Financial Analysis

NOTE 2: ACQUISITIONS AND DISPOSITIONS Dispositions. On July 21, 2025, we completed the sale of the actuation and flight control business within our Collins segment for gross proceeds of $1.8 billion. Cash received of $1.6 billion, net of cash transferred, included amounts attributable to continuing service agreements supporting the buyer post-closing. The sale resulted in a pre-tax gain of $0.2 billion, which was recorded in Other income (expense), net within the Consolidated Statement of Operations. On October 6, 2025, we completed the sale of the Simmonds Precision Products business within our Collins segment for gross proceeds of approximately $0.8 billion, resulting in an aggregate pre-tax gain of $0.1 billion, recognized in Other income (expense), net within the Consolidated Statement of Operations. On March 29, 2024, we completed the sale of our Cybersecurity, Intelligence and Services (CIS) business within our Raytheon segment for proceeds of approximately $1.3 billion in cash, resulting in an aggregate pre-tax gain, net of transaction and other related costs, of $0.4 billion, primarily recognized in Other income (expense), net within the Consolidated Statement of Operations. On October 31, 2024, we completed the sale of our Goodrich Hoist & Winch business within our Collins segment for proceeds of approximately $0.5 billion in cash, resulting in a pre-tax gain, net of transaction and other related costs, of $0.1 billion, primarily recognized in Other income (expen …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 17: COMMITMENTS AND CONTINGENCIES Except as otherwise noted, while we are unable to predict the final outcome, based on information currently available, we do not believe that resolution of any of the following matters will have a material adverse effect upon our competitive position, results of operations, financial condition, or liquidity. Environmental. Our operations are subject to environmental regulation by federal, state, and local authorities in the United States and regulatory authorities with jurisdiction over our foreign operations. We have accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs, and performance guarantees, and periodically reassess these amounts. We do not expect any additional liability to have a material adverse effect on our results of operations, financial condition, or liquidity. As of both December 31, 2025 and 2024, we had $0.8 billion reserved for environmental remediation. Additional information pertaining to environmental matters is included in Note 1: Basis of Presentation and Summary of Accounting Principles. Commercial Aerospace Financing and Other Commitments. We had commercial aerospace financing commitments and other contractual commitments of approximately $13 billion and $14 billion as of December 31, 2025 and 2024, respectively, on a gross basis before reduction for our collaboration partners share. Aircraft financing commitments …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 9: BORROWINGS AND LINES OF CREDIT As of December 31, 2025, we had a revolving credit agreement with various banks permitting aggregate borrowings of up to $5.0 billion, which expires in August 2028. As of December 31, 2025, there were no borrowings outstanding under this agreement. In addition, at December 31, 2025, approximately $0.6 billion was available under short-term lines of credit primarily with global banks at our international subsidiaries. From time to time, we use commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions, pension contributions, debt refinancing, dividend payments, and repurchases of our common stock. The commercial paper notes have original maturities of not more than 364 days from the date of issuance. As of December 31, 2025, our maximum commercial paper borrowing limit was $5.0 billion as the commercial paper is backed by our $5.0 billion revolving credit agreement. At December 31, 2025 and 2024, we had no commercial paper borrowings outstanding. During 2025 and 2024, we had no new borrowings or repayments of commercial paper with maturities greater than 90 days. During 2023, we had no new borrowings, and $0.2 billion of repayments of commercial paper with maturities greater than 90 days. On October 24, 2023, we entered into a senior unsecured bridge credit agreement (Bridge Loan) with various banks permitting aggregate borrowings of up to $10.0 billion, to fund an accelerated share repurch …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Segment sales disaggregated by geographic region based on customer location for the years ended December 31 are as follows: 2025 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 14,136 $ 13,636 $ 19,313 $ 206 $ 47,291 Europe 6,852 7,669 4,275 3 18,799 Asia Pacific 3,779 7,625 2,377 1 13,782 Middle East and North Africa 1,076 821 1,724 3,621 Other regions 1,742 3,165 203 5,110 Consolidated net sales 27,585 32,916 27,892 210 88,603 Inter-segment sales 2,611 151 (2,762) Business segment sales $ 30,196 $ 32,916 $ 28,043 $ (2,552) $ 88,603 2024 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 13,668 $ 13,025 $ 19,224 $ 170 $ 46,087 Europe 6,634 6,376 2,962 3 15,975 Asia Pacific 3,185 5,461 2,245 2 10,893 Middle East and North Africa 840 650 1,968 3,458 Other regions 1,602 2,552 171 4,325 Consolidated