Executive Summary
RTX generated solid top-line growth in QQ4 2024, with revenue of 21.623 billion USD, up approximately 8.5% year-over-year and 7.6% quarter-over-quarter. The company posted a gross profit of 4.235 billion USD and an operating income of 2.111 billion USD, yielding an operating margin of about 9.76% and a net income of 1.482 billion USD (net margin â 6.85%). Earnings per share stood at 1.11 (diluted 1.10). EBITDA reached 3.662 billion USD, underscoring robust cash-generation characteristics even as RTX manages a multi-year program mix spanning Collins Aerospace, Pratt & Whitney, and Raytheon technologies. Free cash flow for the quarter was 492 million USD, with operating cash flow of 1.561 billion USD and capital expenditures of 1.069 billion USD. The balance sheet remains cash-rich with cash and cash equivalents of 5.578 billion USD and total debt of 42.893 billion USD, producing a net debt of 37.315 billion USD. The company paid 802 million USD in dividends and repurchased 50 million USD of stock during the period, while debt repayments totaled 835 million USD. The payout ratio on earnings stood at roughly 54%.
Key Performance Indicators
Key Insights
Revenue: 21.623B, YoY growth 8.51%, QoQ growth 7.64%; Gross Profit: 4.235B, Gross Margin â 19.59%; Operating Income: 2.111B, Operating Margin â 9.76%; Net Income: 1.482B, Net Margin â 6.85%; EBITDA: 3.662B; EPS: 1.11 (GAAP), Diluted 1.10; Free Cash Flow: 492M; Operating Cash Flow: 1.561B; Capital Expenditures: 1.069B; Net Debt: 37.315B; Cash Balance: 5.606B; Current Ratio: 0.993; Quick Ratio: 0.745; Cash Ratio: 0.108; Dividend Payout: 0.541 of earnings (~54.1%); ROE: 2.46%; ROA: 0.91%; ROC...
Financial Highlights
Revenue: 21.623B, YoY growth 8.51%, QoQ growth 7.64%; Gross Profit: 4.235B, Gross Margin â 19.59%; Operating Income: 2.111B, Operating Margin â 9.76%; Net Income: 1.482B, Net Margin â 6.85%; EBITDA: 3.662B; EPS: 1.11 (GAAP), Diluted 1.10; Free Cash Flow: 492M; Operating Cash Flow: 1.561B; Capital Expenditures: 1.069B; Net Debt: 37.315B; Cash Balance: 5.606B; Current Ratio: 0.993; Quick Ratio: 0.745; Cash Ratio: 0.108; Dividend Payout: 0.541 of earnings (~54.1%); ROE: 2.46%; ROA: 0.91%; ROCE: 1.90%; Debt/Capital: 40.3%; Interest Coverage: 4.11x; Price/Earnings: 25.99x; Price/Book: 2.56x; Dividend Yield: 0.52%; Free Cash Flow per Share: 0.369; Operating Cash Flow per Share: 1.170; Cash per Share: 4.18.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
21.62B |
8.51% |
7.64% |
| Gross Profit |
4.24B |
5.64% |
4.98% |
| Operating Income |
2.11B |
18.80% |
4.09% |
| Net Income |
1.48B |
3.93% |
0.68% |
| EPS |
1.11 |
5.71% |
0.91% |
Key Financial Ratios
operatingProfitMargin
9.76%
operatingCashFlowPerShare
$1.17
freeCashFlowPerShare
$0.37
dividendPayoutRatio
54.1%
Management Commentary
Note: The earnings call transcript was not provided in the input data. Summary themes are drawn from RTX's publicly filed results and typical management commentary on quarterly calls: (1) emphasis on portfolio mix balance between defense and commercial aerospace, (2) ongoing cost-control and efficiency initiatives to protect margin amid mixed program timing, (3) focus on free cash flow generation and disciplined capital allocation, including dividends and modest share repurchases, (4) continued attention to working capital dynamics given a long cash conversion cycle, and (5) potential margin benefits from favorable program mix and aftermarket services.
Forward Guidance
RTX did not publish explicit numeric full-year guidance for QQ4 2024 in the provided materials. The qualitative outlook centers on continued demand across defense programs and aftermarket services, with an expectation that free cash flow generation will support debt reduction, dividends, and selective capital investment. Key factors to monitor include: trajectory of defense budgets and new award activity, production rates for engine programs in Pratt & Whitney, service revenue growth in Collins Aerospace, supply chain cost dynamics, and foreign currency exposure given international operations. Achievability of a balanced mix-driven margin trajectory depends on program timing, cost-control execution, and continued favorable aftermarket demand.