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Item 1. Financial Statements

2025-07-22 compared with 2025-04-22 · 247 added, 134 removed, 769 unchanged (33% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions, except per share amounts) 2025 2024 2025 2024

8 unchanged sentences

Total costs and expenses 19,475 18,296 37,750 36,103

Other income, net 4 372

Other income (expense), net 40 ( 896 ) 44 ( 524 )

Operating profit 2,146 529 4,181 2,399

15 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2025 2024 2025 2024

14 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEET

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Current Assets

43 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Quarter Ended March 31,

Six Months Ended June 30,

(dollars in millions) 2025 2024

3 unchanged sentences

Depreciation and amortization 2,128 2,131

Deferred income tax provision (benefit) 67 ( 114 )

Deferred income tax provision 121 185

Stock compensation cost 224 223

Net periodic pension and other postretirement income ( 324 ) ( 338 )

Net periodic pension income ( 636 ) ( 666 )

Share-based 401(k) matching contributions 307 146

12 unchanged sentences

Increase in other intangible assets ( 226 ) ( 318 )

Payments from settlements of derivative contracts, net ( 47 ) ( 1 )

Receipts (payments) from settlements of derivative contracts, net 145 ( 29 )

Other investing activities, net ( 63 ) 28

Net cash flows (used in) provided by investing activities ( 678 ) 693

Net cash flows used in investing activities ( 1,187 ) ( 40 )

Financing Activities:

Repayment of long-term debt ( 789 ) ( 1,700 )

Change in commercial paper, net (Note 9) 1,432 —

Change in other short-term borrowings, net 18 43

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions, except per share amounts;

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Ending balance 1,808 1,665 1,808 1,665

Equity at March 31

Equity at June 30

$ 64,206 $ 60,650 $ 64,206 $ 60,650

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Basis of Presentation

The Condensed Consolidated Financial Statements at March 31, 2025 and for the quarters ended March 31, 2025 and 2024 are unaudited, and in the opinion of management include adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods.

The Condensed Consolidated Financial Statements at June 30, 2025 and for the quarters and six months ended June 30, 2025 and 2024 are unaudited, and in the opinion of management include adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods.

The results reported in these Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year.

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References to “Raytheon Company” mean Raytheon Company, which became a wholly owned subsidiary of RTX on April 3, 2020 during an all-stock merger transaction between United Technologies Corporation and Raytheon Company (the surviving company of which is RTX Corporation).

We reclassified certain immaterial prior period amounts within our Condensed Consolidated Statement of Cash Flows and Condensed Consolidated Statement of Changes in Equity related to our share-based 401(k) matching contributions to conform to our current period presentation.

We reclassified certain immaterial prior period amounts within our Condensed Consolidated Statement of Cash Flows and

Condensed Consolidated Statement of Changes in Equity related to our share-based 401(k) matching contributions to conform

to our current period presentation.

Raytheon follows a 4-4-5 fiscal calendar while Collins Aerospace (Collins) and Pratt & Whitney use a calendar quarter end.

Throughout this Form 10-Q, when we refer to the quarters ended March 31, 2025 and 2024 with respect to Raytheon, we are referring to their March 30, 2025 and March 31, 2024 fiscal quarter ends, respectively.

Throughout this Form 10-Q, when we refer to the quarters and six months ended June 30, 2025 and 2024 with respect to Raytheon, we are referring to their June 29, 2025 and June 30, 2024 fiscal quarter ends, respectively.

Legal Matters.

As previously disclosed, in 2024 the Company resolved several outstanding legal matters, herein referred to as “Resolution of Certain Legal Matters.” See “Note 16:

Commitments and Contingencies” for additional information.

Acquisitions and Dispositions

Dispositions.

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 ($ 0.2 billion after tax), primarily recognized in Other income, net within the Condensed Consolidated Statement of Operations.

On June 30, 2025, we entered into a definitive agreement to sell the Simmonds Precision Products business within our Collins segment for approximately $ 0.8 billion in cash.

The closing of this transaction is subject to required regulatory approvals and other customary closing conditions.

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 ($ 0.2 billion after tax), primarily recognized in Other income (expense), net within the Condensed Consolidated Statement of Operations.

On July 20, 2023, we entered into a definitive agreement to sell the actuation and flight control business within our Collins segment to Safran S.A.

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During the fourth quarter of 2024, as a result of progress towards regulatory approvals, held for sale criteria was met.

At March 31, 2025, assets of approximately $ 1.6 billion and liabilities of approximately $ 0.6 billion are held for sale at fair value less cost to sell.

