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Sep 30, 2023

Raytheon Q3 2023 Earnings Report

RTX reported mixed Q3 2023 results, with sales down due to the Pratt & Whitney powder metal matter but adjusted sales up, and announced a $10 billion accelerated share repurchase program.

Key Takeaways

RTX reported a decrease in sales due to the Pratt & Whitney powder metal issue, but adjusted sales increased. The company is proceeding with a $10 billion accelerated share repurchase program and increasing its capital return commitment through 2025.

Reported sales decreased by 21 percent, while adjusted sales increased by 12 percent.

GAAP EPS was a loss of $0.68, but adjusted EPS increased by 3 percent to $1.25.

Operating cash flow was $3.3 billion, and free cash flow was $2.8 billion.

The company's backlog reached $190 billion.

Total Revenue
$19B
Previous year: $17B
+11.8%
EPS
$1.25
Previous year: $1.21
+3.3%
Gross Profit
$714M
Previous year: $3.49B
-79.5%
Cash and Equivalents
$5.46B
Previous year: $5.38B
+1.4%
Free Cash Flow
$2.75B
Previous year: $263M
+946.4%
Total Assets
$162B
Previous year: $158B
+2.7%

Raytheon

Raytheon

Raytheon Revenue by Segment

Forward Guidance

RTX updates outlook for full year 2023

Positive Outlook

  • Reported sales of approximately $68.5 billion, up from $67.5 - $68.5 billion
  • Adjusted sales* of approximately $74.0 billion, up from $73.0 - $74.0 billion
  • Adjusted EPS* of $4.98 - $5.02 from $4.95 - $5.05
  • Free cash flow* of approximately $4.8 billion, up from approximately $4.3 billion
  • Share repurchase spending of approximately $12.8 billion of RTX shares, up from $3.0 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income