net sales 25,929 28,064 26,570 175 80,738 Inter-segment sales 2,355 2 143 (2,500) Business segment sales $ 28,284 $ 28,066 $ 26,713 $ (2,325) $ 80,738 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 13,185 $ 11,403 $ 20,187 $ 106 $ 44,881 Europe 6,423 5,433 1,642 3 13,501 Asia Pacific 2,625 4,227 2,196 1 9,049 Middle East and North Africa 684 539 2,014 3,237 Other regions 1,377 2,095 181 3,653 Powder Metal Matter (5,401) (5,401) Consolidated net sales 24,294 18,296 26,220 110 68,920 Inter-segment sales 1,959 130 (2,089) Business segment …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 19: STOCK-BASED COMPENSATION RTXs long-term incentive plans authorize various types of market and performance-based incentive awards that may be granted to officers and key employees. The RTX Corporation Long-Term Incentive Plan (LTIP), was last amended on October 29, 2025. A total of 231 million shares have been authorized for issuance pursuant to awards under the LTIP including shares assumed from predecessor plans and adjustments associated with the separation of Carrier and Otis. As of December 31, 2025, approximately 101 million shares remain available for awards under the LTIP. The LTIP does not contain aggregate annual award limits, however, it sets an annual award limit per participant. The LTIP will expire after all authorized shares have been awarded or on May 2, 2034, whichever is sooner. Under the LTIP, the exercise price of awards is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock appreciation rights (SARs) and stock options have a term of ten years and a three-year vesting period, subject to limited exceptions. In the event of retirement, annual stock appreciation rights, stock options, and restricted stock units (RSUs) held for more than one year may become vested and exercisable, subject to certain terms and conditions. LTIP awards with performance-based vesting generally have a minimum three-year vesting period and vest based on actual performance against pre-established metrics. In the event …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 14: FAIR VALUE MEASUREMENTS The following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring basis in our Consolidated Balance Sheet: December 31, 2025 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 750 $ 676 $ 74 $ Derivative assets 436 436 Derivative liabilities 265 265 December 31, 2024 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 786 $ 721 $ 65 $ Derivative assets 187 187 Derivative liabilities 451 451 Valuation Techniques. Our derivative assets and liabilities include foreign exchange contracts that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk, and our counterparties credit risks. As of December 31, 2025, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties credit risks. The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Consolidated Balance Sheet at December 31: 2025 2024 (dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 3: GOODWILL AND INTANGIBLE ASSETS Goodwill. Changes in our goodwill balances for the year ended December 31, 2025 were as follows: (dollars in millions) Balance as of December 31, 2024 Acquisitions and Divestitures Foreign Currency Translation and Other Balance as of December 31, 2025 Collins Aerospace $ 32,223 $ (255) $ 808 $ 32,776 Pratt & Whitney 1,563 1,563 Raytheon 18,986 1 18,987 Total Segments 52,772 (255) 809 53,326 Eliminations and other 17 17 Total $ 52,789 $ (255) $ 809 $ 53,343 The Company reviews goodwill for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired. We completed our annual goodwill impairment testing as of October 1, 2025 and determined that no adjustments to the carrying value of goodwill were necessary. We assessed all of our reporting units using qualitative factors to determine whether it was more likely than not that any individual reporting units fair value is less than its carrying value (step 0) and determined that no further testing was required. Intangible Assets. Identifiable intangible assets are comprised of the following: 2025 2024 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Collaboration assets $ 6,234 $ (2,374) $ 6,159 $ (1,996) Exclusivity assets 3,980 (258) 3,692 (361) Developed technology and other 1,192 (758) 1,197 (698) Customer relationships 29,338 (13,989) 29,388 (12,401) 40,744 (17,379) 40,436 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12: INCOME TAXES Income Before Income Taxes. The sources of income before income taxes are: (dollars in millions) 2025 2024 2023 United States (1) $ 5,126 $ 3,016 $ 938 Foreign 3,607 3,178 2,898 Income before income taxes $ 8,733 $ 6,194 $ 3,836 (1) 2023 includes the impacts of the Powder Metal Matter. Provision for Income Taxes. The income tax expense for the years ended December 31 are as follows: (dollars in millions) 2025 2024 2023 Current: United States: Federal $ 59 $ 443 $ 213 State 99 179 70 Foreign 717 606 575 875 1,228 858 Future: United States: Federal 706 (13) (411) State 71 71 (53) Foreign 12 (105) 62 789 (47) (402) Income tax expense $ 1,664 $ 1,181 $ 456 Prior to 2022, research and experimental expenditures were generally deductible in the period incurred. A provision enacted in the Tax Cuts and Jobs Act of 2017 (TCJA) related to the capitalization of research and experimental expenditures for tax purposes became effective on January 1, 2022. In September and December 2023, the IRS issued interim guidance, retroactive to 2022, clarifying the capitalization requirements for certain types of research and experimental expenditures, which resulted in fewer costs being subject to capitalization. On July 4, 2025, An Act to Provide for Reconciliation Pursuant to Title II of the H. Con. Res. 14 (the Act) was enacted. The Act allows for the immediate deductibility of research and experimental expenditures performed in the United States and certain U.S. territories. