Slide 1: 3rd quarter 2024 earnings conference call
3rd quarter 2024 Earnings conference call October 22, 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 such as the International Traffic in Arms Regulations and the Export Administration Regulations, anti-bribery This press release contains statements wh
Slide 3: 3Q 2024 highlights
3Q 2024 highlights ▲8% ▲100 bps $2.0B Sales up organically* year- Adjusted segment margin Free cash flow* over-year expansion* year-over-year ▲11% commercial aftermarket growth $221B Capital Return Outlook Record RTX backlog; Completed the accelerated Increasing 2024 outlook for received over $36B o
Slide 4: Strategic priorities
Driving best-in-class performance through: Strategic Executing on our Innovating for future Leveraging our priorities commitments growth breadth and scale • Achieved a 5X production • Developing a hybrid- • Simplifying digital footprint capacity increase for the electric propulsion system to reduce
Slide 5: 3Q 2024 results
ADJUSTED SALES* GAAP EPS $20.1B $1.09 6% $19.0B 3Q 2024 Adjusted growth* ▲260% 8% GAAP results Organic growth* 2023 2024 ($0.68) -$0.68 2023 2024 REPORTED $13.5B $20.1B ADJUSTED EPS* KEY TAKEAWAYS $1.45 • 8% organic sales growth* CASH FLOW ▲16% $1.25 Adjusted* ▲11% commercial aftermarket Operating C
Slide 6: RTX 2024 outlook
ADJUSTED SALES* RTX 2024 ▲ $79.25B - $79.75B outlook Prior: $78.75B - $79.5B ORGANIC SALES GROWTH %* 8 - 9% Prior: 8 - 9% ADJUSTED EPS* ▲ $5.50 - $5.58 Prior: $5.35 - $5.45 FREE CASH FLOW* ~$4.7B Prior: ~$4.7B *See Appendix for additional information regarding these non-GAAP financial measures 6
Slide 7: Collins Aerospace
HIGHLIGHTS Collins ▲6% ▲5% Aerospace ▲6% Adjusted sales* • Defense up 14% Adjusted operating profit* • Higher commercial aftermarket and defense volume Organic sales* • Commercial aftermarket up 9% • Lower commercial OE volume and unfavorable mix 3Q 2024 results • Commercial OE down 8% • Higher R&D
Slide 8: Pratt & Whitney
HIGHLIGHTS Pratt & ▲14% ▲45% Whitney ▲14% Adjusted sales* • Commercial aftermarket up 13% Adjusted operating profit* • Higher commercial aftermarket and military volume Organic sales* • Military up 20% • Favorable mix and lower OE delivery volume in LCE 3Q 2024 results • Commercial OE up 9% • Higher
Slide 9: Raytheon
HIGHLIGHTS Raytheon ▼1% ▲16% $60B 3Q 2024 results ▲5% Adjusted sales* • Cybersecurity divestiture Adjusted operating profit* • Favorable mix Backlog • $1.9B LTAMDS Organic sales* • Higher volume on land and air • Improved net productivity • $1.3B Standard Missile III defense systems • Higher volume
Slide 10: Key takeaways
Key takeaways Backlog increasing on growing customer demand Strong third quarter financial results Increasing 2024 outlook for adjusted sales* and adjusted EPS* Driving our strategic priorities across the business *See Appendix for additional information regarding these non-GAAP financial measures 1
Slide 11: S € RTX
» TZ S € RTX
Slide 12: Appendix
Ss RTX Appendix
Slide 13: Use and definitions of non-GAAP financial measures
Use and definitions of non-GAAP financial measures NON-GAAP MEASURE DEFINITION RTX Corporation (“RTX” or “the Company”) reports its financial results in accordance Adjusted net sales / Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinaf
Slide 14: 2024 segment outlook
2024 segment outlook ADJUSTED ADJUSTED SALES ORGANIC SALES OPERATING VPY%* VPY%* PROFIT VPY* ($M) Current Up high-single digits Up high-single digits $575 - $650 COLLINS AEROSPACE Prior Up high-single digits Up high-single digits $650 - $725 Current Up mid teens Up mid teens $475 - $525 PRATT & WHIT
Slide 15: Additional 2024 items
Additional 2024 items* FY 2024 Outlook ADJUSTED TAX RATE** FAS/CAS OPERATING ADJUSTMENT ~18.8% ~$840M Prior: ~19.3% Prior: ~$800M INTEREST EXPENSE NON-SERVICE PENSION INCOME ~$1,935M ~$1,500M Prior: ~$1,975M Prior: ~$1,500M CORPORATE EXPENSE AND CAPEX SPENDING OTHER UNALLOCATED ITEMS ~$200M ~$2.5B P
