RTX, a company that has been focusing on competing to be a prime contractor in the space field, is shifting its focus to being a supplier of payloads, sensors and components to other companies. This shift, as announced by president and chief operating officer Chris Calio during the company’s April 23 earnings call, is aimed at emphasizing the company’s existing strengths in these areas. Calio described this pivot from being a space prime to being a component supplier as an opportunity for RTX to capitalize on its historical strengths and key components used in prime satellites and buses.
RTX has already been transitioning from the space prime role with a focus on a merchant strategy. In March, the company withdrew from a fixed-price agreement to build seven missile tracking satellites for the Space Development Agency due to profitability concerns. However, Director Derek Tournear confirmed that RTX-made components will still be used in satellites built by L3Harris and Northrop Grumman. Despite facing headwinds in technical learning and testing, RTX plans to overcome these obstacles.
Greg Hayes will be succeeded by Calio as chairman and chief executive officer of RTX in May. As part of this transition, Calio mentioned that he would be focusing on improving RTX’s financial performance by streamlining processes and cutting costs wherever possible. He also stated that he would be working closely with his team to identify new opportunities for growth and expansion within the component supply market.