Company and Industry Overview * **Company**: RTX Corporation (NYSE:RTX) * **Industry**: Aerospace and Defense * **Event**: Morgan Stanley's 12th Annual Laguna Conference Call * **Date**: September 11, 2024 Key Points RTX Performance and Outlook * **First Half Performance**: RTX is pleased with its performance in the first half of the year, with strong results across all three business units. The company is still tracking to its full-year guidance. * **Demand**: RTX is experiencing strong demand in both the commercial aerospace and defense sectors. The company has a $206 billion backlog, which is healthy on both sides. * **Focus**: RTX's focus is on executing on this demand, delivering products at the right cost, quality, and on time. Strategic Priorities * **Executing on Commitments**: RTX is focused on improving quality, delivery, and efficiency through its core operating system and supply chain management. * **Innovating for Future Growth**: The company is investing $7.5 billion in research and development (R&D) to drive innovation and future growth. This includes initiatives in next-generation propulsion, connected factories, and technology synergies. * **Leveraging Scale and Breadth**: RTX is leveraging its scale and breadth to realize synergies and drive better cost and performance across its business units. Next-Generation Propulsion * **Hybrid Electric Demonstrator**: RTX is investing in a hybrid electric demonstrator collaboration between Collins and Pratt & Whitney, targeting the smaller aircraft segment. * **GTF Advantage**: The GTF Advantage program is progressing well, with a focus on durability and performance. * **F-135 Engine Core Upgrade**: The F-135 engine core upgrade program is on track, ensuring the F-35 remains relevant for future combat. Aerospace and Defense End Markets * **Commercial Aerospace**: RTX expects continued demand for new aircraft, with a projected 3% to 5% annual passenger kilometers (RPK) growth. The commercial aftermarket remains strong, driven by a large installed base of out-of-warranty aircraft. * **Defense**: The defense sector is experiencing strong demand, driven by global security concerns and increased spending by the US and its allies. Raytheon is well-positioned to meet this demand with its product portfolio and pipeline of future franchises. Collins Aerospace * **Leadership Change**: There has been a change in leadership at Collins Aerospace, but there is no change in strategy. Collins is off to a strong start in 2024, with 9% organic sales growth and margin expansion. * **Cost Reduction**: Collins has ongoing cost reduction initiatives, including the removal of ERP systems and the establishment of centers of excellence. Pratt & Whitney * **GTF Fleet Management Plan**: The GTF fleet management plan is progressing well, with a focus on improving material flow and turnaround times. * **V2500**: The V2500 engine continues to be a strong contributor to Pratt's earnings, with a large installed base and strong aftermarket demand. * **Military Engines**: Pratt's military engine business is strong, with significant positions on priority platforms such as the F-35 and B-21. Raytheon Defense * **Backlog Conversion**: Raytheon has a strong backlog of $51 billion, but there are challenges in converting this backlog into revenue. These challenges include material flow, capacity, and development programs. * **Margin Expansion**: Raytheon is focused on improving productivity and efficiency to drive margin expansion. Capital Return * **Capital Allocation**: RTX remains committed to its capital return strategy, which includes deleveraging, growing the dividend, and returning capital to shareholders through share repurchases. Portfolio and Integration * **Portfolio**: RTX's portfolio is compelling, with strong positions in Collins, Pratt, and Raytheon. The company is focused on driving synergies and improving performance across the portfolio. * **Integration**: The integration of Raytheon into RTX is complete, and the company is now focused on execution and driving value from the combined portfolio. Innovation and Technology * **Technology Roadmap**: RTX has a robust technology roadmap, focusing on areas such as sustainability, advanced propulsion, connected battlespace, and enabling technologies. * **Sustainability**: RTX is investing in sustainability initiatives across its business units, including Collins and Pratt. Conclusion RTX is well-positioned to continue its strong performance in the aerospace and defense sectors. The company's strategic priorities, focus on innovation, and compelling portfolio position it for future growth and success.

