# EDGAR Filing Document

**Accession Number:** 0000101829
**File Stem:** 0000101829-26-000003
**Filing Date:** 2026-1
**Character Count:** 70494
**Document Hash:** 95c4cb1f93079472877498de6373d545
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000101829-26-000003.hdr.sgml**: 20260127

**ACCESSION NUMBER**: 0000101829-26-000003

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260127

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260127

**DATE AS OF CHANGE**: 20260127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RTX Corp
- **CENTRAL INDEX KEY:** 0000101829
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIRCRAFT ENGINES & ENGINE PARTS [3724]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 060570975
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-00812
- **FILM NUMBER:** 26562016

**BUSINESS ADDRESS:**
- **STREET 1:** 1000 WILSON BLVD
- **CITY:** ARLINGTON
- **STATE:** VA
- **ZIP:** 22209
- **BUSINESS PHONE:** 781-522-3000

**MAIL ADDRESS:**
- **STREET 1:** 1000 WILSON BLVD
- **CITY:** ARLINGTON
- **STATE:** VA
- **ZIP:** 22209

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RAYTHEON TECHNOLOGIES CORP
- **DATE OF NAME CHANGE:** 20200406

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** UNITED TECHNOLOGIES CORP /DE/
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** UNITED TECHNOLOGIES MICROELECTRONICS CENTER
- **DATE OF NAME CHANGE:** 19850825

?xml version='1.0' encoding='ASCII'? rtx-20260127

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

____________________________________

**FORM 8-K** 

____________________________________

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The**

**Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** January 27, 2026

____________________________________

**RTX CORPORATION** 

**(Exact name of registrant as specified in its charter)**

____________________________________

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-00812** | **06-0570975** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(I.R.S. Employer<br>Identification No.)** |

---

---

| | | | |
|:---|:---|:---|:---|
| **1000 Wilson Boulevard,** | **Arlington,** | **Virginia** | **22209** |

---

**(Address of principal executive offices, including zip code)**

**(781)** **522-3000**

**(Registrant's telephone number, including area code)**

**(Former name or former address, if changed since last report.)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

**☐** Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

**☐** Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

**☐** Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

**☐** Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| **Common Stock ($1 par value)** | **RTX** | **New York Stock Exchange** |
| **(CUSIP 75513E 101)** |  |  |
| **2.150% Notes due 2030** | **RTX 30** | **New York Stock Exchange** |
| **(CUSIP 75513E AB7)** |  |  |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

------

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**Section 2—Financial Information**

**Item 2.02. Results of Operations and Financial Condition.**

On January 27, 2026, RTX Corporation (the "<u>Company</u>") issued a press release announcing its fourth quarter 2025 results.

The press release issued January 27, 2026 is furnished herewith as Exhibit No. 99 to this Report, and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**Section 9—Financial Statements and Exhibits**

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit**<br>**<u>Number</u>** | **<u>Exhibit Description</u>** |
| <u>[99](a2026-01x278xkerexhibit99.htm)</u> | <u>[Press release, dated](a2026-01x278xkerexhibit99.htm)[January](a2026-01x278xkerexhibit99.htm)[2](a2026-01x278xkerexhibit99.htm)[7](a2026-01x278xkerexhibit99.htm)[, 202](a2026-01x278xkerexhibit99.htm)[6](a2026-01x278xkerexhibit99.htm)[, issued by RTX Corporation.](a2026-01x278xkerexhibit99.htm)</u> |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **RTX CORPORATION** | **RTX CORPORATION** |
| | **(Registrant)** | **(Registrant)** |
| Date: January 27, 2026  | By: | &nbsp;&nbsp;/s/ NEIL G. MITCHILL JR. |
|  |  | &nbsp;&nbsp;**Neil G. Mitchill Jr.** |
|  |  | &nbsp;&nbsp;&nbsp;**Executive Vice President and Chief Financial Officer** |

---

## Ex-99

**Exhibit 99**

---

| | |
|:---|:---|
| ![rtx-logo_rgbxblacka.jpg](rtx-logo_rgbxblacka.jpg) | |
| ![rtx-logo_rgbxblacka.jpg](rtx-logo_rgbxblacka.jpg) | **Media Contact** |
| ![rtx-logo_rgbxblacka.jpg](rtx-logo_rgbxblacka.jpg) | 202.384.2474 |
| ![rtx-logo_rgbxblacka.jpg](rtx-logo_rgbxblacka.jpg) | |
| ![rtx-logo_rgbxblacka.jpg](rtx-logo_rgbxblacka.jpg) | **Investor Contact** |
| | 781.522.5123 |

---

**RTX Reports 2025 Results and Announces 2026 Outlook**

***RTX delivers strong 2025 sales, EPS, and free cash flow;\****

***Expects continued sales, earnings, and cash flow growth in 2026***

ARLINGTON, Va., January 27, 2026 – RTX (NYSE: RTX) reports fourth quarter and full year 2025 results, and announces 2026 outlook.

<u>Fourth quarter 2025</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of $24.2 billion, up 12 percent versus prior year, and up 14 percent organically\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP EPS of $1.19, including $0.31 of acquisition accounting adjustments, $0.02 of restructuring, and $0.03 of other net significant and/or non-recurring items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EPS\* of $1.55, up 1 percent versus prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating cash flow of $4.2 billion; free cash flow\* of $3.2 billion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Company backlog of $268 billion, including $161 billion of commercial and $107 billion of defense

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed the divestiture of Collins' Simmonds Precision Products business

<u>Full year 2025</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of $88.6 billion, up 10 percent versus prior year, and up 11 percent organically\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP EPS of $4.96, including $1.15 of acquisition accounting adjustments, $0.14 of restructuring, and $0.04 of other net significant and/or non-recurring items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EPS\* of $6.29, up 10 percent versus prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating cash flow of $10.6 billion; free cash flow\* of $7.9 billion, up $3.4 billion versus prior year

<u>Outlook for full year 2026</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted sales\* of $92.0 to $93.0 billion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Organic sales growth\* of 5 to 6 percent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EPS\* of $6.60 - $6.80

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free cash flow\* of $8.25 - $8.75 billion

"RTX delivered strong sales, adjusted EPS\* and free cash flow\* in 2025, enabled by our continued focus on operational performance and execution," said RTX Chairman and CEO Chris Calio.

