RTX (NYSE: RTX) saw its fiscal 2023 fourth-quarter sales rise 10 percent to $19.9 billion and reported $1.29 in adjusted earnings per share for the quarter, up 2 percent from the prior-year period.
The Arlington, Virginia-based aerospace and defense contractor said Tuesday it recorded a total backlog of $196 billion at the end of the quarter with the defense segment accounting for $78 billion of that backlog.
Major defense-related bookings in the previous quarter include $1.3 billion in classified contracts received by the company’s Raytheon business, a $838 million contract secured by Pratt & Whitney for F135 engine sustainment work and a $408 million award for Hypersonic Attack Cruise Missile development.
The company’s Collins Aerospace business reported $7.1 billion in Q4 sales, reflecting a 14 percent increase from the prior-year period.
Pratt & Whitney saw its sales climb 14 percent to $6.4 billion during the quarter, while Raytheon generated $6.9 billion in Q4 sales, up 3 percent from the previous year.
Full-year sales for fiscal 2023 hit $68.9 billion, showing a 3 percent jump from the prior year, while operating cash flow from continuing operations was $7.9 billion.
At an earnings call Tuesday, RTX President and Chief Operating Officer Christopher Calio cited the company’s research spending, contract wins and backlog growth during the previous year.
“In 2023, we spent almost $10 billion in capex in company and customer funded R&D, while capturing $95 billion in new bookings, resulting in companywide backlog growth of 12% in a book-to-bill of 1.28, ending the year with a record RTX backlog of $196 billion,” he said during the call.
Calio, who will take on the chief executive role in May, told analysts about the company’s plan to drive growth and pursuit of new contracts.
“One, we expect improvement in our fixed-price development programs as we satisfy certain technical and programmatic milestones. We will also be more selective and disciplined about the work we pursue moving forward,” he noted.
“Two, we are making modifications in our approach to winning new work. We continue to ensure that our new contracts and additional contractual lots have better protection from supplier inflation,” Calio added.
