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RTX Corp. (NYSE: RTX) recently announced its fourth quarter results for 2024, showcasing a robust performance that exceeded expectations. The company reported sales of $21.6 billion, marking a 9% increase compared to the previous year. This growth was driven by an 11% organic rise, excluding divestitures, indicating strong demand across its business segments.

RTX’s GAAP earnings per share (EPS) stood at $1.10, which included acquisition-related accounting adjustments and other significant charges amounting to $0.30 and $0.14 respectively. However, the adjusted EPS was notably higher at $1.54, reflecting a 19% increase over the prior year.
 

RTX Corp. Beats Expectations with Fourth Quarter Results

The company’s operating cash flow for the quarter was $1.6 billion, while free cash flow was $0.5 billion. This financial strength allowed RTX to return $852 million of capital to its shareholders during the quarter. The company’s backlog remains substantial at $218 billion, comprised of $125 billion in commercial and $93 billion in defense contracts.

In terms of segment performance, Collins Aerospace reported sales of $7.537 billion, up 6% from the previous year, driven by increases in defense and commercial aftermarket sales. Pratt & Whitney saw a significant 18% rise in sales to $7.569 billion, bolstered by increased commercial and military sales. Raytheon’s sales grew by 4% to $7.157 billion, with higher volumes in land and air defense systems.

RTX’s fourth-quarter results surpassed market expectations, particularly in terms of adjusted EPS and sales figures. The company achieved an adjusted EPS of $1.54, significantly above the anticipated $1.38. This strong performance was attributed to increased profitability across its segments, despite some restructuring and acquisition-related costs. The sales of $21.6 billion also exceeded the expected revenue of $20.53 billion, reflecting robust demand and effective execution of strategic initiatives.

The company’s ability to outperform expectations can be attributed to several factors, including strong organic growth and successful cost management.

RTX’s performance in the fourth quarter also reflects its resilience in navigating challenges such as acquisition-related adjustments and restructuring charges. The company’s strategic initiatives, including the divestiture of certain businesses, have helped streamline operations and focus on core areas of growth.
 

RTX Expects Adjusted Sales in the Range of $83 to $84 Billion for 2025

Looking ahead to 2025, RTX has provided an optimistic outlook, anticipating continued growth in sales, earnings, and cash flow. The company projects adjusted sales in the range of $83.0 to $84.0 billion, representing a 4% to 6% organic growth. This guidance reflects RTX’s confidence in its ability to leverage its substantial backlog and capitalize on emerging opportunities in both commercial and defense markets.

RTX also expects adjusted EPS to be between $6.00 and $6.15, indicating ongoing improvements in profitability. The company’s focus on executing strategic priorities, such as innovation and operational excellence, is expected to drive earnings growth. Additionally, RTX anticipates generating free cash flow of $7.0 to $7.5 billion, underscoring its strong financial position and ability to invest in future growth initiatives.

The company’s leadership, led by President and CEO Chris Calio, has expressed confidence in RTX’s ability to achieve its financial targets for 2025. With a robust backlog and a commitment to advancing strategic priorities, RTX is well-positioned to deliver sustainable growth and value to its shareholders.

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