Summary
RTX Corporation reported strong top-line growth in the first quarter of 2024, with total net sales increasing by approximately 12% to $19.3 billion, driven by growth across all three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. This revenue expansion was supported by robust performance in both product and service sales. Net income attributable to common shareowners saw a significant increase to $1.71 billion, or $1.28 per diluted share, up from $1.43 billion, or $0.97 per diluted share, in the prior year period. The company also benefited from a substantial tax benefit related to the conclusion of tax audits, which boosted net income. Despite these positives, the company did incur charges related to supply chain disruptions, particularly for titanium sourcing at Collins Aerospace, and continues to manage the ongoing Pratt & Whitney Powder Metal Matter. Operationally, the company generated $342 million in net cash from operating activities, a significant improvement from the prior year's outflow of $863 million, aided by better working capital management and factoring arrangements. The company also completed the sale of its Cybersecurity, Intelligence and Services (CIS) business within Raytheon for approximately $1.3 billion, contributing to a positive swing in investing cash flows. RTX maintained a strong backlog of $202 billion, indicating robust future revenue potential.
Financial Highlights
53 data points| Revenue | $19.30B |
| R&D Expenses | $669.00M |
| SG&A Expenses | $1.39B |
| Operating Expenses | $17.81B |
| Operating Income | $1.87B |
| Interest Expense | $405.00M |
| Net Income | $1.71B |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 1.33B |
| Shares Outstanding (Diluted) | 1.34B |
Key Highlights
- 1Total net sales increased by 12.1% to $19.3 billion, driven by strong performance across all segments.
- 2Net income attributable to common shareowners rose to $1.71 billion, with diluted EPS increasing to $1.28 from $0.97 in the prior year.
- 3Operating cash flow improved significantly to $342 million, a turnaround from an outflow of $863 million in Q1 2023.
- 4Completed the sale of the Cybersecurity, Intelligence and Services (CIS) business for approximately $1.3 billion, generating a $0.4 billion pre-tax gain.
- 5Collins Aerospace incurred $175 million in charges due to unfavorable purchase commitments for titanium sourcing amidst sanctions.
- 6Pratt & Whitney continues to manage the 'Powder Metal Matter,' with related accruals for customer compensation and maintenance at $2.7 billion.
- 7The company ended the quarter with a substantial backlog of $202 billion, indicating strong future revenue visibility.