Financial Analysis

11. COMMITMENTS AND CONTINGENCIES U.S. Government Cost Claims and Contingencies From time to time, the company is advised of claims by the U.S. government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and U.S. government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the companys estimated exposure for such potential disallowed costs. Such provisions are reviewed periodically using the most recent information available. The company believes it has adequately reserved for disputed amounts that are probable and reasonably estimable, and that the outcome of any such matters would not have a material adverse effect on its consolidated financial position as of December 31, 2025, or its annual results of operations and/or cash flows. In 2019, the Defense Contract Management Agency (DCMA) raised questions about an interest rate assumption used by the company to determine our CAS pension expense. On June 1, 2020, DCMA provided written notice that the assumptions the company used during the period 2013-2019 were potentially noncompliant with CAS. We submitted a formal response on July 31, 2020, which we believed demonstrates the appropriateness of the assumptions used. On November 24, 2020, DCMA replied to the companys response, disagreeing with our p …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

9. DEBT Commercial Paper The company maintains a commercial paper program that serves as a source of short-term financing. In September 2025, the company amended its commercial paper program to increase its capacity to issue unsecured commercial paper notes from $2.5 billion to $3.0 billion. There were no commercial paper borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. Credit Facility In September 2025, the company entered into a new five-year senior unsecured revolving credit facility in an aggregate principal amount of $3.0 billion (the 2025 Credit Agreement). The 2025 Credit Agreement replaced the companys prior five-year, $2.5 billion revolving credit facility entered into in August 2022. The revolving credit facility established under the 2025 Credit Agreement is intended to support the companys commercial paper program and other general corporate purposes. Commercial paper borrowings reduce the amount available for borrowing under the 2025 Credit Agreement. At December 31, 2025, there were no borrowings outstanding under this facility. The 2025 Credit Agreement contains generally customary terms and conditions, including covenants restricting the companys ability to sell all or substantially all of its assets, merge or consolidate with another entity or undertake other fundamental changes and incur liens. The company also cannot permit the ratio of its debt to capitalization (as set forth in the credit agreement) to exceed 65 percent. At …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

13. STOCK COMPENSATION PLANS AND OTHER COMPENSATION ARRANGEMENTS Stock Compensation Plans At December 31, 2025, the company had stock-based compensation awards outstanding under the following shareholder-approved plans: the 2024 Long-Term Incentive Stock Plan (2024 Plan) and the 2011 Long-Term Incentive Stock Plan (2011 Plan), both applicable to employees and non-employee directors, and the 1993 Stock Plan for Non-Employee Directors (1993 SPND). Employee Plans On May 15, 2024, the companys shareholders approved the companys new 2024 Plan, which replaced the 2011 Plan. The 2024 Plan authorized 5.75 million new shares (less the number of shares subject to any new awards under the 2011 Plan between March 1 and May 15, 2024). Under the terms of the 2024 Plan, in the event outstanding awards under the 2011 Plan expire or terminate without being exercised or paid, as the case may be, such forfeited shares will become available for award under the 2024 Plan and increase the authorization. As of December 31, 2025, 5.5 million shares remain available for issuance under the 2024 Plan. The 2011 Plan provided for and the 2024 Plan provides for the following equity awards: stock options, stock appreciation rights (SARs) and stock awards. Under the 2011 Plan and 2024 Plan, no SARs have been granted and there are no outstanding stock options. Stock awards include restricted performance stock rights (RPSR) and restricted stock rights (RSR). RPSRs generally vest and are paid following the com …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

8. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the financial assets and liabilities the company records at fair value on a recurring basis identified by the level of inputs used to determine fair value. See Note 1 for the definitions of these levels and for further information on our financial instruments. December 31, 2025 December 31, 2024 $ in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Marketable securities $ 454 $ $ 24 $ 478 $ 325 $ $ 14 $ 339 Marketable securities valued using NAV 5 8 Total marketable securities 454 24 483 325 14 347 Derivatives 2 2 (11) (11) During the third quarter of 2025, the company transferred $50 million of securities from Level 3 to Level 1 in connection with the initial public offering (IPO) of a company in which we hold an investment. As of December 31, 2025, the companys investment was valued at $68 million. The company is prohibited from selling this investment until the first quarter of 2026. There were no other transfers of financial instruments into or out of Level 3 of the fair value hierarchy during the years ended December 31, 2025 and 2024. Unrealized gains and losses from marketable securities, which are reflected in Other, net on the consolidated statement of earnings and comprehensive income, were $45 million for the year ended December 31, 2025. Unrealized gains and losses from marketable securities were not material for the years ended December 31, 2024 and 2023. The …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

7. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Goodwill Changes in the carrying amounts of goodwill for the years ended December 31, 2024 and 2025, were as follows: $ in millions Aeronautics Systems Defense Systems Mission Systems Space Systems Total Balance as of December 31, 2023 $ 3,974 $ 3,722 $ 5,881 $ 3,940 $ 17,517 Other (1) (5) (5) Balance as of December 31, 2024 $ 3,974 $ 3,717 $ 5,881 $ 3,940 $ 17,512 Divestiture of training services business (80) (80) Other (1) 5 5 Balance as of December 31, 2025 $ 3,974 $ 3,642 $ 5,881 $ 3,940 $ 17,437 (1) Other consists primarily of adjustments for foreign currency translation. At December 31, 2025 and 2024, accumulated goodwill impairment losses totaled $417 million at Aeronautics Systems, $121 million at Space Systems, and $32 million at Defense Systems. Other Purchased Intangible Assets Net customer-related and other intangible assets are as follows: December 31 $ in millions 2025 2024 Gross customer-related and other intangible assets $ 3,372 $ 3,371 Less accumulated amortization (3,164) (3,117) Net customer-related and other intangible assets $ 208 $ 254 Amortization expense for 2025, 2024 and 2023, was $45 million, $57 million and $80 million, respectively. As of December 31, 2025, the expected future amortization of purchased intangibles for each of the next five years is as follows: $ in millions 2026 $ 42 2027 31 2028 31 2029 31 2030 31 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

10. INVESTIGATIONS, CLAIMS AND LITIGATION For over 25 years, the company has worked closely with the United States Navy, the United States Environmental Protection Agency, the New York State Department of Environmental Conservation, the New York State Department of Health and other federal, state and local governmental authorities, to address environmental conditions allegedly resulting from historic operations at the former United States Navy and Grumman facilities in Bethpage, New York. We have incurred, and expect to continue to incur, as included in Note 11, substantial remediation costs related to these Bethpage environmental conditions, including potential costs relating to unanticipated developments such as new discoveries of potential contaminants. It is also possible that applicable remediation standards and other requirements to which we are subject may continue to change, and that our costs may increase materially. In 2022, we resolved several disputes and regulatory proceedings concerning the scope and allocation of remediation responsibilities and costs related to this site and we continue remediation consistent with agreements through which those disputes were resolved. The company continues to be involved in other remediation-related disputes, none of which are material individually or in the aggregate. We are also a party to various individual lawsuits and a putative class action in the Eastern District of New York alleging personal injury and property damage …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

14. LEASES Total Lease Cost Total lease cost is included in Product and Service costs in the consolidated statement of earnings and comprehensive income and is recorded net of immaterial sublease income. Total lease cost is comprised of the following: Year Ended December 31 $ in millions 2025 2024 2023 Operating lease cost $ 363 $ 370 $ 358 Variable lease cost 102 49 48 Short-term lease cost 47 51 69 Total lease cost $ 512 $ 470 $ 475 Supplemental Balance Sheet Information Supplemental operating lease balance sheet information consists of the following: Year Ended December 31 $ in millions 2025 2024 Operating lease right-of-use assets $ 1,859 $ 1,770 Other current liabilities 331 324 Operating lease liabilities 1,857 1,798 Total operating lease liabilities $ 2,188 $ 2,122 Other Supplemental Information Other supplemental operating lease information consists of the following: Year Ended December 31 $ in millions 2025 2024 Cash paid for amounts included in the measurement of operating lease liabilities $ 386 $ 373 Right-of-use assets obtained in exchange for new lease liabilities 400 272 Weighted average remaining lease term 10.1 years 10.4 years Weighted average discount rate 4.3 % 4.0 % Maturities of Lease Liabilities Maturities of operating lease liabilities as of December 31, 2025 are as follows: $ in millions Year Ending December 31 2026 $ 401 2027 364 2028 320 2029 286 2030 237 Thereafter 1,095 Total lease payments 2,703 Less: imputed interest (515) Present value of opera …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Accounting Standards Updates On December 14, 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. We adopted the standard and applied the disclosure requirements on a prospective basis effective for the year ended December 31, 2025. Adoption of ASU 2023-09 did not have an impact on the companys consolidated financial position, results of operations or cash flows. On November 4, 2024, the FASB issued ASU No. 2024-03 Disaggregation of Income Statement Expenses (Subtopic 220-40). ASU 2024-03 requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 will be effective for annual periods beginning January 1, 2027 and interim periods beginning January 1, 2028 and will be applied on a prospective basis with the option to apply the standard retrospectively. We are evaluating the disclosure impact of ASU 2024-03; however, the standard will not have an impact on the companys consolidated financial position, results of operations or cash flows. On September …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

