Slide 1: 1Q 2024 Earnings Conference Call
1Q 2024 Earnings Conference Call April 23, 2024 © 2024 RTX Corporation. All rights reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Note: All results and expectations in the presentation reflect continuing operations unless otherwise noted. This press release contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the
Slide 3: 1Q 2024 Highlights
1Q 2024 Highlights Sales up 12% organically* year-over-year with 10% adjusted segment operating profit* growth Commercial OE sales up 33% year-over-year Commercial aftermarket sales up 11% year-over-year; Collins up 14% and Pratt up 9% Defense sales up 7% year-over-year Record RTX backlog of $202B;
Slide 4: CORE in Action: Customer Oriented Results and Excellence
CORE in Action In Focus – Customer Oriented Results and Excellence Collins Aerospace Raytheon Pratt & Whitney Drove 8% improvement in on-time Achieved 40% reduction in Reduced preliminary design delivery via 100 CORE projects across seven manufacturing hours per unit on circuit review execution by 3
Slide 5: 1Q 2024 Sales, EPS and Cash Flow
1Q 2024 Sales EPS Cash Flow GAAP Adjusted* 12% organic Up 10% Up 32% growth* $19.3B $1.34 $1.28 $1.22 Operating CapEx Free Cash $17.2B Flow* Cash Flow $0.97 $342M 2023 2024 2023 2024 2023 2024 2023 2024 Excludes: Acq. Accounting Adj. ($0.26) ($0.29) Restructuring ($0.02) ($0.02) Other $0.03 $0.25 ($
Slide 6: 1Q 2024 Collins Aerospace Results
1Q 2024 Collins Aerospace Results ($ millions) Reported Adjusted* YOY Var.* Highlights Sales $6,673 $6,673 9% • Organic sales* up 9% Operating Profit $849 $1,048 16% • Adjusted sales* up 9% o Commercial aftermarket up 14% ROS 12.7% 15.7% 90 bps o Commercial OE up 14% o Defense up 1% • Adjusted opera
Slide 7: 1Q 2024 Pratt & Whitney Results
1Q 2024 Pratt & Whitney Results ($ millions) Reported Adjusted* YOY Var.* Highlights Sales $6,456 $6,456 23% • Organic sales* up 23% Operating Profit $412 $430 (1%) • Adjusted sales* up 23% o Commercial OE up 64% ROS 6.4% 6.7% (160 bps) o Military up 21% o Commercial aftermarket up 9% • Adjusted ope
Slide 8: 1Q 2024 Raytheon Results
1Q 2024 Raytheon Results ($ millions) Reported Adjusted* YOY Var.* Highlights Sales $6,659 $6,659 6% • Organic sales* up 6% Operating Profit $996 $630 8% • Adjusted sales* up 6% o Higher volume on land and air defense ROS 15.0% 9.5% 20 bps systems and advanced technology programs • Adjusted operatin
Slide 9: Strong and Balanced A&D Portfolio: Full Year Outlook
Strong and Balanced A&D Portfolio Collins Aerospace Pratt & Whitney Raytheon Full Year Outlook Sales Adjusted EPS* Free Cash Flow* $78.0B - $79.0B $5.25 - $5.40 ~$5.7B Organic sales growth %* 7% - 8% Reaffirming full year 2024 outlook 8 *See Appendix for additional information regarding these non-GA
Slide 10: Slide 10
Slide 11: Appendix
OO —C—C“#ESCEN Appendix Se RTX %0
Slide 12: Use and Definitions of Non-GAAP Financial Measures
Use and Definitions of Non-GAAP Financial Measures RTX Corporation (“RTX” or “the Company”) reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). We supplement the reporting of our financial information determined under GAAP with cer
Slide 13: 2024 Segment Outlook
2024 Segment Outlook ($ millions) Adjusted Sales Organic Sales Adjusted Operating VPY %* VPY %* Profit VPY* Collins Up mid to high-single Up mid to high-single Aerospace $650 - $725 digits digits Pratt & Whitney Up low double digits Up low double digits $400 - $475 Up low to mid-single Raytheon Down
Slide 14: Additional 2024 Items
Additional 2024 Items FY 2024 Adjusted Tax Rate* ~19.5% Interest Expense ~$2,050M Corporate Expense and Other Unallocated Items ~$225M FAS/CAS Operating Adjustment ~$775M Non-Service Pension Income ~$1,500M Capex Spending ~$2.5 - $2.6B 13 *See Appendix for additional information regarding these non-
Slide 15: P&W Engine Shipments to Customers