"We enter 2026 with great momentum and are well positioned to deliver our 2026 financial outlook. We remain focused on investing in new capabilities, expanding production capacity, and executing on our backlog to meet the growing needs of our customers."

\*Adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), segment operating profit (loss) and margin percentage (ROS), adjusted segment sales, adjusted segment operating profit (loss) and margin percentage (ROS), adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate, and free cash flow are non-GAAP financial measures. When we provide our expectation for adjusted net sales (also referred to as adjusted sales), adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures (expected diluted EPS and expected cash flow from operations) is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. See "Use and Definitions of Non-GAAP Financial Measures" below for information regarding non-GAAP financial measures.

.

------

<u>Fourth quarter 2025</u>

RTX fourth quarter reported and adjusted sales were $24.2 billion, up 12 percent over the prior year. GAAP EPS of $1.19 included $0.31 of acquisition accounting adjustments, $0.02 of restructuring, and $0.03 of other net significant and/or non-recurring items. Adjusted EPS\* of $1.55 was up 1 percent versus the prior year.

The company reported net income attributable to common shareowners in the fourth quarter of $1.6 billion which included $0.4 billion of acquisition accounting adjustments and $0.1 billion of restructuring and other net significant and/or non-recurring items. Adjusted net income\* of $2.1 billion was up 2 percent versus the prior year driven by adjusted segment operating profit growth\* across all three segments, partially offset by higher corporate expenses and taxes. Operating cash flow in the fourth quarter was $4.2 billion and capital expenditures were $1.0 billion, resulting in free cash flow\* of $3.2 billion.

**Summary Financial Results**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **4th Quarter** | **4th Quarter** | **4th Quarter** | **Twelve Months** | **Twelve Months** | **Twelve Months** |
| ($ in millions, except EPS) | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| *Reported* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $24238 | $21623 | 12% | $88603 | $80738 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income | $1622 | $1482 | 9% | $6732 | $4774 | 41% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EPS | $1.19 | $1.10 | 8% | $4.96 | $3.55 | 40% |
| *Adjusted\** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $24238 | $21623 | 12% | $88603 | $80808 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income | $2111 | $2071 | 2% | $8531 | $7705 | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EPS | $1.55 | $1.54 | 1% | $6.29 | $5.73 | 10% |
| Operating Cash Flow | $4165 | $1561 | 167% | $10567 | $7159 | 48% |
| Free Cash Flow\* | $3195 | $492 | 549% | $7940 | $4534 | 75% |

---

**Segment Results** 

**Collins Aerospace**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **4th Quarter** | **4th Quarter** | **4th Quarter** | **4th Quarter** | **Twelve Months** | **Twelve Months** | **Twelve Months** | **Twelve Months** |
| ($ in millions) | **2025** | **2024** | **% Change** | **% Change** | **2025** | **2024** | **% Change** | **% Change** |
| *Reported* |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $7736 | $7537 | 3% |  | $30196 | $28284 | 7% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Profit | $1402 | $1106 | 27% |  | $4923 | $4135 | 19% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ROS | 18.1% | 14.7% | 340 | bps | 16.3% | 14.6% | 170 | bps |
| *Adjusted\** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $7736 | $7537 | 3% |  | $30196 | $28284 | 7% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Profit | $1223 | $1207 | 1% |  | $4893 | $4496 | 9% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ROS | 15.8% | 16.0% | (20) | bps | 16.2% | 15.9% | 30 | bps |

---

Collins Aerospace fourth quarter 2025 reported and adjusted sales of $7,736 million were up 3 percent versus the prior year. Excluding the impact of divestitures, the increase in adjusted sales\* was driven by a 9 percent increase in commercial OE, a 13 percent increase in commercial aftermarket, and a 2 percent increase in defense. The

------

increase in commercial OE sales was driven primarily by higher volume on widebody and narrowbody platforms, and the increase in commercial aftermarket sales was driven by growth in provisioning and parts and repairs. The increase in defense sales was driven by higher volume across multiple programs.

Collins Aerospace reported operating profit of $1,402 million was up 27 percent versus the prior year. Reported operating profit included a gain on the sale of the Simmonds Precision Products business. Adjusted operating profit\* of $1,223 million was up 1 percent versus the prior year. Drop through on higher commercial aftermarket and commercial OE volume was partially offset by the impact of divestitures completed during the year and higher tariffs across the business.

**Pratt & Whitney**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **4th Quarter** | **4th Quarter** | **4th Quarter** | **4th Quarter** | **Twelve Months** | **Twelve Months** | **Twelve Months** | **Twelve Months** |
| ($ in millions) | **2025** | **2024** | **% Change** | **% Change** | **2025** | **2024** | **% Change** | **% Change** |
| *Reported* |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $9496 | $7569 | 25% |  | $32916 | $28066 | 17% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Profit | $773 | $504 | 53% |  | $2596 | $2015 | 29% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ROS | 8.1% | 6.7% | 140 | bps | 7.9% | 7.2% | 70 | bps |
| *Adjusted\** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $9496 | $7569 | 25% |  | $32916 | $28066 | 17% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Profit | $776 | $717 | 8% |  | $2725 | $2281 | 19% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ROS | 8.2% | 9.5% | (130) | bps | 8.3% | 8.1% | 20 | bps |

---

Pratt & Whitney fourth quarter reported and adjusted sales of $9,496 million were up 25 percent versus the prior year. The sales growth was driven by a 28 percent increase in commercial OE, a 21 percent increase in commercial aftermarket, and a 30 percent increase in military. The increase in commercial OE sales was driven by higher volume and favorable mix in large commercial engines, while the increase in commercial aftermarket was driven by higher volume, including heavier content, in large commercial engines and Pratt Canada. The increase in military sales was driven by higher F135 production volume and higher sustainment volume across multiple platforms, including the F135 and F100.

Pratt & Whitney reported operating profit of $773 million was up 53 percent versus the prior year. Adjusted operating profit\* of $776 million was up 8 percent versus the prior year. The increase was driven by drop through on higher military and commercial aftermarket volume as well as favorable military and commercial OE mix. This growth was partially offset by the impact of commercial aftermarket mix, higher tariffs across the business, higher SG&A expense, and the absence of a prior year insurance recovery of approximately $70 million. Q4 2024 reported operating profit included a $157 million charge related to a customer bankruptcy.