RTX Corp.'s (RTX) business segment, Pratt & Whitney, recently clinched a modification contract for the F-35 fighter jet's propulsion system. The award has been offered by the Naval Air Systems Command, Patuxent River, MD. Details of the Deal Valued at $111.9 million, the contract is projected to be completed by December 2026. Per the terms of the deal, RTX will offer continued technical engineering, flight test support, special tooling, test equipment repair, as well as flight test spare and repair parts fo ...

RTX Corporation's (RTX) business division, Pratt and Whitney Military Engines, recently secured a modification contract valued at $405.3 million. The latest modification will enable RTX to procure spares to produce and deliver the F135 propulsion system for the F-35 fighter jet. The contract will serve the U.S. Air Force, Marine Corps, Navy, non-Department of Defense participants, F-35 Cooperative Program Partners and foreign military sales customers. The majority of work related to this award will be carri ...

RTX Corp.'s (RTX) shares have surged an impressive 46.6% in the year-to-date period, outperforming the Zacks Aerospace-Defense industry, the broader Zacks Aerospace sector and the S&P 500. As a prominent missile manufacturer, RTX rides on solid defense order growth, growing commercial air traffic as well as a solid financial position. A similar stellar performance has been offered by other defense players such as Lockheed Martin (LMT) , Leidos Holdings (LDOS) and TransDigm Group (TDG) , whose shares have wi ...

Lockheed Martin Corporation (LMT) and Raytheon, part of RTX Corporation (RTX) , have been awarded a $1.3 billion follow-on contract by the U.S. Army for Javelin missiles. These missiles have played a significant role in Ukraine's defense. This latest agreement, which builds on a larger contract from last year, could total up to $7.2 billion for an indefinite quantity of missiles between 2023 and 2026. The companies have been increasing Javelin production to meet rising demand and aim to achieve an annual ma ...

As insider traders continue using their position and exclusive information to trade stocks to their advantage, the most recent development related to Raytheon Technologies (NYSE: RTX) could benefit multiple politicians on both sides of the United States political arena. Specifically, Raytheon has just landed a $1 billion contract with the U.S. Air Force to provide "Group B hardware, spares, and support equipment," which should significantly impact the defense contractor's stock price and, by extension, bene ...

RTX Corp. (RTX) recently clinched a contract involving its Next Generation Jammer Mid-Band (NGJ-MB) System. The award has been provided by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA. Details of the Deal Secured by RTX Valued at $27.7 million, the contract is expected to be completed by August 2026. Per the terms of the deal, RTX will be involved in the repair of several components used in the NGJ-MB System used on the F/A-18 aircraft. A major portion of the work related to thi ...

Radar proves its long-range target detection ability HONOLULU, Aug. 28, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, successfully demonstrated the SeaVue Multi-role Radar's superior long-range target detection at the U.S. Navy's Exercise Rim of the Pacific (RIMPAC) – the world's largest international maritime exercise. Performing a Sink Exercise, or SINKEX, an MQ-9B SeaGuardian® Unmanned Aircraft System from General Atomics Aeronautical Systems, Inc. used SeaVue Multi-role Radar (SVMR) survei ...

ARLINGTON, Va., Aug. 28, 2024 /PRNewswire/ -- RTX (NYSE: RTX) President and CEO Chris Calio will speak at the Morgan Stanley 12th Annual Laguna Conference on Wednesday, Sept. 11 at 11:45 a.m. Eastern Time. The presentation will be broadcast live at www.rtx.com and will be archived on the website afterward. About RTX With more than 185,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace ...

Both of these defense stalwarts have strong bull arguments right now. As tensions continue to run high in multiple areas around the globe, the goods and services of defense companies will, undoubtedly, remain in high demand. Of the many choices, two common considerations that are often found on the radars of those seeking a defense investment are RTX (RTX 0.67%) and Lockheed Martin (LMT 0.41%). Let's see how two fool.com contributors break down the bull cases for each stock. This aerospace and defense giant ...