In the first quarter, RTX reported a loss of about $28 million on classified programs. Despite facing challenges in technical learning and testing, the company plans to overcome these obstacles.
RTX had already been transitioning from the space prime role previously, with a focus on a merchant strategy. However, during its April 23 earnings call, president and chief operating officer Chris Calio announced that the company would shift its focus away from competing to be a prime contractor in the space field. Instead, RTX will emphasize its strengths as a supplier of payloads, sensors, and components to other companies. Calio described this shift as a pivot from being a space prime to being a component supplier, highlighting the company’s existing strengths in these areas.
Calio mentioned that RTX has historical strength in certain space areas, as well as key components used in prime satellites and buses. He stated that the company will move away from the space prime role to become more of a component supplier. Greg Hayes will be succeeded by Calio as chairman and chief executive officer of RTX in May.
In March, RTX withdrew from a fixed-price agreement to build seven missile tracking satellites for the Space Development Agency due to profitability concerns. Director Derek Tournear confirmed that RTX-made components will still be used in satellites built by L3Harris and Northrop Grumman. Despite withdrawing from the project, RTX remains committed to providing high-quality components to its customers in the space industry.