Slide 1: 3Q 2023 Earnings Conference Call
3Q 2023 Earnings Conference Call October 24, 2023 © 2023 RTX 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 presentation contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the
Slide 3: Accelerating Capital Return to Shareowners
Accelerating Capital Return to Shareowners Accelerated share repurchase program Cumulative return to shareowners1 ($ billions) RTX’s board approved a $10B accelerated share repurchase Dividends program commencing almost immediately Share repurchase $36 - $37 ~$29.0 Strategically accelerating future
Slide 4: 3Q 2023 Highlights
3Q 2023 Highlights Q3 sales charge of $5.4B resulting in a $2.9B operating profit impact for the Pratt powder metal matter, in line with previously disclosed amount Full Year Outlook No significant operational or financial impact expected on other GTF fleets or the V2500; impact to balance of Pratt
Slide 5: 3Q 2023 Sales, EPS and Cash Flow
3Q 2023 Sales EPS Cash Flow from continuing operations GAAP Adjusted*1 GAAP Adjusted* 12% organic Up 3% growth* $3.3B ($0.6B) $19.0B $0.94 $1.21 $1.25 $17.0B $17.0B $2.8B1 $13.5B ($0.68) 2022 2023 2022 2023 2022 2023 2022 2023 Cash Flow CapEx Free Cash from continuing 2022 2023 operations Flow* Excl
Slide 6: Collins Aerospace Segment Highlights
Collins Aerospace Segment Highlights 3Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 6,629 6,686 17% Operating Profit 903 1,043 38% ROS 13.6% 15.6% 240 bps • Adjusted and Organic sales* up 17% – Commercial aftermarket up 30% – Commercial OE up 27% – Military down 1% • Adjusted operating prof
Slide 7: Pratt & Whitney Segment Highlights
Pratt & Whitney Segment Highlights 3Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 926 6,327 18% Operating Profit (2,482) 413 30% ROS NM 6.5% 60 bps • Q3 sales charge of $5.4B resulting in a $2.9B operating profit impact for the powder metal matter, in line with previously disclosed amount •
Slide 8: Raytheon Segment Highlights
Raytheon Segment Highlights 3Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 6,472 6,472 3% Operating Profit 560 570 (18%) ROS 8.7% 8.8% (220 bps) • Adjusted and Organic sales* up 3% – Higher volume in Naval Power and Advanced Technology • Adjusted operating profit* down 18% – Higher volume o
Slide 9: Strong and Balanced A&D Portfolio
Strong and Balanced A&D Portfolio Collins Aerospace Pratt & Whitney Raytheon 26% ~$190B ~$75B Q3 commercial OE growth Backlog Defense backlog 25% 13% 1.26 Q3 commercial aftermarket growth Backlog growth YoY YTD book-to-bill Capitalizing on current market valuation to return capital to shareowners 8
Slide 10: © 2023 RTX All rights reserved
© 2023 RTX All rights reserved
Slide 11: Appendix
a Appendix Se RTX 10
Slide 12: Use and Definitions of Non-GAAP Financial Measures
Use and Definitions of Non-GAAP Financial Measures RTX Corporation (“RTX” or “the Company”) reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). We supplement the reporting of our financial information determined under GAAP with cer
Slide 13: 2023 Outlook
2023 Outlook ($ millions) Adjusted Sales Organic Sales Adjusted Operating VPY %* VPY %* Profit VPY* Current Up low to mid-teens Up low to mid-teens $825 - $875 Collins Aerospace Prior Up low double digits to low-teens Up low double digits to low-teens $825 - $875 Current Up mid-teens Up mid-teens $3
Slide 14: Additional 2023 Items
Additional 2023 Items FY 2023 FY 2023 Prior Current Adjusted Tax Rate* ~18.5% ~19.0% Interest Expense ~$1,425M ~$1,590M Corporate Expense and Other Unallocated Items ~$175M ~$150M FAS/CAS Operating Adjustment ~$1,150M ~$1,125M Non-Service Pension Income ~$1,780M ~$1,780M Capex Spending ~$2.5B ~$2.3