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11: LEASES We enter into lease agreements for the use of real estate space, vehicles, IT equipment, and certain other equipment, including engines, under both operating and finance leases. The majority of our lease agreements are accounted for as operating leases. Operating lease expense was $495 million, $422 million, and $463 million for 2025, 2024, and 2023, respectively. Finance leases are not considered significant to our Consolidated Balance Sheet, Consolidated Statement of Operations, or Consolidated Statement of Cash Flows. Leases under which we are the lessor are generally short-term leases that support our commercial aerospace customers during engine maintenance events. Our commercial aerospace customers have varying forms of aftermarket maintenance coverage that often provide a level of support for leased engines as part of the revenue arrangement. As such, leases where we are the lessor are not considered significant to our Consolidated Balance Sheet, Consolidated Statement of Operations, or Consolidated Statement of Cash Flows. In 2025, 2024, and 2023, we entered into sale and leaseback transactions for the sale of new engines and related maintenance. We subsequently lease back the engines sold for a limited timeframe and account for them as operating leases. The proceeds received as a result of sales of new engines are classified primarily in Other operating activities, net within our Consolidated Statement of Cash Flows. The net gains as a result of these …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Accounting Pronouncements. In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2025-10; Accounting for Government Grants Received by Business Entities, which provides guidance on how companies should recognize, measure, and present government grants received. The new standard is effective for annual and interim reporting periods beginning after December 15, 2028. The standard allows for a modified prospective, modified retrospective, or retrospective transition. Early adoption is permitted. We are currently evaluating the impact of adopting this new pronouncement. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which better aligns the accounting guidance to how software is developed by eliminating project stages from capitalization criteria. The new standard is effective for annual reporting periods beginning after December 15, 2027 and interim periods within those annual reporting periods. The standard allows for prospective, modified, or retrospective transition. Early adoption is permitted. We are currently evaluating the impact of adopting this new pronouncement. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires a tabular disclosure of the amounts of specified natural expense categories included in each relevant expense caption. Additionally, the amendments require the disclosure of the total amou …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 10: EMPLOYEE BENEFIT PLANS We sponsor various domestic and foreign employee benefit plans, which are discussed below. Employee Savings Plans. We sponsor various employee savings plans. Our contributions to employer sponsored defined contribution plans were $1.4 billion, $1.4 billion, and $1.3 billion for 2025, 2024, and 2023, respectively. Our domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for certain employer matching contributions. Prior to the third quarter of 2024, the ESOP held stock that was purchased using external borrowings. As ESOP debt service payments were made, common stock was released from an unallocated ESOP account. ESOP debt was either prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equaled the value of plan benefit. It was also the Companys option to contribute additional common stock or cash to the ESOP. Shares of common stock were allocated to participants ESOP accounts at fair value on the date earned. Cash dividends on unallocated common stock held by the ESOP were used for debt service payments. Cash dividends on allocated shares are either reinvested or paid directly in cash to the participant, according to the participants election. Participants chose to have their ESOP dividends reinvested or distributed to their accounts in cash. Common stock allocated to ESOP participants was included in the average number of common shares outstanding for bo …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 6: CONTRACT ASSETS AND LIABILITIES Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billings. