Raytheon Technologies Reports Q1 2023 Results – PR Newswire

RTX delivers 10% gross sales expansion and robust phase working benefit expansion; Q1 book-to-bill of one.25 with an RTX file backlog of $180B

ARLINGTON, Va., April 25, 2023 /PRNewswire/ — Raytheon Technologies Company (NYSE: RTX) reported first quarter 2023 effects.

First quarter 2023

• Gross sales of $17.2 billion, up 10 % as opposed to prior 12 months together with 10 % natural expansion
• GAAP EPS from proceeding operations of $0.97, up 31 % as opposed to prior 12 months, which incorporated $0.25 of acquisition accounting changes and web vital and/or non-recurring fees
• Adjusted EPS of $1.22, up 6 % as opposed to prior 12 months
• Running money outflow from proceeding operations of $863 million; Loose money outflow of $1,383 million
• Corporate backlog of $180 billion; together with $71 billion of protection and $109 billion of industrial
• Completed roughly $50 million of incremental RTX gross value synergies
• Repurchased $562 million of RTX stocks

Reaffirms outlook for complete 12 months 2023

• Gross sales of $72.0 – $73.0 billion
• Adjusted EPS of $4.90 – $5.05
• Loose money waft of roughly $4.8 billion
• Percentage repurchase of $3.0 billion of RTX stocks

“Our 12 months is off to a powerful get started, together with cast top- and bottom-line efficiency. Persisted international airline trip and protection programs call for level to sustained height line expansion, as evidenced by means of $21 billion in new orders and a file backlog of $180 billion throughout our industry-leading portfolio,” stated Raytheon Technologies Chairman and CEO Greg Hayes.

“Our in the past introduced industry realignment, which is on target for July, will liberate further worth as we extra absolutely combine our groups and functions to pressure advanced buyer answers and operational efficiency.”

First quarter 2023

Raytheon Technologies reported first quarter gross sales of $17.2 billion, up 10 % over the prior 12 months. GAAP EPS from proceeding operations of $0.97 was once up 31 % as opposed to the prior 12 months and incorporated $0.25 of acquisition accounting changes and web vital and/or non-recurring fees. Adjusted EPS of $1.22 was once up 6 % as opposed to the prior 12 months.

The corporate recorded web source of revenue from proceeding operations on account of not unusual shareowners within the first quarter of $1.4 billion, up 29 % as opposed to the prior 12 months which incorporated $367 million of acquisition accounting changes and web vital and/or non-recurring fees. Adjusted web source of revenue was once $1.8 billion, up 4 % as opposed to prior 12 months. Running money waft from proceeding operations was once an outflow within the first quarter of $863 million. Capital expenditures had been $520 million, leading to unfastened money outflow of $1,383 million.

Backlog and Bookings
Backlog on the finish of the primary quarter was once $180 billion, of which $109 billion was once from industrial aerospace and $71 billion was once from protection.

Notable protection bookings all through the quarter incorporated:

• $1.9 billion of categorized bookings at Raytheon Intelligence & Area (RIS)
• $1.2 billion for Patriot Air Protection Device for Switzerland at Raytheon Missiles & Protection (RMD)
• $827 million of categorized bookings at RMD
• $650 million for Subsequent Technology Jammer manufacturing for the U.S. Army and Australia at RIS
• $619 million for SPY-6 manufacturing and sustainment for the U.S. Army at RMD
• $320 million for StormBreaker manufacturing for the U.S. Army and U.S. Air Power at RMD
• $308 million for F119 sustainment at Pratt & Whitney
• $275 million for missile monitoring satellite tv for pc constellation for the Area Building Company at RIS
• $266 million for airborne radar manufacturing for a global buyer at RIS
• $234 million for Naval Strike Missile manufacturing for the U.S. Army at RMD
• $224 million for F117 sustainment at Pratt & Whitney
• $217 million for Tanker a lot 8 & 9 at Pratt & Whitney
• $213 million for F135 sustainment at Pratt & Whitney
• $212 million for Excalibur manufacturing for the U.S. Military and global shoppers at RMD

Section Results
The corporate’s reportable segments are Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Area (RIS), and Raytheon Missiles & Protection (RMD).

Collins Aerospace had first quarter 2023 gross sales of $5,581 million, up 16 % as opposed to the prior 12 months. The rise in gross sales was once pushed by means of a 24 % build up in industrial aftermarket, a 12 % build up in industrial OE, and a 9 % build up in army. The rise in industrial gross sales was once pushed essentially by means of the ongoing restoration of air visitors which led to upper flight hours and better OE manufacturing charges.