12. RETIREMENT BENEFITS Plan Descriptions U.S. Defined Benefit Pension Plans The company sponsors several defined benefit pension plans in the U.S. Pension benefits for most participants are based on years of service, age and compensation. It is our policy to fund at least the minimum amount required for qualified plans, using actuarial cost methods and assumptions acceptable under U.S. government regulations, by making payments into benefit trusts separate from the company. U.S. Defined Contribution Plans The company also sponsors defined contribution plans covering the majority of its employees, including certain employees covered under collective bargaining agreements. Company contributions vary depending on date of hire, with a majority of employees being eligible for employer matching of employee contributions. Based on date of hire, certain employees are eligible to receive a company non-elective contribution or an enhanced matching contribution in lieu of a defined benefit pension plan benefit. The companys contributions to these defined contribution plans for the years ended December 31, 2025, 2024 and 2023, were $669 million, $657 million and $634 million, respectively. Non-U.S. Benefit Plans The company sponsors several benefit plans for non-U.S. employees. These plans are designed to provide benefits appropriate to local practice and in accordance with local regulations. Some of these plans are funded using benefit trusts separate from the company. Medical and Life …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Related Party Transactions For all periods presented, the company had no material related party transactions.

RelatedPartyTransactionsDisclosureTextBlock

15. SEGMENT INFORMATION The company is aligned in four operating sectors, which also comprise our reportable segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. We generally organize our segments based on the nature of products and services offered. The companys chief operating decision maker (CODM) is the Chair, Chief Executive Officer and President . The CODM is responsible for allocating resources and assessing performance of the consolidated enterprise and operating sectors. The profitability measure the CODM uses to assess segment performance and allocate resources is segment operating income (and related margin rate, calculated as segment operating income divided by sales) by comparing historical, actual, and forecasted amounts on a regular basis. The following table presents sales, operating costs and expenses, and operating income by segment: Year Ended December 31 $ in millions 2025 2024 2023 Aeronautics Systems Sales $ 12,992 $ 12,396 $ 11,164 Operating costs and expenses: Product 9,340 8,383 9,053 Service 2,687 2,658 2,399 Intersegment 152 119 128 Aeronautics Systems operating income (loss) 813 1,236 (416) Defense Systems Sales 8,002 7,399 7,185 Operating costs and expenses: Product 5,682 5,169 4,708 Service 1,263 1,365 1,659 Intersegment 186 149 134 Defense Systems operating income 871 716 684 Mission Systems Sales 12,506 11,399 10,895 Operating costs and expenses: Product 7,608 7,000 6,669 Service 1,861 1,805 1,730 Intersegment 1,21 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK Basic Earnings Per Share We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period. Diluted Earnings Per Share Diluted earnings per share include the dilutive effect of awards granted to employees under stock-based compensation plans. The dilutive effect of these securities totaled 0.3 million, 0.3 million and 0.5 million shares for the years ended December 31, 2025, 2024 and 2023, respectively. Share Repurchases Share Repurchase Programs On January 25, 2021, the companys board of directors authorized a share repurchase program of up to $3.0 billion in share repurchases of the companys common stock (the 2021 Repurchase Program). Repurchases under the 2021 Repurchase Program commenced in October 2021 and were completed in April 2023. On January 24, 2022, the companys board of directors authorized a new share repurchase program of up to an additional $2.0 billion in share repurchases of the companys common stock (the 2022 Repurchase Program). Repurchases under the 2022 Repurchase Program commenced in April 2023 and were completed in February 2024. On December 6, 2023, the companys board of directors authorized a new share repurchase program of up to an additional $2.5 billion in share repurchases of the companys common stock (the 2023 Repurchase Program). Repurchases under the 2023 Repurchase Program commenced in Feb …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES U.S. Government Cost Claims and Contingencies From time to time, the company is advised of claims by the U.S. government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and U.S. government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the companys estimated exposure for such potential disallowed costs. Such provisions are reviewed periodically using the most recent information available. The company believes it has adequately accrued for disputed amounts that are probable and reasonably estimable, and that the outcome of any such matters would not have a material adverse effect on its unaudited condensed consolidated financial position as of June 30, 2026, or its annual results of operations and/or cash flows. In 2019, the Defense Contract Management Agency (DCMA) raised questions about an interest rate assumption used by the company to determine our CAS pension expense. On June 1, 2020, DCMA provided written notice that the assumptions the company used during the period 2013-2019 were potentially noncompliant with CAS. We submitted a formal response on July 31, 2020, which we believed demonstrates the appropriateness of the assumptions used. On November 24, 2020, DCMA replied to the companys response, disagreeing …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

