On this page of StockholderLetter.com we present the 3/11/2024 shareholder letter from RTX Corp — ticker symbol RTX. Reading current and past RTX letters to shareholders can bring important insights into the investment thesis.

 •  3/11/2024 Letter Continued (Full PDF)
 •  3/13/2023 RTX Stockholder Letter
 •  3/10/2025 RTX Stockholder Letter
 •  More "Aerospace & Defense" Category Stockholder Letters
 •  RTX Benford's Law Stock Score = 86

RTX 3/11/2024 Shareholder/Stockholder Letter Transcript:

RTX
2023 Annual Report

By the numbers
Financials
$74.3
$5.06
$7.3
2023 adjusted net sales1
2023 adjusted earnings
per share1
2023 research and
development2
$7.9
$2.32
$196
2023 cash flow
from operations
2023 dividends paid
per common share
2023 backlog
Sales by type
Sales by geography
Total backlog
41% Commercial
59% Defense
65%
20%
13%
5%
-3%
$118B Commercial
$78B Defense
(dollars in billions)
(dollars in billions)
(dollars in billions)
(dollars in billions)
Sales mix
United States
Europe
Asia Pacific
Middle East and
North Africa
Other3
About RTX
RTX is the world   s largest aerospace and defense company. With approximately 185,000 global employees, we
push the limits of technology and science to redefine how we connect and protect our world. Through industryleading businesses     Collins Aerospace, Pratt & Whitney, and Raytheon     we are advancing aviation, engineering
integrated defense systems for operational success, and developing next-generation technology solutions and
manufacturing to help global customers address their most critical challenges. The company is headquartered in
Arlington, Virginia.
To learn more, visit www.rtx.com.
(1)  Adjusted net sales and adjusted earnings per share are non-GAAP financial measures. For the corresponding measures calculated in accordance with generally
accepted accounting principles (GAAP) and a reconciliation of the differences between the non-GAAP and GAAP measures, please refer to page 14 in this
Annual Report.
(2) Amounts include company- and customer-funded research and development.
(3)  Includes a reduction in sales related to a rare condition in powder metal used to manufacture certain engine parts at Pratt & Whitney that requires accelerated
inspection of the PW1100G-JM (PW1100) Geared Turbofan (GTF) fleet, which powers the A320neo family of aircraft (A320neo).

Gregory J. Hayes
Chairman & Chief Executive Officer
Dear Shareowners,
2023 was a show of strength and resilience for the
people of the global communities we call home.
Throughout the year, RTX supported the United States
and its allies in safeguarding democracy worldwide.
As global threats persist, our defense systems will
continue to be at the forefront deterring our adversaries
and defending our allies. And as globalization continues
to expand commercial air traffic to connect the world,
our aerospace technologies will serve as a conduit to
bridge cultures and economies.
RTX 2023 ANNUAL REPORT       1

