10-QPeriod: Q1 FY2023

RTX Corp Quarterly Report for Q1 Ended Mar 31, 2023

Filed April 25, 2023For Securities:RTX

Summary

Raytheon Technologies Corporation (RTX) reported strong financial performance for the first quarter of 2023, with total net sales increasing by 9.6% year-over-year to $17.2 billion. This growth was driven by solid performance across its Collins Aerospace and Pratt & Whitney segments, reflecting the ongoing recovery in commercial aerospace and continued demand in defense. Net income attributable to common shareholders saw a significant increase to $1.426 billion, or $0.97 per diluted share, up from $1.084 billion, or $0.72 per diluted share, in the prior year's quarter. This improvement was supported by higher operating profit, driven by organic sales growth and a favorable shift in the FAS/CAS operating adjustment. The company also maintained a healthy backlog of $180 billion, indicating strong future revenue potential. RTX's liquidity remains robust, with substantial cash and cash equivalents, and access to committed credit facilities.

Financial Highlights

54 data points
Beta

Revenue

$17.21B

Net Income

$1.43B

8.3% Net Margin

EPS (Diluted)

$0.97

Total Assets

$161.64B

Cash & Equivalents

$5.89B

Free Cash Flow

-$1.38B

Financial Statements
Beta
Revenue$17.21B
R&D Expenses$607.00M
SG&A Expenses$1.36B
Operating Expenses$15.62B
Operating Income$1.69B
Interest Expense$315.00M
Net Income$1.43B
EPS (Basic)$0.98
EPS (Diluted)$0.97
Shares Outstanding (Basic)1.46B
Shares Outstanding (Diluted)1.47B

Key Highlights

  • 1Total net sales increased by 9.6% to $17.2 billion compared to the prior year's quarter, driven by organic growth across segments.
  • 2Net income attributable to common shareholders rose to $1.426 billion ($0.97 per diluted share) from $1.084 billion ($0.72 per diluted share) in Q1 2022.
  • 3Operating profit increased significantly to $1.652 billion, with improved operating margins to 9.6% from 6.9% in the prior year.
  • 4Collins Aerospace and Pratt & Whitney segments showed substantial year-over-year growth in net sales and operating profit, reflecting commercial aerospace recovery.
  • 5The company ended the quarter with a substantial backlog of approximately $180 billion, providing visibility into future revenues.
  • 6RTX completed a significant long-term debt issuance totaling $2.5 billion in February 2023.
  • 7Cash flow from operating activities was $(863) million for the quarter, a decrease compared to the prior year, impacted by working capital changes, particularly in accounts receivable and contract assets.

Frequently Asked Questions

Revenue growth was primarily driven by organic sales increases across the company's segments, with notable contributions from Collins Aerospace and Pratt & Whitney. This growth is attributed to the ongoing recovery in commercial aerospace, leading to higher aftermarket and OEM sales, as well as sustained demand in defense.

Profitability saw a significant improvement. Net income attributable to common shareholders increased to $1.426 billion from $1.084 billion in the prior year's quarter. Operating profit also rose substantially to $1.652 billion, with operating margins expanding to 9.6%.

Raytheon Technologies ended the first quarter of 2023 with a total backlog of approximately $180 billion. This substantial backlog indicates strong future revenue visibility and ongoing demand for the company's products and services across its aerospace and defense businesses.

Yes, during the first quarter of 2023, RTX issued $2.5 billion in long-term debt, consisting of $500 million in 5.000% notes due 2026, $1.25 billion in 5.150% notes due 2033, and $1.25 billion in 5.375% notes due 2053. These proceeds are intended to fund upcoming debt maturities and for general corporate purposes.