Slide 1: 2nd quarter 2024 earnings conference call
2nd quarter 2024 Earnings conference call July 25, 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. requirements, including, among other things, export and import requirements such as the International Traffic in Arms This press release contains statements which,
Slide 3: 2Q 2024 highlights
2Q 2024 highlights ▲10% $2.2B $206B Sales up organically* year- Free cash flow* in the quarter; Record RTX backlog; received over-year up $2B year-over-year over $24B of new awards; 1.25 ▲14% commercial Q2 book-to-bill aftermarket growth GTF Fleet Capital Return Outlook Management Plan Remains on tr
Slide 4: Strategic priorities
Driving best-in-class performance through: Strategic priorities Executing on our commitments Innovating for future growth Leveraging our breadth and scale • CORE / Operational • Next-generation products • Competitive cost structure improvements • Product upgrades • Deploying best practices • Capacit
Slide 5: 2Q 2024 results
ADJUSTED SALES* GAAP EPS $0.90 $19.8B 8% $18.3B 2Q 2024 Adjusted growth* ▼91% $0.08 10% GAAP results Organic growth* 2023 2024 2023 2024 REPORTED $18.3B $19.7B ADJUSTED EPS* $1.41 KEY TAKEAWAYS $1.29 • 10% organic sales growth* CASH FLOW ▲9% Adjusted* ▲19% commercial OE Operating CapEx Free ▲14% com
Slide 6: RTX 2024 outlook
ADJUSTED SALES* RTX 2024 ▲ $78.75B - $79.5B outlook Prior: $78.0B - $79.0B ORGANIC SALES GROWTH %* ▲ 8% - 9% Prior: 7% - 8% ADJUSTED EPS* ▲ $5.35 - $5.45 Prior: $5.25 - $5.40 FREE CASH FLOW* ▼ ~$4.7B Prior: ~$5.7B *See Appendix for additional information regarding these non-GAAP financial measures.
Slide 7: Collins Aerospace
HIGHLIGHTS Collins ▲10% ▲25% Aerospace ▲10% Adjusted sales* • Commercial aftermarket up 12% Adjusted operating profit* • Higher commercial aftermarket volume Organic sales* • Commercial OE up 10% • Higher defense volume 2Q 2024 results • Defense up 7% • Higher commercial OE volume ($ millions) ADJUS
Slide 8: Pratt & Whitney
HIGHLIGHTS Pratt & ▲19% ▲23% Whitney ▲19% Adjusted sales* • Commercial OE up 33% Adjusted operating profit* • Higher commercial aftermarket volume and LCE OE deliveries Organic sales* • Military up 16% • Favorable LCE OE and commercial aftermarket mix 2Q 2024 results • Commercial aftermarket up 15%
Slide 9: Raytheon
HIGHLIGHTS Raytheon ▼2% ▲7% $51B 2Q 2024 results ▲4% Adjusted sales* • Cybersecurity divestiture Adjusted operating profit* • Higher volume Backlog • $928M Classified bookings Organic sales* • Higher volume on land and air • Favorable mix • $639M SPY-6 radar production defense systems programs • Imp
Slide 10: Power of the portfolio
Power of the portfolio Collins Aerospace Pratt & Whitney Raytheon • Leading provider of • Over 11,000 GTF orders • Partner of choice for aerospace systems and commitments to date sensing, ISR and effectors • Content on over 110,000 • Premier small engine aircraft across franchise and #1 or #2 • Curr
Slide 11: » IL, RTX
» IL, 5 RTX
Slide 12: Appendix
5 RTX Appendix
Slide 13: Use and definitions of non-GAAP financial measures
Use and definitions of non-GAAP financial measures NON-GAAP MEASURE DEFINITION RTX Corporation (“RTX” or “the Company”) reports its financial results in accordance Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinafter referred to as “n
Slide 14: 2024 segment outlook
2024 segment outlook ADJUSTED ADJUSTED SALES ORGANIC SALES OPERATING VPY%* VPY%* PROFIT VPY* ($M) Current Up high-single digits Up high-single digits $650 – $725 COLLINS AEROSPACE Prior Up mid to high-single digits Up mid to high-single digits $650 – $725 Current Up mid teens Up mid teens $400 – $47
Slide 15: Additional 2024 items
Additional 2024 items FY 2024 Outlook ADJUSTED TAX RATE* FAS/CAS OPERATING ADJUSTMENT ~19.3% ~$800M Prior: ~19.5% Prior: ~$775M INTEREST EXPENSE NON-SERVICE PENSION INCOME ~$1,975M ~$1,500M Prior: ~$2,050M Prior: ~$1,500M CORPORATE EXPENSE AND CAPEX SPENDING OTHER UNALLOCATED ITEMS ~$200M ~$2.5 – $2
Slide 16: P&W engine shipments to customers
RTX: P&W engine shipments to customers 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 MILITARY 42 74 55 35 206 43 37 LARGE COMMERCIAL 167 191 261 256 875 232 236 PRATT & WHITNEY CANADA1 499 507 500 557 2,063 496 474 1) Excludes APUs 16
Slide 17: Free cash flow reconciliation
RTX: free cash flow reconciliation ($ millions) Q2 2024 NET INCOME 175 DEPRECIATION & AMORTIZATION 1,072 CHANGE IN WORKING CAPITAL 1,433 OTHER 53 CASH FLOW FROM OPERATING ACTIVITIES 2,733 CAPITAL EXPENDITURES (537) FREE CASH FLOW 2,196 17
Slide 18: 2Q 2024: RTX sales reconciliation
2Q 2024: RTX sales reconciliation TOTAL ACQUISITIONS & REPORTED ORGANIC FX/OTHER DIVESTITURES GROWTH COLLINS AEROSPACE 10% 10% — — PRATT & WHITNEY 19% 19% — — RAYTHEON (3%) 4% (6%) (1%) ELIMS & OTHER 26% 26% — — TOTAL 8% 10% (2%) — 18
Slide 19: 2Q 2024: RTX restructuring costs
2Q 2024: RTX restructuring costs ($ MILLIONS) 2024 2023 RESTRUCTURING IMPACT TO: Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 OPERATING PROFIT (LOSS) COLLINS AEROSPACE ($6) ($12) ($3) ($5) ($64) $1 ($71) PRATT & WHITNEY (18) (15) (19) (25) (7) (23) (74) RAYTHEON (9) (7) (7) (17) (9) (9) (
Slide 20: 2023 reported to adjusted
RTX: 2023 reported to adjusted ($ MILLIONS) REPORTED RESTRUCTURING & NET SIGNIFICANT ADJUSTED1 (UNAUDITED) AND/OR NON-RECURRING ITEMS1 (UNAUDITED) NET SALES Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 2023 2023 COLLINS AEROSPACE $6,12
Slide 21: 2023 reported to adjusted (cont.)
