Slide 1: 2Q 2023 Earnings Conference Call
2Q 2023 Earnings Conference Call July 25, 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: 2Q 2023 Highlights
2Q 2023 Highlights Sales up 13% organically* year-over-year with 26% adjusted segment operating profit* growth Full Year Outlook Commercial aerospace momentum continues with aftermarket Sales $73.0B - $74.0B sales up 27% and OE up 17% year-over-year Prior: $72.0B - $73.0B Defense backlog execution d
Slide 4: 2Q 2023 Sales, EPS and Cash Flow
2Q 2023 Sales EPS Cash Flow from continuing operations GAAP Adjusted* 13% organic Up 2% Up 11% growth* $1.29 $0.7B ($0.5B) $18.3B $1.16 $16.3B $0.88 $0.90 $0.2B 2022 2023 2022 2023 2022 2023 Cash Flow CapEx Free Cash from continuing 2022 2023 operations Flow* Excludes: Acq. Accounting Adj. ($0.23) (
Slide 5: Raytheon Missiles & Defense Segment Highlights
Raytheon Missiles & Defense Segment Highlights 2Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 4,000 4,000 12% Operating Profit 415 427 23% ROS 10.4% 10.7% 90 bps • Organic sales* up 13% • Adjusted sales* up 12% – Higher volume in Air Power, Advanced Technology, and Land Warfare & Air Defens
Slide 6: Raytheon Intelligence & Space Segment Highlights
Raytheon Intelligence & Space Segment Highlights 2Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 3,655 3,655 2% Operating Profit 291 297 (6%) ROS 8.0% 8.1% (70 bps) • Organic sales* up 2% • Adjusted sales* up 2% – Higher sales in Sensing & Effects and Cyber & Services – Lower sales in Comman
Slide 7: Collins Aerospace Segment Highlights
Collins Aerospace Segment Highlights 2Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 5,850 5,850 17% Operating Profit 821 837 36% ROS 14.0% 14.3% 200 bps • Organic sales* up 17% • Adjusted sales* up 17% – Commercial aftermarket up 29% – Commercial OE up 14% Collins Aerospace successfully dem
Slide 8: Pratt & Whitney Segment Highlights
Pratt & Whitney Segment Highlights 2Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 5,701 5,701 15% Operating Profit 230 436 44% ROS 4.0% 7.6% 150 bps • Organic sales* up 15% • Adjusted sales* up 15% – Commercial aftermarket up 26% – Commercial OE up 22% – Military down 3% • Adjusted operatin
Slide 9: 2023 Outlook
2023 Outlook Full Year Outlook Segment Outlook Adjusted Reported Sales Organic Sales Sales $73.0B - $74.0B Operating VPY % VPY %* Prior: $72.0B - $73.0B Profit VPY* Up low double Up low double Collins Current $825 - $875 Organic sales growth %* 9% - 10% Aerospace Prior digits to low-teens digits to
Slide 10: Strong and Balanced A&D Portfolio
Strong and Balanced A&D Portfolio Collins Aerospace Pratt & Whitney Raytheon 11M Every second ~50% passengers moved per day a Pratt & Whitney powered of the world’s population is with RTX content aircraft takes off and lands protected by RTX products $120B 85K ~$73B of content flying on Pratt & Whit
Slide 11: © 2023 RTX All rights reserved
© 2023 RTX All rights reserved
Slide 12: Appendix
a Appendix Se RTX "
Slide 13: 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 14: Additional 2023 Items
Additional 2023 Items FY 2023 FY 2023 Prior Current Adjusted Tax Rate ~18.0% ~18.5%1 Interest Expense ~$1,450M ~$1,425M Corporate Expense and Other Unallocated Items ~$300M ~$175M FAS/CAS Operating Adjustment ~$1,250M ~$1,150M2 Non-Service Pension Income ~$1,780M ~$1,780M Capex Spending ~$2.5B ~$2.5
Slide 15: RTX: P&W Engine Shipments to Customers
RTX: P&W Engine Shipments to Customers 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Military 60 62 49 48 219 42 74 Large Commercial1 119 177 192 224 712 167 191 Pratt & Whitney Canada2 455 459 509 542 1,965 499 507 1) Large commercial excludes industrial engine shipments 2) Excludes APUs 14
Slide 16: RTX: Free Cash Flow Reconciliation
RTX: Free Cash Flow Reconciliation ($ millions) 2Q 2023 Net income from continuing operations 1,359 Depreciation & amortization 1,044 Change in working capital (1,286) Other (398) Cash flow from operations 719 Capital expenditures (526) Free cash flow 193 15
Slide 17: 2Q 2023: RTX Sales Reconciliation
2Q 2023: RTX Sales Reconciliation Total Acquisitions FX / Reported Organic and Other Growth Divestitures Collins Aerospace 17% 17% - - Pratt & Whitney 15% 15% - - RIS 2% 2% - - RMD 12% 13% (1%) - Elims & Other 12% 12% - - Total 12% 13% (1%) - 16
Slide 18: RTX: 2022 Reported to Adjusted
RTX: 2022 Reported to Adjusted ($ millions) Reported Restructuring & net significant and/or non-recurring items 1 Adjusted1 (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 $ 4,
