Raytheon Technologies (RTX) reported Q3 earnings today, with positive results. Sales of $20.1 billion were up 6 percent versus last year, and adjusted EPS of $1.45 was up 16 percent y-o-y. The company raised its full-year guidance for sales to $79.25 to $79.75 billion, up from $78.75 to $79.5 billion previously reported.  Full-year adjusted Earnings per Share guidance is now between $5.50-$5.58, up from $5.35 to $5.45, as shown in the table below:
“RTX delivered another strong quarter of organic sales growth, adjusted segment margin expansion, and free cash flow,” said RTX President and CEO Chris Calio. “Demand across our portfolio, particularly within commercial aftermarket and defense, remains robust and gives us the confidence to again raise our full year outlook for adjusted sales and adjusted EPS.”
“With a record $221 billion backlog, we are focused on executing our strategic priorities to drive best-in-class performance, deliver for our customers and create long-term share-owner value.”
Collins Aerospace
Collins Aerospace reported third-quarter 2024 sales of $7,075 million, up 7 percent versus the prior year. The increase in sales was driven by a 14 percent increase in defense and a 9 percent increase in commercial aftermarket, partially offset by an 8 percent decrease in commercial OE.
The division reported operating profit of $1,062 million, up 18 percent versus the prior year. The increase in operating profit was driven by a drop-through on higher commercial aftermarket and defense volume. This increase was partially offset by lower commercial OE volume, unfavorable commercial OE mix, and higher R&D expense.
Pratt & Whitney
Pratt & Whitney reported third-quarter 2024 sales of $7,239 million. Adjusted sales of $7,239 million were up 14 percent versus the prior year, driven by a 13 percent increase in commercial aftermarket, a 20 percent increase in military, and a 9 percent increase in commercial OE.
Engine deliveries were lower for the quarter at 252 vs. 261 last year. However, they are up from the year’s earlier quarters (232 in 1Q, 236 in Q2). Annual projections are for 720 vs. 619 last year.
The division reported operating profit of $557 million, up from the prior year. Operationally, the increase was driven by drop-through on higher commercial aftermarket and military volume. On an adjusted basis, operating profit of $597 million was up 45 percent from the prior year, which included charges related to the powdered metal issues on the GTF engine family. The resolution of those issues appears to continue to be on target.
Raytheon
Raytheon had third quarter 2024 reported sales of $6,386 million, down 1 percent versus the prior year. The higher volume of land and air defense systems, including Global Patriot, NASAMS, and counter-UAS programs, and the higher volume of advanced technology programs was more than offset by the impact of the divestiture of the Cybersecurity, Intelligence, and Services business.  Raytheon reported an operating profit of $647 million, up 16 percent versus the prior year.
The Bottom Line
RTX had a positive third quarter, with no surprises, and has raised guidance for the full year. Year-over-year growth and strong operational results bode well for a stronger 2024. Presentation slides and the Raytheon earnings conference call replay are available here.