------

**Raytheon**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **4th Quarter** | **4th Quarter** | **4th Quarter** | **4th Quarter** | **Twelve Months** | **Twelve Months** | **Twelve Months** | **Twelve Months** |
| ($ in millions) | **2025** | **2024** | **% Change** | **% Change** | **2025** | **2024** | **% Change** | **% Change** |
| *Reported* |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $7657 | $7157 | 7% |  | $28043 | $26713 | 5% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Profit | $885 | $824 | 7% |  | $3227 | $2594 | 24% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ROS | 11.6% | 11.5% | 10 | bps | 11.5% | 9.7% | 180 | bps |
| *Adjusted\** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | $7657 | $7157 | 7% |  | $28043 | $26783 | 5% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Profit | $885 | $728 | 22% |  | $3231 | $2728 | 18% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ROS | 11.6% | 10.2% | 140 | bps | 11.5% | 10.2% | 130 | bps |

---

Raytheon fourth quarter reported and adjusted sales of $7,657 million were up 7 percent versus the prior year. This increase was driven by higher volume on land and air defense systems, including Patriot and GEM-T, as well as higher volume on naval programs, including Evolved SeaSparrow Missile and Tomahawk. Q4 2024 sales included a benefit related to the restart of contracts with a Middle East customer.

Raytheon reported operating profit of $885 million was up 7 percent versus the prior year. Adjusted operating profit\* of $885 million was up 22 percent versus the prior year. The increase was driven by improved net productivity, higher volume, and favorable program mix. Q4 2024 reported operating profit included a $102 million benefit related to the restart of contracts with a Middle East customer.

**About RTX**

RTX is the world's largest aerospace and defense company. With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

**Conference Call on the Fourth Quarter 2025 Financial Results**

RTX's financial results conference call will be held on Tuesday, January 27, 2026 at 8:30 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call.

**Use and Definitions of Non-GAAP Financial Measures** 

RTX Corporation ("RTX" or "the Company") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in

------

accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non-GAAP financial measures:

---

| | |
|:---|:---|
| **Non-GAAP measure** | **Definition** |
| Adjusted net sales / Adjusted sales | Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items<sup>1</sup> (hereinafter referred to as "net significant and/or non-recurring items"). |
| Organic sales | Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items. |
| Adjusted operating profit (loss) and margin percentage (ROS) | Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments<sup>2</sup>, and net significant and/or non-recurring items. Adjusted operating profit margin percentage represents adjusted operating profit (loss) as a percentage of adjusted net sales. |
| Segment operating profit (loss) and margin percentage (ROS) | Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding acquisition accounting adjustments<sup>2</sup>, the FAS/CAS operating adjustment<sup>3</sup>, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin percentage represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other). |
| Adjusted segment sales | Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and/or non-recurring items. |
| Adjusted segment operating profit (loss) and margin percentage (ROS) | Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and/or non-recurring items. Adjusted segment operating profit margin percentage represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other). |
| Adjusted net income | Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments<sup>2</sup>, and net significant and/or non-recurring items. |
| Adjusted earnings per share (EPS) | Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments<sup>2</sup>, and net significant and/or non-recurring items. |
| Adjusted effective tax rate | Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments<sup>2</sup>, and net significant and/or non-recurring items. |
| Free cash flow | Free cash flow represents cash flow from operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTX's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX's common stock, and distribution of earnings to shareowners. |

---

<sup>1</sup> Net significant and/or non-recurring items represent significant nonoperational items and/or significant operational items that may occur at irregular intervals.

<sup>2</sup> Acquisition accounting adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable.

<sup>3</sup> The FAS/CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment.

When we provide our expectation for adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), adjusted segment operating profit (loss) and

------

margin percentage (ROS), adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

**Cautionary Statement Regarding Forward-Looking Statements** This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide RTX Corporation ("RTX") management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid and are not statements of historical fact. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "goals," "objectives," "confident," "on track," "designed to, " "commit," "commitment" and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, targets and commitments (including for share repurchases or otherwise), and other statements which are not solely historical facts. All forward-looking statements involve risks, uncertainties, changes in circumstances and other factors that are hard to predict, and each of which may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, as amended. Such risks, uncertainties and other factors include, without limitation: (1) changes in economic, capital market, and political conditions in the U.S. and globally; (2) changes in U.S. government defense spending, national priorities, and policy positions; (3) our performance on our contracts and programs, including our ability to control costs, and our dependence on U.S. government approvals for certain international contracts; (4) challenges in the development, certification, production, delivery, support, and performance of RTX's advanced technologies and new products and services and the realization of anticipated benefits; (5) challenges of operating in RTX's highly-competitive industries both domestically and abroad; (6) our reliance on U.S. and non-U.S. suppliers and commodity markets, including cost increases and disruptions in the delivery of materials and services to RTX or our suppliers; (7) changes in trade policies, implementation of sanctions, imposition of tariffs (and counter-tariffs), and other trade measures and restrictions, foreign currency fluctuations, and sales methods; (8) the economic condition of the aerospace industry; (9) the ability of RTX to attract, train, qualify, and retain qualified personnel and maintain its culture and high ethical standards, and the ability of our personnel to continue to operate our facilities and businesses around the world; (10) the scope, nature, timing, and challenges of managing and completing acquisitions, investments, divestitures, and other transactions; (11) compliance with legal, environmental, regulatory, and other requirements in the U.S. and other countries in which RTX and its businesses operate; (12) pending, threatened, and future legal proceedings, investigations, audits, and other contingencies; (13) the previously-disclosed deferred prosecution agreements entered into between the Company and the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order imposed on the Company, and the related investigations by the SEC and DOJ, and the consent agreement between the Company and the Department of State; (14) RTX's ability to engage in desirable capital-raising or strategic transactions; (15) repurchases by RTX of its common stock, or declarations of cash dividends, which may be discontinued, accelerated, suspended, or delayed at any time due to various factors; (16) realizing expected benefits from, incurring costs for, and successfully managing strategic initiatives such as cost reduction, restructuring, digital transformation, and other operational initiatives; (17) additional tax exposures due to new tax legislation or other developments in the U.S. and other countries in which RTX and its businesses operate; (18) the identified rare condition in powder metal used to manufacture certain Pratt & Whitney engine parts requiring accelerated removals and inspections of a significant portion of the PW1100G-JM Geared Turbofan (GTF) fleet; (19) changes in production volumes of one or more of our significant customers as a result of business, labor, or other challenges, and the resulting effect on its or their demand for our products and services; (20) an RTX product safety failure, quality issue, or other failure affecting RTX's or its customers' or suppliers' products or systems; (21) cybersecurity, including cyber-attacks on RTX's information

