RTX’s second quarter 2024 (QQ2) delivered a resilient top line and meaningful margin expansion across its three reportable segments (Collins Aerospace, Pratt & Whitney, Raytheon). Adjusted sales reached $19.8 billion, up 8% year over year on an organic basis of 10%, while adjusted EPS rose 9% to $1.41, supported by operating profit gains across segments and a lower share count. Free cash flow remained strong at $2.2 billion, underscoring RTX’s ability to convert earnings into liquidity even as it navigates legacy legal matters and a higher cash tax/expense environment. RTX ended Q2 with a backlog of $206 billion and a book-to-bill of 1.25, signaling sustained demand across commercial, defense, and space programs.
Management highlighted a robust order flow including a 10-year MRO agreement supporting Air Canada’s 787 fleet, a multibillion-dollar U.S. Air Force award for survivable airborne operations centers, and SPY6 radar production awards for the U.S. Navy. Farnborough activity yielded over 700 GTF engine orders and additional win backs, reinforcing RTX’s position in next‑generation propulsion. The company also reaffirmed progress on high‑priority initiatives (GTF fleet management, Industry 4.0 digital transformation, and AI-enabled productivity) and announced capacity expansions (carbon brake facility in Spokane; two new MRO shops) to meet near-term demand surges.
RTX cautioned that GAAP results were affected by legacy legal and contract-related charges, and management updated full-year financial targets to reflect these matters. Adjusted metrics show a healthier underlying operating trajectory, but investors should monitor the legal settlements, powder metal program cost outlays, and the rate trajectory for OE production as key drivers of cash generation and profitability in the back half of 2024 and into 2025.