RTX (RTX) investor relations material

Business overview and market positioning

• Achieved $88 billion in sales last year with strong demand in both commercial and defense sectors.

• Operates through three main units: Pratt & Whitney (engines), Collins Aerospace (aircraft systems), and Raytheon (defense systems).

• Collins holds top market positions on 70% of its portfolio and has a $105 billion installed base.

• Raytheon systems provide protection to over 50 countries, demonstrating global reach.

• Pratt & Whitney's geared turbofan engine has 8,000 engines in backlog and significant aftermarket potential.

Strategic priorities and execution

• Focused on executing a $271 billion backlog, emphasizing innovation and leveraging scale.

• Investing $10 billion in engineering, development, and capital expenditures this year.

• Driving cost and technology synergies across commercial and defense businesses.

• Pentagon seeks more commercial tech integration into defense, benefiting from company’s dual-sector presence.

• Margin expansion and strong free cash flow are key financial goals.

Defense sector outlook and supply chain

• U.S. defense budget surpassing $1 trillion signals sustained demand for munitions and systems.

• Five framework agreements with the Pentagon for long-term munitions supply, not yet in backlog.

• Frameworks provide seven-year firm demand, supporting supply chain investment and stability.

• Ongoing ramp-up includes qualifying 150 new suppliers in 2025 and investing in capacity.

• Addressing supply chain constraints in rocket motors, castings, and microelectronics with new suppliers and funding.