10-KPeriod: FY2021

RTX Corp Annual Report, Year Ended Dec 31, 2021

Filed February 11, 2022For Securities:RTX

Summary

Raytheon Technologies Corporation (RTX) reported solid financial performance in 2021, recovering from the impacts of the COVID-19 pandemic, particularly in its commercial aerospace segments. The company's overall net sales increased by approximately 14% year-over-year to $64.4 billion, driven by the integration of the Raytheon merger and a rebound in commercial aerospace demand. Operating profit saw a significant swing from a net loss of $1.9 billion in 2020 to a profit of $5.0 billion in 2021, reflecting operational improvements and the absence of significant impairment charges. The company's defense segments, Raytheon Intelligence & Space and Raytheon Missiles & Defense, demonstrated strong growth, benefiting from increased defense spending and strategic contract wins. RTX's backlog remained robust at $156 billion, providing visibility into future revenue. The company also actively managed its capital structure, repurchasing shares and paying dividends, underscoring a commitment to shareholder returns. Challenges remain regarding supply chain disruptions and labor shortages, as well as the ongoing uncertainty surrounding the pace of commercial air travel recovery, but the company appears well-positioned to navigate these headwinds.

Financial Statements
Beta
Revenue$64.39B
R&D Expenses$2.73B
SG&A Expenses$5.05B
Operating Expenses$59.67B
Operating Income$5.14B
Interest Expense$1.32B
Net Income$3.86B
EPS (Basic)$2.57
EPS (Diluted)$2.56
Shares Outstanding (Basic)1.50B
Shares Outstanding (Diluted)1.51B

Key Highlights

  • 1Net sales increased 14% to $64.4 billion in 2021, driven by the post-merger integration and a recovery in commercial aerospace.
  • 2Operating profit significantly improved from a $1.9 billion loss in 2020 to a $5.0 billion profit in 2021.
  • 3The company's defense segments (RIS and RMD) showed strong growth, with RMD's operating profit increasing by 128%.
  • 4Total backlog remained strong at $156 billion as of December 31, 2021, indicating future revenue visibility.
  • 5Collins Aerospace experienced a 4% decrease in net sales organically, primarily due to lower commercial aerospace OEM sales, but saw a 20% increase in operating profit organically.
  • 6Pratt & Whitney reported an 8% increase in net sales and a significant operating profit turnaround from a loss in 2020 to a profit in 2021.
  • 7RTX repurchased $2.3 billion of its common stock in 2021, demonstrating commitment to shareholder returns.

Frequently Asked Questions

In 2021, Raytheon Technologies Corporation (RTX) reported a net sales of $64.4 billion, an increase of 14% compared to 2020. The company also achieved an operating profit of $5.0 billion, a significant improvement from the $1.9 billion operating loss in 2020. This recovery was driven by the strong performance of its defense segments and a rebound in its commercial aerospace businesses.

The COVID-19 pandemic continued to negatively impact RTX's commercial aerospace segments, Collins Aerospace and Pratt & Whitney, due to reduced commercial air travel. However, the defense segments, Raytheon Intelligence & Space and Raytheon Missiles & Defense, experienced less disruption, with RIS and RMD largely unaffected by significant business disruptions. The company anticipates continued negative impacts on its commercial aerospace businesses compared to pre-COVID-19 levels.

RTX's defense business, comprising Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD), showed strong growth. RIS's net sales increased by 37% and operating profit by 80%, while RMD's net sales grew by 36% and operating profit by 128%. This growth was driven by increased defense spending and strategic contract awards, indicating a positive outlook for the defense sector.

RTX is actively managing its capital structure. In 2021, the company repurchased $2.3 billion of its common stock and paid approximately $3.0 billion in dividends. The company's strong backlog of $156 billion provides visibility for future revenue, supporting ongoing shareholder return initiatives.