Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

RTX Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Products sales	59,612)	49,571)	50,773)	49,270)	43,319)
Services sales	21,126)	19,349)	16,301)	15,118)	13,268)
Net sales	80,738)	68,920)	67,074)	64,388)	56,587)
Cost of sales, products	(50,768)	(43,425)	(41,927)	(41,095)	(38,137)
Cost of sales, services	(14,560)	(13,406)	(11,479)	(10,802)	(9,919)
Cost of sales	(65,328)	(56,831)	(53,406)	(51,897)	(48,056)
Gross margin	15,410)	12,089)	13,668)	12,491)	8,531)
Research and development	(2,934)	(2,805)	(2,711)	(2,732)	(2,582)
Selling, general, and administrative	(5,806)	(5,809)	(5,663)	(5,224)	(5,540)
Goodwill impairment	—)	—)	—)	—)	(3,183)
Other income (expense), net	(132)	86)	120)	423)	885)
Operating profit (loss)	6,538)	3,561)	5,414)	4,958)	(1,889)
Non-service pension income	1,518)	1,780)	1,889)	1,944)	902)
Debt extinguishment costs	—)	—)	—)	(649)	—)
Interest expense	(1,970)	(1,653)	(1,300)	(1,330)	(1,430)
Interest income	102)	100)	70)	36)	42)
Other non-operating income (expense)	6)	48)	(46)	(28)	22)
Interest expense, net	(1,862)	(1,505)	(1,276)	(1,322)	(1,366)
Non-operating income (expense), net	(344)	275)	613)	(27)	(464)
Income (loss) from continuing operations before income taxes	6,194)	3,836)	6,027)	4,931)	(2,353)
Income tax expense	(1,181)	(456)	(700)	(786)	(575)
Net income (loss) from continuing operations	5,013)	3,380)	5,327)	4,145)	(2,928)
Loss from discontinued operations	—)	—)	(19)	(33)	(367)
Net income (loss)	5,013)	3,380)	5,308)	4,112)	(3,295)
Noncontrolling interest in subsidiaries’ earnings	(239)	(185)	(111)	(248)	(224)
Net income (loss) attributable to common shareowners	4,774)	3,195)	5,197)	3,864)	(3,519)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

The financial data exhibits notable trends across sales, costs, profitability, and other financial metrics over the five-year period ending December 31, 2024.

Sales Trends: Net sales demonstrated a consistent upward trend, rising from $56,587 million in 2020 to $80,738 million in 2024. Product sales increased overall, with a notable dip in 2023 but a strong recovery in 2024 to $59,612 million. Services sales showed steady growth each year, reaching $21,126 million in 2024.
Cost of Sales and Gross Margin: Costs of sales rose in tandem with sales revenue, increasing from $48,056 million in 2020 to $65,328 million in 2024. Both product and service cost components followed this upward trajectory. Despite growing costs, gross margin generally improved, escalating from $8,531 million in 2020 to $15,410 million in 2024, although it declined in 2023 before recovering substantially in 2024.
Operating Expenses: Research and development expenses remained relatively stable, with a slight increase from $2,582 million in 2020 to $2,934 million in 2024. Selling, general, and administrative expenses fluctuated modestly without clear directional movement, hovering around the $5,800 million mark from 2021 onward. Notably, a goodwill impairment expense was recorded only in 2020 at $3,183 million and did not recur.
Operating Profitability: Operating profit recovered significantly after a loss in 2020, moving to positive territory in 2021 and rising to $6,538 million by 2024. There was a slight decline in operating profit in 2023 compared to 2022; however, the profit rebounded strongly in 2024.
Non-Operating Income and Expenses: Non-service pension income gradually declined from $902 million in 2020 to $1,518 million in 2024. Interest expense increased over the period from $1,430 million in 2020 to $1,970 million in 2024, reflecting higher financing costs, although interest income also improved modestly. Net interest expense worsened accordingly. Other non-operating income and expenses showed variability, with a negative swing in 2024.
Income Before Taxes and Net Income: Income from continuing operations before income taxes turned positive starting in 2021, rising from a loss in 2020 to $6,194 million in 2024. Income tax expense fluctuated, with a notable increase to $1,181 million in 2024. Net income from continuing operations followed a similar trend, recovering from a loss in 2020 to substantial profit levels, although it declined in 2023 before increasing again in 2024. Net income attributable to common shareowners mirrored this pattern, with losses in 2020 turning to gains thereafter.
Other Observations: There was a reduction in losses from discontinued operations over time, with none reported after 2022. Noncontrolling interest in subsidiaries' earnings remained a small negative figure throughout the period without a clear trend.

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RTX Corp. (NYSE:RTX)

Income Statement