8. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders as of Q4: 80
Balyasny Asset Management’s Equity Stake: $344.51 Million
RTX Corporation (NYSE:RTX), formerly known as Raytheon Technologies Corporation, is a leading American aerospace and defense company headquartered in Arlington, Virginia. The company specializes in providing advanced technologies and solutions for both commercial and defense sectors. In the fourth quarter of 2024, RTX Corporation saw strong financial performance driven by increased demand for aircraft parts and maintenance services, as airlines continued to rely on older planes amid a global jet shortage. The company reported $21.6 billion in sales for the quarter, reflecting a 9% year-over-year increase. Earnings per share (EPS) stood at $1.10, with adjusted EPS rising 19% to $1.54. Additionally, RTX generated $1.6 billion in operating cash flow and $0.5 billion in free cash flow for the quarter.
For the full year 2024, RTX Corporation (NYSE:RTX) posted total sales of $80.7 billion, with adjusted sales slightly higher at $80.8 billion, representing a 9% increase from the prior year. The company reported an EPS of $3.55 and an adjusted EPS of $5.73, marking a 13% growth year-over-year. Operating cash flow for the year was $7.2 billion, with free cash flow reaching $4.5 billion. RTX President and CEO Chris Calio highlighted the company’s strong momentum, citing an 11% organic sales growth, improved segment margins across all divisions, and a growing backlog of $218 billion. This backlog includes $125 billion in commercial orders and $93 billion in defense contracts, positioning RTX for continued success in 2025.
Throughout 2024, RTX Corporation (NYSE:RTX) remained committed to returning value to shareholders, distributing $852 million in the fourth quarter and a total of $3.7 billion for the year. Since its merger, the company has returned over $33 billion to investors. Despite its strong financial performance, RTX’s 2025 adjusted sales forecast of $83 billion to $84 billion slightly missed analysts’ expectations of $84.47 billion. However, the company remains optimistic, projecting adjusted EPS between $6.00 and $6.15, with free cash flow anticipated to reach between $7.0 billion and $7.5 billion.
Longleaf Partners Fund stated the following regarding RTX Corporation (NYSE:RTX) in its Q4 2024 investor letter:
“RTX Corporation (NYSE:RTX) – Aerospace and defense company RTX was a top contributor for the year. Our appraisal value has grown nicely since we first purchased the company just over a year ago. While the issues for Pratt & Whitney’s (P&W) Geared Turbofan engine are still not yet fully fixed, they have gotten better and given us another reminder that the point of maximum pessimism is only obvious in retrospect. We continue to have a conservative valuation on P&W so view this as a source of future value upside. The Raytheon segment has also performed better as the year has gone on, with recent signs of margin improvement. Strong industry tailwinds, prudent capital allocation and a solid balance sheet provide a foundation for sustained growth and eventual full value recognition.”
