 | |
| RTX | |
| Formerly | Raytheon Technologies Corporation (2020–2023) |
| Company type | Public |
| ISIN | US75513E1010 |
| Industry | |
| Predecessors | |
| Founded | April 3, 2020; 5 years ago (April 3, 2020) |
| Founders | Vannevar Bush Laurence K. Marshall Charles G. Smith (asAmerican Appliance Company, laterRaytheon in 1922) Frederick Rentschler (asUnited Technologies in 1934) |
| Headquarters | Arlington, Virginia, U.S. |
Area served | Worldwide |
Key people | Christopher T. Calio (CEO) Gregory J. Hayes (chairman) |
| Revenue |  US$80.74 billion (2024) |
| US$6.538 billion (2024) | |
| US$4.774 billion (2024) | |
| Total assets | US$162.9 billion (2024) |
| Total equity | US$60.16 billion (2024) |
Number of employees | 186,000 (2024) |
| Subsidiaries | |
| Website | rtx.com |
| Footnotes / references [1][2] | |
RTX Corporation, formerlyRaytheon Technologies Corporation,[3][4] is an Americanmultinationalaerospace anddefenseconglomerate headquartered inArlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitalization, as well as one of the largest providers of intelligence services.[note 1][7] In 2023, the company's seat inForbes Global 2000 was 79.[8] Through its business unitsCollins Aerospace,Pratt & Whitney andRaytheon, RTX manufacturesaircraft engines,avionics,aerostructures,cybersecurity solutions,guided missiles,air defense systems,satellites, anddrones. The company is a large military contractor, getting much of its revenue from the U.S. government.[9][10]
The company was formed in 2020 by a merger of equals between the aerospace subsidiaries ofUnited Technologies Corporation (UTC) and theRaytheon Company. Before the merger, UTCspun off its non-aerospace subsidiariesOtis Elevator Company andCarrier Corporation. The merged company adopted the better-known name of Raytheon in the form Raytheon Technologies Corporation and transferred headquarters to Waltham, Massachusetts.[2][11] Former UTC CEO and chairmanGregory J. Hayes is chairman and CEO of the combined company,[12] which renamed Raytheon Technologies Corporation to RTX in July 2023.[3]
The Raytheon Company was founded in 1922 inCambridge, Massachusetts, by Laurence K. Marshall,Vannevar Bush, and Charles G. Smith as theAmerican Appliance Company.[13] Its focus, which was originally on newrefrigeration technology, soon shifted toelectronics. The company's first product was a gaseous (helium)rectifier that was based on Charles Smith's earlierastronomical research of the starZeta Puppis.[14] The electron tube was christened with the nameRaytheon ("light of/from the gods"[15]) and was used in abattery eliminator, a type ofradio-receiverpower supply that plugged into thepower grid in place of largebatteries. This made it possible to convert householdalternating current todirect current for radios and thus eliminate the need for expensive, short-lived batteries.
In 1925, the company changed its name to Raytheon Manufacturing Company and began marketing its rectifier under the Raytheon brand name, with commercial success. In 1928, Raytheon merged with Q.R.S. Company, an American manufacturer of electron tubes and switches, to form the successor of the same name, Raytheon Manufacturing Company.[citation needed] By the 1930s, it had already grown to become one of the world's largest vacuum tube manufacturing companies.[citation needed] In 1933 it diversified by acquiring Acme-Delta Company, a producer oftransformers, power equipment, and electronicauto parts.
During World War II, Raytheon mass-manufacturedmagnetron tubes for use inmicrowave radar sets and then completeradar systems. At war's end in 1945, the company was responsible for about 80 percent of all magnetrons manufactured. During the war, Raytheon also pioneered the production of shipboard radar systems, particularly for submarine detection. Raytheon ranked 71st among United States corporations in the value of World War II military production contracts.[16] In 1945, Raytheon'sPercy Spencer invented themicrowave oven by discovering that the magnetron could rapidly heat food. In 1947, the company demonstrated the Radarange microwave oven for commercial use.
