Raytheon Reaffirms 2023 RTX Financial View; Lifts Gross Cost Synergy Target To $2 Bln

(RTTNews) - Raytheon Technologies (RTX) announced that it will provide an update on its long-term growth strategy, business realignment and financial outlook on its Investor Day tomorrow, June 19, 2023.

As part of its portfolio realignment, which remains on track for July, the company announced that it will now be represented as RTX. As announced in January, the company will operate three focused businesses to better align with customer needs - Collins Aerospace, Pratt & Whitney, and Raytheon.

RTX said it reaffirms 2023 sales view of $72.0 to $73.0 billion and adjusted EPS of $4.90 to $5.05.The company still sees full year free cash flow of about $4.8 billion and share repurchase of $3.0 billion.

Additionally, strategic investments in next generation technology and expanded capacity are expected to drive the company towards its 2020 to 2025 adjusted annual sales growth commitment of 6 to 7 percent, and sustain long-term growth well beyond 2025.

RTX plans to generate $9 billion in free cash flow in 2025. RTX said it is on track to reach its goal to return $20 billion to shareowners in the four years following the merger and now expects to return between $33 and $35 billion through dividends and share repurchases from the close of the merger through the end of 2025.

RTX's portfolio of differentiated technologies and commitment to innovation will enable the company to capture substantial revenue synergy opportunities across four key areas - connected aviation, sustainable aviation, connected battlespace and integrated solutions.

As a result, RTX lifts its gross cost synergy target from $1.5 billion to $2 billion. These initiatives, along with sales growth, will be a catalyst to achieve the adjusted segment margin expansion commitment of approximately 550 to 650 basis points from 2020 to 2025.