RTX Reports Better-than-Expected Q3 Earnings, Approves $10 Billion Share Buyback, and Plans Sale of Cybersecurity Unit

High-performing Collins Aerospace division offsets quality crisis at engine making unit Pratt and Whitney, while the sale of Cybersecurity unit is expected to reap $1.3 billion.

RTX reported Q3 2023 earnings per share of $1.25 with revenue falling 20.6% to $13.46 billion, beating estimates due to a 16% rise in sales by its Collins Aerospace division, offsetting a quality crisis in the Pratt & Whitney unit.
The Midwest company also plans to boost its stock buyback program by $10 billion, raising the total estimated repurchase plan to around $36 billion to $37 billion through 2025.
Despite issues with Pratt & Whitney, CEO Greg Hayes declared significant progress and expects the financial impact to remain within the previously disclosed charge. RTX shares have, however, lost over 20% of their value this year.
RTX, which consolidated its business segments into Collins Aerospace, Pratt & Whitney, and Raytheon from Q3 2023, announced an agreement to sell its Cybersecurity, Intelligence, and Services business within its Raytheon segment for approximately $1.3 billion.
For FY 2023, it anticipates sales of $74 billion and has narrowed the range of its EPS outlook to $4.98 to $5.02. The company's backlog by the end of the quarter was $190 billion, with commercial aerospace and defense accounting for $115 billion and $75 billion respectively.