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technology infrastructure, products, suppliers, customers and partners, and cybersecurity-related regulations; (22) insufficient indemnity or insurance coverage; (23) our intellectual property and certain third-party intellectual property; (24) threats to RTX facilities and personnel, or those of its suppliers or customers, as well as public health crises, damaging weather, acts of nature, or other similar events outside of RTX's control that may affect RTX or its suppliers or customers; (25) changes in accounting estimates for our programs on our financial results; (26) changes in pension and other postretirement plan estimates and assumptions and contributions; (27) an impairment of goodwill and other intangible assets; and (28) climate change and climate-related regulations, and any related customer and market demands, products and technologies. For additional information on identifying factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements, see the reports of RTX filed with or furnished to the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and RTX assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

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**RTX Corporation**

**Consolidated Statement of Operations**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|<br>***(dollars in millions, except per share amounts; shares in millions)*** | **2025** | **2024** | **2025** | **2024** |
| Net Sales | $24238 | $21623 | $88603 | $80738 |
| Costs and expenses: |  |  |  |  |
| Cost of sales | 19521 | 17388 | 70814 | 65328 |
| Research and development | 789 | 808 | 2807 | 2934 |
| Selling, general, and administrative | 1638 | 1574 | 6095 | 5806 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 21948 | 19770 | 79716 | 74068 |
| Other income (expense), net | 306 | 258 | 413 | (132) |
| Operating profit | 2596 | 2111 | 9300 | 6538 |
| Non-service pension income | (101) | (384) | (1182) | (1518) |
| Interest expense, net | 400 | 486 | 1749 | 1862 |
| Income before income taxes | 2297 | 2009 | 8733 | 6194 |
| Income tax expense | 584 | 449 | 1664 | 1181 |
| Net income | 1713 | 1560 | 7069 | 5013 |
| Less: Noncontrolling interest in subsidiaries' earnings | 91 | 78 | 337 | 239 |
| Net income attributable to common shareowners | $1622 | $1482 | $6732 | $4774 |
| Earnings Per Share attributable to common shareowners: |  |  |  |  |
| Basic | $1.21 | $1.11 | $5.02 | $3.58 |
| Diluted | $1.19 | $1.10 | $4.96 | $3.55 |
| Weighted Average Shares Outstanding: |  |  |  |  |
| Basic shares | 1344.9 | 1334.4 | 1341.4 | 1332.1 |
| Diluted shares | 1361.7 | 1348.9 | 1356.4 | 1343.6 |

---

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**RTX Corporation**

**Segment Net Sales and Operating Profit (Loss)**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br><br>***(dollars in millions)*** | **Reported** | **Adjusted** | **Reported** | **Adjusted** | **Reported** | **Adjusted** | **Reported** | **Adjusted** |
| **Net Sales** |  |  |  |  |  |  |  |  |
| Collins Aerospace | $7736 | $7736 | $7537 | $7537 | $30196 | $30196 | $28284 | $28284 |
| Pratt & Whitney | 9496 | 9496 | 7569 | 7569 | 32916 | 32916 | 28066 | 28066 |
| Raytheon | 7657 | 7657 | 7157 | 7157 | 28043 | 28043 | 26713 | 26783 |
| Total segments | 24889 | 24889 | 22263 | 22263 | 91155 | 91155 | 83063 | 83133 |
| Eliminations and other | (651) | (651) | (640) | (640) | (2552) | (2552) | (2325) | (2325) |
| **Consolidated** | $24238 | $24238 | $21623 | $21623 | $88603 | $88603 | $80738 | $80808 |
| **Operating Profit (Loss)** |  |  |  |  |  |  |  |  |
| Collins Aerospace | $1402 | $1223 | $1106 | $1207 | $4923 | $4893 | $4135 | $4496 |
| Pratt & Whitney | 773 | 776 | 504 | 717 | 2596 | 2725 | 2015 | 2281 |
| Raytheon | 885 | 885 | 824 | 728 | 3227 | 3231 | 2594 | 2728 |
| Total segments | 3060 | 2884 | 2434 | 2652 | 10746 | 10849 | 8744 | 9505 |
| Eliminations and other | 32 | 32 | 7 | 7 | 54 | 13 | (48) | (48) |
| Corporate expenses and other unallocated items | (138) | (132) | (7) | (4) | (248) | (226) | (933) | (107) |
| FAS/CAS operating adjustment | 183 | 183 | 197 | 197 | 753 | 753 | 833 | 833 |
| Acquisition accounting adjustments | (541) |  | (520) |  | (2005) |  | (2058) |  |
| **Consolidated** | $2596 | $2967 | $2111 | $2852 | $9300 | $11389 | $6538 | $10183 |
| **Segment Operating Profit Margin** | **Segment Operating Profit Margin** | **Segment Operating Profit Margin** |  |  |  |  |  |  |
| Collins Aerospace | 18.1% | 15.8% | 14.7% | 16.0% | 16.3% | 16.2% | 14.6% | 15.9% |
| Pratt & Whitney | 8.1% | 8.2% | 6.7% | 9.5% | 7.9% | 8.3% | 7.2% | 8.1% |
| Raytheon | 11.6% | 11.6% | 11.5% | 10.2% | 11.5% | 11.5% | 9.7% | 10.2% |
| **Total segment** | 12.3% | 11.6% | 10.9% | 11.9% | 11.8% | 11.9% | 10.5% | 11.4% |