RTX: P&W Engine Shipments to Customers 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Military 42 74 55 35 206 43 Large Commercial 167 191 261 256 875 232 Pratt & Whitney Canada1 499 507 500 557 2,063 496 1) Excludes APUs 14
Slide 16: Free Cash Flow Reconciliation
RTX: Free Cash Flow Reconciliation ($ millions) 1Q 2024 Net income 1,743 Depreciation & amortization 1,059 Change in working capital (1,690) Other (770) Cash flow from operating activities 342 Capital expenditures (467) Free cash flow (125) 15
Slide 17: 1Q 2024: RTX Sales Reconciliation
1Q 2024: RTX Sales Reconciliation Total Acquisitions FX / Reported Organic and Other Growth Divestitures Collins Aerospace 9% 9% - - Pratt & Whitney 23% 23% - - Raytheon 6% 6% - - Elims & Other 13% 13% - - Total 12% 12% - - 16
Slide 18: 1Q 2024: RTX Restructuring Costs
1Q 2024: RTX Restructuring Costs ($ millions) 2024 2023 Restructuring impact to: Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Operating profit (loss) Collins Aerospace $ (6) $ (3) $ (5) $ (64) $ 1 $ (71) Pratt & Whitney (18) (19) (25) (7) (23) (74) Raytheon (9) (7) (17) (9) (9) (42) Total segment
Slide 19: 2023 Reported to Adjusted
RTX: 2023 Reported to Adjusted ($ millions) 1 Reported Restructuring & net significant and/or non-recurring items1 Adjusted (Unaudited) (Unaudited) Net Sales Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Collins Aerospace $ 6,
Slide 20: 2024 Reported to Adjusted
RTX: 2024 Reported to Adjusted ($ millions) Restructuring & net significant and/or non- 1 Reported recurring items 1 Adjusted (Unaudited) (Unaudited) Net Sales Q1 2024 Q1 2024 Q1 2024 Collins Aerospace $ 6,673 $ — $ 6,673 Pratt & Whitney 6,456 — 6,456 Raytheon 6,659 — 6,659 Total segment 19,788 — 19
Slide 21: Reconciliation of GAAP to Adjusted: Collins Aerospace
RTX: Reconciliation of GAAP to Adjusted ($ millions) Collins Aerospace (Unaudited) (Unaudited) 2024 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Collins Aerospace Net sales $ 6,673 $ 6,120 $ 6,384 $ 6,629 $ 7,120 $ 26,253 Certain customer litigation matters — — — (57) 112 55 Adjusted net sal
Slide 22: Reconciliation of GAAP to Adjusted: Pratt & Whitney
RTX: Reconciliation of GAAP to Adjusted ($ millions) Pratt & Whitney (Unaudited) (Unaudited) 2024 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Pratt & Whitney Net sales $ 6,456 $ 5,230 $ 5,701 $ 926 $ 6,439 $ 18,296 Powder metal charge — — — (5,401) — (5,401) Adjusted net sales $ 6,456 $ 5,2
Slide 23: Reconciliation of GAAP to Adjusted: Raytheon
RTX: Reconciliation of GAAP to Adjusted ($ millions) Raytheon (Unaudited) (Unaudited) 2024 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Raytheon Net sales $ 6,659 $ 6,292 $ 6,700 $ 6,472 $ 6,886 $ 26,350 Adjusted net sales $ 6,659 $ 6,292 $ 6,700 $ 6,472 $ 6,886 $ 26,350 Operating profit $ 9
Slide 24: Reconciliation of GAAP to Adjusted: Non-Segment Operating Profit
RTX: Reconciliation of GAAP to Adjusted ($ millions) Non-Segment Operating Profit (Unaudited) (Unaudited) 2024 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Eliminations and other Net sales $ (483) $ (428) $ (470) $ (563) $ (518) $ (1,979) Prior year impact from R&D capitalization IRS notice
Slide 25: Reconciliation of GAAP to Adjusted: Consolidated Income, EPS
RTX: Reconciliation of GAAP to Adjusted ($ millions) Consolidated Income, Earnings Per Share (Unaudited) (Unaudited) 2024 2023 Income (Expense) Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Net income (loss) attributable to common shareowners $ 1,709 $ 1,426 $ 1,327 $ (984) $ 1,426 $ 3,195 Total R
Slide 26: Reconciliation of GAAP to Adjusted: Segment Net Sales and Operating Profit
RTX: Reconciliation of GAAP to Adjusted ($ millions) Segment Net Sales and Operating Profit (Loss) and Margin (Unaudited) (Unaudited) 2024 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Income (Expense) Net Sales $ 19,305 $ 17,214 $ 18,315 $ 13,464 $ 19,927 $ 68,920 Reconciliation to segment n