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities as of December 31, 2025 and 2024 were as follows: (dollars in millions) 2025 2024 Contract assets, net $ 17,092 $ 14,570 Contract liabilities (21,615) (18,616) Net contract liabilities $ (4,523) $ (4,046) Contract assets, net increased $2.5 billion during 2025 primarily due to sales in excess of billings on certain contracts at Pratt & Whitney, partially offset by an increase in the allowance for expected credit losses due to a customer bankruptcy recorded at Pratt & Whitney in the second quarter of 2025. Contract liabilities increased $3.0 billion during 2025 primarily due to billings in excess of sales on certain contracts at Pratt & Whitney and Raytheon. In 2025, 2024, and 2023, we recognized revenue of $8.1 billion, $7.2 billion, and $5.3 billion related to our Contract liabilities at January 1, 2025, January 1, 2024, and January 1, 2023, respectively. Contract assets, net consisted of the following at December 31: (dollars in millions) 2025 2024 Revenue recognized in advance of customer billings $ 35,023 $ 30,226 Progress payments (17,931) (15,656) Total contract ass …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 20: SEGMENT FINANCIAL DATA Our operations, for the periods presented herein, are classified into three principal segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. Our segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. Collins Aerospace is a leading global provider of technologically advanced aerospace and defense products. Collins solutions include aftermarket services for civil and military aircraft manufacturers, commercial airlines, and regional, business, and general aviation, as well as for defense and commercial space operations. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, asset management services, and information management services. Collins designs, manufactures, and supplies electric power generation, management and distribution systems, environmental control systems, flight control systems, air data and aircraft sensing systems, engine control systems, engine components, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft cargo systems, evacuation systems, landing systems (including landing gear, wheels, and braking systems), communication, navigation, surveillance systems, fire and ice detection an …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 18: EQUITY Accelerated Share Repurchases. On October 24, 2023, we entered into accelerated share repurchase (ASR) agreements with certain financial institution counterparties to repurchase shares of our common stock for an aggregate purchase price of $10 billion. The ASR agreements provided for the repurchase of our common stock based on the average of the daily volume-weighted average prices of our common stock during the term of such ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements. Pursuant to the ASR agreements, we made aggregate payments of $10 billion on October 26, 2023, and received initial deliveries of approximately 108.4 million shares of our common stock at a price of $78.38 per share, which, on that date, represented approximately 85% of the shares expected to be repurchased. The aggregate purchase price was recorded as a reduction to Shareowners equity, consisting of an $8.5 billion increase in Treasury stock and a $1.5 billion decrease in Common stock. We funded the payments with borrowings under a bridge credit agreement, which was repaid with the proceeds from term loan facilities, proceeds from issuances of long-term debt in the fourth quarter of 2023, and cash on hand. See Note 9: Borrowings and Lines of Credit for additional information. The shares associated with the remaining portion of the aggregate purchase price have been settled over two tranches. In July 2024, the first tranch …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 16: Commitments and Contingencies Except as otherwise noted, while we are unable to predict the final outcome, based on information currently available, we do not believe that resolution of any of the following matters will have a material adverse effect upon our competitive position, results of operations, financial condition, or liquidity. Environmental. Our operations are subject to environmental regulation by federal, state, and local authorities in the United States and regulatory authorities with jurisdiction over our foreign operations. We have accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs, and performance guarantees, and periodically reassess these amounts. We do not expect any additional liability to have a material adverse effect on our results of operations, financial condition, or liquidity. As of both June 30, 2026 and December 31, 2025, we had $0.8 billion reserved for environmental remediation. Commercial Aerospace Financing and Other Commitments. We had commercial aerospace financing commitments and other contractual commitments of approximately $13 billion as of both June 30, 2026 and December 31, 2025, on a gross basis before reduction for our collaboration partners share. Aircraft financing commitments, in the form of debt or lease financing, are provided to certain commercial aerospace customers. The extent to which the financing commitments will …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 9: Borrowings and Lines of Credit As of June 30, 2026, we had a revolving credit agreement with various banks permitting aggregate borrowings of up to $5.0 billion, which expires in August 2028. As of June 30, 2026, there were