On January 23, 2024, RTX Corp (RTX, Financial) released its 8-K filing, detailing a robust performance for the fourth quarter of 2023 and providing an optimistic outlook for 2024. As a leading aerospace and defense industrial company, RTX operates through its segments: Collins Aerospace, Pratt & Whitney, and Raytheon, serving both commercial aerospace manufacturers and the defense market.
RTX's fourth-quarter results showcased a 10% year-over-year increase in sales, reaching $19.9 billion, with adjusted sales also up by 10%. The company's GAAP EPS from continuing operations stood at $1.05, reflecting acquisition accounting adjustments and restructuring benefits. Adjusted EPS, which excludes these items, was $1.29, marking a 2% increase from the previous year. The company's operating cash flow from continuing operations was $4.7 billion, leading to a free cash flow of $3.9 billion.
For the full year, RTX reported sales of $68.9 billion, a 3% increase from the previous year, influenced by the Pratt powder metal matter. Adjusted sales were significantly higher at $74.3 billion, up 11%. The GAAP EPS for the year was $2.23, down 36%, again affected by the Pratt issue. However, adjusted EPS rose by 6% to $5.06. The company achieved $295 million in incremental RTX gross synergies and continued its aggressive share repurchase program, buying back $12.9 billion of its shares.
Looking ahead to 2024, RTX anticipates sales to range between $78.0 and $79.0 billion, with adjusted EPS expected to be between $5.25 and $5.40. The company also projects a free cash flow of approximately $5.7 billion. RTX has updated its 2020 to 2025 financial commitments, adjusting its annual sales growth to 5.5 to 6.0 percent and segment margin expansion to 500 to 550 basis points, while reaffirming its 2025 free cash flow commitment of $7.5 billion and a capital return commitment of $36 to $37 billion through 2025.
RTX Chairman and CEO Greg Hayes commented on the results, stating,
RTX reported solid full-year results, delivering 11 percent organic sales growth and $5.5 billion in free cash flow for the year, exceeding our expectations."He also expressed pride in the company's achievements and enthusiasm for future innovations.
RTX President and COO Chris Calio highlighted the company's momentum entering 2024 and its focus on driving performance across all businesses to support customers and deliver shareholder value.
The detailed financial tables in the earnings report provide a comprehensive view of RTX's financial position, including income statements, balance sheets, and cash flow statements. These tables reveal the company's financial achievements and challenges, offering valuable insights into RTX's operational efficiency and market performance.
RTX's strong performance in the fourth quarter and throughout 2023, coupled with its positive outlook for 2024, reflects the company's resilience and strategic positioning in the aerospace and defense industry. Investors and stakeholders can look forward to continued growth and value creation from RTX in the coming year.
Explore the complete 8-K earnings release (here) from RTX Corp for further details.