After the war, Raytheon developed the firstguidance system for a missile that could intercept a flying target. In 1948, Raytheon began to manufactureguided missiles, including theSAM-N-2 Lark, and eventually the air-to-airAIM-7 Sparrow, and the ground-to-airMIM-23 Hawk missiles. In 1959, Raytheon acquired the marine electronics company Apelco Applied Electronics, which significantly increased its strength in commercial marine navigation and radio gear, and changed its name to Raytheon Company.
During the post-war years, Raytheon also made generally low- to medium-powered radio and televisiontransmitters and related equipment for the commercial market. In the 1950s, Raytheon began manufacturingtransistors, including theCK722, priced for and marketed to hobbyists. Under the direction ofThomas L. Phillips in 1965, it acquiredAmana Refrigeration, Inc., a manufacturer ofrefrigerators andair conditioners. Using the Amana brand name and its distribution channels, Raytheon began selling the first countertop householdmicrowave oven in 1967 and became a dominant manufacturer in the microwave oven business.
In 1991, during thePersian Gulf War, Raytheon'sPatriot missile received great international exposure. It was credited for downing IraqiScud missiles.[17] The exposure resulted in a substantial increase in sales for the company outside the United States. By 2006, Raytheon reported $283.9 million in global revenues for its Patriot missile system.[17]
In an effort to establish leadership in the defense electronics business, Raytheon purchased in quick succession Dallas-basedE-Systems (1995);Chrysler Corporation's defense electronics and aircraft-modification businesses, and the defense unit ofTexas Instruments,Defense Systems & Electronics Group (1997).[18] The businesses were purchased for $2.3 billion and $2.95 billion, respectively.[18] Also in 1997, Raytheon acquired the aerospace and defense business ofHughes Aircraft Company fromHughes Electronics Corporation, a subsidiary ofGeneral Motors, which included a number of product lines previously purchased by Hughes Electronics, including the formerGeneral Dynamicsmissile business (Pomona facility), the defense portion ofDelco Electronics (Delco Systems Operations), andMagnavox Electronic Systems.[19] Raytheon also divested itself of several nondefense businesses in the 1990s, includingAmana Refrigeration and Seismograph Service Ltd (sold toSchlumberger-Geco-Prakla).
In November 2007, Raytheon purchased robotics companySarcos,[20] and in October 2009, Raytheon acquiredBBN Technologies.[21][22] In December 2010,Applied Signal Technology agreed to be acquired by Raytheon for $490 million.[23]
In October 2014, Raytheon beat rivalsLockheed Martin andNorthrop Grumman for a contract to build 3DELRR, a next-generation long-range radar system, for theUS Air Force worth an estimated $1 billion.[24] The contract award involved the construction of next-generation radar that can track aircraft, missiles, and remotely piloted aircraft.[25] It was immediately protested by Raytheon's competitors. After re-evaluating the bids following the protests,[26] theUS Air Force decided to delay awarding the 3DELRR EMD contract until 2017 and was to issue an amended solicitation at the end of July 2016.[27] In 2017 the Air Force again awarded the contract to Raytheon.[28]
In May 2015, Raytheon acquired cybersecurity firm Websense, Inc. from Vista Equity Partners for $1.9 billion[29] and combined it with RCP, formerly part of its IIS segment to form Raytheon|Websense.[30] In October 2015, Raytheon|Websense acquired Foreground Security, a provider of security operations centers, managed security service solutions[buzzword] and cybersecurity professional services,[31] for $62 million.[32] In January 2016, Raytheon|Websense acquired the firewall provider Stonesoft fromIntel Security for an undisclosed amount and renamed itself to Forcepoint.[33]
In July 2016,Poland's Defence MinisterAntoni Macierewicz planned to sign a letter of intent with Raytheon for a $5.6 billion deal to upgrade its Patriot missile-defence shield,[34][35] and in 2017,Saudi Arabia signed business deals worth billions of dollars with multiple American companies, including Raytheon.[36][37]
In February 2020, Raytheon completed the first radar antenna array for the US Army's new missile defense radar, known as the Lower Tier Air and Missile Defense Sensor (LTAMDS), to replace the service's Patriot air and missile defense system sensor.[38]
