RTX (RTX) Q4 2024 earnings summary

Executive summary

• 2024 adjusted sales reached $80.8 billion, up 11% organically, with adjusted EPS of $5.73, free cash flow of $4.5 billion, and a $218 billion backlog, including record commercial and defense backlogs.

• Adjusted segment profit rose 19% to $9.5 billion, with 90 basis points margin expansion.

• Returned $3.7 billion to shareholders in 2024, totaling over $33 billion since the merger.

• Strategic focus on executing commitments, innovation, and leveraging scale to drive productivity and growth.

Financial highlights

• Q4 2024 adjusted sales were $21.6 billion, up 11% organically, with adjusted EPS of $1.54, up 19% year-over-year.

• Commercial aftermarket sales grew 15%, commercial OE up 10%, and defense up 10% (excluding Cybersecurity divestiture).

• Q4 segment operating profit was $2.7 billion, up 29%, with 180 basis points margin expansion.

• Full-year net income attributable to common shareowners was $4.77 billion.

• Adjusted segment operating profit margin for 2024 was 11.4%, up from 10.5% in 2023.

Outlook and guidance

• 2025 adjusted sales expected at $83.0–$84.0 billion, with 4–6% organic growth.

• 2025 adjusted EPS guidance is $6.00–$6.15; free cash flow expected at $7.0–$7.5 billion.

• Segment profit growth of 10–13% and continued margin expansion anticipated.

• Capital returns to shareholders targeted toward the high end of $36–$37 billion by year-end.

• 2025 capex planned at $2.5–$2.7 billion; adjusted tax rate expected at 19.5%.