Summary
RTX Corporation (RTX) reported solid revenue growth for the second quarter and first six months of 2023, driven by increases across its Collins Aerospace, Pratt & Whitney, and Raytheon Missiles & Defense segments. Total net sales for the quarter rose to $18.3 billion, up 12.3% year-over-year, and for the six months, sales increased to $35.5 billion, up 10.9%. Net income attributable to common shareholders for the quarter was $1.33 billion ($0.90 diluted EPS), a slight increase from the prior year's $1.30 billion ($0.88 diluted EPS). The company's strong performance reflects the ongoing recovery in commercial aerospace and robust defense demand, although the Pratt & Whitney segment experienced a significant charge due to a customer insolvency, impacting its operating profit. Despite challenges like supply chain constraints and inflationary pressures, RTX demonstrated resilience. The company's backlog remains strong at $185 billion as of June 30, 2023, indicating continued demand for its products and services. RTX also provided an update on its segment realignment, consolidating from four to three segments effective July 1, 2023. While the company continues to navigate a complex geopolitical and economic landscape, the financial results highlight operational execution and underlying demand strength.
Financial Highlights
53 data points| Revenue | $18.32B |
| R&D Expenses | $729.00M |
| SG&A Expenses | $1.60B |
| Operating Expenses | $16.85B |
| Operating Income | $1.49B |
| Interest Expense | $333.00M |
| Net Income | $1.33B |
| EPS (Basic) | $0.91 |
| EPS (Diluted) | $0.90 |
| Shares Outstanding (Basic) | 1.46B |
| Shares Outstanding (Diluted) | 1.47B |
Key Highlights
- 1Total net sales increased by 12.3% to $18.3 billion for Q2 2023 and by 10.9% to $35.5 billion for the first six months of 2023, compared to the respective periods in 2022.
- 2Net income attributable to common shareholders was $1.33 billion for Q2 2023, with diluted EPS of $0.90, showing a modest increase from $1.30 billion and $0.88 diluted EPS in Q2 2022.
- 3Collins Aerospace saw significant growth, with net sales up 17% in the quarter and 16% year-to-date, driven by commercial aerospace aftermarket and OEM sales.
- 4Pratt & Whitney faced a $181 million charge due to a customer insolvency, which negatively impacted its operating profit for the quarter, despite overall sales growth.
- 5The company's total backlog stood strong at $185 billion as of June 30, 2023, providing a solid base for future revenue.
- 6RTX announced a segment realignment, consolidating from four to three principal business segments effective July 1, 2023, to streamline operations.
- 7Despite ongoing supply chain and labor market constraints, the company managed to increase sales, underscoring the resilience of its diversified business model.