RTX Corp Stock Price, News & Analysis

RTX reported strong Q3 2024 results, with adjusted sales of $20.1 billion, up 6% year-over-year, and adjusted EPS of $1.45, up 16%. The company increased its 2024 outlook, projecting adjusted sales of $79.25 - $79.75 billion and adjusted EPS of $5.50 - $5.58. Key highlights include:

- Operating cash flow of $2.5 billion and free cash flow of $2.0 billion
- Record company backlog of $221 billion
- $1.1 billion returned to shareholders
- $90 million in incremental RTX gross cost synergies realized

Segment performance showed growth, with Collins Aerospace reporting a 7% increase in sales and Pratt & Whitney seeing a 14% increase in adjusted sales. Raytheon's sales decreased 1% but showed 5% growth excluding divestitures.

Collins Aerospace, an RTX business, has announced the first deliveries of its upgraded Venue™ cabin management system (CMS). The new system features smart monitors and an improved graphical user interface, enhancing entertainment, usability, and simplicity for operators and passengers. Key improvements include:

- 4K-enabled resolutions
- Comprehensive cabin controls
- Redesigned user interface
- Smart monitor integration
- Flexible integration options
- Streamlined software upgrades
- Compact design with reduced weight and power consumption

The Venue system, with over 1,700 installations on more than 50 aircraft models, continues to evolve technologically. The upgraded GUI features a modernized menu structure and consistent iconography, simplifying cabin controls with intuitive features.

Raytheon, an RTX business, has achieved full-rate production approval for its Standard Missile-3 Block IIA (SM-3 Block IIA). This milestone marks the first Missile Defense Agency cooperative development program with Japan to reach this stage. The approval led to a $1.9 billion award from the U.S. Missile Defense Agency in July 2024 for producing rounds for both the U.S. government and Japan Ministry of Defense.

The SM-3 Block IIA, developed in cooperation between MDA, Japan Ministry of Defense, and their industry partners, features larger rocket motors and an enhanced kinetic warhead compared to its predecessors. This allows it to engage threats faster and protect larger regions from short- to intermediate-range ballistic missile threats. Work under this contract will be completed by February 2031 at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.

RTX (NYSE: RTX) demonstrated new launched effects autonomy capabilities at the U.S. Army's Experimental Demonstration Gateway Event (EDGE). Collins Aerospace and Raytheon, both RTX businesses, showcased collaborative mission autonomy solutions for small, uncrewed aircraft. Collins demonstrated its RapidEdge™ mission system, while Raytheon deployed autonomy capabilities from the Collaborative Operations in Denied Environment program and Coyote® family of unmanned aircraft systems.

The demonstration showed how autonomous sensing and effects can extend the Army's reach in challenging environments. The systems demonstrated interoperability and the ability to execute missions even when command links to ground operators were severed. This event was part of the U.S. Army Future Command's efforts to advance manned and unmanned teaming capabilities for targeting, reconnaissance, and lethality.

The U.S. Army has awarded the Javelin Joint Venture (JJV) two production contracts totaling $267 million for Lightweight Command Launch Units (LWCLU). These contracts support the U.S. Army and Foreign Military Sales for Estonia, Latvia, and Lithuania. The LWCLU is 30% smaller and 25% lighter than the current Block I Command Launch Unit, while doubling target detection and recognition.

The contracts include a full-rate production contract and a second low-rate initial production contract. The LWCLU offers day and night engagement capability and is compatible with all Javelin variants. To date, the JJV has produced over 50,000 Javelin missiles and 12,000 reusable Command Launch Units. Production work will take place in Tucson, with estimated completion in 2026 and 2028.

Raytheon, an RTX business, successfully demonstrated the capabilities of its Ku-band Radio Frequency Sensor (KuRFS) and Coyote™ Block 2 and Block 3 effectors during the U.S. Army's annual summer test period. The systems were tested as part of the Low, slow, small-unmanned aircraft Integrated Defense System (LIDS), the Army's counter-drone solution. KuRFS excelled in detecting and tracking drone swarms, while Coyote defeated single and multiple targets with reduced engagement timelines. The tests validated recent software enhancements for both systems.

The U.S. Army is strengthening its counter-drone defenses with $374.8 million in recent contracts for LIDS equipment and support services. Raytheon has increased production capacity for the Coyote kinetic effector to meet growing demand.

Raytheon, an RTX business, has been awarded a $736 million contract by the U.S. Navy to produce AIM-9X SIDEWINDER missiles. The contract focuses on the improved Block II variant, which addresses hardware obsolescence and ensures superior performance and long-term reliability. The AIM-9X is described as the most advanced infrared-tracking, short-range, air-to-air and surface-to-air missile in the world.

The missile is compatible with various modern aircraft and provides layered defense capabilities, including integration with the National Advanced Surface-to-Air Missile System (NASAMS). Used by over 30 allied and partner nations, the AIM-9X continues to gain international interest, with the Czech Republic becoming the most recent customer in March 2024. The contract work will be carried out at various locations within the continental U.S. through 2029.

RTX (NYSE: RTX) has announced that its Board of Directors has declared a quarterly cash dividend of 63 cents per outstanding share of RTX common stock. The dividend is set to be paid on December 12, 2024, to shareholders of record at the close of business on November 15, 2024. This declaration continues RTX's long-standing tradition of paying cash dividends, which the company has maintained every year since 1936.

Raytheon, an RTX business, has successfully completed hydrodynamic testing for the Barracuda Mine Neutralization System at the Naval Surface Warfare Center Carderock Division. The tests, using a production representative unit, demonstrated Barracuda's ability to operate in various sea states and water currents, as well as detect, track, and hold position on targets autonomously.

This milestone brings the program closer to meeting operational requirements. Barbara Borgonovi, president of Naval Power at Raytheon, emphasized Barracuda's significance in advancing underwater security and naval defense. The system, which is the U.S. Navy's program of record for next-generation mine neutralization, uses sonar and camera systems to locate and neutralize undersea mine threats.

Raytheon was initially awarded the Barracuda contract in 2018. The program completed its critical design review in March 2023 and is now in the qualification testing phase. In July 2023, Raytheon received a contract to deliver engineering development model units to the U.S. Navy. Low-Rate Initial Production is scheduled for 2027.