Raytheon Technologies Corp. on Tuesday posted higher first-quarter revenue and profits as demand for global airline travel and defense systems continued to grow.
The parent of Tucson-based Raytheon Missiles & Defense reported first-quarter earnings of $1.43 billion, or 97 cents per share, on revenue that rose 10% from the first quarter last year to $17.2 billion.
Adjusted for one-time gains and costs, earnings for the Arlington, Virginia-based company came to $1.22 per share.
Though the results topped analyst expectations, Raytheon shares closed Tuesday at $101.09, down $1.37 or 1.34%, in trading on the New York Stock Exchange.
The average estimate of five analysts surveyed by Zacks Investment Research was for adjusted earnings of $1.11 per share on revenue of $16.86 billion.
“Our year is off to a strong start, including solid top- and bottom-line performance. Continued global airline travel and defense systems demand point to sustained top line growth, as evidenced by $21 billion in new orders and a record backlog of $180 billion across our industry-leading portfolio,” said Raytheon Technologies Chairman and CEO Greg Hayes.
Raytheon Missiles & Defense reported first-quarter sales of $3.67 billion, up 4% versus prior year, driven by higher sales in advanced technology and air-power programs.
RMD had adjusted operating profit of $335 million, down 13% from first quarter last year on lower net program efficiencies and higher development program mix, partially offset by higher volume, the company said.
Raytheon’s Collins Aerospace business saw sales soar 16%, to $5.58 billion, and adjusted operating profit jump 37% as demand for its aircraft components, driven mainly by the continued recovery of air traffic and higher airplane production rates.
Engine maker Pratt & Whitney had first-quarter sales of $5.23 billion, up 15% on higher demand for commercial airline engines and increased production of its F135 engine for the F-35 fighter jet.
Pratt & Whitney recorded adjusted operating profit of $434 million in the first quarter of 2023, up 41% versus the prior year, Raytheon said.
Raytheon Intelligence & Space posted first-quarter sales of $3.57 billion, flat versus the prior year driven by lower command, control and communications programs, mostly offset by higher cyber and services programs. RIS recorded operating profit of $324 million, down 13% on an adjusted basis on lower net program efficiencies.
Raytheon confirmed its full-year earnings forecast in the range of $4.90 to $5.05 per share, with revenue in the range of $72 billion to $73 billion.
Several weapon systems made by Tucson-based Raytheon Missiles & Defense are helping Ukraine fend off Russia's invasion.