In 1929,William Boeing'sBoeing Airplane & Transport Corporation teamed up withFrederick Rentschler'sPratt & Whitney to form theUnited Aircraft and Transport Corporation, a large,vertically integrated,amalgamated firm, uniting business interests in all aspects ofaviation—a combination ofaircraft engine and airframe manufacturing andairline business, to serve all aviation markets, bothcivil aviation (cargo, passenger,private,air mail) andmilitary aviation.[39] After theAir Mail scandal of 1934, the U.S. government concluded that such large holding companies as United Aircraft and Transport were anti-competitive, and newantitrust laws were passed forbidding airframe or engine manufacturers from having interests in airlines.[40]
United Aircraft Corporation was formed in 1934 from United Aircraft and Transport's manufacturing interests east of theMississippi River (Pratt & Whitney, Sikorsky, Vought, andHamilton Standard Propeller Company), headquartered inHartford withFrederick Rentschler, founder of Pratt & Whitney, as president.[40][41]
United Aircraft became a component of theDow Jones Industrial Average on March 4, 1939, when United Aircraft andAT&T were added to replaceNash Motors andInternational Business Machines. The company and its successors remained a component of the Dow Jones Industrial Average through August 2020. It was announced that starting August 31, 2020, Raytheon Technologies would be substituted in theDow Jones Industrial Average byHoneywell International.[42][43]
During World War II, United Aircraft ranked sixth among United States corporations in the value of wartime production contracts.[16] At the close of the war, United Aircraft entered the emerging markets forjet engines andhelicopters, via Pratt & Whitney and Sikorsky, respectively.[40]
In the 1950s, United Aircraft began developing jet engines, including thePratt & Whitney J57, the most powerful jet engine on the market for some years.[40] In the 1960s, Pratt & Whitney produced thePratt & Whitney JT9D for theBoeing 747.[40]
In 1974,Harry Jack Gray leftLitton Industries to become the CEO of United Aircraft.[40] He pursued a strategy of growth and diversification, changing the parent corporation's name to United Technologies Corporation (UTC) in 1975 to reflect the intent to diversify into numeroushigh tech fields beyond aerospace.[44] (The change became official on May 1, 1975.) The diversification was partially to balance civilian business against any overreliance on military business.[40] UTC became amergers and acquisitions (M&A)–focused organization, with various forced takeovers of unwilling smaller corporations.[40] The next year (1976), UTC forcibly acquiredOtis Elevator.[45] In 1979,Carrier Refrigeration was acquired;[46]
At one point the military portion of UTC's business, whose sensitivity to "excess profits" and boom/bust demand drove UTC to diversify away from it, actually carried the weight of losses incurred by the commercial M&A side of the business.[40] Although M&A activity was not new to United Aircraft, the M&A activity of the 1970s and 1980s was higher-stakes and arguably unfocused. Rather than aviation being the central theme of UTC businesses,high tech (of any type) was the new theme. Some Wall Street watchers questioned the true value of M&A at almost any price, seemingly for its own sake.[40]
In 1999, UTC acquiredSundstrand Corporation and merged it into UTC's Hamilton Standard unit to formHamilton Sundstrand. In 2003, UTC entered the fire and security business by purchasingChubb Security. In 2004, UTC acquired theSchweizer Aircraft Corporation which planned to operate as a wholly owned subsidiary under theirSikorsky Aircraft division.[47] In 2005, UTC further pursued its stake in the fire and security business by purchasingKidde. Also in 2005, UTC acquired Boeing'sRocketdyne division, which was merged into thePratt & Whitney business unit and renamedPratt & Whitney Rocketdyne (later sold toAerojet and merged intoAerojet Rocketdyne). In November 2008, UTC'sCarrier Corporation acquired NORESCO, anenergy service company.[48]
In 2010, UTC conducted its largest acquisition to date,General Electric's security equipment business for US$1.8 billion, a move to supportUTC's Fire & Security unit.[49]
In September 2011, UTC acquired an $18.4 billion deal (including $1.9 billion in net debt assumed) for aircraft components makerGoodrich Corporation.[50] In July 2012, United Technologies acquiredGoodrich and merged it withHamilton Sundstrand, formingUTC Aerospace Systems.