Collins Aerospace recorded working benefit of $794 million, up 80 % as opposed to the prior 12 months. Q1 2022 working benefit incorporated the affect of impairment fees and reserve changes of $141 million associated with the Russia sanctions. Adjusted working benefit of $800 million within the first quarter of 2023 was once up 37 % as opposed to the prior 12 months. The rise in working benefit was once essentially pushed by means of upper industrial aftermarket quantity, in addition to favorable combine, which greater than offset upper manufacturing prices and SG&A expense.

Pratt & Whitney had first quarter 2023 gross sales of $5,230 million, up 15 % as opposed to the prior 12 months. The rise in gross sales was once pushed by means of a 27 % build up in industrial OE, a 14 % build up in industrial aftermarket and a 13 % build up in army gross sales. The rise in industrial gross sales was once essentially because of the ongoing industrial aftermarket restoration and better industrial OE quantity throughout each Huge Industrial Engines and Pratt & Whitney Canada. The rise in army gross sales was once pushed by means of the Q2 2022 F135 manufacturing contract award and better F135 sustainment quantity.

Pratt & Whitney recorded working benefit of $415 million, up 175 % as opposed to the prior 12 months. Q1 2022 working benefit incorporated the affect of impairment fees and reserve changes of $155 million associated with the Russia sanctions. Pratt & Whitney recorded adjusted working benefit of $434 million within the first quarter of 2023, up 41 % as opposed to the prior 12 months. The rise in working benefit was once essentially pushed by means of drop via on upper industrial aftermarket gross sales, a good contract subject and better army gross sales. This was once partly offset by means of upper industrial OE quantity.

RIS had first quarter 2023 gross sales of $3,565 million, flat as opposed to the prior 12 months pushed by means of decrease Command, Keep watch over and Communications systems, most commonly offset by means of upper Cyber and Products and services systems.

RIS recorded working benefit of $324 million, down 14 % as opposed to the prior 12 months. The lower in working benefit was once pushed by means of decrease web program efficiencies, which was once unfold throughout a lot of systems, without a particular person or vital driving force. On an adjusted foundation, working benefit was once down 13 % as opposed to the prior 12 months.

RMD had first quarter 2023 gross sales of $3,671 million, up 4 % as opposed to prior 12 months. The rise in gross sales was once essentially pushed by means of upper gross sales in Complicated Era and Air Energy systems.

RMD recorded working benefit of $328 million, down 15 % as opposed to the prior 12 months. The lower in working benefit was once pushed by means of decrease web program efficiencies and upper building program combine, partly offset by means of upper quantity. Decrease web program efficiencies incorporated the unfavourable affect of an important contract possibility exercised within the quarter. RMD recorded adjusted working benefit of $335 million, down 13 % as opposed to the prior 12 months.

About Raytheon Technologies
Raytheon Technologies is the sector’s greatest aerospace and protection corporate. Our international crew of 182,000 workers pushes the boundaries of identified science and redefines how we attach and give protection to our international. We’re advancing aviation, development smarter protection programs and growing inventions to take us deeper into house. The corporate, with 2022 gross sales of $67 billion, is headquartered in Arlington, Virginia.

Convention Name at the First Quarter 2023 Monetary Results
Raytheon Technologies’ monetary effects convention name can be hung on Tuesday, April 25, 2023 at 8:30 a.m. ET. The convention name can be webcast continue to exist the corporate’s website online at www.rtx.com and can be to be had for replay following the decision. The corresponding presentation slides can be to be had for downloading previous to the decision.

Use and Definitions of Non-GAAP Monetary Measures
Raytheon Technologies Company (“RTC”) stories its monetary leads to accordance with accounting rules normally accredited in the USA (“GAAP”).

We complement the reporting of our monetary data made up our minds below GAAP with sure non-GAAP monetary data. The non-GAAP data introduced supplies traders with further helpful data, however will have to now not be thought to be in isolation or as substitutes for the linked GAAP measures. Additionally, different corporations would possibly outline non-GAAP measures another way, which limits the usefulness of those measures for comparisons with such different corporations. We inspire traders to check our monetary statements and publicly-filed stories of their entirety and to not depend on any unmarried monetary measure.

