RTX Corporation (NYSE:RTX) Q2 2024 Earnings Conference Call July 25, 2024 8:00 AM ET
Company Participants
Chris Calio - President and CEO
Neil Mitchill - CFO
Nathan Ware - VP of IR
Conference Call Participants
Peter Arment - Baird
Robert Stallard - Vertical Research
Myles Walton - Wolfe Research
Sheila Kahyaoglu - Jefferies
Doug Harned - Bernstein
Samantha Stiroh - Bank of America
Seth Seifman - JPMorgan
Kristine Liwag - Morgan Stanley
Cai von Rumohr - TD Cowen
Jason Gursky - Citi
Matt Akers - Wells Fargo
David Strauss - Barclays
Scott Mikus - Melius Research
Noah Poponak - Goldman Sachs
Scott Deuschle - Deutsche Bank
Operator
Good day and welcome to the RTX Second Quarter 2024 Earnings Conference Call. My name is [Livia], and I'll be your operator for today. As a reminder, this conference is being recorded for replay purposes.
On the call today are Chris Calio, President and Chief Executive Officer; Neil Mitchill, Chief Financial Officer; and Nathan Ware, Vice President of Investor Relations. This call is being webcast live on the Internet, and there is a presentation available for download from RTX 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. RTX 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 now turn the call over to Mr. Calio.
Chris Calio
Thank you, and good morning, everyone.
As you saw from our press release this morning, RTX delivered strong operational and financial performance in the second quarter as we continue to execute on our customer commitments and strategic priorities.
Let me start with the highlights on Slide 3. We saw another quarter of excellent top line growth with adjusted sales of $19.8 billion, which were up 10% organically. Adjusted EPS of $1.41 was up 9% year-over-year, driven by profit growth and margin expansion across all three segments, and free cash flow was strong at $2.2 billion.
We also saw continued growth in our backlog, which ended the quarter at $206 billion with a book-to-bill of 1.25. There were also some notable contract wins in the quarter, including a 10-year MRO agreement to support Collins significant content on Air Canada's 787 fleet of up to 70 aircraft, including avionics, air management and electric power systems. Collins also received a multibillion-dollar award for the U.S. Air Force's next-generation survivable airborne operations center, and Raytheon received a $639 million award for SPY6 radar production for the U.S. Navy.