---

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**RTX Corporation**

**Consolidated Balance Sheet**

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| ***(dollars in millions)*** | (Unaudited) | (Unaudited) |
| **Assets** |  |  |
| Cash and cash equivalents | $7435 | $5578 |
| Accounts receivable, net | 14701 | 10976 |
| Contract assets, net | 17092 | 14570 |
| Inventory, net | 13364 | 12768 |
| Other assets, current | 7740 | 7241 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 60332 | 51133 |
| Customer financing assets | 2132 | 2246 |
| Fixed assets, net | 16868 | 16089 |
| Operating lease right-of-use assets | 1887 | 1864 |
| Goodwill | 53343 | 52789 |
| Intangible assets, net | 31845 | 33443 |
| Other assets | 4672 | 5297 |
| **Total assets** | $171079 | $162861 |
| **Liabilities, Redeemable Noncontrolling Interest, and Equity** |  |  |
| Short-term borrowings | $204 | $183 |
| Accounts payable | 15895 | 12897 |
| Accrued employee compensation | 3308 | 2620 |
| Other accrued liabilities | 14350 | 14831 |
| Contract liabilities | 21615 | 18616 |
| Long-term debt currently due | 3412 | 2352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 58784 | 51499 |
| Long-term debt | 34288 | 38726 |
| Operating lease liabilities, non-current | 1602 | 1632 |
| Future pension and postretirement benefit obligations | 2067 | 2104 |
| Other long-term liabilities | 7200 | 6942 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 103941 | 100903 |
| Redeemable noncontrolling interest | 36 | 35 |
| Shareowners' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 38126 | 37434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock | (26881) | (27112) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 56718 | 53589 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (2718) | (3755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareowners' equity | 65245 | 60156 |
| Noncontrolling interest | 1857 | 1767 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 67102 | 61923 |
| **Total liabilities, redeemable noncontrolling interest, and equity** | $171079 | $162861 |

---

------

**RTX Corporation**

**Consolidated Statement of Cash Flows**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|<br>***(dollars in millions)*** | **2025** | **2024** | **2025** | **2024** |
| **Operating Activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $1713 | $1560 | $7069 | $5013 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash flows provided by operating activities from: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1159 | 1139 | 4378 | 4364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax provision (benefit) | 191 | 72 | 789 | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation cost | 182 | 109 | 519 | 437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net periodic pension and other postretirement income | (55) | (334) | (1011) | (1326) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based 401(k) matching contributions | 138 | 138 | 573 | 353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of Cybersecurity, Intelligence and Services business, net of transaction costs |  |  |  | (415) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (1747) | (1111) | (3235) | (175) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets | (519) | 39 | (2643) | (2414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 483 | 231 | (532) | (1474) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (76) | (160) | (1055) | (402) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 1322 | (819) | 3418 | 1508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 1444 | 676 | 2773 | 1872 |
| &nbsp;&nbsp;&nbsp;Other operating activities, net | (70) | 21 | (476) | (135) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by operating activities | 4165 | 1561 | 10567 | 7159 |
| **Investing Activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (970) | (1069) | (2627) | (2625) |
| &nbsp;&nbsp;&nbsp;Dispositions of businesses, net of cash transferred | 743 | 512 | 1931 | 1795 |
| &nbsp;&nbsp;&nbsp;Payments on customer financing assets | (114) | (48) | (233) | (218) |
| &nbsp;&nbsp;&nbsp;Receipts from customer financing assets | 31 | 67 | 161 | 202 |
| &nbsp;&nbsp;&nbsp;Increase in other intangible assets | (145) | (164) | (492) | (611) |
| &nbsp;&nbsp;&nbsp;(Payments) receipts from settlements of derivative contracts, net | (69) | (145) | 118 | (142) |
| &nbsp;&nbsp;&nbsp;Other investing activities, net | (25) | 68 | (123) | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows used in investing activities | (549) | (779) | (1265) | (1534) |
| **Financing Activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of long-term debt | (1140) | (800) | (3429) | (2500) |
| &nbsp;&nbsp;&nbsp;Dividends paid | (914) | (802) | (3574) | (3217) |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock |  | (50) | (50) | (444) |
| &nbsp;&nbsp;&nbsp;Other financing activities, net | (100) | (216) | (433) | (456) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows used in financing activities | (2154) | (1868) | (7486) | (6617) |
| Effect of foreign exchange rate changes on cash and cash equivalents | 4 | (39) | 48 | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash, cash equivalents and restricted cash | 1466 | (1125) | 1864 | (1020) |
| &nbsp;&nbsp;Cash, cash equivalents and restricted cash, beginning of period | 6004 | 6731 | 5606 | 6626 |
| &nbsp;&nbsp;Cash, cash equivalents and restricted cash, end of period | 7470 | 5606 | 7470 | 5606 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Restricted cash, included in Other assets, current and Other assets | 35 | 28 | 35 | 28 |
| &nbsp;&nbsp;Cash and cash equivalents, end of period | $7435 | $5578 | $7435 | $5578 |