In November 2018, UTC acquiredRockwell Collins for $23 billion ($30 billion including Rockwell Collins' net debt).[51][52] As part of the deal,Pratt and Whitney and the newly-formedCollins Aerospace remained under United Technologies, whileOtis Elevator andUTC Climate, Controls & Security (doing business asCarrier) were spun off as two independent companies.[53] The spin off was completed in March 2020.[54]
In June 2019, United Technologies announced the intention to merge with the Raytheon Company. The combined company, valued at more than $100 billion after planned spinoffs, would be the world's second-largest aerospace-and-defense company by sales behind Boeing.[55] Although UTC was the legal survivor, the merged company took the name Raytheon Technologies and based its headquarters at Raytheon's former campus inWaltham, Massachusetts, rather than UTC's former base inFarmington, Connecticut.[56] The merger was completed in April 2020.[11] Raytheon Technologies began trading at $51 per share, on the New York Stock Exchange under the ticker RTX.[57][58]
On July 28, 2020, the company announced cutting of over 8,000 jobs in its commercial aviation division due to travel slowdown induced by the globalCOVID-19 pandemic.[59]
In December 2020, the Board of Directors authorized a $5 billion repurchase of common stock.[60]
In 2022, during theRussian invasion of Ukraine, major arms manufacturers, including Raytheon Technologies,[61] reported a sharp increase in interim sales and profits.[62][63][64]
On June 7, 2022, the company announced plans to move its global headquarters toArlington, Virginia.[5] The move was completed in July.[6]
In January 2023, Raytheon Technologies announced it would combine its missiles and defense division and intelligence and space division into a single business unit, effective July 1. The reorganization created three divisions at Raytheon Technologies: Collins Aerospace, Pratt & Whitney, and Raytheon.[65] The reorganization was preceded by the rebranding to RTX in June 2023.
In July 2023, Raytheon Technologies Corporation changed its name to RTX Corporation.[4]
RTX's supply of weapons to Israel led to protests against the company during theGaza war.[66] On December 14, 2023, for example, protestors blocked the entrance to an RTX facility in Arizona.[67] In early 2024, 15 people were arrested after blocking access to RTX andBAE Systems facilities inLouisville, Kentucky in protest against supplying weapons to Israel.[68]
In December 2023, RTX announced that CEO Greg Hayes would step down the following May and be replaced by company president Christopher Calio.[69]
In August 2024, RTX was fined US$200 million forInternational Traffic in Arms Regulations violations, including exchanging data and products with prohibited countries such as China.[70]
RTX Corporation has agreed to pay over $950 million to resolve multiple federal investigations involving bribery, government contracting violations, and export control breaches.[71][72] The settlement, announced on October 16, 2024, includes penalties for bribing a Qatari official with ties to the country's royal family and defrauding theU.S. Defense Department in procurement contracts. According to the SEC's order, Raytheon used sham subcontracts with a supplier to pay bribes of nearly $2 million to Qatari military and other officials to obtain defense contracts. Additionally, for almost two decades until 2020, Raytheon paid more than $30 million to a Qatari agent related to theQatari Emir, despite the agent lacking a background in defense contracting. The second agreement, made with DOJ officials in Boston, involves RTX paying $574 million to settle allegations of overcharging in federal contracts. This includes schemes to defraud the U.S. Department of Defense in connection with the provision of defense products and services, such asPatriot missile systems and radar systems intended for an undisclosed foreign customer.[73] As part of the settlement, RTX will also pay a $124 million penalty to the Securities and Exchange Commission. The company has acknowledged responsibility for the misconduct, which largely occurred prior to 2020, and has stated that it is working on remediation efforts.[74]
After the 2020 merger, Raytheon Technologies Corporation consisted of four business units:
In 2023, the company changed its name to RTX Corporation and re-organized into three business units:[75][76]
I also know that about 10 percent of our revenue comes from the U.S. government," [United Technologies chief executive Greg Hayes] said.
