(Reuters) – Aerospace and defense giant RTX reported a 10% surge in fourth-quarter revenue on Tuesday, driven by demand for its aftermarket services, commercial engines and military equipment.
RTX capitalized on a strong aftermarket business as airlines extend the use of their planes to meet strengthened travel demand and shortage of new jets.
Pratt and Whitney, an RTX subsidiary, booked a 25% jump in operating profit in the reported quarter, amid an ongoing inspection drive to check for potentially flawed components in its jet engines.
RTX’s defense arm, Raytheon, reported a 14% rise in operating profit, helped by AMRAAM rockets and Patriot systems, key weapons used by Ukraine to repel the Russian invasion.
U.S. defense companies are experiencing a surge in contracts as the Russia-Ukraine war, the need to support allies in the Middle East and the specter of Chinese aggression drive up demand, even as growth is hindered by pandemic-related labor and supply-chain disruptions.
RTX reported an adjusted net income of $1.29 per share in the quarter ending Dec. 31, compared to $1.27 per share a year earlier, in the same quarter.
It also forecast a 2024 profit target in the range of $5.25 to $5.40 per adjusted share, while analysts estimate $5.28 per share, according to LSEG data.
The Arlington, Virginia-based company’s sales came in at $19.93 billion.
On the other hand, RTX forecast 2024 revenue below expectations, owing to lingering supply challenges in the global aerospace industry.
It expects revenue between $78 billion and $79 billion, against analysts’ average expectation of $79.67 billion.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Pooja Desai)
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