Slide 1: 4th quarter 2024 earnings conference call
4th quarter 2024 Earnings conference call January 28, 2025 © 2025 RTX Corporation. All rights reserved.
Slide 2: Forward looking statements
Forward looking statements Note: This press release contains statements which, to the extent they are not statements of historical or present fact, new technologies and products and export and import requirements such as the International Traffic in Arms Regulations and constitute “forward-looking s
Slide 3: Strong 2024 with momentum into 2025
Strong 2024 $80.8B $9.5B $4.5B with momentum 2024 adjusted sales* 2024 adjusted segment profit* 2024 free cash flow* into 2025 ▲11% organic* growth ▲19% year-over-year growth* ▲90 bps adjusted segment margin expansion* $218B Capital Return 2025 Outlook RTX backlog; received over Returned $3.7 billio
Slide 4: Strategic priorities
Driving best-in-class performance through: Strategic Executing on our Innovating for future Leveraging our commitments growth breadth and scale priorities • PW1100 MRO output up • Spent over $7.5 billion in • Growing Collins production 30 percent in 2024 company and customer space leveraging an fund
Slide 5: 4Q 2024 results
ADJUSTED SALES* GAAP EPS $21.6B 9% $19.8B $1.05 $1.10 4Q 2024 Adjusted growth* ▲5% GAAP results 11% Organic growth* 2023 2024 2023 2024 REPORTED ADJUSTED EPS* $19.9B $21.6B $1.54 KEY TAKEAWAYS $1.29 ▲19% • 11% organic sales growth* CASH FLOW Adjusted* ▲15% commercial aftermarket Operating CapEx Free
Slide 6: Collins Aerospace
HIGHLIGHTS Collins ▲8% ▲17% Aerospace ▲8% Adjusted sales* • Defense up 13% Adjusted operating profit* • Higher commercial aftermarket volume Organic sales* • Commercial aftermarket up 12% • Higher defense volume 4Q 2024 results • Commercial OE down 6% • Lower commercial OE volume and unfavorable mix
Slide 7: Pratt & Whitney
HIGHLIGHTS Pratt & ▲18% ▲77% Whitney ▲18% Adjusted sales* • Commercial OE up 31% Adjusted operating profit* • Favorable volume and mix in LCE OE Organic sales* • Commercial aftermarket up 17% • Favorable mix in Pratt Canada aftermarket 4Q 2024 results • Military up 8% • Higher commercial aftermarket
Slide 8: Raytheon
HIGHLIGHTS Raytheon ▲4% ▲18% $63B 4Q 2024 results ▲10% Adjusted sales* • Higher volume on land and air defense systems Adjusted operating profit* • Higher volume Backlog • $0.8B Romania Patriot Organic sales* • Improved net productivity • $0.8B Stinger • Restart of contracts with a Middle • Favorabl
Slide 9: 2025 RTX outlook
2025 RTX outlook Up 6% at ADJUSTED SALES* ADJUSTED EPS* mid-point (up 5% - 7%) $0.66 $0.05 ($0.15) ($0.06) ($0.16) $83.0B - $84.0B $5.73 $6.00 - $6.15 Divestitures ~($0.07) ORGANIC SALES GROWTH %* 4% - 6% 2024 Segments Interest Pension Share Count Tax / Other 2025E ADJUSTED EPS* Up $2.7B at FREE CAS
Slide 10: 2025 segment outlook
2025 segment outlook ADJUSTED ADJUSTED SALES ORGANIC SALES OPERATING PROFIT VPY%* VPY%* VPY* ($M) COLLINS AEROSPACE Up low-single digits1 Up mid-single digits $500 - $6001 PRATT & WHITNEY Up high-single digits Up high-single digits $325 - $400 RAYTHEON Up low-single digits Up mid-single digits $150
Slide 11: Key takeaways
$218B backlog exiting 2024 with Key takeaways resilient demand Strong 2024 fourth quarter and full year financial results 2025 outlook reflects expanding segment margin* and growth in organic sales*, earnings and free cash flow* Driving strategic priorities across the business Delivering towards the
Slide 12: S & RTX
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Slide 13: Appendix
Ss RTX t Appendix
Slide 14: Use and definitions of non-GAAP financial measures
Use and definitions of non-GAAP financial measures NON-GAAP MEASURE DEFINITION RTX Corporation (“RTX” or “the Company”) reports its financial results in accordance Adjusted net sales / Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinaf
Slide 15: Additional 2025 items
