Pratt & Whitney’s operating result swung to a profit of $2bn in full year 2024, up from an operating loss of $1.5bn in 2023. For the quarter, operating profit was up 32% to $504 million.
Sales were up 18% to $7.6bn in the quarter. For the full year, sales totalled $28.1bn, up from $18.3bn in the previous year. Commercial sales drove the results.
“The increase in commercial sales was driven by increased deliveries and favourable [original equipment (OE)] mix in large commercial engines, and higher commercial aftermarket volume,” Pratt & Whitney’s parent company RTX said in its report.
In the report, Pratt & Whitney noted a $157 million charge in the fourth quarter 2024 related a customer bankruptcy in the period. The charge relates to “contract asset exposures with the customer”. The report added: “Management has determined that the nature and significance of the charge is considered unusual and, therefore, not indicative of the company’s ongoing operational performance.”
Spirit Airlines filed for bankruptcy in November 2024. As of September 2024, the airline had 217 A320-family aircraft, including 25 A321neo and 91 A320neos powered by the Pratt & Whitney GTF engine.
RTX’s other business Collins Aerospace reported sales of $7.5bn in the fourth quarter, up 6%, and $28.3bn in the full year, up 8% on 2023. Operating profit was down 2% to $1.1bn for the quartet, and up 8% for the full year to $4.1bn.
RTX’s consolidated results reported fourth quarter sales totalling $21.6bn, up 9% on 2023’s fourth quarter, with a net income of $1.5bn – up 4% compared to a year prior – or an earnings per share of $1.10. For the full year sales were up 17% to $80.7bn and net income was up 49% to $4.8bn, or an earnings per share of $3.55.
The company also revealed a massive backlog of $218bn.
“We have strong momentum heading into 2025 with a $218bn backlog and unprecedented demand for our products and solutions,” said RTX president and CEO Chris Calio. “We remain focussed on advancing our strategic priorities of executing on our commitments, innovating for growth and harnessing the breadth and scale of RTX, giving us confidence in our 2025 financial outlook.”
For 2025, the expects adjusted sales of around $83-84bn, with an organic growth of around 4-6%. In addition, it anticipates an earnings per share of $6-6.15 for the year, as well as a free cash flow of around $7bn to $7.5bn.
As of the end of the year, RTX’s total liabilities were $100.9bn, while total equity was $61.9bn. Assets totalled $162.9bn.
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