At June 30, 2025, assets of approximately $ 1.6 billion and liabilities of approximately $ 0.6 billion are held for sale.

Held for sale assets primarily include $ 0.7 billion of goodwill and intangible assets presented in Other assets and $ 0.3 billion of inventory presented in Other assets, current, within the Condensed Consolidated Balance Sheet.

Held for sale liabilities primarily include $ 0.4 billion of contract liabilities and other accrued liabilities presented in Other accrued liabilities within the Condensed Consolidated Balance Sheet.

The closing of this transaction is subject to regulatory approvals and other customary closing conditions.

This disposition does not qualify for presentation as discontinued operations.

We completed the sale of this business for gross proceeds of $ 1.8 billion on July 21, 2025.

Goodwill and Intangible Assets

Changes in our goodwill balances for the quarter ended March 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 March 31, 2025

Changes in our goodwill balances for the six months ended June 30, 2025 were as follows:

(dollars in millions) Balance as of December 31, 2024 Acquisitions and Divestitures Foreign Currency Translation and Other Balance as of June 30, 2025

Collins Aerospace (1)

$ 32,223 $ ( 256 ) $ 793 $ 32,760

Pratt & Whitney 1,563 — — 1,563

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Total $ 52,789 $ ( 256 ) $ 794 $ 53,327

(1) The reduction in Acquisitions and Divestitures includes the reclassification of goodwill to held for sale and presented in Other assets within the Condensed Consolidated Balance Sheet.

Intangible Assets.

Identifiable intangible assets are comprised of the following:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization

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Total $ 49,077 $ ( 16,329 ) $ 48,899 $ ( 15,456 )

Amortization of intangible assets for the quarters ended March 31, 2025 and 2024 was $ 501 million and $ 526 million, respectively.

Amortization of intangible assets for the quarters and six months ended June 30, 2025 and 2024 was $ 508 million and $ 1,009 million and $ 534 million and $ 1,060 million, respectively.

The following is the expected amortization of intangible assets for the remainder of 2025 through 2030:

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Earnings Per Share

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars and shares in millions, except per share amounts) 2025 2024 2025 2024

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In addition, the computation of diluted EPS excludes the effect of the potential release or exercise of stock awards when the awards’ assumed proceeds exceed the average market price of the common shares during the period.

For the quarters ended March 31, 2025 and 2024, the number of stock awards excluded from the computation was 3.2 million and 15.3 million, respectively.

For the quarter and six months ended June 30, 2025, the number of stock awards excluded from the computation was 1.8 million and 2.5 million, respectively.

For the quarter and six months ended June 30, 2024, the number of stock awards excluded from the computation was 3.9 million and 9.6 million, respectively.

Changes in Contract Estimates at Completion

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The risks and opportunities relate to management’s judgment about the ability and cost to achieve the schedule, consideration of customer-directed delays or reductions in scheduled deliveries, technical requirements, customer activity levels, such as flight hours or aircraft landings, and related variable consideration.

Management must make assumptions and estimates regarding contract revenues and costs, including estimates of labor productivity and availability, the complexity and scope of the work to be performed, the availability and cost of materials including any impact from changing costs or inflation, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from our customer, overhead cost rates, and current and past maintenance cost and frequency driven by estimated

aircraft and engine utilization and estimated useful lives of components, among others.

In particular, fixed-price development programs involve significant management judgment, as development contracts by nature have elements that have not been done before and thus, are highly subject to future unexpected cost changes.

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Net EAC adjustments had the following impact on our operating results:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions, except per share amounts) 2025 2024 2025 2024

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statutory tax rate of 21%, which approximates our tax rate on our EAC adjustments.

In addition to the amounts included in the table above, during the quarter ended June 30, 2024, Raytheon initiated the termination of a fixed price development contract with a foreign customer, herein referred to as “Raytheon Contract Termination.” As a result of this action, Raytheon recognized a $ 0.6 billion charge related to the estimated impact of this termination.

This charge included the write-off of remaining contract assets and the estimated settlement with the customer.

The Raytheon Contract Termination was completed, including customer settlement, during the fourth quarter of 2024, in line with previously accrued amounts.

Accounts Receivable, Net

Accounts receivable, net consisted of the following:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Accounts receivable $ 12,722 $ 11,265

6 unchanged sentences

Total contract assets and contract liabilities were as follows:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Contract assets, net $ 15,686 $ 14,570

1 unchanged sentence

Net contract liabilities $ ( 3,500 ) $ ( 4,046 )

Contract assets, net, increased $ 0.7 billion during the quarter ended March 31, 2025 primarily due to sales in excess of billings on certain contracts at Pratt & Whitney.