RTX: 2023 reported to adjusted (cont.) ($ MILLIONS) REPORTED RESTRUCTURING & NET SIGNIFICANT ADJUSTED1 (UNAUDITED) AND/OR NON-RECURRING ITEMS1 (UNAUDITED) OPERATING PROFIT (LOSS) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 2023 2023 N
Slide 22: 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 Q1 2024 Q2 2024 Q1 2024 Q2 2024 COLLINS AEROSPACE $6,673 $6,999 $— $— $6,673 $6,999 PRATT & WHITNEY 6,456 6,802 — — 6,456 6,802
Slide 23: 2024 reported to adjusted (cont.)
RTX: 2024 reported to adjusted (cont.) ($ MILLIONS) REPORTED RESTRUCTURING & NET SIGNIFICANT ADJUSTED1 (UNAUDITED) AND/OR NON-RECURRING ITEMS1 (UNAUDITED) OPERATING PROFIT Q1 2024 Q2 2024 Q1 2024 Q2 2024 Q1 2024 Q2 2024 NON-SERVICE PENSION INCOME ($386) ($374) ($7) $3 ($379) ($377) INTEREST EXPENSE,
Slide 24: Reconciliation of GAAP to adjusted: Collins Aerospace
RTX: reconciliation of GAAP to adjusted COLLINS AEROSPACE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 COLLINS AEROSPACE Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,673 $6,999 $6,120 $6,384 $6,629 $7,120 $26,253 CERTAIN CUSTOMER LITIGATION MATTERS — — — — (57) 112 55 ADJUS
Slide 25: Reconciliation of GAAP to adjusted: Pratt & Whitney
RTX: reconciliation of GAAP to adjusted PRATT & WHITNEY (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 PRATT & WHITNEY Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,456 $6,802 $5,230 $5,701 $926 $6,439 $18,296 POWDER METAL CHARGE — — — — (5,401) — (5,401) ADJUSTED NET SALES $6
Slide 26: Reconciliation of GAAP to adjusted: Raytheon
RTX: reconciliation of GAAP to adjusted RAYTHEON (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 RAYTHEON Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,659 $6,511 $6,292 $6,700 $6,472 $6,886 $26,350 CONTRACT TERMINATION — (70) — — — — — ADJUSTED NET SALES $6,659 $6,581 $6,292 $
Slide 27: Reconciliation of GAAP to adjusted: non-segment operating profit
RTX: reconciliation of GAAP to adjusted NON-SEGMENT OPERATING PROFIT (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 ELIMINATIONS AND OTHER Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES ($483) ($591) ($428) ($470) ($563) ($518) ($1,979) PRIOR YEAR IMPACT FROM R&D CAPITALIZATION IR
Slide 28: Reconciliation of GAAP to adjusted (cont.)
RTX: reconciliation of GAAP to adjusted (cont.) NON-SEGMENT OPERATING PROFIT (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 FAS/CAS OPERATING ADJUSTMENT Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 OPERATING PROFIT $214 $212 $289 $284 $272 $282 $1,127 ACQUISITION ACCOUNTING ADJUSTMENTS OP
Slide 29: Reconciliation of GAAP to adjusted: consolidated income, EPS
RTX: reconciliation of GAAP to adjusted CONSOLIDATED INCOME, EARNINGS PER SHARE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 INCOME (EXPENSES) Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREOWNERS $1,709 $111 $1,426 $1,327 ($984) $1,426 $3,195
Slide 30: Reconciliation of GAAP to adjusted (cont.)
RTX: reconciliation of GAAP to adjusted (cont.) CONSOLIDATED INCOME, EARNINGS PER SHARE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 INCOME (EXPENSES) Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 SIGNIFICANT AND/OR NON-RECURRING ITEMS INCLUDED IN INCOME TAX (EXPENSE) BENEFIT INCOME TAX
Slide 31: Reconciliation of GAAP to adjusted (cont.)
RTX: reconciliation of GAAP to adjusted (cont.) CONSOLIDATED INCOME, EARNINGS PER SHARE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 INCOME (EXPENSES) Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING REPORTED DILUTED 1,337.3 1,342.1 1,474.2 1,46
Slide 32: Reconciliation of GAAP to adjusted: segment net sales and operating profit
RTX: reconciliation of GAAP to adjusted SEGMENT NET SALES AND OPERATING PROFIT (LOSS) AND MARGIN (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 INCOME (EXPENSES) Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $19,305 $19,721 $17,214 $18,315 $13,464 $19,927 $68,920 RECONCILIATION T