Slide 19: RTX: 2023 Reported to Adjusted
RTX: 2023 Reported to Adjusted ($ millions) Restructuring & net significant and/or non- recurring items1 Reported Adjusted1 (Unaudited) (Unaudited) Net Sales Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2023 Q2 2023 Q2 YTD 2023 Collins Aerospace $ 5,581 $ 5,850 $ 11,431 $ — $ — $ — $ 5
Slide 20: RTX: Reconciliation of GAAP to Adjusted
RTX: Reconciliation of GAAP to Adjusted Collins Aerospace ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Collins Aerospace Net sales $ 5,581 $ 5,850 $ 11,431 $ 4,824 $ 5,011 $ 5,100 $ 5,662 $ 20,597 Adjusted net sales $ 5,581 $ 5,85
Slide 21: RTX: Reconciliation of GAAP to Adjusted
RTX: Reconciliation of GAAP to Adjusted Pratt & Whitney ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Pratt & Whitney Net sales $ 5,230 $ 5,701 $ 10,931 $ 4,529 $ 4,969 $ 5,380 $ 5,652 $ 20,530 Adjusted net sales $ 5,230 $ 5,701 $
Slide 22: RTX: Reconciliation of GAAP to Adjusted
RTX: Reconciliation of GAAP to Adjusted Raytheon Intelligence & Space ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Raytheon Intelligence & Space Net sales $ 3,565 $ 3,655 $ 7,220 $ 3,572 $ 3,570 $ 3,626 $ 3,544 $ 14,312 Adjusted n
Slide 23: RTX: Reconciliation of GAAP to Adjusted
RTX: Reconciliation of GAAP to Adjusted Raytheon Missiles & Defense ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Raytheon Missiles & Defense Net sales $ 3,671 $ 4,000 $ 7,671 $ 3,527 $ 3,558 $ 3,678 $ 4,100 $ 14,863 Adjusted net s
Slide 24: RTX: Reconciliation of GAAP to Adjusted
RTX: Reconciliation of GAAP to Adjusted Non-Segment Operating Profit ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Eliminations and other Net sales $ (833) $ (891) $ (1,724) $ (736) $ (794) $ (833) $ (865) $ (3,228) Operating profi
Slide 25: RTX: Reconciliation of GAAP to Adjusted
RTX: Reconciliation of GAAP to Adjusted Consolidated Income, Earnings Per Share ($ millions) (Unaudited) (Unaudited) 2023 2022 Income (Expense) Q1 2023 Q2 2023 Q2 YTD 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Income from continuing operations attributable to common shareowners $ 1,426 $ 1,327 $ 2
Slide 26: Reconciliation of Recasted and Adjusted as Recasted Results
Reconciliation of Recasted (Non-GAAP) and Adjusted as Recasted (Non-GAAP) Results Adjusted Sales as Recasted, Adjusted Operating Profit as Recasted & Operating Profit Margin as Recasted Quarter Ended Quarter Ended (Unaudited) (Unaudited) (dollars in millions - Income (Expense)) Mar 31, 2023 Jun 30,
Slide 27: Reconciliation of Recasted and Adjusted as Recasted Results
Reconciliation of Recasted (Non-GAAP) and Adjusted as Recasted (Non-GAAP) Results Adjusted Sales as Recasted, Adjusted Operating Profit as Recasted & Operating Profit Margin as Recasted Quarter Ended Quarter Ended (Unaudited) (Unaudited) (dollars in millions - Income (Expense)) Mar 31, 2023 Jun 30,
Slide 28: Reconciliation of Recasted and Adjusted as Recasted Results
Reconciliation of Recasted (Non-GAAP) and Adjusted as Recasted (Non-GAAP) Results Adjusted Sales as Recasted, Adjusted Operating Profit as Recasted & Operating Profit Margin as Recasted Quarter Ended Quarter Ended (Unaudited) (Unaudited) (dollars in millions - Income (Expense)) Mar 31, 2023 Jun 30,
Slide 29: Reconciliation of Recasted and Adjusted as Recasted Results
Reconciliation of Recasted (Non-GAAP) and Adjusted as Recasted (Non-GAAP) Results Adjusted Sales as Recasted, Adjusted Operating Profit as Recasted & Operating Profit Margin as Recasted Quarter Ended Quarter Ended (Unaudited) (Unaudited) (dollars in millions - Income (Expense)) Mar 31, 2023 Jun 30,
Slide 30: Summary of Segment Net Sales and Operating Profit – Reported As Recasted
Summary of Segment Net Sales and Operating Profit – Reported As Recasted (Non- GAAP) Reported - as Recasted Quarter Ended Quarter Ended (Unaudited) (Unaudited) (dollars in millions) Mar 31, 2023 Jun 30, 2023 Mar 31, 2022 Jun 30, 2022 Sept 30, 2022 Dec 31, 2022 Net Sales - as Recasted Collins Aerospa
Slide 31: Summary of Segment Net Sales and Operating Profit – Adjusted As Recasted
Summary of Segment Net Sales and Operating Profit – Adjusted As Recasted (Non- GAAP) Adjusted - as Recasted Quarter Ended Quarter Ended (Unaudited) (Unaudited) (dollars in millions) Mar 31, 2023 Jun 30, 2023 Mar 31, 2022 Jun 30, 2022 Sept 30, 2022 Dec 31, 2022 Net Sales - Adjusted as Recasted Collin