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RTX Financial Insights: 2024 Performance Review

RTX Corporation, a leader in aerospace and defense, recently unveiled its robust financial results for the fourth quarter and full year of 2024. The company demonstrated remarkable growth and profitability, exceeding market expectations.

In the fourth quarter of 2024, RTX reported sales of $21.6 billion, marking a 9% increase compared to the previous year. Notably, the organic sales growth, which excludes any effects from divestitures, was even more impressive at 11%. This growth can be attributed to the increasing demand for RTX's products and solutions across its various segments.

The company's GAAP earnings per share (EPS) for the fourth quarter were $1.10. However, after making adjustments for acquisition accounting and other non-recurring charges, the adjusted EPS reached $1.54, a significant increase of 19% from the previous year. This reflects not just sales growth but also enhanced operating efficiency and margin expansion across its segments.

For the entire year of 2024, RTX's reported sales totaled approximately $80.7 billion, an increase of 17% year on year. Adjusted sales for the year were similarly robust at $80.8 billion, with an identical 9% rise compared to 2023. This upward trajectory in revenue underscores RTX's solid market position and effective strategy across its operating segments, which include Collins Aerospace, Pratt Whitney, and Raytheon.

Operating cash flow for Q4 stood at $1.6 billion, with free cash flow calculated at $0.5 billion. This robust cash generation permits RTX to continue returning capital to its shareholders, with an impressive $852 million returned in the fourth quarter alone. Cumulatively, the company has returned over $3.7 billion to shareholders in 2024, reinforced by a substantial backlog worth $218 billion as of year-end.

Moving forward, RTX is optimistic about its financial outlook for 2025. The company anticipates adjusted sales to reach between $83 billion to $84 billion, reflecting organic growth of 4% to 6%. The projected adjusted EPS for 2025 is expected to fall between $6.00 and $6.15, mirroring the company’s strategy to leverage its strong market position and innovative capabilities to drive revenue. To complement these forecasts, RTX expects free cash flow to be approximately $7.0 to $7.5 billion.

Chris Calio, RTX President and CEO, stated, "RTX delivered a very strong year of performance in 2024 with 11 percent organic sales growth and 13 percent adjusted EPS growth, including segment margin expansion across all three business units. We have strong momentum heading into 2025 with a significant backlog and unprecedented demand for our solutions."

With continued focus on innovation and execution of strategic priorities, RTX is poised for further success in 2025 and beyond. The company remains committed to enhancing shareholder value while simultaneously addressing critical global challenges through its advanced products and services.

As RTX embarks on a new year, stakeholders can look ahead confidently at the potential growth and developments that lie within this dynamic aerospace and defense powerhouse.