Raytheon Technologies
Q2 2022 Earnings Call
Jul 26, 2022, 8:30 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day, ladies and gentlemen, and welcome to the Raytheon Technologies second quarter 2022 earnings conference call. My name is Latif, and I will be your operator for today. As a reminder, this conference is being recorded for replay purposes. On the call today are Greg Hayes, chairman and chief executive officer, Neil Mitchill, chief financial officer, and Jennifer Reed, vice president of investor relations.
This call is being carried live on the Internet, and there is a presentation available for download from Raytheon Technologies' website at www.rtx.com. Please note, except where otherwise noted, the company will speak to results from continuing operations, excluding acquisition accounting adjustments and net nonrecurring and/or significant items often referred to by management as other significant items. The company also reminds listeners that the earnings and cash flow expectations and any other forward-looking statements provided in this call are subject to risks and uncertainties. Raytheon Technologies' SEC filings, including its forms 8-K, 10-Q and 10-K, provide details on important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements.
[Operator instructions] With that, I will turn the call over to Mr. Hayes.
Greg Hayes -- Chairman and Chief Executive Officer
Thank you, Latif, and good morning, everyone. I hope everyone had a chance to see our press release this morning. From that press release, I think one of the key takeaways is we had a really strong quarter for commercial aerospace, and we continue to see very strong demand for our products and services, as evidenced by our defense book-to-bill in the quarter of 1.35, in incredible number. We delivered these results in the midst of, I would say, a challenging period across our industry and most of industrial America.
Inflation, supply chain and labor availability continue to be near-term constraints. We're working these things relentlessly by leveraging our scale and our portfolio to combat all of these different pressures. Before we get into the results, let me just spend a few minutes on the macro environment. On the defense side, the evolving threat environment, including the ongoing conflict in Ukraine, continues to drive global defense budgets higher.
Most of our NATO allies have reaffirmed their commitment to spending at least 2% of GDP on national defense with many countries announcing even higher spending targets over the last several months. For example, Poland has requested accelerated delivery of Patriot missile systems batteries, and both Germany and Finland have selected the F-35. As you know, the Department of Defense released its fiscal year '23 budget request earlier this year with modernization spending growing over 4%. And with modernization accounts, specifically RDT&E, expected to grow by nearly 10%.