Adjusted web gross sales, natural gross sales, adjusted working benefit (loss), adjusted web source of revenue, adjusted income according to percentage (“EPS”), and unfastened money waft are non-GAAP monetary measures. Adjusted web gross sales represents consolidated web gross sales (a GAAP measure), apart from vital nonoperational pieces and/or vital operational pieces that can happen at abnormal durations (hereinafter known as “web vital and/or non-recurring pieces”). Natural gross sales represents consolidated web gross sales (a GAAP measure), apart from the affect of foreign currency echange translation, acquisitions and divestitures finished within the previous 365 days and web vital and/or non-recurring pieces. Adjusted working benefit (loss) represents working benefit (loss) (a GAAP measure), apart from restructuring prices, acquisition accounting changes and web vital and/or non-recurring pieces. Acquisition accounting changes come with the amortization of bought intangible belongings associated with acquisitions, the amortization of the valuables, plant and gear honest worth adjustment bought via acquisitions, the amortization of shopper contractual tasks associated with loss making or under marketplace contracts bought, and goodwill impairment.

Adjusted web source of revenue represents web source of revenue from proceeding operations (a GAAP measure), apart from restructuring prices, acquisition accounting changes and web vital and/or non-recurring pieces. Adjusted EPS represents diluted income according to percentage from proceeding operations (a GAAP measure), apart from restructuring prices, acquisition accounting changes and web vital and/or non-recurring pieces. For the Trade segments, when appropriate, changes of web gross sales in a similar fashion mirror proceeding operations apart from different vital pieces, natural gross sales in a similar fashion excludes the affect of foreign currency echange, acquisitions and divestitures, and web vital and/or non-recurring pieces, and changes of working benefit (loss) and working benefit margins (additionally known as go back on gross sales (ROS)) in a similar fashion mirror proceeding operations, apart from restructuring, acquisition accounting changes and web vital and/or non-recurring pieces.

Loose money waft is a non-GAAP monetary measure that represents money waft from operations (a GAAP measure) much less capital expenditures. Control believes unfastened money waft is an invaluable measure of liquidity and an extra foundation for assessing RTC’s skill to fund its actions, together with the financing of acquisitions, debt provider, repurchases of RTC’s not unusual inventory and distribution of income to shareowners.

A reconciliation of the non-GAAP measures to the corresponding quantities ready according to GAAP seems within the tables on this Appendix. The tables supply more information as to the pieces and quantities which were excluded from the adjusted measures.

After we supply our expectation for adjusted EPS and unfastened money waft on a forward-looking foundation, a reconciliation of the variations between the non-GAAP expectancies and the corresponding GAAP measures (anticipated diluted EPS from proceeding operations and anticipated money waft from operations, respectively) normally isn’t to be had with out unreasonable effort because of doubtlessly top variability, complexity, and coffee visibility as to the pieces that might be excluded from the GAAP measure within the related long run duration, corresponding to extraordinary beneficial properties and losses, without equal result of pending litigation, fluctuations in foreign currency echange trade charges, the affect and timing of doable acquisitions and divestitures, and different structural adjustments or their possible importance. The variety of the excluded pieces will have an important, and doubtlessly unpredictable, affect on our long run GAAP effects.