Slide 15: P&W Engine Shipments to Customers
RTX: P&W Engine Shipments to Customers 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Military 60 62 49 48 219 42 74 55 Large Commercial1 119 177 192 224 712 167 191 261 Pratt & Whitney Canada2 455 459 509 542 1,965 499 507 500 1) Large commercial excludes industrial engine shipments 2) Excludes APUs 14
Slide 16: Free Cash Flow Reconciliation
RTX: Free Cash Flow Reconciliation ($ millions) 3Q 2023 Net loss from continuing operations (933) Depreciation & amortization 1,074 Change in working capital 3,446 Other (271) Cash flow from operations 3,316 Capital expenditures (564) Free cash flow 2,752 15
Slide 17: 3Q 2023: RTX Sales Reconciliation
3Q 2023: RTX Sales Reconciliation Total Acquisitions FX / Reported Organic and Other Growth Divestitures Collins Aerospace 16% 17% - (1%) Pratt & Whitney (83%) 17% - (100%) Raytheon 3% 3% - - Elims & Other 24% 17% - 7% Total (21%) 12% - (33%) 16
Slide 18: 3Q 2023: RTX Restructuring Costs
3Q 2023: RTX Restructuring Costs ($ millions) 2023 2022 Q3 YTD Restructuring impact to: Q1 2023 Q2 2023 Q3 2023 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Operating profit (loss) Collins Aerospace (3) (5) (64) (72) (3) (2) (14) (2) (21) Pratt & Whitney (19) (25) (7) (51) (2) (1) (2) (15) (20) Rayt
Slide 19: 2022 Reported to Adjusted
RTX: 2022 Reported to Adjusted ($ millions) Reported Restructuring & net significant and/or non-recurring items 1 Adjusted 1 (Unaudited) (Unaudited) Net Sales Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Collins Aerospace $ 5
Slide 20: 2023 Reported to Adjusted
RTX: 2023 Reported to Adjusted ($ millions) Reported Adjusted1 1 (Unaudited) Restructuring & net significant and/or non-recurring items (Unaudited) Net Sales Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Collins Aerospace $ 6,120 $ 6,384
Slide 21: Reconciliation of GAAP to Adjusted: Collins Aerospace
RTX: Reconciliation of GAAP to Adjusted Collins Aerospace ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Collins Aerospace Net sales $ 6,120 $ 6,384 $ 6,629 $ 19,133 $ 5,476 $ 5,627 $ 5,718 $ 6,231 $ 23,052 Charges related t
Slide 22: Reconciliation of GAAP to Adjusted: Pratt & Whitney
RTX: Reconciliation of GAAP to Adjusted Pratt & Whitney ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Pratt & Whitney Net sales $ 5,230 $ 5,701 $ 926 $ 11,857 $ 4,529 $ 4,969 $ 5,380 $ 5,652 $ 20,530 Powder metal charge — —
Slide 23: Reconciliation of GAAP to Adjusted: Raytheon
RTX: Reconciliation of GAAP to Adjusted Raytheon ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Raytheon Net sales $ 6,292 $ 6,700 $ 6,472 $ 19,464 $ 6,074 $ 6,133 $ 6,308 $ 6,661 $ 25,176 Adjusted net sales $ 6,292 $ 6,700
Slide 24: Reconciliation of GAAP to Adjusted: Non-Segment Operating Profit
RTX: Reconciliation of GAAP to Adjusted Non-Segment Operating Profit ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Eliminations and other Net sales $ (428) $ (470) $ (563) $ (1,461) $ (363) $ (415) $ (455) $ (451) $ (1,684)
Slide 25: Reconciliation of GAAP to Adjusted: Income and EPS
RTX: Reconciliation of GAAP to Adjusted Consolidated Income, Earnings Per Share ($ millions) (Unaudited) (Unaudited) 2023 2022 Income (Expense) Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Income (loss) from continuing operations attributable to common shareowners $ 1,
Slide 26: Reconciliation of GAAP to Adjusted: Segment Operating Profit and Margin
RTX: Reconciliation of GAAP to Adjusted Segment Operating Profit (Loss) and Margin ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Income (Expense) Net Sales $ 17,214 $ 18,315 $ 13,464 $ 48,993 $ 15,716 $ 16,314 $ 16,951 $ 18