Contract liabilities increased $ 0.4 billion during the quarter ended March 31, 2025 primarily due to advances received and billings in excess of sales on certain contracts at Pratt & Whitney.

We recognized revenue of $ 3.0 billion during the quarter ended March 31, 2025 related to contract liabilities outstanding as of January 1, 2025 and recognized revenue of $ 2.6 billion during the quarter ended March 31, 2024, related to contract liabilities outstanding as of January 1, 2024.

Contract assets are net of an allowance for expected credit losses of $ 510 million and $ 491 million as of March 31, 2025 and December 31, 2024, respectively.

Contract assets, net, increased $ 1.1 billion during the six months ended June 30, 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 $ 0.6 billion during the six months ended June 30, 2025 primarily due to advances received and billings in excess of sales on certain contracts at Pratt & Whitney.

We recognized revenue of $ 2.0 billion and $ 5.0 billion during the quarter and six months ended June 30, 2025 related to contract liabilities outstanding as of January 1, 2025 and recognized revenue of $ 1.8 billion and $ 4.4 billion during the quarter and six months ended June 30, 2024, related to contract liabilities outstanding as of January 1, 2024.

Contract assets are net of an allowance for expected credit losses of $ 0.7 billion and $ 0.5 billion as of June 30, 2025 and December 31, 2024, respectively.

The increase in allowance for expected credit losses as of June 30, 2025 as compared to December 31, 2024 was primarily related to an increase in reserves as a result of a customer bankruptcy recorded at Pratt & Whitney in the quarter ended June 30, 2025.

Inventory, net

Inventory, net consisted of the following:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Raw materials $ 4,559 $ 4,164

3 unchanged sentences

Borrowings and Lines of Credit

As of March 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 March 31, 2025, there were no borrowings outstanding under this agreement.

As of June 30, 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 June 30, 2025, there were no borrowings outstanding under this agreement.

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 March 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 March 31, 2025 and December 31, 2024, we had no commercial paper borrowings outstanding.

There were no new borrowings and no new repayments of commercial paper with maturities greater than 90 days during the quarters ended March 31, 2025 and 2024.

We made the following repayment of long-term debt during the quarter ended March 31, 2024:

At December 31, 2024, we had no commercial paper borrowings outstanding.

As of June 30, 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 June 30, 2025 we had $ 1.4 billion of commercial paper borrowings outstanding.

At June 30, 2025, short-term commercial paper borrowings outstanding had a weighted-average interest rate of 4.7 %.

There were no new borrowings and no new repayments of commercial paper with maturities greater than 90 days during the six months ended June 30, 2025 and 2024.

We made the following repayments of long-term debt during the six months ended June 30, 2025 and 2024:

Date Description of Notes Aggregate Principal Balance (in millions)

May 7, 2025 3 Month SOFR plus 1.225 % term loan due 2025

May 7, 2024 3 Month SOFR plus 1.225 % Term Loan due 2025

April 17, 2024 3 Month SOFR plus 1.225 % Term Loan due 2025

April 4, 2024 3 Month SOFR plus 1.225 % Term Loan due 2025

March 15, 2024 3.200 % notes due 2024

Long-term debt consisted of the following:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

3 Month SOFR plus 1.225 % term loan due 2025

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5.400 % notes due 2035 (1)

(dollars in millions) March 31, 2025 December 31, 2024

6.050 % notes due 2036 (1)

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3.750 % notes due 2046 (1)

(dollars in millions) June 30, 2025 December 31, 2024

4.050 % notes due 2047 (1)

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(1) We may redeem these notes, in whole or in part, at our option pursuant to their terms prior to the applicable maturity date.

The average maturity of our long-term debt as of March 31, 2025 is approximately 12 years.

The average maturity of our long-term debt as of June 30, 2025 is approximately 12 years.

