RTX Corporation (NYSE: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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