Q4 2024 RTX Corp Earnings Call Transcript
Key Points
- RTX Corp (RTX) reported strong financial performance in Q4 2024, with adjusted sales of $21.6 billion, up 11% organically.
- The company achieved a 13% year-over-year increase in adjusted EPS, reaching $5.73.
- RTX Corp (RTX) ended the year with a record backlog of $218 billion, indicating robust customer demand.
- The company expects continued growth in 2025, with projected adjusted sales between $83 billion and $84 billion, translating to 4% to 6% organic growth.
- RTX Corp (RTX) plans to invest over $7.5 billion in R&D in 2025 to advance technologies and meet customer needs.
- The company faces challenges with supply chain constraints, particularly in structural castings and isothermal forgings.
- RTX Corp (RTX) anticipates a $0.15 headwind from lower FAS/CAS and non-service pension income in 2025.
- The company is dealing with ongoing powder metal compensation impacts, expected to be between $1.1 billion and $1.3 billion in 2025.
- There is a potential risk of inventory destocking at airlines, which could impact Collins' aftermarket growth.
- RTX Corp (RTX) has not yet achieved its pre-COVID margin targets, with ongoing inflation and lower-than-expected OE volumes posing challenges.
Good day, ladies and gentlemen, and welcome to the RTX fourth quarter 2024 earnings conference call. My name is Lateef, and I will 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. Now this call is being webcast live on the Internet, and there is a presentation available for download from RTXâs 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 non-recurring 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.
RTXâs SEC filings, including its Forms 8-K, 10-Q, and 10
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