Raytheon Technologies Corp. (RTX) reported fourth quarter 2022 results, full year 2022 results, and announced its 2023 outlook and plan to realign its business units into three segments. Fourth quarter 2022 sales were $18.1 billion; full year 2022 sales were $67.1 billion. Company management expects sales of $72.0 billion to $73.0 billion for its full year 2023 outlook, with free cash flow of approximately $4.8 billion and a share repurchase of $3.0 billion of RTX shares.

"Raytheon Technologies delivered solid full-year results with strong free cash flow that exceeded our expectations," said Raytheon Technologies Chairman and CEO Greg Hayes. "We effectively supported the rapid commercial aerospace recovery and delivered critical platforms and advanced technologies for customers to meet their increasingly complex needs, while achieving $86 billion in new awards in 2022 and ending the year with a total backlog of $175 billion."

The company plans to strengthen its market position and generate additional revenue and technology synergies by realigning its business units. Christopher Calio, whose role has been expanded to president and chief operating officer of Raytheon Technologies, effective March 1, will oversee the business transformation initiative.

The three focused business segments will be Collins Aerospace, Pratt & Whitney, and Raytheon. The company plans to implement the reorganization during the second half of 2023 and will provide additional updates on its progress during the coming months.

Additionally, the company announced that Roy Azevedo, president of Raytheon Intelligence & Space (RIS), will retire from his role and serve as an advisor to Calio to help with the transformation.

RTX reported fourth-quarter sales of $18.1 billion, up 6% over the prior year. Backlog at the end of the fourth quarter was $175 billion, of which $106 billion was from commercial aerospace and $69 billion was from defense.

By segment, Collins Aerospace recorded operating profit of $741 million, up 61% versus the prior year. The increase in operating profit was primarily driven by higher commercial aftermarket volume and lower R&D expense.

Pratt & Whitney recorded operating profit of $306 million, up 127% versus the prior year. The increase in operating profit was primarily driven by higher commercial aftermarket sales.

Raytheon Intelligence & Space recorded operating profit of $278 million, down 56% versus the prior year. The decrease in operating profit was driven in part by the impact of the prior year Global Training and Services divestiture. On an adjusted basis, operating profit was down 31% versus the prior year.

Raytheon Missiles & Defense recorded operating profit of $376 million, down 23% versus the prior year. Adjusted for a charge associated with a divestiture, operating profit was $418 million, down 14% from the prior year.