Employee Benefit Plans

2 unchanged sentences

Contributions to our plans were as follows:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2025 2024 2025 2024

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The amounts recognized in the Condensed Consolidated Balance Sheet consist of:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Non-current pension assets (included in Other assets) $ 2,358 $ 1,819

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The amounts recognized in Future pension and postretirement benefit obligations consist of:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Non-current pension liabilities $ 1,473 $ 1,532

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The components of net periodic income for our defined pension plans were as follows:

Quarter Ended March 31,

Quarter Ended June 30,

Six Months Ended June 30,

(dollars in millions) 2025 2024 2025 2024

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Recognized actuarial net loss 5 5 10 10

Net settlement, curtailment, and special termination benefit gain — ( 7 )

Net settlement, curtailment, and special termination benefit (gain) loss 14 3 14 ( 4 )

Non-service pension income ( 352 ) ( 374 ) ( 720 ) ( 760 )

Total net periodic income $ ( 326 ) $ ( 339 )

Total net periodic pension income $ ( 310 ) $ ( 327 ) $ ( 636 ) $ ( 666 )

We have set aside assets in separate trusts, which we expect to be used to pay for certain nonqualified defined benefit and defined contribution plan obligations in excess of qualified plan limits.

1 unchanged sentence

The fair value of marketable securities held in trusts was as follows:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Marketable securities held in trusts $ 679 $ 786

Our effective tax rate for the quarter ended March 31, 2025 was 17.0 % as compared to 5.8 % for the quarter ended March 31, 2024.

The effective tax rate for the quarter ended March 31, 2024 included tax benefits of $ 275 million recognized as a result of the conclusion of the examination phases of the RTX and Rockwell Collins Internal Revenue Service (IRS) audits, which was partially offset by the tax cost of $ 143 million associated with the sale of the CIS business.

Our effective tax rate for the quarter and six months ended June 30, 2025 was 15.4 % and 16.2 %, respectively, as compared to 59.1 % and 15.8 % for the quarter and six months ended June 30, 2024.

The effective tax rate for the quarter ended June 30, 2025 includes a tax benefit of $ 33 million associated with the conclusion of the Internal Revenue Service (IRS) examination of RTX’s 2020 tax year.

The effective tax rate for the quarter ended June 30, 2024 includes the impact of the $ 918 million charge associated with the Resolution of Certain Legal Matters where no related tax benefit was recorded in the quarter.

The effective tax rate for the six months ended June 30, 2025 and June 30, 2024 are relatively consistent.

However, the effective tax rate for the six months ended June 30, 2025 includes the impact from the IRS examination noted above and the effective tax rate for the six months ended June 30, 2024 includes a $ 275 million tax benefit recognized from the conclusion of the examination phases of the RTX and Rockwell Collins audits, a $ 143 million tax cost associated with the sale of the CIS business, and the impact of the $ 918 million charge associated with the Resolution of Certain Legal Matters.

We conduct business globally and, as a result, RTX or one or more of our subsidiaries files income tax returns in the U.S.

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In connection with certain IRS audits, the Company has previously filed protests with respect to certain IRS proposed adjustments for RTX (formerly United Technologies Corporation) tax years 2017 and 2018, pre-acquisition Rockwell Collins tax years 2016, 2017, and 2018, and pre-merger Raytheon Company tax years 2017, 2018, and 2019 as well as certain refund claims of Raytheon Company for tax years 2014, 2015, and 2016 filed prior to the Raytheon merger.

The Company will dispute these adjustments at the Appeals Division of the IRS.

The timing of any resolution at the Appeals Division is uncertain.

On January 15, 2025, the IRS notified the Company of its intent to close the examination of RTX’s 2020 tax year.

The Company is awaiting formal closure of the examination by the IRS.

As a result of an unfavorable decision reached by the Appeals Committee of the Kingdom of Saudi Arabia (KSA) General Services Tax Committee (GSTC), we recognized a Net income charge of $ 27 million during the quarter ended March 31, 2025.

The Company continues to believe the position of the KSA tax authority is not supported by the facts in question or KSA tax law and are pursuing available options to seek reversal of GSTC’s decision.

The Company is in the process of disputing these adjustments at the Appeals Division of the IRS.

The Company expects resolution at the Appeals Division for the RTX and Rockwell tax years within the next twelve months.

The timing of any resolution at the Appeals Division for the Raytheon Company tax years is uncertain.

During the quarter ended March 31, 2025, the Company received an unfavorable decision from the Appeals Committee of the Kingdom of Saudi Arabia (KSA) General Secretariat of the Tax Committees (GTSC) and recorded the net income impact of this decision.

The Company continues to believe the position of the KSA tax authority is not supported by the facts in question or KSA tax law and is pursuing available options to seek reversal of the GSTC’s decision.

Financial Instruments

3 unchanged sentences

We have used derivative instruments, including swaps, forward contracts, and options, to manage certain foreign currency, interest rate, and commodity price exposures.

The present value of the aggregate notional principal of our outstanding foreign currency hedges was $ 18 billion and $ 17 billion at March 31, 2025 and December 31, 2024, respectively.

