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Sep 30, 2022

Raytheon Q3 2022 Earnings Report

Raytheon Technologies reported mixed Q3 2022 results with strong organic sales growth offset by lower adjusted EPS, while backlog grew.

Key Takeaways

Raytheon Technologies reported Q3 2022 results with sales of $17.0 billion, up 5% year-over-year, including 6% organic growth. GAAP EPS was $0.94, up 1%, while adjusted EPS was $1.21, down 4%. The company's backlog grew to $168 billion. They are also updating their full year sales and EPS guidance.

Sales of $17.0 billion, up 5 percent versus prior year including 6 percent organic growth

GAAP EPS from continuing operations of $0.94, up 1 percent versus prior year

Adjusted EPS of $1.21, down 4 percent versus prior year

Company backlog grew over $6 billion in the quarter, to $168 billion

Total Revenue
$17B
Previous year: $16.2B
+4.6%
EPS
$1.21
Previous year: $1.26
-4.0%
Gross Profit
$3.49B
Previous year: $3.12B
+11.6%
Cash and Equivalents
$5.38B
Previous year: $7.48B
-28.0%
Free Cash Flow
$263M
Previous year: $1.5B
-82.5%
Total Assets
$158B
Previous year: $159B
-0.3%

Raytheon

Raytheon

Raytheon Revenue by Segment

Forward Guidance

Raytheon Technologies provided updated guidance for full year 2022.

Positive Outlook

  • Adjusted EPS of $4.70 - $4.80, up from $4.60 - $4.80
  • Confirms free cash flow of approximately $4.0 billion
  • Confirms share repurchase of at least $2.5 billion of RTX shares
  • Focused on operational excellence, including cost containment and program performance
  • Investing in next-generation technology and innovation

Challenges Ahead

  • Sales of $67.0 - $67.3 billion, down from $67.75 - $68.75 billion
  • Expect industry-wide challenges to continue near-term
  • Continuing supply chain constraints
  • Declines on Land Warfare and Air Defense programs and Naval Power programs
  • Unfavorable program mix

Revenue & Expenses

Visualization of income flow from segment revenue to net income