Raytheon Net Worth: RTX’s Legacy of Defense Innovation

With a legacy spanning more than a century, Raytheon has established itself as the world’s top aerospace and defense company. As of October 2024, Raytheon has a net worth of $165.80 billion, reflecting how pioneering technology and strategic acquisitions can drive long-term success.

At Business2Community, we’ve consulted a range of sources to deliver a comprehensive overview of Raytheon’s net worth and evolution over the decades. Read on to discover the company’s milestones, controversies, and more.

What is Raytheon’s Net Worth?

As of October 2024 Raytheon’s net worth, also known as market capitalization or market cap, was $165.80 billion, based on a share price of $124.64 and 1.33 billion outstanding shares.

Following the completion of a merger of equals between Raytheon Company (RTN) and United Technologies Corp (UTX) and the subsequent formation of Raytheon Technologies Corporation, the company’s shares began trading on the NYSE under the ticker RTX on April 3, 2020.

At the time of the merger, Raytheon Company was valued at around $33 billion while United Technologies Corp (UTC) was valued at $94 billion.

By December 2020, the new Raytheon had a net worth of $108 billion. The company’s net worth increased by 19% to $128.8 billion in 2021 and by 15% to $148.4 billion in 2022.

While the company’s market cap fell by 18% to $120.9 billion in 2023, it rebounded strongly in 2024, hitting a new high of over $166 billion.

From an opening trading price of $51 per share on April 3, 2020, Raytheon’s share price has surged, reaching an average price of $76.32 in 2021 and $88.76 in 2022. Throughout 2023, Raytheon’s stock fluctuated, hitting a high of $100.73 in April and a low of $68.37 in October.

As of October 2024, Raytheon’s share price was $124.64, marking a notable 85% increase year-over-year and outpacing the S&P 500’s 35% growth rate over the same period.

Raytheon’s fiscal year ends on December 31st and the company typically releases its annual financial results in February of the following year.

Raytheon Revenue

In its first year post-merger, Raytheon Technologies Corporation (RTX) generated $56.5 billion in revenue. However, it posted a net loss of $3.9 billion, primarily due to the pandemic-related decline in commercial aviation sales.

The company’s defense segment helped offset the impact of the global slowdown in air travel, leading to an upward trend in 2021. That year, revenue grew by 14% to $64.4 billion, and the company reported a net profit of $3.5 billion.

In 2022, driven by a recovery in commercial aviation and strong performance in defense, RTX reported revenue of $67.1 billion, with net income increasing to $5.2 billion. By 2023, Raytheon’s revenue had climbed to $68.9 billion, while net income decreased to $3.2 billion, largely because of supply chain and economic challenges.

In the first quarter of 2024, Raytheon reported net sales of $19.3 billion, a 12% increase year-over-year, with net earnings rising 20% to $1.7 billion. Second-quarter revenue was $19.7 billion, with adjusted net income of $1.9 billion.

The table below shows the 5-year post-merger revenue of Raytheon Technologies (RTX).

Raytheon Dividend History

Raytheon Technologies Corp (RTX) has paid cash dividends on its common stock every year since 2020. As of October 2024, Raytheon had a trailing twelve-month (TTM) dividend payout of $2.52 per share, with a dividend yield of 2.02%.

Between March 2021 and September 2023, Raytheon repurchased over $7.7 billion worth of its common stock. In October 2023, the company announced a $10 billion share repurchase program, marking its largest buyback initiative to date.

Who Owns Raytheon?

As a public company, Raytheon Technologies Corp. (RTX) is owned by various shareholders. The largest shareholder as of June 30, 2024, was the Vanguard Group with an 8.71% stake followed by State Street Corporation (8.66%) and BlackRock Inc. (7.20%).

Raytheon Company was founded in 1922 as the American Appliance Company by Laurence Marshall, Dr. Vannevar Bush, and Dr. Charles G. Smith. The company was reincorporated in 1928 and listed on the New York Stock Exchange (NYSE) under the ticker symbol RTN in September 1952.

In 1959, the company officially adopted the Raytheon Company name. Following its 1997 merger with Hughes, Raytheon emerged as a key player in the defense and aerospace industry. Through yet another landmark merger deal, Raytheon Company became a wholly owned subsidiary of United Technologies Corporation (UTC) in 2020.

UTC went on to change its name to Raytheon Technologies Corporation and after corporate restructuring in 2023, the company rebranded to RTX Corporation.

Who is the Raytheon CEO?

The CEO of Raytheon is Christopher T. Calio. Calio first joined the company in 2005 and held a variety of leadership positions before succeeding Gregory J. Hayes as President and Chief Executive Officer in 2024.