At March 31, 2025, all derivative contracts accounted for as cash flow hedges will m ature by May 2036.

The present value of the aggregate notional principal of our outstanding foreign currency hedges was $ 21 billion and $ 17 billion at June 30, 2025 and December 31, 2024, respectively.

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments:

(dollars in millions) Balance Sheet Location March 31, 2025 December 31, 2024

(dollars in millions) Balance Sheet Location June 30, 2025 December 31, 2024

Derivatives designated as hedging instruments:

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Other accrued liabilities 16 101

The effect of cash flow hedging relationships on Accumulated other comprehensive loss and on the Condensed Consolidated Statement of Operations in the quarters ended March 31, 2025 and 2024 are presented in “Note 17:

Equity.” The amounts of gain or loss are attributable to foreign exchange contract activity and are primarily recorded as a component of Products sales when reclassified from Accumulated other comprehensive loss.

At June 30, 2025, all derivative contracts accounted for as cash flow hedges will m ature by May 2036.

Cash receipts or payments on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Condensed Consolidated Statement of Cash Flows.

The Company utilizes the critical terms match method in assessing derivatives for hedge effectiveness.

Accordingly, the hedged items and derivatives designated as hedging instruments are highly effective.

The Company utilizes the critical terms match method for cash flow hedges in assessing derivatives for hedge effectiveness.

Gains or losses attributable to cash flow hedging contract activity are primarily recorded as a component of Products sales when reclassified from Accumulated other comprehensive loss.

During the quarter ended June 30, 2025, the Company entered into forward exchange contracts to partially hedge its net investment in certain foreign subsidiaries denominated in EUR and CAD.

The Company assesses the effectiveness of its net investment hedges using the spot method.

Cash receipts or payments on derivatives designated as net investment hedges are recorded as investing cash flows within the Condensed Consolidated Statement of Cash Flows.

As of December 31, 2024, we had € 320 million of our € 500 million principal value of euro-denominated long-term debt designated as a net investment hedge against our investments in European businesses.

At March 31, 2025, this is no longer designated as a net investment hedge, and the effects have been reflected within Other income, net.

The effect of derivatives not designated as hedging instruments is included within Other income, net, on the Condensed Consolidated Statement of Operations and is not significant.

At March 31, 2025, this was no longer designated as a net investment hedge.

For the quarter and six months ended June 30, 2025, the effects are reflected within Other income (expense), net.

The effect of cash flow hedging and net investment hedging relationships on Accumulated other comprehensive loss and on the Condensed Consolidated Statement of Operations in the quarters and six months ended June 30, 2025 and 2024 are presented in “Note 17:

Equity.” The hedged items and derivatives designated as hedging instruments are highly effective.

The effect of derivatives not designated as hedging instruments is included within Other income (expense), net, on the Condensed Consolidated Statement of Operations and is not significant.

Cash receipts or payments related to the settlement of derivatives not designated as hedging instruments are recorded as investing cash flows within the Condensed Consolidated Statement of Cash Flows.

1 unchanged sentence

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:

March 31, 2025

June 30, 2025

(dollars in millions) Total Level 1 Level 2 Level 3

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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 March 31, 2025, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk.

As of June 30, 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 Condensed Consolidated Balance Sheet:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(dollars in millions) Carrying

2 unchanged sentences

The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet:

March 31, 2025

June 30, 2025

(dollars in millions) Total Level 1 Level 2 Level 3

3 unchanged sentences

Long-term debt (excluding finance leases) $ 37,956 $ — $ 35,180 $ 2,776

The fair value of our Short-term borrowings approximates the carrying value due to their short-term nature and is classified as level 3 within the fair value hierarchy.

The fair value of our Short-term borrowings approximates the carrying value due to their short-term nature, with commercial paper classified as level 2 and other short-term borrowings classified as level 3 within the fair value hierarchy.

Variable Interest Entities

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The carrying amounts and classification of assets and liabilities for variable interest entities in our Condensed Consolidated Balance Sheet are as follows:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Current assets $ 11,611 $ 10,315

8 unchanged sentences

A portion of our third party guarantees are subject to indemnification for our benefit for any liabilities that could arise.

As of March 31, 2025 and December 31, 2024, the following financial guarantees were outstanding:

March 31, 2025 December 31, 2024

As of June 30, 2025 and December 31, 2024, the following financial guarantees were outstanding:

June 30, 2025 December 31, 2024

(dollars in millions) Maximum Potential Payment Carrying Amount of Liability Maximum Potential Payment Carrying Amount of Liability

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The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves.