no borrowings outstanding under this agreement. From time to time, we use commercial paper borrowings for general corporate purposes, including short-term funding related to potential acquisitions, pension contributions, debt refinancing, dividend payments, and repurchases of our common stock. The commercial paper notes have original maturities of not more than 364 days from the date of issuance. As of June 30, 2026, our maximum commercial paper borrowing limit was $5.0 billion as the commercial paper is backed by our $5.0 billion revolving credit agreement. At June 30, 2026 and December 31, 2025, we had no commercial paper borrowings outstanding. There were no new borrowings or repayments of commercial paper with maturities greater than 90 days during the six months ended June 30, 2026 and 2025. We made the following repayments of long-term debt during the six months ended June 30, 2026 and 2025: Date Description of Notes Aggregate Principal Balance (in millions) February 27, 2026 5.000% notes due 2026 $ 500 May 7, 2025 3 Month SOFR plus 1.225% term loan due 2025 750 Long-term debt consisted of the following: (dollars in millions) June 30, 2026 December 31, 2025 5.000% notes due 2026 (1) $ $ 500 2.650% notes due 2026 (1) 719 719 3 Month SOFR plus …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Segment sales disaggregated by geographic region based on customer location for the quarters ended June 30, 2026 and 2025 are as follows: 2026 2025 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 3,949 $ 3,305 $ 5,784 $ 55 $ 13,093 $ 3,514 $ 3,260 $ 4,909 $ 54 $ 11,737 Europe 1,829 2,325 1,196 5,350 1,750 1,539 916 4,205 Asia Pacific 1,039 2,005 612 3,656 934 1,870 606 3,410 Middle East and North Africa 264 208 570 1,042 271 150 483 904 Other regions 471 1,038 58 1,567 460 812 53 1,325 Consolidated net sales 7,552 8,881 8,220 55 24,708 6,929 7,631 6,967 54 21,581 Inter-segment sales 658 8 49 (715) 693 34 (727) Business segment sales $ 8,210 $ 8,889 $ 8,269 $ (660) $ 24,708 $ 7,622 $ 7,631 $ 7,001 $ (673) $ 21,581 Segment sales disaggregated by geographic region for the six months ended June 30, 2026 and 2025 are as follows: 2026 2025 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 7,628 $ 6,908 $ 10,362 $ 108 $ 25,006 $ 6,862 $ 6,678 $ 9,356 $ 107 $ 23,003 Europe 3,577 4,264 2,389 2 10,232 3,480 3,378 1,759 1 8,618 Asia Pacific 1,873 3,404 1,183 6,460 1,760 3,111 1,131 6,002 Middle East and North Africa 464 451 1,057 1,972 510 325 917 1,752 Other regions 944 2,027 143 3,114 904 1,504 104 2,512 Consolidated net sales 14,486 17,054 15,134 110 46,784 13,516 14,996 13 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 13: Fair Value Measurements The following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring basis in our Condensed Consolidated Balance Sheet: June 30, 2026 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 711 $ 638 $ 73 $ Derivative assets 300 300 Derivative liabilities 472 472 December 31, 2025 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 750 $ 676 $ 74 $ Derivative assets 436 436 Derivative liabilities 265 265 Valuation Techniques. Our derivative assets and liabilities include foreign exchange contracts that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk, and our counterparties credit risks. As of June 30, 2026, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties credit risks. The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet: June 30, 2026 December 31, 2025 (dollars in millions) Carrying Amount Fair Value Carrying Amount Fa …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 3: Goodwill and Intangible Assets Goodwill. Changes in our goodwill balances for the six months ended June 30, 2026 were as follows: (dollars in millions) Balance as of December 31, 2025 Acquisitions and Divestitures Foreign Currency Translation and Other Balance as of June 30, 2026 Collins Aerospace $ 32,776 $ $ (222) $ 32,554 Pratt & Whitney 1,563 14 1,577 Raytheon (1) 18,987 (207) 18,780 Total Segments 53,326 (193) (222) 52,911 Eliminations and other 17 17 Total $ 53,343 $ (193) $ (222) $ 52,928 1) The reduction related to Acquisitions and Divestitures includes the reclassification of goodwill to assets held for sale and presented in Other assets, current within the Condensed Consolidated Balance Sheet. Intangible Assets. Identifiable intangible assets are comprised of the following: June 30, 2026 December 31, 2025 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Collaboration assets $ 6,292 $ (2,539) $ 6,234 $ (2,374) Exclusivity assets 4,167 (276) 3,980 (258) Developed technology and other 1,123 (752) 1,192 (758) Customer relationships 29,226 (14,664) 29,338 (13,989) 40,808 (18,231) 40,744 (17,379) Indefinite-lived: Trademarks and other 8,466 8,480 Total $ 49,274 $ (18,231) $ 49,224 $ (17,379) Amortization of intangible assets for the quarters and six months ended June 30, 2026 and 2025 was $494 million and $988 million and $508 million and $1,009 million, respectively. The following is the expected amo …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 11: Income Taxes Our effective tax rate for the quarter and six months ended June 30, 2026 was 18.0% and 16.3%, respectively, as compared to 15.4% and 16.2% for the quarter and six months ended June 30, 2025. The effective tax rate for the quarter