Q2 2024 RTX Corp Earnings Call Transcript
Key Points
- RTX Corp (RTX) delivered strong operational and financial performance in Q2 with adjusted sales of $19.8 billion, up 10% organically.
- Adjusted EPS increased by 9% year-over-year to $1.41, driven by profit growth and margin expansion across all three segments.
- Free cash flow was robust at $2.2 billion, indicating strong cash generation capabilities.
- The company saw continued growth in its backlog, ending the quarter at $206 billion with a book-to-bill ratio of 1.25.
- RTX Corp (RTX) secured significant contract wins, including a 10-year MRO agreement with Air Canada and a $639 million award for SPY-6 radar production for the U.S. Navy.
- RTX Corp (RTX) recorded a $633 million pretax charge related to the expected resolution of several legacy legal matters.
- A $575 million pretax charge was taken due to the anticipated termination of a Raytheon fixed price development contract.
- The company revised its free cash flow outlook for the year to approximately $4.7 billion, down from the previous expectation of $5.7 billion.
- There are ongoing challenges with supply chain constraints, particularly in structural castings and isothermal forgings.
- RTX Corp (RTX) continues to face higher production costs and increased R&D and SG&A expenses, impacting profitability.
My name is Livia, and I'll be your operator for today. As a reminder, this conference is being recorded for replay purposes.
On the call today are Chris Calio, President and Chief Executive Officer; Neil Mitchill, Chief Financial Officer; and Nathan Ware, Vice President of Investor Relations. This call is being webcast live on the Internet, and there is a presentation available for download from RTX website at www.rtx.com.
Please note, except where otherwise noted, the company will speak to results from continuing operations, excluding acquisition accounting adjustments and net nonrecurring and/or significant items, often referred to by management as other significant items. The company also reminds listeners that the earnings and cash flow expectations and any other forward-looking statements provided in this call are subject to risks and uncertainties. RTX SEC filings, including its forms 8-K, 10-Q and 10-K, provide details on important factors that could cause actual results to differ materially from those anticipated in the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