Collaboration partners’ share of these financing guarantees were $ 129 million and $ 131 million at March 31, 2025 and December 31, 2024, respectively.

Collaboration partners’ share of these financing guarantees was $ 0.1 billion at June 30, 2025 and December 31, 2024.

We also have obligations arising from sales of certain businesses and assets, including those from representations and warranties and related indemnities for environmental, health and safety, tax, and employment matters.

The maximum potential payment related to these obligations is not a specified amount, as a number of the obligations do not contain financial caps.

The carrying amount of liabilities related to these obligations was $ 100 million and $ 101 million at March 31, 2025 and December 31, 2024, respectively.

The carrying amount of liabilities related to these obligations was $ 0.1 billion at June 30, 2025 and December 31, 2024.

These primarily relate to environmental liabilities, which are included in our total environmental liabilities as further discussed in “Note 16:

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Adjustments are made to accruals as claims data and historical experience warrant.

The changes in the carrying amount of service and product warranties and product performance guarantees for the quarters ended March 31, 2025 and 2024 were as follows:

The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2025 and 2024 were as follows:

(dollars in millions) 2025 2024

3 unchanged sentences

Other 7 ( 5 )

Balance as of March 31 $ 1,023 $ 1,084

Balance as of June 30 $ 1,044 $ 1,068

Product and service guarantees incurred in connection with long term production contracts and certain aftermarket arrangements are generally accounted for within the contract estimates at completion.

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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 March 31, 2025 and December 31, 2024, we had $ 0.8 billion reserved for environmental remediation.

As of both June 30, 2025 and December 31, 2024, 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 $ 13.9 billion and $ 14.1 billion as of March 31, 2025 and December 31, 2024, respectively, on a gross basis before reduction for our collaboration partners’ share.

We had commercial aerospace financing commitments and other contractual commitments of approximately $ 13.6 billion and $ 14.1 billion as of June 30, 2025 and December 31, 2024, respectively, 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.

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Other Financing Arrangements.

We have entered into standby letters of credit and surety bonds with financial institutions to meet various bid, performance, warranty, retention, and advance payment obligations for us or our affiliates.

We have entered into standby letters of credit and surety bonds with financial institutions to meet various bid, performance, warranty, retention, guarantee, and advance payment obligations for us or our affiliates.

We enter into these agreements to assist certain affiliates in obtaining financing on more favorable terms, making bids on contracts, and performing their contractual obligations.

The stated values of these letters of credit agreements and surety bonds totaled $ 3.1 billion as of March 31, 2025.

The stated values of these letters of credit agreements and surety bonds totaled $ 3.9 billion as of June 30, 2025.

Offset / Industrial Participation Obligations.

We have entered into industrial cooperation agreements, sometimes in the form of either offset agreements or ICIP agreements, as a condition to obtaining orders for our products and services from certain customers in foreign countries.

At March 31, 2025, the aggregate amount of these agreements, both agreed to and anticipated to be agreed to, had an outstanding notional value of approximately $ 11.7 billion.

At June 30, 2025, the aggregate amount of these agreements, both agreed to and anticipated to be agreed to, had an outstanding notional value of approximately $ 11.5 billion.

These agreements are designed to return economic value to the foreign country by requiring us to engage in activities supporting local defense or commercial industries, promoting a balance of trade, developing in-country technology capabilities, or addressing other local development priorities.

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Government Oversight.

In the ordinary course of business, the Company and its subsidiaries and our properties are subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal

actions and proceedings.

For example, we are now, and believe that, in light of the current U.S.

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Management has determined that the distributions of Carrier and Otis on April 3, 2020, and certain related internal business separation transactions, qualified as tax-free under applicable law.

In making these determinations, we applied the tax law in the relevant jurisdictions to our facts and circumstances and obtained tax rulings

from the relevant taxing authorities, tax opinions, and/or other external tax advice related to the concluded tax treatment.

In making these determinations, we applied the tax law in the relevant jurisdictions to our facts and circumstances and obtained tax rulings from the relevant taxing authorities, tax opinions, and/or other external tax advice related to the concluded tax treatment.

If the completed distributions of Carrier or Otis or certain internal business separation transactions were to fail to qualify for tax-free treatment, the Company could be subject to significant liabilities, and there could be material adverse impacts on the Company’s business, results of operations, financial condition, or liquidity in future reporting periods.

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The charge recorded in the third quarter of 2023 resulted in a net increase in Other accrued liabilities of $ 2.8 billion, which principally related to our 51 % share of an accrual for expected customer compensation.