With his deep understanding of the industry, and Raytheon’s operations, Calio oversaw the realignment of Raytheon from four to three key business segments in 2023. Looking ahead, Calio intends to drive operational excellence and accelerate technological innovation to exceed customer and shareholder expectations.

Raytheon’s Company History

Raytheon (RTX Corporation) is an aerospace and defense company providing advanced systems and services for commercial, military, and government customers worldwide. Headquartered in Arlington, Virginia, it operates three key businesses:

• Collins Aerospace Systems: Specializes in advanced structures, avionics, interiors, mission systems, and power and control systems for customers across commercial, regional, business aviation, and military sectors.
• Pratt & Whitney: Designs, manufactures, and services the world’s most advanced aircraft engines and auxiliary power systems for commercial, business, and military aircraft.
• Raytheon (Formerly Raytheon Intelligence & Space and Raytheon Missiles & Defense): Provides leading defense solutions ensuring national sovereignty and security.

Below, we track Raytheon’s history from its inception to becoming the world’s largest aerospace and defense company.

1922-1969: Raytheon is Born

Raytheon Company was founded in 1922 as the American Appliance Company. Two years later, the company created its first product, Raytheon, a helium tube rectifier that transformed the radio into an accessible, affordable home device. In 1925, the company was renamed Raytheon Manufacturing Company and began marketing its signature product.

By 1926, Raytheon was a leading manufacturer of tube rectifiers and generated an impressive $321,000 in profit on sales of $1 million.

Into the 1930s, Raytheon Company had established itself as the world’s largest vacuum tube manufacturing company. In 1933, Raytheon acquired Acme-Delta Company, diversifying into the manufacturing of transformers, powered equipment, and electronic auto parts.

During World War II, Raytheon landed a significant defense contract to supply magnetrons, a critical component in radar systems. After the war, Raytheon emerged as a major defense contractor while also continuing its work in the commercial radio and television transmitter market.

In 1950, Raytheon launched its Lark Missile, the first missile-mounted guidance system capable of intercepting moving objects. By 1955, Raytheon was a Fortune 500 company generating $177 million in revenue and $3.5 million in profits.

As of 1960, 40% of Raytheon’s profits were generated from the sale of the Hawk missile patents and the licensing of proprietary rights to foreign nations. This success cemented Raytheon’s position as a major defense contractor in the US.

The 1960s saw Raytheon diversify and strengthen its capabilities in both defense and electronics. The company merged with British electronics firm A.C. Cossor in 1961. It then acquired Amana Refrigeration, Inc., a manufacturer of refrigerators and air conditioners in 1965.

In 1966, Raytheon also ventured into educational publishing through its acquisition of D.C. Heath. It also played a key role in the Apollo program by manufacturing the Apollo Guidance Computer. Leveraging the Amana brand, Raytheon began selling the first countertop microwave oven in 1967.

By 1969, Raytheon’s revenue had crossed the $1 billion mark, with a significant portion of its sales directly attributed to contracts with the US government during the Vietnam War.

1970-1999: Raytheon Enters Aerospace

In the 1970s, the company began research into the use of the semiconductor gallium arsenide. This paved the way for a new class of lower-cost phased array radars. As a result, Raytheon quickly became known as the leader in phased-array radar technology. By 1975, the company had also launched the first American-made, shoulder-fired anti-tank missile.

Throughout the late 1970s, Raytheon expanded its appliance business by acquiring McGraw-Edison’s Speed Queen division. To broaden its aircraft activities, Raytheon Company acquired Beech Aircraft Corp in 1980. That year, the company’s revenue surpassed $3.7 billion.

The 1980s saw Raytheon launch the long-range Tomahawk cruise missile and introduce the first advanced, medium-range, air-to-air missile. By 1990, the company’s revenue had more than doubled to $8.8 billion.

In 1994, Raytheon merged Beechcraft with its newly acquired Hawker product line to form the Raytheon Aircraft Company. To grow its defense operations, Raytheon acquired E-Systems for $2.3 billion and Chrysler’s defense assets for $455 million in 1995. In 1997, Raytheon acquired Texas Instruments’ defense operations for $3 billion.

It also completed a $9.5 billion merger with Hughes Aircraft Co. The complex equity transaction transformed Raytheon into a more than $20 billion company and the number-three defense contractor in the country.

By the end of the decade, Raytheon had divested several non-core companies to reduce debt and focus on growth as a defense leader. The company’s worldwide sales also inched closer to $20 billion.

2000-2009: Raytheon Bets on Defense

As 2000 rolled around, Raytheon’s revenue was $15.8 billion. By the next year, turnover had increased by 7% to $16.9 billion. In 2002, Raytheon sharpened its focus on defense, shifting the company’s strategic profile from a diversified industrial company to a leading provider of defense electronic systems and services.

