Raytheon Technologies has excess cash yet hints at possible debt sale

By Devika Patel

Knoxville, Tenn., Jan. 26 – Raytheon Technologies Corp. has excess liquidity on the balance sheet and its top executive hinted at a possible debt sale this year, having paid down $1 billion of debt last year.

“We’ve got a very strong balance sheet,” chairman and chief executive officer Gregory J. Hayes said on the company’s fourth-quarter and year ended Dec. 31 earnings conference call on Tuesday.

“We paid down $1 billion of debt in November.

“We’ve got another, I think, a half a billion this year to pay down, but the debt markets are still open and debt is cheap, so we’re going to keep our options open,” Hayes said.

The company has $9 billion of liquidity.

“We’ve got about $3 billion of excess cash on the balance sheet today because of divestitures,” Hayes said.

“We don’t think we need $9 billion on the balance sheet. There’s plenty of liquidity.

“We’ve got lines of credit out there.”

Hayes said the cash balances gives the company flexibility.

“I would expect you’d see that $9 billion probably more in the $6 billion range long term, which gives us flexibility, whether it’s for some M&A or some additional share buybacks,” he said.

The defense and homeland security technology company is based in Waltham, Mass.

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