At March 31, 2025 and December 31, 2024, we had other accrued liabilities of $ 1.4 billion and $ 1.7 billion, respectively, primarily related to expected compensation to customers.

The decrease in the accrual during the quarter ended March 31, 2025 was primarily due to customer compensation in the form of credits issued to customers during the period.

At June 30, 2025 and December 31, 2024, we had other accrued liabilities of $ 1.1 billion and $ 1.7 billion, respectively, primarily related to expected compensation to customers.

The decrease in the accrual during the six months ended June 30, 2025 was primarily due to customer compensation in the form of credits issued to customers during the period.

Other engine models within Pratt & Whitney’s fleet contain parts manufactured with affected powder metal, but we do not currently believe there will be any resultant significant financial impact with respect to these other engine models at this time.

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Cost Accounting Standards Claims

As previously disclosed, in April 2019, a Divisional Administrative Contracting Officer (DACO) of the United States DCMA asserted a claim against Pratt & Whitney to recover alleged overpayments of approximately $ 1.7 billion plus interest ($ 1.3 billion at March 31, 2025).

The claim is based on Pratt & Whitney’s alleged noncompliance with Cost Accounting Standards (CAS) from January 1, 2007 to March 31, 2019, due to its method of allocating independent research and development costs to government contracts.

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On September 30, 2024, a DCMA DACO issued a second claim against Pratt & Whitney that similarly alleges that Pratt & Whitney was noncompliant with CAS due to its method of allocating independent research and development costs to government contracts from April 1, 2019 to December 31, 2023.

The second claim demands payment of $ 1.1 billion plus interest ($ 331 million at March 31, 2025 ).

The second claim demands payment of $ 1.1 billion plus interest ($ 356 million at June 30, 2025 ).

Pratt & Whitney believes the second claim is without merit and filed an appeal to the ASBCA on October 15, 2024.

As previously disclosed, in December 2013, a DCMA DACO asserted a claim against Pratt & Whitney to recover alleged overpayments of approximately $ 177 million plus interest ($ 190 million at March 31, 2025).

The claim is based on Pratt & Whitney’s alleged noncompliance with CAS from January 1, 2005 to December 31, 2012, due to its method of determining the cost of collaborator parts used in the calculation of material overhead costs for government contracts.

In 2014, Pratt & Whitney

filed an appeal to the ASBCA.

In 2014, Pratt & Whitney filed an appeal to the ASBCA.

An evidentiary hearing was held and completed in June 2019.

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In December 2018, a DCMA DACO issued a second claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the CAS for calendar years 2013 through 2017.

This second claim, which asserts the same measure of the cost of collaborator parts rejected by the ASBCA’s November 22, 2021 decision, demands payment of $ 269 million plus interest ($ 163 million at March 31, 2025).

Pratt & Whitney appealed this second claim to the ASBCA in January 2019.

In December 2023, a DCMA DACO issued a third claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the CAS for calendar years 2018 through 2022.

This third claim, which asserts the same measure of the cost of collaborator parts rejected by the ASBCA’s prior decision, demands payment of $ 277 million plus interest ($ 86 million at March 31, 2025).

This third claim, which asserts the same measure of the cost of collaborator parts rejected by the ASBCA’s prior decision, demands payment of $ 277 million plus interest ($ 92 million at June 30, 2025).

Pratt & Whitney appealed this third claim to the ASBCA at the end of December 2023.

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As previously disclosed, on October 8, 2020, the Company received a criminal subpoena from the DOJ seeking information and documents in connection with an investigation relating to financial accounting, internal controls over financial reporting, and cost reporting regarding Raytheon Company since 2009.

The investigation involved multi-year contracts subject to

governmental regulation, including defective pricing claims for certain Raytheon Company contracts entered into between 2011 and 2013.

The investigation involved multi-year contracts subject to governmental regulation, including defective pricing claims for certain Raytheon Company contracts entered into between 2011 and 2013.

As part of the same investigation, on March 24, 2021, the Company received a second criminal subpoena from the DOJ seeking documents relating to a certain contract entered into in 2017 by Raytheon Company.

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As previously disclosed, the Company has determined that there is a probable risk of liability for potential penalties related to other export compliance matters which have been voluntarily disclosed to the cognizant regulators, but which are not subject to the CA.

We have accrued $ 251 million in the aggregate as of March 31, 2025 for these matters and the matters being resolved pursuant to the CA.

We have accrued $ 251 million in the aggregate as of June 30, 2025 for these matters and the matters being resolved pursuant to the CA.

We are currently unable to estimate the timing or outcome of the other voluntarily disclosed export compliance matters that are not subject to the CA.