Additional 2025 items* FY 2025 Outlook ADJUSTED TAX RATE** FAS/CAS OPERATING ADJUSTMENT ~19.5% ~$700M INTEREST EXPENSE NON-SERVICE PENSION INCOME ~$1,850M ~$1,400M CORPORATE EXPENSE AND CAPEX SPENDING OTHER UNALLOCATED ITEMS ~$200M - $225M ~$2.5B - $2.7B *All items on an adjusted basis 15 **See Appe
Slide 16: P&W engine shipments to customers
RTX: P&W engine shipments to customers 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY MILITARY 42 74 55 35 206 43 37 34 66 180 LARGE COMMERCIAL 167 191 261 256 875 232 236 252 276 996 PRATT & WHITNEY CANADA1 499 507 500 557 2,063 496 474 521 587 2,078 1) Excludes APUs 16
Slide 17: 4Q 2024: RTX free cash flow reconciliation
4Q 2024: RTX free cash flow reconciliation ($ millions) Q4 FY 2024 2024 NET INCOME $1,560 $5,013 DEPRECIATION & AMORTIZATION 1,139 4,364 CHANGE IN WORKING CAPITAL (1,144) (1,085) OTHER 6 (1,133) CASH FLOW FROM OPERATING ACTIVITIES $1,561 $7,159 CAPITAL EXPENDITURES (1,069) (2,625) FREE CASH FLOW $49
Slide 18: 4Q 2024: RTX sales reconciliation
4Q 2024: RTX sales reconciliation ($ millions) TOTAL REPORTED ACQUISITIONS & ORGANIC 4Q 2023 ADJUSTED ORGANIC CHANGE AS A % FX/OTHER SALES1 CHANGE DIVESTITURES CHANGE OF ADJUSTED SALES COLLINS AEROSPACE $417 ($18) ($107) $542 $7,008 8% PRATT & WHITNEY 1,130 — (25) 1,155 $6,439 18% RAYTHEON 271 (412)
Slide 19: RTX: restructuring costs
RTX: restructuring costs ($ MILLIONS) 2024 2023 RESTRUCTURING IMPACT TO: Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 OPERATING PROFIT (LOSS) COLLINS AEROSPACE ($6) ($12) ($12) ($17) ($47) ($3) ($5) ($64) $1 ($71) PRATT & WHITNEY (18) (15) (13) (56) (102) (19) (25)
Slide 20: RTX: 2023 reported to adjusted
RTX: 2023 reported to adjusted ($ MILLIONS) REPORTED RESTRUCTURING & NET SIGNIFICANT ADJUSTED1 (UNAUDITED) AND/OR NON-RECURRING ITEMS1 (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 $6,12
Slide 21: RTX: 2024 reported to adjusted
RTX: 2024 reported to adjusted ($ MILLIONS) REPORTED RESTRUCTURING & NET SIGNIFICANT ADJUSTED1 (UNAUDITED) AND/OR NON-RECURRING ITEMS1 (UNAUDITED) NET SALES Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 COLLINS AEROSPACE $6,67
Slide 22: GAAP to adjusted reconciliation: Collins Aerospace
RTX: GAAP to adjusted reconciliation COLLINS AEROSPACE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 COLLINS AEROSPACE Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,673 $6,999 $7,075 $7,537 $28,284 $6,120 $6,384 $6,629 $7,120 $26,253 BENEFITS RELATED T
Slide 23: GAAP to adjusted reconciliation: Pratt & Whitney
RTX: GAAP to adjusted reconciliation PRATT & WHITNEY (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 PRATT & WHITNEY Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,456 $6,802 $7,239 $7,569 $28,066 $5,230 $5,701 $926 $6,439 $18,296 POWDER METAL CHARGE — —
Slide 24: GAAP to adjusted reconciliation: Raytheon
RTX: GAAP to adjusted reconciliation RAYTHEON (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 RAYTHEON Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,659 $6,511 $6,386 $7,157 $26,713 $6,292 $6,700 $6,472 $6,886 $26,350 CONTRACT TERMINATION — (70) — — (70)
Slide 25: GAAP to adjusted reconciliation: non-segment operating profit
RTX: GAAP to adjusted reconciliation NON-SEGMENT OPERATING PROFIT (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 ELIMINATIONS AND OTHER Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES ($483) ($591) ($611) ($640) ($2,325) ($428) ($470) ($563) ($518) ($1,979)
Slide 26: GAAP to adjusted reconciliation: consolidated income, EPS
RTX: GAAP to adjusted reconciliation CONSOLIDATED INCOME, EARNINGS PER SHARE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 INCOME (EXPENSES) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREOWNERS $1,709 $111 $1,472 $1,482
Slide 27: GAAP to adjusted reconciliation: segment sales and operating profit
RTX: GAAP to adjusted reconciliation SEGMENT NET SALES AND OPERATING PROFIT (LOSS) AND MARGIN (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 INCOME (EXPENSES) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $19,305 $19,721 $20,089 $21,623 $80,738 $17,214 $18