RTX Soars Above Estimates in Q1, Reiterates FY24 Outlook

RTX Corporation RTX reported a first-quarter FY24 adjusted net sales increase of 12% Y/Y to $19.3 billion, beating the consensus of $18.4 billion. 

Collins Aerospace’s sales were $6.7 billion (+9% Y/Y), driven by a 14% increase in commercial aftermarket and commercial OE and a 1% increase in defense. The adjusted operating margin expanded by 90 bps Y/Y to 15.7%.

Related: RTX’s Collins Aerospace To Elevate Air India’s 737 MAX Fleet with Advanced Avionics Package: Details

Pratt & Whitney’s sales were $6.46 billion (+23% Y/Y), driven by a 64% increase in commercial OE, a 21% increase in military, and a 9% rise in commercial aftermarket business. Adjusted operating margin of 6.7%, down by 160 bps.

Raytheon’s sales increased by 6% Y/Y to $6.66 billion, driven by higher volume on land and air defense systems. The adjusted operating margin expanded by 20 bps to 9.5%.

Adjusted EPS improved 10% Y/Y to $1.34, beating the consensus of $1.23.

At the end of the quarter, the backlog was $202 billion, of which $125 billion was from commercial aerospace and $77 billion was from defense.

RTX’s operating cash flow for the quarter totaled $0.3 billion, and a free cash outflow of $(0.1) billion.

FY24 Outlook Reiterated: RTX expects sales of $78 billion-$79 billion, versus the consensus of $78.78 billion; sees adjusted EPS of $5.25 – $5.40 versus the consensus of $5.39. 

The company expects a free cash flow of ~$5.7 billion in the year.

Last week, RTX entered into an energy supply agreement with a subsidiary of ENGIE North America, ENGIE Resources LLC (ENGIE).

Earlier this month, Pratt & Whitney launched NATA in Florida, enhancing MRO network with dedicated space and resources.

Price Action: RTX shares are trading higher by 0.08% at $101.64 at the last check Tuesday.

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