Raytheon Q2 Revenue Up 4%; CEO Greg Hayes Cites Near-Term Constraints to Defense Business

Raytheon Technologies (NYSE: RTX) posted $16.31 billion in sales for its fiscal year 2022 second quarter, up 4 percent on an organic basis over the prior-year period and reported adjusted earnings per share rose from $1.03 to $1.16 per share.

The Arlington, Virginia-based defense and aerospace contractor attributed the higher sales to a strong start to the summer travel season amid global supply chain issues denting production.

Across its business segments, Collins Aerospace recorded the highest sales of $5.01 billion for the quarter, a 10 percent growth from the same period a year ago and driven by a 25 percent rise in commercial aftermarket, as well as a 14 percent growth in commercial original engines.

Pratt & Whitney generated $4.97 billion in sales, compared with $4.28 in Q2 2021, while Raytheon Intelligence & Space posted sales of $3.57 billion for the quarter.

Greg Hayes, Raytheon chairman and CEO, cited inflation, supply chain and labor availability as near-term constraints during an earnings call held Wednesday.

“We have long-term agreements in place that cover about 80% of our spend and cover multiple years which provides an inflation buffer at least in the near term,” Hayes said during the company’s same-day earnings call with analysts.

Total backlog for the period sat at $161 billion, with $65 billion of it coming from defense businesses.

The company affirmed its guidance for the full fiscal year with its sales expected to be between $67.75 billion and $68.75 billion while adjusted EPS for the fiscal year is projected to be between $4.60 and $4.80.

Raytheon shares opened at $92.51 on Tuesday, lower than the previous close of $94.60.

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