ended June 30, 2026 is higher compared to June 30, 2025. The effective tax rate for the quarter ended June 30, 2025 included a tax benefit associated with the conclusion of the Internal Revenue Service (IRS) examination of RTXs 2020 tax year as well as a higher tax benefit from stock based compensation as compared to the quarter ended June 30, 2026. The effective tax rate for the quarter ended June 30, 2026 includes a net benefit associated with legal entity reorganizations. The effective tax rate for the six months ended June 30, 2026 and June 30, 2025 are relatively consistent. However, the effective tax rate for the six months ended June 30, 2026 includes a higher tax benefit from stock based compensation, a lower forecasted annualized effective tax rate for 2026 principally due to a higher Foreign Derived Deduction Eligible Income benefit resulting from the U.S. tax legislation enacted in 2025, and a net tax benefit for certain legal entity reorganizations. In addition, the effective tax rate for the six months ended June 30, 2025 includes the impact from the IRS examination noted above. We conduct business globally and, as a result, RTX or one or more of our subsidiaries files income tax returns in the U.S. federal jurisdi …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 10: Employee Benefit Plans Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension and postretirement benefit (PRB) plans and defined contribution plans. Contributions to our plans were as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2026 2025 2026 2025 Defined contribution plans $ 357 $ 340 $ 820 $ 741 The amounts recognized in the Condensed Consolidated Balance Sheet consist of: (dollars in millions) June 30, 2026 December 31, 2025 Non-current pension assets (included in Other assets) $ 2,918 $ 2,339 Current pension and PRB liabilities (included in Accrued employee compensation) 227 228 Future pension and postretirement benefit obligations 1,956 2,067 The amounts recognized in Future pension and postretirement benefit obligations consist of: (dollars in millions) June 30, 2026 December 31, 2025 Non-current pension liabilities $ 1,415 $ 1,510 Non-current PRB liabilities 470 501 Other pension and PRB related items 71 56 Future pension and postretirement benefit obligations $ 1,956 $ 2,067 The components of net periodic income for our defined pension plans were as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2026 2025 2026 2025 Operating expense Service cost $ 41 $ 42 $ 82 $ 84 Non-operating expense (income) Interest cost 509 586 1,014 1,169 Expected return on plan assets (836) (921) (1,672) (1,838) Amortization of prior service credit (32) (36) …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 7: Contract Assets and Liabilities Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billings. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities were as follows: (dollars in millions) June 30, 2026 December 31, 2025 Contract assets $ 19,380 $ 17,768 Allowance for expected credit losses (400) (676) Contract assets, net 18,980 17,092 Contract liabilities (22,671) (21,615) Net contract liabilities $ (3,691) $ (4,523) Contract assets, net increased $1.9 billion during the six months ended June 30, 2026 primarily due to sales in excess of billings on certain contracts at Pratt & Whitney. The allowance for expected credit losses decreased $0.3 billion in the six months ended June 30, 2026, primarily driven by a write-off related to unrecoverable contract assets reserved in a prior year. Contract liabilities increased $1.1 billion during the six months ended June 30, 2026 primarily due to advances received and billings in excess of sales on certain contracts at Pratt & Whitney and Raytheon. We recognized revenue of $2.4 billion and $6.0 billion during the quarter and six months ended June 30, 2026 related to contract liabilities outstanding as of January 1, 2026 and recognized revenue of $2.0 billion and $5.0 billion during …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 18: Segment Financial Data Our operations, for the periods presented herein, are classified into three principal segments: Collins, Pratt & Whitney, and Raytheon. Our segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. RTXs chief operating decision maker (CODM) is our Chairman and Chief Executive Officer. The CODM uses segment operating profit as a profitability measure to assess actual and forecasted segment performance to make decisions regarding incentive compensation and the allocation of capital and other investments. Total sales and operating profit by segment include inter-segment sales which are generally recorded at cost-plus a specified fee or at a negotiated fixed price. These pricing arrangements may result in margins different than what the purchasing segment realizes on the ultimate third-party sale. We present a FAS/CAS operating adjustment outside of segment results, which represents the difference between the service cost component of our pension and PRB expense under the Financial Accounting Standards (FAS) requirements of U.S. Generally Accepted Accounting Principles (GAAP) and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment. While the ultimate liability for pension and PRB costs under FAS and CAS i …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing