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Jun 30, 2023

Raytheon Q2 2023 Earnings Report

RTX's Q2 2023 results were reported, with sales up 12 percent due to growth across all segments.

Key Takeaways

RTX reported a 12 percent increase in sales to $18.3 billion in Q2 2023. Adjusted EPS increased by 11 percent to $1.29. The company has updated its full-year sales outlook upward while tightening its adjusted EPS outlook, but has lowered its free cash flow outlook due to issues with Pratt & Whitney engines.

Sales of $18.3 billion, up 12 percent versus prior year including 13 percent organic growth.

GAAP EPS from continuing operations of $0.90, up 2 percent versus prior year.

Adjusted EPS of $1.29, up 11 percent versus prior year.

Company backlog of $185 billion; including $73 billion of defense and $112 billion of commercial.

Total Revenue
$18.3B
Previous year: $16.3B
+12.3%
EPS
$1.29
Previous year: $1.16
+11.2%
Gross Profit
$3.8B
Previous year: $3.46B
+9.8%
Cash and Equivalents
$5.39B
Previous year: $4.77B
+13.1%
Free Cash Flow
$193M
Previous year: $807M
-76.1%
Total Assets
$162B
Previous year: $159B
+2.0%

Raytheon

Raytheon

Raytheon Revenue by Segment

Forward Guidance

RTX updates outlook for full year 2023.

Positive Outlook

  • Sales of $73.0 - $74.0 billion, up from $72.0 - $73.0 billion
  • Adjusted EPS of $4.95 - $5.05, up from $4.90 - $5.05
  • Confirms share repurchase of $3.0 billion of RTX shares

Challenges Ahead

  • Free cash flow of approximately $4.3 billion, down from approximately $4.8 billion
  • Pratt & Whitney to remove certain engines from service for inspection earlier than expected.

Revenue & Expenses

Visualization of income flow from segment revenue to net income