By Colin Kellaher


Aerospace and defense company RTX, which earlier this month saw its shares hit a 52-week low, is buying back $10 billion worth of stock under an accelerated repurchase program.

RTX on Tuesday said the move will increase its post-merger shareowner capital return commitment to a range of $36 billion to $37 billion through 2025 from a prior target of $33 billion to $35 billion.

RTX shares have been under pressure this year after the Arlington, Va., company said suspected contaminated metal in some Pratt & Whitney engine parts would require accelerated inspections and ground planes, resulting in costs of up to $7 billion to repair the engines and compensate airlines.

The stock hit a 52-week low of $68.56 on Oct. 6 and closed Monday at $73.13, giving RTX a market capitalization topping $105 billion.

RTX on Tuesday said its shares are "an attractive investment opportunity," adding that it plans to fund the accelerated buyback through a combination of short- and long-term debt.

The company said it plans to begin deleveraging next year with the help of proceeds from planned divestitures.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

10-24-23 0738ET