Cautionary Commentary Relating to Ahead-Taking a look Statements
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Ahead- searching statements would possibly come with, amongst different issues, statements in relation to long run gross sales, income, money waft, result of operations, makes use of of money, percentage repurchases, tax bills and charges, analysis and building spending, value financial savings, different measures of economic efficiency, doable long run plans, methods or transactions, credit score scores and web indebtedness, different expected advantages to RTC of the United Technologies Company (“UTC”) acquisition of Rockwell Collins in 2018, the merger (the “merger”) between UTC and Raytheon Corporate (“Raytheon”)) or the spin-offs by means of UTC of Otis International Company and Provider World Company into separate unbiased corporations (the “separation transactions”), together with estimated synergies and buyer value financial savings because of the merger and the expected advantages and prices of the separation transactions and different statements that don’t seem to be only ancient info. All forward-looking statements contain dangers, uncertainties and different components that can reason precise effects to range materially from the ones expressed or implied within the forward-looking statements. For the ones statements, we declare the safety of the secure harbor for forward- searching statements contained within the U.S. Non-public Securities Litigation Reform Act of1995. Such dangers, uncertainties and different components come with, with out limitation: (1) the impact of adjustments in financial, capital marketplace and political stipulations within the U.S. and globally, corresponding to from the worldwide sanctions and export controls with appreciate to Russia, and any adjustments therein, together with associated with monetary marketplace stipulations, financial institution disasters and different banking {industry} disruptions, fluctuations in commodity costs or provide (together with power provide), inflation, rates of interest and foreign currency echange trade charges, disruptions in international provide chain and hard work markets, and geopolitical dangers; (2) dangers related to U.S. govt gross sales, together with adjustments or shifts in protection spending because of budgetary constraints, spending cuts because of sequestration, a unbroken answer, a central authority shutdown, the debt ceiling or measures taken to keep away from default, or differently, and unsure investment of systems; (3) demanding situations within the building, manufacturing, supply, improve, and function of RTC complicated applied sciences and new services and the belief of the expected advantages (together with our anticipated returns below buyer contracts), in addition to the demanding situations of working in RTC’s highly- aggressive industries; (4) dangers in relation to RTC’s reliance on U.S. and non-U.S. providers and commodity markets, together with the impact of sanctions, delays and disruptions within the supply of fabrics and products and services to RTC or its providers and worth will increase; (5) dangers in relation to RTC global operations from, amongst different issues, adjustments in business insurance policies and implementation of sanctions, foreign currency echange fluctuations, financial stipulations, political components, gross sales strategies, and U.S. or native govt laws; (6) the situation of the aerospace {industry}; (7) the power of RTC to draw, teach and retain certified team of workers and deal with its tradition and top moral requirements, and the power of our team of workers to proceed to perform our amenities and companies around the globe; (8) the impact of and dangers in relation to the coronavirus illness 2019 (COVID-19) pandemic on RTC’s industry, provide chain, operations and the industries wherein it operates, together with the lower in international air trip, and the timing and extent of the continued restoration from COVID-19; (9) the scope, nature, timing and demanding situations of managing acquisitions, investments, divestitures and different transactions, together with the belief of synergies and alternatives for expansion and innovation, the belief of liabilities and different dangers and incurrence of linked prices and bills; (10) compliance with criminal, environmental, regulatory and different necessities, together with, amongst different issues, export and import necessities such because the World Visitors in Fingers Rules and the Export Management Rules, anti-bribery and anticorruption necessities, such because the International Corrupt Practices Act, business cooperation settlement tasks, and procurement and different laws within the U.S. and different nations wherein RTC and its companies perform; (11) the end result of pending, threatened and long run criminal complaints, investigations and different contingencies, together with the ones associated with U.S. govt audits and disputes; (12) components that might affect RTC’s skill to have interaction in fascinating capital-raising or strategic transactions, together with its capital construction, ranges of indebtedness, capital expenditures and analysis and building spending, and the provision of credit score, credit score marketplace stipulations together with the price of debt, and different components; (13) uncertainties related to the timing and scope of long run repurchases by means of RTC of its not unusual inventory or declarations of money dividends, that could be discontinued, sped up, suspended or not on time at any time because of more than a few components, together with marketplace stipulations and the extent of alternative making an investment actions and makes use of of money; (14) the dangers in relation to knowing anticipated advantages from RTC strategic tasks corresponding to value relief, restructuring, virtual transformation and different operational tasks; (15) dangers in relation to the combination of the legacy companies of UTC and RTC in addition to the merger, and the belief of the expected advantages of the ones transactions; (16) dangers of extra tax exposures because of new tax law or different trends, within the U.S. and different nations wherein RTC and its companies perform; (17) dangers in relation to RTC product efficiency, together with high quality, reliability or sturdiness, (18) dangers in relation to a RTC product protection failure or different failure affecting RTC’s or its shoppers’ or providers’ merchandise or programs; (19) dangers in relation to cyber-attacks on RTC’s data era infrastructure, merchandise, providers, shoppers and companions, threats to RTC amenities and team of workers, in addition to different occasions out of doors of RTC’s keep an eye on corresponding to public well being crises, destructive climate or different acts of nature; (20) the impact of adjustments in accounting estimates for our systems on our monetary effects; (21) the impact of adjustments in pension and different postretirement plan estimates and assumptions and contributions; (22) dangers in relation to an impairment of goodwill and different intangible belongings; (23) the consequences of weather alternate and converting climate-related laws, buyer and marketplace calls for, merchandise and applied sciences; and (24) the supposed qualification of (i) the merger as a tax-free reorganization and (ii) the separation transactions and different inside restructurings as tax-free to UTC and previous UTC shareowners, in every case, for U.S. federal source of revenue tax functions. For additional info on figuring out components that can reason precise effects to change materially from the ones mentioned in forward-looking statements, see the stories of RTC, UTC and Raytheon on Paperwork S-4, 10-Okay, 10-Q and 8-Okay filed with or furnished to the Securities and Alternate Fee every so often. Any forward-looking observation speaks handiest as of the date on which it’s made, and RTC assumes no legal responsibility to replace or revise such observation, whether or not on account of new data, long run occasions or differently, with the exception of as required by means of appropriate legislation.

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SOURCE Raytheon Technologies