The company also reorganized its business structure into 7 segments spanning four strategic business areas:

• Missile systems
• Integrated defense systems
• Intelligence and information systems
• Space and airborne systems
• Network-centric systems
• Homeland security
• Raytheon Technical Services Company

The next year, Raytheon worked to achieve above-market growth across four strategic business areas: missile defense, precision engagement, intelligence, surveillance and reconnaissance, and homeland security.

By 2005, the company’s efforts paid off, with revenue hitting $21.9 billion and the company reducing its net debt position to its lowest level in 10 years.

2006 saw Raytheon acquire Associates, Inc. for an undisclosed amount, strengthening its position in command and control, network infrastructure, and service. To focus on its core businesses, Raytheon sold its aircraft subsidiary including its Beech and Hawker product line for $3.3 billion in 2007.

That same year, the company acquired Oakley Networks, enhancing its capabilities in information security for government and commercial customers. Raytheon also acquired Sarcos to expand into robotics research and production.

By 2008, the company’s discipline and focus resulted in a record year-end backlog of $38.9 billion, 9% sales growth, and a 23% increase in adjusted earnings per share.

2009 saw Raytheon secure Foreign Military Sales contract awards totaling $1.1 billion to fund the production of its new combat-proven Patriot Air and Missile Defense System.

Realizing the growing need for comprehensive cybersecurity solutions, the company acquired research Bolt Beranek and Newman Inc.(BBN), a world leader in research and development and provider of critical solutions for national defense and security missions, for $350 million.

Overall, in a challenging recession environment for many businesses, the company saw its sales, bookings, and return on invested capital (ROIC), increase.

2010-2014: Raytheon Goes International

In 2010, Raytheon Company increased long-term value generation through the acquisition of Technology Associates, Trusted Computer Solutions, and Compucat Research Pty. Ltd. Despite US government budget uncertainty and a difficult economy, Raytheon generated over $25.2 billion in revenue that year.

Maintaining its strategic acquisition strategy, Raytheon acquired Applied Signal Technology, a leader in the collection and processing of communications signals for $490 million in 2011. The company also picked up Pikewerks, a cybersecurity company specializing in forensics, software protection, and insider threat protection.

Finally, marking its 10th cybersecurity-related acquisition since 2007, Raytheon bought Henggeler Computer Consultants. In 2012, Raytheon introduced the first dual-frequency, hull-mounted sonar for the US Navy’s surface fleet.

With growing global demand for its capabilities, Raytheon’s international revenue accounted for 26% of the company’s total income. The company also made key acquisitions including SafeNets Government solutions business, providing encryption tech, along with Teligy Inc. to help extend the company’s cyber security software solutions.

In 2013, Raytheon consolidated its businesses from six to four. This was done to streamline operations and align with customer needs. To strengthen its data analytics capabilities, the company also acquired Visual Analytics for $14 million.

Raytheon acquired Blackbird Technologies for $420 million in 2014, further strengthening its cybersecurity portfolio. Meanwhile, the company’s stocks outperformed the S&P 500’s index for the 4th consecutive year but income was down 7.5% on the previous year. Dividends were also raised for the 10th consecutive year.

Following years of reduced US government defense budgets, the company launched a four-pillar growth strategy to diversify its revenue. This involved:

• Building strength and capabilities within its key mission areas.
• Focusing additional resources on emerging US Department of Defense opportunities and technologies.
• Engaging key foreign countries as individual markets with multiple customers.
• Expanding advanced cyber solutions into international and commercial markets.

Raytheon returned to growth in 2015, reporting net sales of $23.2 billion. As international governments sought out more elaborate defense solutions, Raytheon met this demand, resulting in record international revenue of 31%.

That year, Raytheon acquired 80% of Websense for $1.9 billion to combine with its own cybersecurity operations. Other strategic acquisitions included Sensintel, a leading provider of unmanned aircraft systems (UAS) solutions, and Foreground Security, a leading provider of security operations centers (SOCs).

By 2016, Raytheon Company had accelerated its growth, hitting a record $27.8 billion in bookings and a 3.5% increase in revenue.

To expand its cybersecurity portfolio, the company made two strategic acquisitions in 2017: RedOwl specializing in advanced user behavior analytics, and Skyfence, a leading cloud security provider.

While domestic sales still accounted for a significant portion of Raytheon’s revenue, international sales experienced their 14th consecutive year of growth. Continuing its ascent, the company’s revenue crossed the $25 billion mark.

