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Raytheon Technologies Corporation reported first-quarter 2022 results and updated its 2022 outlook.
First-quarter 2022
- Sales of $15.7 billion, up 3 percent versus prior year including 4 percent organic growth
- GAAP EPS from continuing operations of $0.74, up 45 percent versus prior year, including $0.41 of acquisition accounting adjustments and net significant and/or non-recurring charges
- Adjusted EPS of $1.15, up 28 percent versus prior year
- Operating cash flow from continuing operations of $476 million; Free cash flow of $37 million
- Achieved approximately $90 million of incremental RTX gross cost synergies
- Repurchased $743 million of RTX shares
Outlook for Full-year 2022
- Sales of $67.75 - $68.75 billion, down from $68.5 - $69.5 billion. Driven by global sanctions on Russia.
- Confirms adjusted EPS of $4.60 - $4.80
- Confirms free cash flow of approximately $6.0 billion. Assumes the legislation requiring R&D capitalization for tax purposes is deferred beyond 2022.
- Confirms share repurchase of at least $2.5 billion of RTX shares
"The strong commercial aerospace recovery and our focus on operational execution enabled us to deliver both top-line growth and margin expansion year-over-year. As a result, adjusted EPS and free cash flow exceeded our expectations in the first quarter," said Raytheon Technologies Chairman and CEO Greg Hayes.
"We remain confident in the long-term outlook for our businesses, supported by the return to travel and growing global defense budgets. Now more than ever, we are committed to investing in next-generation technologies and serving our customers to meet their mission-critical needs across aerospace and defense."
First Quarter 2022
Raytheon Technologies reported first quarter sales of $15.7 billion, up 3 percent over the prior year, including 4 points of organic sales growth partially offset by 1 point of net acquisitions and divestitures headwind. GAAP EPS from continuing operations of $0.74 was up 45 percent versus the prior year and included $0.41 of acquisition accounting adjustments and net significant and/or non-recurring charges. This includes $0.25 of acquisition accounting adjustments primarily related to intangible amortization, $0.14 related to the cessation of our business activities in Russia, and $0.02 of restructuring. Adjusted EPS of $1.15 was up 28 percent versus prior year.
The company recorded net income from continuing operations in the first quarter of $1.1 billion, up 43 percent versus prior year and included $620 million of acquisition accounting adjustments and net significant and/or nonrecurring charges. Adjusted net income was $1.7 billion, up 26 percent versus prior year. Operating cash flow from continuing operations in the first quarter was $476 million. Capital expenditures were $439 million, resulting in free cash flow of $37 million.