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**RTX Corporation**

**Reconciliation of Adjusted (Non-GAAP) Results** 

**Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|<br>***(dollars in millions - Income (Expense))*** | **2025** | **2024** | **2025** | **2024** |
| **Collins Aerospace** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $7736 | $7537 | $30196 | $28284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit | $1402 | $1106 | $4923 | $4135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring | (35) | (17) | (204) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of businesses, net of transaction and other related costs <sup>(1)</sup> | 214 | 99 | 309 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charge associated with initiating alternative titanium sources <sup>(1)</sup> |  |  |  | (175) |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment and portfolio transformation and divestiture costs <sup>(1)</sup> |  | (28) | (75) | (83) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of contract fulfillment costs <sup>(1)</sup> |  | (155) |  | (155) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit | $1223 | $1207 | $4893 | $4496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit margin | 15.8% | 16.0% | 16.2% | 15.9% |
| **Pratt & Whitney** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $9496 | $7569 | $32916 | $28066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit | $773 | $504 | $2596 | $2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring | (3) | (56) | (21) | (102) |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance settlement |  |  |  | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected settlement of a litigation matter <sup>(1)</sup> |  |  |  | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer bankruptcy <sup>(1)</sup> |  | (157) | (108) | (157) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit | $776 | $717 | $2725 | $2281 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit margin | 8.2% | 9.5% | 8.3% | 8.1% |
| **Raytheon** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $7657 | $7157 | $28043 | $26713 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract termination <sup>(1)</sup> |  |  |  | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net sales | $7657 | $7157 | $28043 | $26783 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit | $885 | $824 | $3227 | $2594 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring |  | (6) | (4) | (36) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of business, net of transaction and other related costs <sup>(1)</sup> |  |  |  | 375 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract termination <sup>(1)</sup> |  |  |  | (575) |
| &nbsp;&nbsp;&nbsp;&nbsp;Middle East contracts restart adjustments <sup>(1)</sup> |  | 102 |  | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit | $885 | $728 | $3231 | $2728 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit margin | 11.6% | 10.2% | 11.5% | 10.2% |
| **Eliminations and Other** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $(651) | $(640) | $(2552) | $(2325) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit (loss) | $32 | $7 | $54 | $(48) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on investment <sup>(1)</sup> |  |  | 41 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit (loss) | $32 | $7 | $13 | $(48) |
| **Corporate expenses and other unallocated items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit (loss) | $(138) | $(7) | $(248) | $(933) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring | (6) |  | (17) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax audit settlements and closures <sup>(1)</sup> |  |  | (5) | (68) |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment and portfolio transformation and divestiture costs <sup>(1)</sup> |  | (3) |  | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal matters <sup>(1)</sup> |  |  |  | (918) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax matters and related indemnification <sup>(1)</sup> |  |  |  | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating loss | $(132) | $(4) | $(226) | $(107) |

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **FAS/CAS Operating Adjustment** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit | $183 | $197 | $753 | $833 |
| **Acquisition Accounting Adjustments** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss | $(541) | $(520) | $(2005) | $(2058) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition accounting adjustments | (541) | (520) | (2005) | (2058) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit | $— | $— | $— | $— |
| **RTX Consolidated** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $24238 | $21623 | $88603 | $80738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net significant and/or non-recurring items included in Net sales above <sup>(1)</sup> |  |  |  | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net sales | $24238 | $21623 | $88603 | $80808 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit | $2596 | $2111 | $9300 | $6538 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring | (44) | (79) | (246) | (194) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition accounting adjustments | (541) | (520) | (2005) | (2058) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net significant and/or non-recurring items included in Operating profit above <sup>(1)</sup> | 214 | (142) | 162 | (1393) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating profit | $2967 | $2852 | $11389 | $10183 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

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**RTX Corporation**

**Reconciliation of Adjusted (Non-GAAP) Results** 

**Adjusted Income, Earnings Per Share, and Effective Tax Rate**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|<br>***(dollars in millions - Income (Expense))*** | **2025** | **2024** | **2025** | **2024** |
| **Net income attributable to common shareowners** | **1622** | **1482** | **6732** | **4774** |
| &nbsp;&nbsp;&nbsp;Total Restructuring | (44) | (79) | (246) | (194) |
| &nbsp;&nbsp;&nbsp;Total Acquisition accounting adjustments | (541) | (520) | (2005) | (2058) |
| &nbsp;&nbsp;Total net significant and/or non-recurring items included in Operating profit <sup>(1)</sup> | 214 | (142) | 162 | (1393) |
| &nbsp;&nbsp;*Significant and/or non-recurring items included in Non-service Pension Income* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-service pension restructuring |  |  |  | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension settlement charge <sup>(1)</sup> | (260) |  | (260) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension curtailment related to sale of business | (1) |  | (1) | 9 |
| &nbsp;&nbsp;&nbsp;*Significant non-recurring and non-operational items included in Interest Expense, Net* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax audit settlements and closures <sup>(1)</sup> |  |  | 54 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax matters and related indemnification <sup>(1)</sup> |  |  |  | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International tax matter <sup>(1)</sup> | 35 |  |  |  |
| &nbsp;&nbsp;&nbsp;Tax effect of restructuring and net significant and/or non-recurring items above | 108 | 152 | 438 | 516 |
| &nbsp;&nbsp;*Significant and/or non-recurring items included in Income Tax Expense* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax audit settlements and closures <sup>(1)</sup> |  |  | 59 | 296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax matters and related indemnification <sup>(1)</sup> |  |  |  | (156) |
| &nbsp;&nbsp;*Significant and/or non-recurring items included in Noncontrolling Interest* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest share of charges related to an insurance settlement |  |  |  | (9) |
| &nbsp;&nbsp;&nbsp;**Less: Impact on net income attributable to common shareowners** | **(489)** | **(589)** | **(1799)** | **(2931)** |
| **Adjusted net income attributable to common shareowners** | **2111** | **2071** | **8531** | **7705** |
| **Diluted Earnings Per Share** | **1.19** | **1.10** | **4.96** | **3.55** |
| &nbsp;&nbsp;&nbsp;Impact on Diluted Earnings Per Share | (0.36) | (0.44) | (1.33) | (2.18) |
| **Adjusted Diluted Earnings Per Share** | **1.55** | **1.54** | **6.29** | **5.73** |
| **Effective Tax Rate** | **25.4%** | **22.3%** | **19.1%** | **19.1%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact on Effective Tax Rate | 1.5% | 0.4% | (0.5)% | 0.3% |
| **Adjusted Effective Tax Rate** | **23.9%** | **21.9%** | **19.6%** | **18.8%** |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

