RTX (RTX) Morgan Stanley‘s 12th Annual Laguna Conference 2024 summary

Business performance and outlook

• Strong performance in the first half of the year across all three business units, with full-year guidance on track.

• $206 billion backlog, with robust demand in both commercial aerospace and defense segments.

• No change to financial outlook or operational assumptions for the year.

• Focus on executing commitments, supply chain improvements, and building capacity to meet demand.

• Continued quarter-over-quarter improvement in supply chain and capacity investments in key locations.

Strategic priorities and innovation

• Three key priorities: executing commitments, innovating for future growth, and leveraging scale.

• $7.5 billion investment in customer and company-funded R&D this year, with 14 cross-technology roadmaps.

• Connected factory initiative aims to connect 40 factories by year-end, enhancing digital and operational efficiency.

• Focus on sharing technology and cost synergies across business units, with 35% common procurement spend.

• Centralized cost management and technology sharing to drive performance.

Technology and product development

• Advancements in next-gen propulsion: hybrid electric demonstrator, GTF Advantage, and F135 engine core upgrade.

• GTF Advantage targets 4% more thrust and 1% better fuel efficiency, with a focus on engine durability.

• Military engine upgrades keep platforms like the F-35 relevant for future needs.

• Investment in enabling technologies such as ceramic matrix composites and heat dissipation.

• Centralized research center and 60,000 engineers drive broad technology applicability.