STOCK COMPENSATION PLANS AND OTHER COMPENSATION ARRANGEMENTS Stock Awards The following table presents the number of restricted stock rights (RSRs) and restricted performance stock rights (RPSRs) granted to employees under the companys long-term incentive stock plan and the grant date aggregate fair value of those stock awards for the periods presented: Six Months Ended June 30 in millions 2026 2025 RSRs granted 0.1 0.1 RPSRs granted 0.1 0.1 Grant date aggregate fair value $ 142 $ 104 RSRs typically vest on the third anniversary of the grant date, while RPSRs generally vest and pay out based on the achievement of certain performance metrics and market conditions over a three-year period. Cash Awards The following table presents the minimum and maximum aggregate payout amounts related to cash units (CUs) and cash performance units (CPUs) granted to employees in the periods presented: Six Months Ended June 30 $ in millions 2026 2025 Minimum aggregate payout amount $ $ 35 Maximum aggregate payout amount 163 198 CUs typically vest and settle in cash on the third anniversary of the grant date, while CPUs generally vest and pay out in cash based on the achievement of certain performance metrics over a three-year period. During the six months ended June 30, 2026, there were no CUs granted to employees. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE OF FINANCIAL INSTRUMENTS The company holds a portfolio of marketable securities including investments to partially fund non-qualified employee benefit plans as well as investments in companies that are advancing or developing technologies applicable to our business. A portion of these securities are held in common/collective trust funds and are measured at fair value using net asset value (NAV) per share as a practical expedient; therefore, they are not categorized in the fair value hierarchy table below. Marketable securities are included in Other non-current assets in the unaudited condensed consolidated statements of financial position. The companys derivative portfolio consists primarily of foreign currency forward contracts. Where model-derived valuations are appropriate, the company utilizes the income approach to determine the fair value using internal models based on observable market inputs. The following table presents the financial assets and liabilities the company records at fair value identified by the level of inputs used to determine fair value: June 30, 2026 December 31, 2025 $ in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Marketable securities $ 402 $ $ 22 $ 424 $ 454 $ $ 24 $ 478 Marketable securities valued using NAV 4 5 Total marketable securities 402 22 428 454 24 483 Derivatives 1 1 2 2 During the second quarter of 2026, the company sold its investment in a public company for $107 million and recogni …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES In July 2025, the One Big Beautiful Bill Act (OBBBA) was enacted. Key income tax-related provisions of the OBBBA include the repeal of mandatory capitalization of research and development expenditures under Internal Revenue Code (IRC) Section 174 (reinstating full expensing beginning in 2025), extension of bonus depreciation, and revisions to international tax regimes. As part of the enactment of the OBBBA, the company became subject to the corporate alternative minimum tax (CAMT) and recorded CAMT credit carryforwards of $187 million during 2025. In February 2026, the Internal Revenue Service (IRS) issued Notice 2026-7, providing interim relief for the CAMT through a favorable adjustment related to the amortization of research and development expenditures under IRC Section 174. The company recognized the impacts of Notice 2026-7 during the first quarter of 2026, resulting in a $187 million decrease in CAMT credit carryforwards and a corresponding increase in Taxes receivable, as well as a $19 million reduction to federal income tax expense. Three Months Ended June 30 Six Months Ended June 30 $ in millions 2026 2025 2026 2025 Federal and foreign income tax expense $ 74 $ 253 $ 229 $ 350 Effective income tax rate 6.3 % 17.7 % 10.4 % 17.5 % Current Quarter Second quarter 2026 income tax expense decreased $179 million, or 71 percent, due to a lower effective tax rate (ETR) and $259 million of lower earnings before income taxes. The second quarter 2026 ETR decreased …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