In 2018, Raytheon’s global growth strategy continued to yield results, with revenue growth hitting 6.7%. The company also posted record numbers across bookings ($32.2 billion), and operating cash flow ($3.4 billion). Consequently, the dividend was raised by 8.8%, marking the 14th consecutive year of growth.

On June 9, 2019, Raytheon and United Technologies Corporation (UTC) entered into an agreement to combine in an all-stock merger of equals. That year, the company reported $29.2 billion in revenue and $12 million in net income.

2020-Present: Raytheon becomes RTX

On April 3, 2020, Raytheon Company and United Technologies Corporation merged, creating Raytheon Technologies Corporation (RTX) — the world’s most advanced aerospace and defense systems provider. Former UTC CEO and chairman Gregory Hayes was appointed chairman and CEO of the combined company.

Raytheon’s operations were also organized into four main business segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space (RIS), and Raytheon Missiles & Defense (RMD).In response to the pandemic, Raytheon implemented company-wide cost and cash actions.

As a result, $2 billion in cost reductions were achieved and $4.7 billion in cash was conserved. In 2021, Raytheon prioritized innovation, cost reductions, and digital transformation. This, combined with the growing demand for defense solutions and commercial aerospace recovery, resulted in revenue of $64.4 billion and adjusted earnings per share of $4.27.

Geopolitical risks such as the Russia-Ukraine war pushed up global defense spending and the demand for Raytheon’s advanced capabilities in 2022. The company also experienced high demand for its commercial aviation solutions. This resulted in a $175 billion backlog and strong free cash flow that exceeded expectations.

In 2023, Raytheon restructured from four business segments to three, driving greater innovation and efficiency. It also divested its Cybersecurity and Collins Aerospace actuation businesses to generate proceeds of over $3 billion to be realized in the next financial year.

To stay at the forefront of innovation and world-class manufacturing operations, the company invested $7.3 billion in research and development and $2.4 billion in capital expenditures in 2023. Despite ongoing inflationary pressures and supply chain disruptions, Raytheon managed to generate $74.3 billion in revenue.

Raytheon Scandals and Controversies

As a top weapons manufacturer in the corrupt landscape of the US’ military industrial complex, Raytheon is no stranger to controversy. In 2024 alone, the company set aside $1.24 billion to resolve continuing legal matters. We run through the company’s most recent scandals below.

Raytheon Price Gouging

In October 2024, Raytheon (RTX Corporation) agreed to return $250 million in unlawful gains to Taiwan. This was after an investigation by the US Government Accountability Office revealed the company had engaged in price gouging of its international clients. The transactions in question included a Patriot missile procurement in 2013 and the purchase of radar systems in 2017.

Raytheon Export Law Violations

In September 2024, Raytheon Technologies Corporation agreed to pay a $200 million fine for violating US export laws. The violations involved sharing sensitive data and products with Russia, Iran, and China between August 2017 and September 2023. The company voluntarily disclosed these breaches, which amounted to 750 violations of the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR).

Raytheon Protest Action

In February 2024, protesters gathered outside Raytheon’s Richardson campus to condemn the company for profiting from the ongoing conflict in Palestine. Protesters claimed that Raytheon’s weapons had contributed to the deaths of thousands in Palestine and called for an end to arms sales to Israel.

The demonstrations were part of a larger wave of Raytheon protests that began in late 2023, following the company’s October earnings call. During the call, then-CEO Greg Hayes predicted an uptick in business due to the worsening Israel-Palestine conflict as Israel continues to escalate the conflict.

In November 2023, protestors blocked entrances at Raytheon facilities in Arizona and Kentucky, demanding accountability for the company’s role in perpetuating violence and instability in the region. Meanwhile, over 100 activists staged a “die-in” at Raytheon’s Tucson office.

In California, more than 150 gathered at the company’s Goleta headquarters, condemning Raytheon’s involvement in the conflict and calling for a cease-fire.

What Can We Learn From Raytheon?

Raytheon’s net worth is a testament to the power of over 180 years of combined innovation and vision. With its commitment to investing in cutting-edge technologies, the company has positioned itself as a leader in the marketplace.

By operating in multiple sectors, including aerospace, defense, and advanced technologies, Raytheon has been able to diversify its revenue and reduce its dependency on a single market.

This highlights the power of diversification and its ability to make a company more resilient in the face of macroeconomic challenges. Raytheon’s consistent growth in high-value segments also underscores the value of strategic acquisitions and mergers in entering new markets.

Over the years, the company’s dependence on government contracts for its defense business has left the company vulnerable to political and budgetary uncertainties. It has also exposed the company to geopolitical tensions, trade restrictions, sanctions, and widespread public criticism.

Looking ahead, Raytheon must navigate ethical, regulatory, and political complexities carefully to preserve stakeholder trust.

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