CLAIM #52237 · RTX Corporation (RTX) · 2023Q4 earnings call · Jan 23, 2024 · due Dec 31, 2026
“So the good news is, you know, there's a lot of runway there... And so we don't see that coming back until about 2026.”
Greg Hayes · Chairman and CEO
How to check this claim
Look at: Interiors business revenue (Collins Aerospace segment) relative to 2019 levels
It came true if: Interiors segment revenue reaches or exceeds 2019 reported revenue level
Where: Company segment disclosures (10-K / investor presentations, Collins Aerospace Interiors revenue)
In context
“low-double-digits, I'd say 10% or more. On the OE side, mid to high-single-digits. And we're going to see, as everyone knows, about 40% incrementals there. And yes, wide body is going to be a big driver. So as we've seen a lot of narrow body, I'll call it catch up in growth over the last couple of years, we do expect that to shift to the widebody. Now keep in mind on the widebody OE side for Collins, the margins are a bit thinner there, but it does set us up for good longer term projections, especially as you get into ‘25 and ‘26 and beyond, as that comes off warranty and converts to aftermarket. Around the interior business, I think Steve Tim had said this back in June, that business is growing, but it's nowhere near levels of 2019. And so we don't see that coming back until about 2026. So the good news is, you know, there's a lot of runway there. And we are seeing a lot of activity there. So I think that will be a growth driver. But clearly, we're starting to see a bit more of a shift from narrow body into wide body as we go into the next couple of years. Chris Calio: Yes, maybe the only thing I would add to that, Ron, is that Steve and team are very focused on the transformation within interiors. I think there's some opportunity to consolidate sites, to continue to remove ERP systems. As you know, there's been an integration that's been going on in that interiors business in particular. So I think a lot of good work on continuing to transform the cost footprint in the interiors business. So when that volume continues to come back, it'll be at the types of margins that you would expect. Ronald Epstein: Got it. Got it. And have you guys seen any airlines, any customers yet requesting ret”
Verify independently
SEC filings for RTX ↗ · Claim quote is verbatim from the 2023Q4 earnings call.