INVESTIGATIONS, CLAIMS AND LITIGATION For over 25 years, the company has worked closely with the United States Navy, the United States Environmental Protection Agency, the New York State Department of Environmental Conservation, the New York State Department of Health and other federal, state and local governmental authorities, to address environmental conditions allegedly resulting from historic operations at the former United States Navy and Grumman facilities in Bethpage, New York. We have incurred, and expect to continue to incur, as included in Note 7, substantial remediation costs related to these Bethpage environmental conditions, including potential costs relating to unanticipated developments such as new discoveries of potential contaminants. It is also possible that applicable remediation standards and other requirements to which we are subject may continue to change, and that our costs may increase materially. In 2022, we resolved several disputes and regulatory proceedings concerning the scope and allocation of remediation responsibilities and costs related to this site and we continue remediation consistent with agreements through which those disputes were resolved. The company continues to be involved in other remediation-related disputes, none of which are material individually or in the aggregate. We are also a party to various individual lawsuits and a putative class action in the Eastern District of New York alleging personal injury and property damage relat …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Long-term Debt The estimated fair value of the companys long-term debt was $14.4 billion and $15.1 billion as of June 30, 2026 and December 31, 2025, respectively. We calculated the fair value of long-term debt using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the companys existing debt arrangements. The current portion of long-term debt is recorded in Other current liabilities in the unaudited condensed consolidated statements of financial position. Issuance of Senior Notes During the six months ended June 30, 2026, the company issued no unsecured senior notes. In May 2025, the company issued $1.0 billion of unsecured senior notes for general corporate purposes, including debt repayment, share repurchases, and working capital, as follows: $500 million of 4.65% senior notes due 2030 (the 2030 Notes) and $500 million of 5.25% senior notes due 2035 (the 2035 Notes). We refer to the 2030 Notes and 2035 Notes together, as the notes. Interest on the notes is payable semi-annually in arrears. The notes are generally subject to redemption, in whole or in part, at the companys discretion at any time, or from time to time, prior to maturity at a redemption price equal to the greater of 100% of the principal amount of the notes to be redeemed or an applicable make-whole amount, plus accrued and unpaid interest. Repayment of Senior Notes In March 2026, the company repaid $270 million of 7.875% unsecured senior notes and $257 million of …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Accounting Standards Updates On November 4, 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03 Disaggregation of Income Statement Expenses (Subtopic 220-40). ASU 2024-03 requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 will be effective for annual periods beginning January 1, 2027 and interim periods beginning January 1, 2028 and will be applied on a prospective basis with the option to apply the standard retrospectively. We are evaluating the disclosure impact of ASU 2024-03; however, the standard will not have an impact on the companys consolidated financial position, results of operations or cash flows. On September 18, 2025, the FASB issued ASU No. 2025-06 Targeted Improvements to the Accounting for Internal-Use Software (Subtopic 350-40) . ASU 2025-06 removes references to prescriptive and sequential software development stages, requiring companies to capitalize internal-use software costs when management commits to funding the software project and it is probable the project will be completed. ASU 2025-06 will be effective for annual and interim periods beginning January 1, 2028, and can be applied on a prospective, modified prospective, or retrospective basis. We do not currently expect the standard will have a material impact on the companys consolidated financial position, results of operations or cash flows. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RETIREMENT BENEFITS The cost to the company of its pension and other postretirement benefit (OPB) plans is shown in the following table: Three Months Ended June 30 Six Months Ended June 30 Pension Benefits OPB Pension Benefits OPB $ in millions 2026 2025 2026 2025 2026 2025 2026 2025 Components of net periodic benefit cost (benefit) Service cost $ 53 $ 54 $ 1 $ 1 $ 106 $ 108 $ 2 $ 2 Interest cost 399 402 14 15 798 805 29 31 Expected return on plan assets (565) (539) (22) (21) (1,130) (1,079) (44) (42) Amortization of prior service credit (1) (1) Other 7 Net periodic benefit cost (benefit) $ (113) $ (83) $ (7) $ (5) $ (226) $ (159) $ (14) $ (10) Employer Contributions The company sponsors defined benefit pension and OPB plans, as well as defined contribution plans. We fund our defined benefit pension plans annually in a manner consistent with the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006. Contributions made by the company to its retirement plans are as follows: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2026 2025 2026 2025 Defined benefit pension plans $ 20 $ 24 $ 42 $ 42 OPB plans 10 10 21 20 Defined contribution plans 158 155 387 384 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Related Party Transactions For all periods presented, the company had no material related party transactions.