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**RTX Corporation**

**Reconciliation of Adjusted (Non-GAAP) Results** 

**Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|<br>***(dollars in millions)*** | **2025** | **2024** | **2025** | **2024** |
| **Net Sales** | $24238 | $21623 | $88603 | $80738 |
| &nbsp;&nbsp;Reconciliation to segment net sales: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Eliminations and other | 651 | 640 | 2552 | 2325 |
| Segment Net Sales | $24889 | $22263 | $91155 | $83063 |
| &nbsp;&nbsp;Reconciliation to adjusted segment net sales: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net significant and/or non-recurring items <sup>(1)</sup> |  |  |  | (70) |
| Adjusted Segment Net Sales | $24889 | $22263 | $91155 | $83133 |
| **Operating Profit** | $2596 | $2111 | $9300 | $6538 |
| Operating Profit Margin | 10.7% | 9.8% | 10.5% | 8.1% |
| &nbsp;&nbsp;Reconciliation to segment operating profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Eliminations and other | (32) | (7) | (54) | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate expenses and other unallocated items | 138 | 7 | 248 | 933 |
| &nbsp;&nbsp;&nbsp;&nbsp;FAS/CAS operating adjustment | (183) | (197) | (753) | (833) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition accounting adjustments | 541 | 520 | 2005 | 2058 |
| Segment Operating Profit | $3060 | $2434 | $10746 | $8744 |
| Segment Operating Profit Margin | 12.3% | 10.9% | 11.8% | 10.5% |
| &nbsp;&nbsp;Reconciliation to adjusted segment operating profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring | (38) | (79) | (229) | (185) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net significant and/or non-recurring items <sup>(1)</sup> | 214 | (139) | 126 | (576) |
| Adjusted Segment Operating Profit | $2884 | $2652 | $10849 | $9505 |
| Adjusted Segment Operating Profit Margin | 11.6% | 11.9% | 11.9% | 11.4% |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

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**RTX Corporation**

**Free Cash Flow Reconciliation**

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| | | |
|:---|:---|:---|
| | **Quarter Ended December 31,** | **Quarter Ended December 31,** |
| | (Unaudited) | (Unaudited) |
|<br>*(****dollars in millions****)* | **2025** | **2024** |
| Net cash flows provided by operating activities | $4165 | $1561 |
| Capital expenditures | (970) | (1069) |
| Free cash flow | $3195 | $492 |
|  | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
|  | (Unaudited) | (Unaudited) |
| ***(dollars in millions)*** | **2025** | **2024** |
| Net cash flows provided by operating activities | $10567 | $7159 |
| Capital expenditures | (2627) | (2625) |
| Free cash flow | $7940 | $4534 |

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**RTX Corporation**

**Reconciliation of Adjusted (Non-GAAP) Results** 

**Organic Sales Reconciliation**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter ended December 31, 2025 compared to the Quarter Ended December 31, 2024** | **Quarter ended December 31, 2025 compared to the Quarter Ended December 31, 2024** | **Quarter ended December 31, 2025 compared to the Quarter Ended December 31, 2024** | **Quarter ended December 31, 2025 compared to the Quarter Ended December 31, 2024** | **Quarter ended December 31, 2025 compared to the Quarter Ended December 31, 2024** | **Quarter ended December 31, 2025 compared to the Quarter Ended December 31, 2024** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|<br>*(****dollars in millions****)* | **Total Reported Change** | **Acquisitions & Divestitures Change** | **FX / Other Change** <sup>(2)</sup> | **Organic Change** | **Prior Year Adjusted Sales** <sup>(1)</sup> | **Organic Change as a % of Adjusted Sales** |
| Collins Aerospace | $199 | $(428) | $27 | $600 | $7537 | 8% |
| Pratt & Whitney | 1927 |  | 38 | 1889 | 7569 | 25% |
| Raytheon | 500 |  | 5 | 495 | 7157 | 7% |
| Eliminations and Other <sup>(3)</sup> | (11) | 26 | (25) | (12) | (640) | 2% |
| Consolidated | $2615 | $(402) | $45 | $2972 | $21623 | 14% |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;For the full Non-GAAP reconciliation of adjusted sales refer to "Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin."

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes other significant non-operational items and/or significant operational items that may occur at irregular intervals.

(3)&nbsp;&nbsp;&nbsp;&nbsp;FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney's FX/Other Change, but excluded for Consolidated RTX.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Twelve Months Ended December 31, 2025 compared to the Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2025 compared to the Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2025 compared to the Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2025 compared to the Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2025 compared to the Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2025 compared to the Twelve Months Ended December 31, 2024** |
| | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|<br>*(****dollars in millions****)* | **Total Reported Change** | **Acquisitions & Divestitures Change** | **FX / Other Change** <sup>(2)</sup> | **Organic Change** | **Prior Year Adjusted Sales** <sup>(1)</sup> | **Organic Change as a % of Adjusted Sales** |
| Collins Aerospace | $1912 | $(754) | $60 | $2606 | $28284 | 9% |
| Pratt & Whitney | 4850 |  | 40 | 4810 | 28066 | 17% |
| Raytheon | 1330 | (460) | 75 | 1715 | 26783 | 6% |
| Eliminations and Other <sup>(3)</sup> | (227) | 35 | (25) | (237) | (2325) | 10% |
| Consolidated | $7865 | $(1179) | $150 | $8894 | $80808 | 11% |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;For the full Non-GAAP reconciliation of adjusted sales refer to "Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin."

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes other significant non-operational items and/or significant operational items that may occur at irregular intervals.

(3)&nbsp;&nbsp;&nbsp;&nbsp;FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney's FX/Other Change, but excluded for Consolidated RTX.

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**Non-GAAP Financial Adjustments**

