- Raytheon Technologies is the world's largest aerospace and defense company.
- The company with a global team of 182,000 employees resisted sales of $67 billion in 2022.
- In 2022 United Technologies and Raytheon Complete Merger to form Raytheon Technologies Corporation.
Raytheon Technologies Corporation (NYSE: RTX, LSE: 0R2N) is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide.
United Technologies and Raytheon Complete Merger
April 03, 2020; Raytheon Technologies Corporation (NYSE: RTX) announced the successful completion of the all-stock merger of equals transaction between Raytheon Company and United Technologies Corporation on April 3, 2020, following the completion by United Technologies of its previously announced spin-offs of its Carrier and Otis businesses. Headquartered in Waltham, Mass., Raytheon Technologies is one of the largest aerospace and defense companies in the world with approximately $74 billion in pro forma 2019 net sales and a global team of 195,000 employees, including 60,000 engineers and scientists.
Raytheon Company (NYSE:RTN) shares ceased trading prior to the market open on April 3, 2020, and each share of Raytheon common stock has been converted in the merger into the right to receive 2.3348 shares of United Technologies common stock (previously traded on the NYSE under the ticker symbol "UTX"). Upon closing of the merger, United Technologies’ name has changed to "Raytheon Technologies Corporation," and its shares of common stock will begin trading today on the NYSE under the ticker symbol "RTX." United Technologies shareowners will continue to hold their shares of United Technologies common stock, which now constitute shares of common stock of Raytheon Technologies Corporation.
First Quarter 2023 Results
Raytheon Technologies reported first quarter sales of $17.2 billion, up 10 percent over the prior year. GAAP EPS from continuing operations of $0.97 was up 31 percent versus the prior year and included $0.25 of acquisition accounting adjustments and net significant and/or non-recurring charges. Adjusted EPS of $1.22 was up 6 percent versus the prior year.
The company recorded net income from continuing operations attributable to common shareowners in the first quarter of $1.4 billion, up 29 percent versus the prior year which included $367 million of acquisition accounting adjustments and net significant and/or non-recurring charges. Adjusted net income was $1.8 billion, up 4 percent versus prior year. Operating cash flow from continuing operations was an outflow in the first quarter of $863 million. Capital expenditures were $520 million, resulting in free cash outflow of $1,383 million.
Backlog at the end of the first quarter was $180 billion, of which $109 billion was from commercial aerospace and $71 billion was from defense.
Collins Aerospace had first quarter 2023 sales of $5,581 million, up 16 percent versus the prior year. The increase in sales was driven by a 24 percent increase in commercial aftermarket, a 12 percent increase in commercial OE, and a 9 percent increase in military. The increase in commercial sales was driven primarily by the continued recovery of air traffic which resulted in higher flight hours and higher OE production rates.
Collins Aerospace recorded operating profit of $794 million, up 80 percent versus the prior year. Q1 2022 operating profit included the impact of impairment charges and reserve adjustments of $141 million related to the Russia sanctions. Adjusted operating profit of $800 million in the first quarter of 2023 was up 37 percent versus the prior year. The increase in operating profit was primarily driven by higher commercial aftermarket volume, as well as favorable mix, which more than offset higher production costs and SG&A expense.
Pratt & Whitney had first quarter 2023 sales of $5,230 million, up 15 percent versus the prior year. The increase in sales was driven by a 27 percent increase in commercial OE, a 14 percent increase in commercial aftermarket and a 13 percent increase in military sales. The increase in commercial sales was primarily due to the continued commercial aftermarket recovery and higher commercial OE volume across both Large Commercial Engines and Pratt & Whitney Canada. The increase in military sales was driven by the Q2 2022 F135 production contract award and higher F135 sustainment volume.
Pratt & Whitney recorded operating profit of $415 million, up 175 percent versus the prior year. Q1 2022 operating profit included the impact of impairment charges and reserve adjustments of $155 million related to the Russia sanctions. Pratt & Whitney recorded adjusted operating profit of $434 million in the first quarter of 2023, up 41 percent versus the prior year. The increase in operating profit was primarily driven by drop through on higher commercial aftermarket sales, a favorable contract matter and higher military sales. This was partially offset by higher commercial OE volume.
RIS had first quarter 2023 sales of $3,565 million, flat versus the prior year driven by lower Command, Control and Communications programs, mostly offset by higher Cyber and Services programs.
