RTX (RTX) Barclays 42nd Annual Industrial Select Conference summary

2024 performance and 2025 outlook

• Achieved $80 billion in 2024 sales and ended the year with a $218 billion backlog, indicating strong demand across all business segments.

• 2025 guidance remains unchanged: $83–$84 billion in sales, EPS of $6–$6.15, and free cash flow of $7–$7.5 billion.

• Priorities include executing on customer commitments, investing $7.5 billion in E&D and $2.5 billion in CapEx, and leveraging scale for productivity.

• Focus on driving innovation in both product design and manufacturing processes.

• Emphasis on using a core operating system to drive efficiency and cost competitiveness across all businesses.

Business segment priorities and market dynamics

• Collins Aerospace targets structural cost reduction and margin expansion, preparing for production ramp-ups at Boeing and Airbus.

• Pratt & Whitney focuses on executing the GTF fleet management plan, improving aftermarket margins, and supporting military engine programs.

• Raytheon is prioritizing backlog execution, supply chain resilience, and capacity expansion, with a growing international sales mix.

• Commercial OE and aftermarket demand remain strong, with commercial aftermarket expected to grow around 10%.

• Defense backlog at Raytheon stands at $63 billion, with 85% of 2025 sales already in backlog.

Supply chain, tariffs, and risk management

• Tariffs are not currently factored into guidance; situation is monitored closely for potential impact.

• Supply chain resilience has improved through global partnerships, new supplier qualifications, and dual/triple sourcing.

• Material flow, especially powder metal and structural castings, is critical for meeting production and MRO targets.

• Capacity investments at Raytheon and stabilization in supply chains support ramp-up needs.