RTX, the aerospace and defense company, has recently announced its new CEO, Christopher Calio. Calio, who is currently the president and chief operating officer of the company, will take over from CEO Gregory Hayes during the annual shareholders meeting in 2024.
Gregory Hayes has been the CEO of RTX since 2014, back when the company was known as United Technologies. During his tenure, Hayes spearheaded major changes within the organization, including the spinoffs of Otis Worldwide and Carrier, as well as a merger with Raytheon, a leading defense company. The merger was successfully completed in April 2020.
With a career spanning over 15 years at RTX and its predecessor companies, Calio is well acquainted with the industry and has held various key positions within the organization. From 2017 to 2020, he served as the president of RTX’s jet engine division, Pratt & Whitney.
Although RTX has faced challenges in recent times, with its Pratt & Whitney geared turbofan engine underperforming expectations, the overall aerospace industry has been on an upward trajectory. The recovery of global air travel has resulted in increased demand for new aircraft, leading to higher revenue for companies like RTX and General Electric (GE), which also manufactures engines.
To address the engine issues, RTX has allocated around $3 billion for repairs and compensation to affected customers. For the new CEO, fixing the engine problem will be a top priority. Investors will closely observe Calio’s actions and decisions as he takes on this crucial task.
While RTX stock has experienced a decline of approximately 17% over the past year, other aerospace and defense companies such as Boeing and GE have seen significant growth in their stock prices.
Overall, the appointment of Christopher Calio as RTX’s next CEO brings hope for resolving the jet engine problem and steering the company towards a more successful future in the aerospace and defense industry.