RIS recorded operating profit of $324 million, down 14 percent versus the prior year. The decrease in operating profit was driven by lower net program efficiencies, which was spread across numerous programs, with no individual or significant driver. On an adjusted basis, operating profit was down 13 percent versus the prior year.
RMD had first quarter 2023 sales of $3,671 million, up 4 percent versus prior year. The increase in sales was primarily driven by higher sales in Advanced Technology and Air Power programs.
RMD recorded operating profit of $328 million, down 15 percent versus the prior year. The decrease in operating profit was driven by lower net program efficiencies and higher development program mix, partially offset by higher volume. Lower net program efficiencies included the unfavorable impact of a significant contract option exercised in the quarter. RMD recorded adjusted operating profit of $335 million, down 13 percent versus the prior year.
Full Year 2022 Financials
In 2022, Raytheon Technologies had net sales of $67.1 billion and adjusted earnings per share of $4.78, driven by the commercial air traffic rebound. The company spent more than $9 billion on research and development and capital expenditures in 2022 as the company continue to invest in technology and innovation and fund future organic growth. The company generated $7.2 billion in cash flow from operations and ended the year with $4.9 billion in free cash flow despite a $1.6 billion additional U.S. federal cash tax payment associated with the amortization of R&D spending for federal tax purposes
The company continue to reduce costs, achieving over $400 million in merger-related gross cost synergies. These bring its total synergies to about $1.4 billion since the merger, and Raytheon Technologies is on track to meet its target of $1.5 billion a year earlier than planned.
Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. The company serve commercial and government customers in both the original equipment and aftermarket parts and services segments of the aerospace industry. The company's defense business serves both domestic and international customers as a prime contractor or subcontractor on a broad portfolio of defense and related programs for military and government customers. Raytheon Technologies, formerly known as United Technologies Corporation (UTC), was incorporated in Delaware in 1934.
The company operate in four principal business segments: Collins Aerospace (Collins), Pratt & Whitney, Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD).
Collins Aerospace specializes in sustainable and costeffective materials, advanced avionics, connected data networks, comfort-driven cabin equipment, connected mission systems and electrified power and control systems for the aerospace and defense industry.
Opened new engineering and operations centers in India as part of more than $200 million of investments in R&D and manufacturing.
Launched award-winning aircraft interiors products, including business class seating and suites, an environmentally friendly food-cooling system and jetlagreducing lighting.
Pratt & Whitney
Pratt & Whitney designs, manufactures and services the world’s most advanced aircraft engines and auxiliary power systems for commercial, military and business aircraft.
Earned a $115 million contract for the F135 Engine Core Upgrade from the U.S. Department of Defense and welcomed three additional countries to the F-35 program all powered by the F135 engine.
Began FAA FAR33 certification testing on the GTF Advantage engine for the A320neo family.
Raytheon Intelligence & Space
Raytheon Intelligence & Space develops advanced sensors, cyber services and software solutions— delivering the disruptive technologies customers need to succeed in any domain, against any challenge.
Celebrated the successful launch into orbit of the National Oceanic and Atmospheric Administration’s latest polar satellite with RI&S’ Joint Polar Satellite System-2 to enhance forecasting and long-term planetary change observation.
Selected by the U.S. Federal Aviation Administration for a 10-year, $375 million project to modernize the Wide-Area Augmentation System to enhance safer air travel throughout the national airspace system.
Received U.S. Air Force Advanced Battle Management System Digital Infrastructure Consortium Award to aid its development of the digital backbone to support the U.S. Department of Defense’s Joint All-Domain Command and Control vision after demonstrating critical capabilities during the U.S. DoD’s Valiant Shield 22 exercises.
Raytheon Missiles & Defense
Raytheon Missiles & Defense provides the industry’s most advanced end-to-end solutions to detect, track and engage threats.
Down-selected by the U.S. Missile Defense Agency to develop the Glide Phase Interceptor, the first interceptor specifically designed to defeat hypersonic threats
Earned a $972 million contract for upgraded AMRAAM missiles from the U.S. Air Force and Navy and international customers.
Completed the second successful test flight of the Hypersonic Air-breathing Weapon Concept for DARPA and the U.S. Air Force, in partnership with Northrop Grumman
Awarded a $648 million contract for the latest SM-3 defensive interceptor variant, Block IIA—a defensive interceptor weapon capable of destroying short- to intermediate-range ballistic missiles
Selected by the U.S. Navy to provide new radars, which simultaneously track enemy missiles and planes, to every new surface ship in its fleet, a $651 million contract with options that could bring the total value to $3.16 billion.
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