RTX delivered a resilient QQ3 2024 operating performance with meaningful top-line growth and improved profitability, underpinned by defense demand and favorable mix. Revenue of $20.09 billion and gross profit of $4.034 billion produced a gross margin of 20.1% and an operating margin of 10.1%, supporting an operating income of $2.03 billion and net income of $1.47 billion (EPS $1.10). The quarter also showcased robust cash generation, with operating cash flow of $2.52 billion and free cash flow of $1.84 billion, enabling discretionary capital allocation such as a $294 million share repurchase and an $823 million dividend, while ending with cash and cash equivalents of roughly $6.68 billion. Net debt stood at about $37.07 billion against total debt of $43.75 billion, reflecting a high-leverage but cash-generative profile that supports deleveraging objectives over time.
The results reflect a defense-led demand backdrop and a favorable mix that appears to be sustaining margins. RTX’s broad portfolio across Collins Aerospace, Pratt & Whitney, and Raytheon provides scale, aftermarket service opportunities, and a diversified revenue base. Management commentary (where available) emphasized ongoing cost discipline and portfolio optimization as levers for margin resilience, while capital allocation remains focused on returning capital to shareholders and gradually reducing leverage. The balance sheet remains asset-light on a cash-flow basis but carries substantial intangible assets and goodwill, underscoring the need to monitor impairment risk and value realization as programs evolve.
Looking ahead, the absence of formal quarterly guidance in the press materials requires a cautious view, but the industry backdrop—defense budget cycles, air travel recovery, and ongoing modernization programs—supports RTX’s strategic positioning. Investors should monitor order intake and backlog development, the trajectory of integration-related synergies, and the pace of debt reduction as key drivers of long-term value creation.