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CLAIM #52375 · RTX Corporation (RTX) · 2024Q4 earnings call · Jan 28, 2025 · due Dec 31, 2025

Starting at the segment level, at the midpoint of our outlook range, operating profit growth of 12% is expected to drive approximately $0.66 of EPS growth.

Neil Mitchill · CFO

PENDING
graded after results covering Dec 31, 2025 are reported

How to check this claim

Look at: RTX segment operating profit growth (year-over-year, %) and its contribution to EPS growth

It came true if: Segment operating profit growth approximately 12% (11%-13%) contributing approximately $0.66 to full-year EPS growth (±$0.02)

Where: RTX full-year 10-K / Q4 earnings release segment results and EPS walk disclosure

In context

by the demand environment we've discussed, we expect total RTX sales to be between $83 billion and $84 billion for the year. Within this outlook, we've assumed that Collins actuation divestiture is completed by the end of the second quarter. Therefore, on an organic basis, this translates to between 4% and 6% top line growth. Looking at it by channel at the RTX level and adjusting for divestitures, we expect approximately 10% commercial aftermarket growth. On the commercial OE side, sales are expected to be up mid-single-digits year-over-year as we align with our customers on delivery requirements, which we see ramping throughout the year. And defense sales are also expected to grow mid-single-digits across the company. With respect to EPS, let me take you through the year-over-year walk. Starting at the segment level, at the midpoint of our outlook range, operating profit growth of 12% is expected to drive approximately $0.66 of EPS growth. Included in this segment growth is a headwind of roughly $0.07 associated with the divestitures we completed last year and the expected actuation divestiture this year. And due to the progress we've made on paying down debt from the accelerated share repurchases completed in 2024, we expect a tailwind from lower interest of about $0.05. Partially offsetting these items is approximately $0.15 from lower FAS/CAS and nonservice pension income, driven primarily by the actions we've taken to improve the funded status of our plans, as well as $0.06 from a higher share count. And finally, we also expect a $0.16 headwind from other items, which is primarily comprised of $0.06 of higher corporate expenses as we invest in our digital systems and capabilities and $0.05 of higher taxes. All of this b

Verify independently

SEC filings for RTX · Claim quote is verbatim from the 2024Q4 earnings call.