On January 28, 2025, RTX Corp (RTX, Financial) released its 8-K filing detailing its fourth quarter and full-year 2024 financial results. The aerospace and defense manufacturer, formed from the merger of United Technologies and Raytheon, operates through its three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. RTX reported a robust performance, exceeding both sales and earnings expectations for the year.
Fourth Quarter 2024 Performance
RTX Corp reported fourth quarter sales of $21.6 billion, marking a 9% increase compared to the previous year. This figure surpassed the analyst estimate of $20,534.92 million. The company's GAAP earnings per share (EPS) stood at $1.10, which included $0.30 of acquisition accounting adjustments and $0.14 of restructuring and other charges. The adjusted EPS was $1.54, a 19% increase from the prior year, significantly exceeding the analyst estimate of $1.17.
Full Year 2024 Achievements
For the full year 2024, RTX reported sales of $80.7 billion, with adjusted sales reaching $80.8 billion, reflecting a 9% increase from the previous year. The GAAP EPS was $3.55, while the adjusted EPS was $5.73, up 13% year-over-year. These results highlight RTX's ability to drive growth despite industry challenges, such as supply chain disruptions and geopolitical tensions.
Segment Performance
Collins Aerospace reported fourth quarter sales of $7.54 billion, up 6% from the previous year, driven by a 13% increase in defense and a 12% rise in commercial aftermarket sales. However, operating profit decreased by 2% due to a $155 million charge related to contract fulfillment costs.
Pratt & Whitney's sales surged by 18% to $7.57 billion, fueled by a 31% increase in commercial original equipment (OE) and a 17% rise in commercial aftermarket sales. The segment's operating profit increased by 32%, benefiting from favorable volume and mix in large commercial engines.
Raytheon reported sales of $7.16 billion, a 4% increase, driven by higher volumes in land and air defense systems. The segment's operating profit rose by 36%, supported by improved productivity and favorable mix.
Financial Metrics and Outlook
RTX's operating cash flow for the fourth quarter was $1.6 billion, with free cash flow at $0.5 billion. The company returned $852 million to shareholders during the quarter. For 2025, RTX projects adjusted sales between $83.0 billion and $84.0 billion, with adjusted EPS ranging from $6.00 to $6.15, and free cash flow between $7.0 billion and $7.5 billion.
“RTX delivered a very strong year of performance in 2024 with 11 percent organic sales growth and 13 percent adjusted EPS growth, including segment margin expansion in all three businesses,” said RTX President and CEO Chris Calio.
Analysis and Conclusion
RTX Corp's strong financial performance in 2024, characterized by significant sales and earnings growth, underscores its resilience and strategic execution in the aerospace and defense industry. The company's ability to exceed analyst estimates and its optimistic outlook for 2025 reflect its robust backlog and demand for its products. As RTX continues to focus on innovation and operational efficiency, it remains well-positioned to capitalize on future growth opportunities.
Explore the complete 8-K earnings release (here) from RTX Corp for further details.
