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Mar 31, 2022

Raytheon Q1 2022 Earnings Report

Reported strong EPS growth and margin expansion driven by Commercial Aerospace.

Key Takeaways

Raytheon Technologies reported a 3% increase in sales to $15.7 billion, with a 4% organic growth. GAAP EPS from continuing operations increased by 45% to $0.74, and adjusted EPS rose by 28% to $1.15. The company's free cash flow was $37 million, and they repurchased $743 million of RTX shares.

Sales of $15.7 billion, up 3 percent versus prior year including 4 percent organic growth

GAAP EPS from continuing operations of $0.74, up 45 percent versus prior year

Adjusted EPS of $1.15, up 28 percent versus prior year

Free cash flow of $37 million

Total Revenue
$15.7B
Previous year: $15.3B
+3.0%
EPS
$1.15
Previous year: $0.9
+27.8%
Gross Profit
$3.16B
Previous year: $2.71B
+16.3%
Cash and Equivalents
$6.04B
Previous year: $8.58B
-29.6%
Free Cash Flow
$37M
Previous year: $336M
-89.0%
Total Assets
$159B
Previous year: $161B
-0.8%

Raytheon

Raytheon

Raytheon Revenue by Segment

Forward Guidance

Raytheon Technologies updated its 2022 outlook.

Positive Outlook

  • Confirms adjusted EPS of $4.60 - $4.80
  • Confirms free cash flow of approximately $6.0 billion
  • Confirms share repurchase of at least $2.5 billion of RTX shares
  • Sales of $67.75 - $68.75 billion

Challenges Ahead

  • Driven by global sanctions on Russia.
  • Assumes the legislation requiring R&D capitalization for tax purposes is deferred beyond 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income