 million, a 9% increase from the previous year. This growth was amplified by increases in both the commercial aftermarket and defense sectors, driven by higher flight hours and production rates. Collins Aerospace's operating profit faced a marginal dip; however, adjusted figures show a 16% increase, reflecting the segment's strength and resilience.

Pratt & Whitney also made headlines with first-quarter reported sales of $6.456 million, which is a remarkable 23% growth compared to the previous year. The driving factors included a significant increase in commercial OE, along with advances in the military and commercial aftermarket sectors. Despite a slight decrease in operating profit, the adjusted figures remained strong, affirming the positive outcome of business strategies implemented.

Raytheon followed suit, registering reported sales of $6.659 million in the first quarter, marking a 6% rise from the prior year. The increase was primarily driven by higher volumes in land and air defense systems and advanced technology programs. The operating profit surged to $996 million, up 74% from the previous year, with adjusted figures indicating an 8% rise, underscoring notable operational performance advancements.

Corporate Resilience and Future Vision: RTX's Global Impact

As a conglomerate with more than 185,000 employees worldwide, RTX is at the forefront of technological and scientific innovation, tirelessly working to redefine the ways we connect and protect our world. The unity of Collins Aerospace, Pratt & Whitney, and Raytheon as industry leaders allows RTX to drive advancements in aviation, integrated defense systems, and groundbreaking technological solutions, meeting the needs of global clients facing critical challenges.

Forthcoming Investor Communications: Q1 2024 Financial Results Call

Looking ahead, RTX will host a conference call to discuss Q1 2024 financial results on April 23, 2024, at 8:30 a.m. ET. Interested parties are invited to join the live webcast on RTX's website, www.rtx.com, where presentation slides and a replay will be available.

About RTX

With a commendable 2023 sales record of $69 billion and headquarters in Arlington, Virginia, RTX is consistently pushing boundaries and expanding its global footprint, aiming for unparalleled service and solutions in multiple sectors.

Disclosure: Adjusted net sales, organic sales, adjusted operating profit, adjusted EPS, and free cash flow are non-GAAP financial measures.

Cautionary Notice

This press release contains forward-looking statements. Investors should exercise caution and consult RTX's latest reports filed with or furnished to the SEC for a deeper understanding of potential risks and uncertainties.

RTX notes the irreconcilability of non-GAAP measures for forward-looking adjusted EPS and free cash flow due to the unpredictability of excluded items. Nonetheless, projections remain promising despite such uncertainties.

Contact Information

For media inquiries, please contact 202.384.2474, and for investor relations, dial 781.522.5123.

RTX's first-quarter performance of 2024 solidifies its status as a powerhouse in technology and defense, with strategic foresight and consistent investment in innovation securing a promising future for the corporation and its stakeholders.

SOURCE: RTX

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This detailed news article was based on information provided by RTX—remaining steadfast in its quest for innovation, growth, and unmatched market leadership.