Slide 16: P&W engine shipments to customers
RTX: P&W engine shipments to customers 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 MILITARY 42 74 55 35 206 43 37 34 LARGE COMMERCIAL 167 191 261 256 875 232 236 252 PRATT & WHITNEY CANADA1 499 507 500 557 2,063 496 474 521 1) Excludes APUs 16
Slide 17: 3Q 2024: RTX free cash flow reconciliation
3Q 2024: RTX free cash flow reconciliation ($ millions) Q3 2024 NET INCOME 1,535 DEPRECIATION & AMORTIZATION 1,094 CHANGE IN WORKING CAPITAL 316 OTHER (422) CASH FLOW FROM OPERATING ACTIVITIES 2,523 CAPITAL EXPENDITURES (552) FREE CASH FLOW 1,971 17
Slide 18: 3Q 2024: RTX sales reconciliation
3Q 2024: RTX sales reconciliation ($ millions) TOTAL ACQUISITIONS & ORGANIC 3Q 2023 ORGANIC CHANGE AS A % REPORTED FX/OTHER DIVESTITURES CHANGE ADJUSTED SALES1 OF ADJUSTED SALES CHANGE COLLINS AEROSPACE $446 $— $59 $387 $6,686 6% PRATT & WHITNEY $6,313 $— $5,414 $899 $6,327 14% RAYTHEON ($86) ($430)
Slide 19: RTX: restructuring costs
RTX: restructuring costs ($ MILLIONS) 2024 2023 RESTRUCTURING IMPACT TO: Q1 2024 Q2 2024 Q3 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 OPERATING PROFIT (LOSS) COLLINS AEROSPACE ($6) ($12) ($12) ($3) ($5) ($64) $1 ($71) PRATT & WHITNEY (18) (15) (13) (19) (25) (7) (23) (74) RAYTHEON (9) (7) (14) (7
Slide 20: 2023 reported to adjusted
RTX: 2023 reported to adjusted ($ MILLIONS) REPORTED RESTRUCTURING & NET SIGNIFICANT ADJUSTED1 (UNAUDITED) AND/OR NON-RECURRING ITEMS1 (UNAUDITED) NET SALES Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 COLLINS AEROSPACE $6,12
Slide 21: 2024 reported to adjusted
RTX: 2024 reported to adjusted ($ MILLIONS) REPORTED RESTRUCTURING & NET SIGNIFICANT ADJUSTED1 (UNAUDITED) AND/OR NON-RECURRING ITEMS1 (UNAUDITED) NET SALES Q1 2024 Q2 2024 Q3 2024 Q1 2024 Q2 2024 Q3 2024 Q1 2024 Q2 2024 Q3 2024 COLLINS AEROSPACE $6,673 $6,999 $7,075 $— $— $— $6,673 $6,999 $7,075 PR
Slide 22: GAAP to adjusted reconciliation: Collins Aerospace
RTX: GAAP to adjusted reconciliation COLLINS AEROSPACE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 COLLINS AEROSPACE Q1 2024 Q2 2024 Q3 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,673 $6,999 $7,075 $6,120 $6,384 $6,629 $7,120 $26,253 CHARGES RELATED TO A LITIGATION MATTER — — — — —
Slide 23: GAAP to adjusted reconciliation: Pratt & Whitney
RTX: GAAP to adjusted reconciliation PRATT & WHITNEY (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 PRATT & WHITNEY Q1 2024 Q2 2024 Q3 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,456 $6,802 $7,239 $5,230 $5,701 $926 $6,439 $18,296 POWDER METAL CHARGE — — — — — (5,401) — (5,401) ADJUSTE
Slide 24: GAAP to adjusted reconciliation: Raytheon
RTX: GAAP to adjusted reconciliation RAYTHEON (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 RAYTHEON Q1 2024 Q2 2024 Q3 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $6,659 $6,511 $6,386 $6,292 $6,700 $6,472 $6,886 $26,350 CONTRACT TERMINATION — (70) — — — — — — ADJUSTED NET SALES $6,659 $
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 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES ($483) ($591) ($611) ($428) ($470) ($563) ($518) ($1,979) PRIOR YEAR IMPACT FROM R&D CAPIT
Slide 26: GAAP to adjusted reconciliation: consolidated income, EPS
RTX: GAAP to adjusted reconciliation CONSOLIDATED INCOME, EARNINGS PER SHARE (UNAUDITED) (UNAUDITED) ($ MILLIONS) 2024 2023 INCOME (EXPENSES) Q1 2024 Q2 2024 Q3 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREOWNERS $1,709 $111 $1,472 $1,426 $1,327 ($984) $
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 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 NET SALES $19,305 $19,721 $20,089 $17,214 $18,315 $13,464 $19,927 $68,920 REC