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| | |
|:---|:---|
| **Non-GAAP Adjustments** | **Description** |
| Segment and portfolio transformation and divestiture costs | The twelve months ended December 31, 2025 and the quarter and twelve months ended December 31, 2024 include certain segment and portfolio transformation costs incurred in connection with the 2023 completed segment realignment as well as separation costs incurred in advance of the completion of certain divestitures.  |
| Charge associated with initiating alternative titanium sources | The twelve months ended December 31, 2024 includes a net pre-tax charge of $0.2 billion related to the recognition of unfavorable purchase commitments and an impairment of contract fulfillment costs associated with initiating alternative titanium sources at Collins. These charges were recorded as a result of the Canadian government's imposition of new sanctions in February 2024, which included U.S.- and German-based Russian-owned entities from which we source titanium for use in our Canadian operations. Management has determined that these impacts are directly attributable to the sanctions, incremental to similar costs incurred for reasons other than those related to the sanctions and has determined that the nature of the charge is considered significant and unusual, and, therefore, not indicative of the Company's ongoing operational performance. |
| Impairment of contract fulfillment costs | The quarter and twelve months ended December 31, 2024 include a net pre-tax charge of $0.2 billion related to an impairment of contract fulfillment costs as a result of a contract cancellation during the fourth quarter of 2024 at Collins. Management has determined that the nature and significance of the charge is considered unusual and, therefore not indicative of the Company's ongoing operational performance.  |
| Expected settlement of a litigation matter | The twelve months ended December 31, 2024 includes a pre-tax charge of $34 million reflecting the expected settlement value relating to a litigation matter at Pratt & Whitney. Management has determined that the impact is directly attributable to the expected legal settlement and that the nature of the charge is considered non-operational, and therefore, not indicative of the Company's ongoing operational performance. |
| Customer bankruptcy | The twelve months ended December 31, 2025 includes a net pre-tax charge of approximately $0.1 billion related to a customer bankruptcy at Pratt & Whitney. The quarter and twelve months ended December 31, 2024 include a net pre-tax charge of approximately $0.2 billion related to a customer bankruptcy at Pratt & Whitney. The charges primarily relate to contract asset exposures with customers. Management has determined that the nature and significance of the charge is considered unusual and, therefore, not indicative of the Company's ongoing operational performance. |
| Contract termination | The twelve months ended December 31, 2024 includes a pre-tax charge of $0.6 billion related to the termination of a fixed price development contract with a foreign customer at Raytheon. The charge includes the write-off of remaining contract assets and settlement with the customer. Management has determined that these impacts are directly attributable to the termination, incremental to similar costs incurred for reasons other than those attributable to the termination and has determined that the nature of the pre-tax charge is considered significant and unusual and, therefore, not indicative of the Company's ongoing operational performance. |
| Gain on sale of businesses, net of transaction and other related costs | The quarter and twelve months ended December 31, 2025 include a pre-tax gain of $0.1 billion associated with the completed sale of the Simmonds Precision Products business at Collins. The quarter and twelve months ended December 31, 2025 also include a pre-tax gain of $0.1 billion and $0.2 billion, respectively, associated with the completed sale of the actuation and flight control business at Collins. The quarter and twelve months ended December 31, 2024 include a pre-tax gain, net of transaction and other related costs, of $0.1 billion associated with the completed sale of the Hoist & Winch business at Collins. The twelve months ended December 31, 2024 also includes a pre-tax gain, net of transaction and other related costs, of $0.4 billion associated with the completed sale of the Cybersecurity, Intelligence and Services (CIS) business at Raytheon. Management has determined that the nature of the net gain on each divestiture is considered significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance. |
| Middle East contracts restart adjustments | The quarter and twelve months ended December 31, 2024 include a net operating profit benefit of $0.1 billion primarily related to reserve and contract loss provision adjustments as a result of restarting work under certain contracts with a Middle East customer. Management has determined that the nature and significance of the benefit is considered unusual, therefore not indicative of the Company's ongoing operational performance. |
| Gain on investment | The twelve months ended December 31, 2025 includes a pre-tax gain of $41 million related to the increase in fair value on an investment. Management has determined that the nature of the gain on investment to be significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance.  |

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| | |
|:---|:---|
| Tax audit settlements and closures | The twelve months ended December 31, 2025 includes a tax benefit of $59 million and a pre-tax benefit on the reversal of $54 million of interest accruals both recognized as a result of the closure of the examination phase of multiple state tax audits. The twelve months ended December 31, 2024 includes a tax benefit of $0.3 billion recognized as a result of the closure of the examination phase of multiple federal tax audits. The twelve months ended December 31, 2024 includes a pre-tax charge of $68 million for the write-off of certain tax related indemnity receivables and a pre-tax gain on the reversal of $78 million of interest accruals, both directly associated with these tax audit settlements. Management has determined that the nature of these impacts related to the tax audit settlements and closures is considered significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance. |
| Legal matters | The twelve months ended December 31, 2024 includes charges of $0.9 billion related to the resolution of several outstanding legal matters. The charge includes an additional accrual of $0.3 billion to resolve the previously disclosed criminal and civil government investigations of defective pricing claims for certain legacy Raytheon Company contracts entered into between 2011 and 2013 and in 2017; an additional accrual of $0.4 billion to resolve the previously disclosed criminal and civil government investigations of improper payments made by Raytheon Company and its joint venture, Thales-Raytheon Systems, in connection with certain Middle East contracts since 2012; and an accrual of $0.3 billion related to certain voluntarily disclosed export controls violations, primarily identified in connection with the integration of Rockwell Collins and, to a lesser extent, Raytheon Company, including certain violations that were resolved pursuant to a consent agreement with the Department of State. Management has determined that these impacts are directly attributable to these legacy legal matters and that the nature of the charges are considered significant and unusual, and, therefore, not indicative of the Company's ongoing operational performance. |
| International tax matter | During the quarter ended March 31, 2025, the Company recorded the impact of an unfavorable decision related to an international tax matter for the years ended December 31, 2015 to December 31, 2019, resulting in interest expense, net of $35 million and a tax benefit of $8 million. During the quarter ended December 31, 2025, the Company received a favorable decision related to this matter, and reversed the previously recorded impacts. Management has determined that the nature of this impact related to the tax matter is considered significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance. |
| Tax matters and related indemnification | The twelve months ended December 31, 2024 includes the impact of a recent favorable international tax court ruling related to certain tax payments made by a previously separated entity. As a result of this ruling, and the expected reimbursement of international taxes to the previously separated entity, the Company will owe additional U.S. income tax of $0.2 billion and related interest. The Company recorded a pre-tax benefit of $0.2 billion to recognize recovery of the additional taxes and interest owed pursuant to a tax matters agreement entered into in connection with the separation. There was no net income impact in 2024 as a result of this adjustment. The twelve months ended December 31, 2024 also includes an income tax benefit of $56 million in response to favorable U.S. Tax Court rulings issued to unrelated taxpayers, but with facts similar to ours. The nature of the tax item in the rulings is subject to the tax matters agreement with previously separated entities, and, therefore, we recorded a pre-tax charge of $32 million for the indemnified amounts. Management has determined that the nature of these impacts to both pre-tax income and income tax expense is considered significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance. |
| Pension settlement charge | The quarter and twelve months ended December 31, 2025 include a non-cash pre-tax pension settlement charge of $0.3 billion related to the completion of a buy-out conversion of a group annuity contract which resulted in the transfer of approximately $2.3 billion of gross pension obligations to Prudential Insurance. Management has determined that the nature of this pre-tax charge is considered significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance. |

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