RTX Financial Analysis

Analysis Date: 1/29/2025

Business Model

RTX generates revenue through three main business segments: Collins Aerospace, Pratt & Whitney, and Raytheon

Revenue Sources

• Collins Aerospace - Commercial aerospace systems, avionics, interiors, mechanical systems
• Pratt & Whitney - Commercial and military aircraft engines, maintenance services
• Raytheon - Defense systems, missiles, radars, command and control systems

Revenue Distribution by Channel

• Commercial Aerospace: ~50% of revenue
• Defense & Government: ~50% of revenue

Income Statement Analysis

• Organic sales growth of 11% driven by strong commercial aerospace and defense demand
• Operating margin expanded 90 basis points year-over-year on improved execution and productivity

Balance Sheet Analysis

• Balance sheet remains strong with $5.6B in cash and $218B total backlog

Cash Flow Analysis

• Generated $4.5B in free cash flow for full year 2024

Recommendation

Rating: Buy

Reason for Rating: Strong execution, record backlog and improving margins support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/29/2025, 7:30:12 AM