RTX Corp at Barclays Industrial Select Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David Strauss - Barclays - Analyst : Okay, great. So, you were here a year ago. GTF was the focus. How do you feel over the course of the past year, how things have gone? What's your vision for this year, high level vision for this year and for the company, looking beyond that?

Question: David Strauss - Barclays - Analyst : So in terms of 2025 risk and opportunities as you think about the year, I think when you had your call, tariffs were not front and center like they are today. So how are you thinking about the potential risks around tariffs? And then what are the top priorities for each of -- your top priorities for each of the businesses?

Question: David Strauss - Barclays - Analyst : So you touch on your expectations on the commercial aero side for OE and aftermarket demand. How do you balance the two in terms of shipping to OE vs. shipping to the aftermarket? And what are you seeing out of your customers in terms of Boeing and Airbus, in terms of how the ramps are going for them and the demand pull from them?

Question: David Strauss - Barclays - Analyst : Going into a little bit more detail around the defense side -- I mean, we're getting a lot of mixed signals out of the new administration, whether it be budget, DOGE, all that. So your thoughts there? There's a lot of talk about Iron Dome. Obviously, that would seem to play to your strengths. And you talked about international getting stronger. What are you seeing there in terms of demand? And I think last year, the defense -- Raytheon defense was 1.5x book to bill. I mean, what do you think about the potential for above 1x book to bill this year?

Question: David Strauss - Barclays - Analyst : And how are you thinking about book to bill on the defense side this year?

Question: David Strauss - Barclays - Analyst : So you've talked in the past -- I mean, CORE came up. Your operating system came up, I think, originally back in your investor day in 2021. So can you talk about how CORE enabled the good results we saw in '24 and how it could contribute to what you're expecting in 2025 and beyond?

Question: David Strauss - Barclays - Analyst : I wanted to move over to GTF, so I want to break it up into two parts. I guess the first question is on GTF Advantage. We just had Howmet in here. Obviously, they're playing a big role on that. They talked about middle of this year. So a status update on GTFA and how -- once you get that out there in the market, how that changes the trajectory of the GTF in terms of durability?

Question: David Strauss - Barclays - Analyst : So when you say it's going to transition over a couple years, so you're talking about how you'll produce GTFA alongside the current base version for a couple years. Is that constrained just by the ability of your suppliers to ramp up?

Question: David Strauss - Barclays - Analyst : And then the other part of the GTF question is on powder metal. The progress that's been made already, what you're expecting for 2025, and how it plays out in '26. Is it behind us for the most part after 2026?

Question: David Strauss - Barclays - Analyst : And the main constraint there is powder metal?

Question: David Strauss - Barclays - Analyst : And you still feel like for the most part, this is behind you after 2026?

Question: David Strauss - Barclays - Analyst : So you've obviously given '25 guidance. High level, how are you thinking about the growth potential maybe, by business, thinking beyond 2025 and the margin potential for each business thinking beyond 2025?

Question: David Strauss - Barclays - Analyst : Capital allocation. So you've had this $36 billion to $37 billion target out there. You're close to being done with that. Obviously, a year or so ago, you did the big ASR. As GTF gets behind, you're going to generate -- looks like you'll generate significantly more cash. How are you thinking about capital deployment from here in terms of potential M&A? You've done some divestitures, but any potential M&A and then getting back to share repo in a big way?

Question: David Strauss - Barclays - Analyst : Can we pull up the audience questions, please? (Event Instructions) Okay. Next question, please. That's for sure better than it was last year. Okay, that's good. Next question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 19, 2025 / 1:40PM, RTX.N - RTX Corp at Barclays Industrial Select Conference

Question: David Strauss - Barclays - Analyst : Yeah, exactly. You're on the hot seat, the uncomfortable seat.

Question: David Strauss - Barclays - Analyst : Okay, I think we have one more. I don't know, I think two more. Yeah, we don't want the people at home knowing what we're asking. They need to come to the conference.

Question: David Strauss - Barclays - Analyst : Next one, last one.

Question: David Strauss - Barclays - Analyst : There you go, execute on the backlog. Chris, thank you. Appreciate your time. Thanks for coming.