RTX has announced a pivot in its focus from competing as a prime contractor in the space field to emphasizing its strengths as a supplier of payloads, sensors, and components to other companies. This shift was announced during the company’s April 23 earnings call by president and chief operating officer Chris Calio, who described it as a move away from being a space prime to being a component supplier.
Calio highlighted the company’s existing strengths in these areas, and 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.
RTX had already been transitioning from the space prime role previously, with a focus on a merchant strategy. Despite facing headwinds in technical learning and testing, the company plans to overcome these obstacles and continue its pivot towards becoming a component supplier.