RelatedPartyTransactionsDisclosureTextBlock

SEGMENT INFORMATION The company is aligned in four operating sectors, which also comprise our reportable segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. We generally organize our segments based on the nature of products and services offered. The following table presents sales, operating costs and expenses, and operating income by segment: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2026 2025 2026 2025 Aeronautics Systems Sales $ 3,519 $ 3,114 $ 6,802 $ 5,928 Operating costs and expenses: Product 2,423 2,109 4,717 4,467 Service 697 649 1,350 1,250 Intersegment 37 35 68 73 Aeronautics Systems operating income 362 321 667 138 Defense Systems Sales 2,093 1,991 3,992 3,796 Operating costs and expenses: Product 1,576 1,372 2,951 2,634 Service 312 319 606 643 Intersegment 49 47 95 87 Defense Systems operating income 156 253 340 432 Mission Systems Sales 3,250 3,157 6,111 5,964 Operating costs and expenses: Product 1,900 1,945 3,582 3,675 Service 453 483 872 917 Intersegment 396 288 723 570 Mission Systems operating income 501 441 934 802 Space Systems Sales 2,753 2,646 5,233 5,214 Operating costs and expenses: Product 2,050 1,893 3,861 3,722 Service 307 362 588 724 Intersegment 160 111 313 205 Space Systems operating income 236 280 471 563 Intersegment profit eliminations (97) (76) (182) (148) Total segment operating income 1,158 1,219 2,230 1,787 FAS/CAS operating adjustment 7 63 14 126 Unallocated corporate (expense) income …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK Basic Earnings Per Share We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period. Diluted Earnings Per Share Diluted earnings per share include the dilutive effect of awards granted to employees under stock-based compensation plans. The dilutive effect of these securities totaled 0.3 million shares for each of the three and six months ended June 30, 2026. The dilutive effect of these securities totaled 0.3 million shares for each of the three and six months ended June 30, 2025. Share Repurchases We had no repurchases of common stock during the three months ended June 30, 2026. On December 11, 2024, the companys board of directors authorized a share repurchase program of up to $3.0 billion in share repurchases of the companys common stock. Repurchases under the p rogram commenced in September 2025 and $2.5 billion of the share repurchase authorization remained as of June 30, 2026. Share repurchases take place from time to time, subject to market and regulatory conditions and managements discretion, in the open market or in privately negotiated transactions. The company retires its common stock upon repurchase and, in the periods presented, has not made any purchases of common stock other than in connection with these publicly announced repurchase programs. Dividends on Common Stock In May 2026, the company increased …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing