Pratt & Whitney Posts 25% Sales Increase in the 3rd Quarter as Commercial Aviation Recovers from COVID-19

Revenue at jet engine maker Pratt & Whitney jumped 25% in the third quarter, surging as commercial aviation strengthens with the retreat of COVID-19, its parent company, Raytheon Technologies Corp., said Tuesday.

Sales of $4.7 billion were up $935 million over the same three months last year. The increase in sales was driven by a 56% increase in maintenance and repair of commercial jet engines, a 22% rise in equipment manufacturing and a 2% increase in military sales.

Raytheon Technologies said the increase in the July-to-September quarter was due primarily to more shop visits and related spare part sales and commercial engine deliveries “principally driven by the recovery in commercial air traffic.”

The aerospace and defense giant’s other commercial aviation business, Collins Aerospace, posted a more modest 7.3% revenue increase over the third quarter of 2020, to $4.6 billion.

The Waltham, Massachusetts-based Raytheon Technologies posted third-quarter revenue of $16.2 billion, up 10% from the same period last year. It missed estimates of $16.5 billion, according to Zacks Investment Research.

Its earnings per share of $1.26 beat Wall Street estimates of $1.07.

Shares were up a half-percent, at $91.75 in pre-market trading.

Raytheon raised its profit guidance for the year, to between $4.10 per share and $4.20, from a previous range of $3.85 to $4 a share. Analysts expect $4.03, according to Zacks Investment Research.

“Our performance this quarter clearly demonstrates our ability to capitalize on the increased demand across our commercial aerospace and defense businesses and our intense focus on cost reduction and operational execution,” Chief Executive Officer Greg Hayes said.

The East Hartford-based Pratt & Whitney and Collins Aerospace were hit hard in the immediate aftermath of the pandemic. Raytheon Technologies cut 16,500 jobs globally in commercial aerospace, a 20% reduction.

Pratt & Whitney cut 450 jobs in Connecticut.

Stephen Singer can be reached at [email protected].

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