By Pratyush Thakur and Mike Stone
(Reuters) – RTX on Tuesday raised its 2024 adjusted profit and sales forecasts for the second time, citing strong demand for aircraft repairs and defense systems.
The aerospace and defense giant expects full-year adjusted profit per share to be between $5.50 and $5.58, compared with its prior forecast range of $5.35 to $5.45.
The company raised its revenue forecast range to $79.25 billion to $79.75 billion, from $78.75 to $79.5 billion.
With a surge in air travel demand, airlines had to extend the service life of aircraft amid the limited availability of new commercial planes, creating a bustling aftermarket business.
RTX reported a quarterly per-share profit of $1.45, compared with $1.25 a year earlier. Adjusted sales rose 6% to $20.1 billion.
RTX unit Pratt & Whitney, which competes with CFM International to supply jet engines for Airbus’ A320neo family of aircraft, posted a third-quarter operating profit $557 million, compared to a year-ago loss, on demand for repairs.
The business is navigating an ongoing inspection drive to check for flawed components in its geared turbofan (GTF) jet engines that has led to grounding for hundreds of aircraft in recent months.
RTX’s Collins Aerospace business, which provides defense products such as test and training range systems and crew escape systems, posted an 18% rise in operating profit to $1.06 billion.
Collins also cited strong demand for aircraft component repairs in the quarter through September.
RTX’s other main business, Raytheon (NYSE:), one of the United States government’s biggest defense contractors, also reported a higher profit, citing demand for products such as Patriot missile-defense systems.
Tensions in the Middle East and the South China sea, as well as the Ukraine war, have prompted investors pile money into shares of defense majors such as RTX and Lockheed Martin (NYSE:) on anticipation of higher demand for weapons.
