The aerospace and defense company Raytheon Technologies reported its Q2 2023 results. Although the numbers appeared strong, the company’s guidance was somewhat disappointing by a rather weak growth prospects given its lavish government contracts. Shares of RTX plunged by 11.06% at the market closing bell yesterday, on July 25.

Non-GAAP EPS of $1.29 has beaten expectations by $0.11, on revenue of $18.32 billion beating estimates by $620 million.

RTX stock was also sinking because it has further lowered its expectations for FY free cash flow following undisclosed issues with some Pratt & Whitney engines.

The operation data were overall strong, but it also unveiled mounting logistical problems. In the aerospace industry, commercial OEM sales increased 14% while commercial aftermarket sales rose 29%. Passenger miles flown are hoped to fully recover to 2019 levels and above by the end of the year. In the defense segment, Raytheon's order backlog across its divisions totaled $52 billion (roughly two years' worth of revenue), with an annualized book-to-bill ratio reaching more than 1. These included a $1.2 billion order for AMRAAM missiles, and further new orders for Javelin and other missiles in accordance with the U.S. government orders tied to the conflict in Ukraine and building relevant stockpiles.