Our mission proved vital in 2023.
Amid the evolving geopolitical
and economic environment, our
185,000 employees across the
globe continued to innovate and
deliver solutions to our customers   
most difficult and complex
problems. The dedication of our
employees, along with our advanced
technologies, unmatched solutions
and global scale, allowed us to
navigate the landscape to not only
support our customers but to position
our company for sustained longterm growth. I have great pride of
association with our employees, as
well as our partners, suppliers and
customers. Together, we align on the
critical importance of connecting
the world and safeguarding our way
of life. In 2023, our commercial and
defense customers continued to show
confidence in our ability to meet their
most difficult challenges          a fact
underscored by our record backlog
of $196 billion.
As a company, we have focused
our investments in technology to
meet evolving customer demands
while advancing our own strategic
priorities. In 2023, we invested
$7.3 billion in research and
development and $2.4 billion in
capital expenditures to ensure that
we stay at the forefront of innovation
and world-class manufacturing
operations. These investments will
ensure that we maintain our position
as the world   s foremost aerospace
and defense company. Notably,
we also achieved a significant
operational milestone by completing
the strategic realignment of our
business units to form three marketleading segments: Collins Aerospace,
Pratt & Whitney and Raytheon.
This consolidation underscores our
commitment to our customers,
shareowners and employees          as
it fosters deeper support of our
customers    needs, presents greater
opportunity for collaboration
and strategic partnership, and
strengthens our cost structure
and competitiveness.
In conjunction with this business
transformation, we evolved the
company name and identity to RTX,
representing the full substance
and unparalleled capabilities of an
integrated aerospace and defense
company. United by a shared set of
values, we are driven to enrich the
world we share.
Our products protect nations,
transport goods and services, and
carry the flying public. Our highest
priority is ensuring that these
products are safe and secure. We
will not compromise on this as our
priority. Our robust quality and safety
monitoring systems foster deep focus
and ensure prompt action, as was the
case with our determination in July
2023 that a rare condition in powder
metal would require accelerated
inspection of certain affected
Pratt & Whitney engine parts. In
addition to taking swift and decisive
action to ensure flight safety, we
worked with our GTF engine
fleet customers to develop a
comprehensive fleet management
and recovery plan to reduce the
impact on airline operations of
accelerated part inspections. We
thank each of our customers for
their tremendous partnership and
for their trust, as we prioritize the
safe operation of our fleet.
Financial highlights
Despite the continued challenges of
persistent inflation and supply chain
disruptions in 2023, we delivered
adjusted net sales* of $74.3 billion
and adjusted earnings per share* of
$5.06. Importantly, we also generated
orders of $95 billion resulting in
a record backlog of $196 billion.
Materials science experts
at the RTX Technology
Research Center are using
artificial intelligence
to accelerate by years
the development cycle
for advanced alloys
with properties such as
lighter weights, higher
strengths, and/or higher
operating temperatures.
2      RTX 2023 ANNUAL REPORT
*  See pages 13 and 14 for additional information regarding non-GAAP financial measures.

RTX   s technology
roadmaps reflect
our customers   
needs well into
the future.
With a clear focus on future growth
supported by business resilience,
we invested $9.7 billion in research
and development and in capital
expenditures in 2023, as we continue
to invest in technology and innovation
as well as fund future organic growth.
We generated $7.9 billion in cash
flow from operations, which resulted
in $5.5 billion in free cash flow* for
the year.
unlocked more than $295 million in
merger-related gross cost synergies in
2023. These bring our total synergies
to $1.7 billion since the 2020 merger,
keeping us on track to meet our
increased target of $2 billion in gross
cost synergies by 2025.
We also executed a $10 billion
accelerated share repurchase
plan in 2023, which contributed
to our return of $16.1 billion to
shareowners through a combination
of dividends and share repurchases.
And, post-merger, we are on track
to return $36-$37 billion in capital
to shareowners by 2025. With our
continued focus on cost reduction, we
Driving performance begins with
our Customer Oriented Results and
Excellence (CORE) operating system.
CORE connects our employees at all
levels to focus on process excellence
with a continuous improvement
mindset. Through CORE, we align
across the company each year on our
financial and operational goals and
improvement initiatives.
    Over the past three
years, we   ve invested
approximately
$22 billion in companyand customer-funded
research and
development.   
Driving operational
excellence
We   ve trained and certified more
than 80,000 of our employees on
CORE. It   s helped us streamline our
facilities, improve strategic initiatives
and simplify our supply chain. Since
we launched CORE, we have achieved
$2 billion in gross product and
non-product savings. Even greater
efficiencies lie ahead.
To reduce cost and complexity,
we   re also transforming our digital
*  See pages 13 and 14 for additional information regarding non-GAAP financial measures.
infrastructure. And it   s already
improving how we operate.
We   re automating our machines
and processes to enhance efficiency,
speed and cost-effectiveness.
As a result of industrial automation,
we expect to generate more
than 15 million hours of factory
productivity by 2027. We   ve also
connected 68 percent of machines
across RTX, providing operators
with real-time data that helps them
better manage resources. Our digital
transformation is also changing how
we make and deliver our products.
We   ve digitized the product lifecycle
in more than 20 programs, improving
our efficiency and reducing design
cycle times by as much as 30 percent
for software intensive systems.
Investing for
the future
At the core of our business is our
aspiration to explore, experiment,
create and discover. To achieve a
well-balanced portfolio aligned
with this objective, we are directing
investments into strategic capabilities
while divesting noncore businesses.
Over the past three years, we   ve
invested approximately $22 billion
RTX 2023 ANNUAL REPORT       3



 3/11/2024 Letter Continued (Full PDF)