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UTC Equity Conversion Litigation

As previously disclosed, on December 6, 2022, a shareholder derivative lawsuit was filed in the Delaware Court of Chancery against the Company and certain current and former members of its Board of Directors, alleging that defendants breached their fiduciary duties in May 2020 by amending the method by which United Technologies Corporation (UTC) equity awards were converted to certain Company equity awards following the separation of UTC into three independent, publicly traded companies.

On July 23, 2024, in response to a motion to dismiss filed by defendants, the Court dismissed the shareholder derivative lawsuit in its entirety with prejudice.

On August 22, 2024, the Plaintiff filed an appeal to the Delaware Supreme Court.

We continue to believe that the lawsuit lacks merit.

We also continue to believe that this matter will not have a material adverse effect on our results of operations, financial condition, or liquidity.

On May 28, 2025, the Delaware Supreme Court affirmed the dismissal, concluding the case in the Company’s favor.

Civil Litigation Related to Employee Hiring Practices

Pratt & Whitney is one of multiple defendants in a class action lawsuit pending in the United States District Court for the District of Connecticut alleging that Pratt & Whitney and the other defendants agreed to restrict the hiring and recruiting of certain engineers and skilled laborers in a manner that violated federal antitrust laws.

Pratt & Whitney was one of multiple defendants in a class action lawsuit pending in the United States District Court for the District of Connecticut alleging that Pratt & Whitney and the other defendants agreed to restrict the hiring and recruiting of certain engineers and skilled laborers in a manner that violated federal antitrust laws.

As of December 2024, all defendants, including Pratt & Whitney, reached a settlement with class counsel.

The Court has preliminarily approved the settlement, and we expect the Court will grant final approval of the settlement in 2025.

Based on the information available to date, we do not believe that this matter will have a material adverse effect on our results of operations, financial condition, or liquidity.

The Court granted final approval of the settlement in May 2025.

The case is now concluded.

In April 2024, a shareholder derivative lawsuit was filed in the Delaware Court of Chancery against the Company and certain current and former officers and directors of the Company alleging that defendants breached their fiduciary duties by failing to implement and enforce a reasonable oversight mechanism for compliance with antitrust laws.

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Accumulated Other Comprehensive Loss.

A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters ended March 31, 2025 and 2024 is provided below:

(dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Loss

Quarter Ended March 31, 2025

A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters and six months ended June 30, 2025 and 2024 is provided below:

(dollars in millions) Foreign Currency Translation (1)

Defined Benefit Pension and Postretirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Loss

Quarter Ended June 30, 2025

Balance at March 31, 2025 $ ( 449 ) $ ( 2,745 ) $ ( 13 ) $ ( 3,207 )

Other comprehensive income (loss) before reclassifications, net 863 ( 143 ) 112 832

Amounts reclassified, pre-tax — ( 38 ) 26 ( 12 )

Tax benefit (expense) — 30 ( 34 ) ( 4 )

Balance at June 30, 2025 $ 414 $ ( 2,896 ) $ 91 $ ( 2,391 )

Six Months Ended June 30, 2025

Balance at December 31, 2024 $ ( 949 ) $ ( 2,679 ) $ ( 127 ) $ ( 3,755 )

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Tax benefit (expense) 1 39 ( 64 ) ( 24 )

Balance at March 31, 2025 $ ( 449 ) $ ( 2,745 ) $ ( 13 ) $ ( 3,207 )

Balance at June 30, 2025 $ 414 $ ( 2,896 ) $ 91 $ ( 2,391 )

(1) The amount of foreign currency translation recognized in Other Comprehensive Income (loss) (OCI) includes gains (losses) relating to net investment hedges, as further discussed in “Note 12:

Financial Instruments”.

(dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Loss

Quarter Ended March 31, 2024

Quarter Ended June 30, 2024

Balance at March 31, 2024 $ ( 562 ) $ ( 2,065 ) $ ( 8 ) $ ( 2,635 )

Other comprehensive income (loss) before reclassifications, net ( 68 ) ( 3 ) 20 ( 51 )

Amounts reclassified, pre-tax — ( 43 ) 1 ( 42 )

Tax benefit (expense) ( 2 ) 9 3 10

Balance at June 30, 2024 $ ( 632 ) $ ( 2,102 ) $ 16 $ ( 2,718 )

Six Months Ended June 30, 2024

Balance at December 31, 2023 $ ( 440 ) $ ( 2,026 ) $ 47 $ ( 2,419 )

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Tax benefit (expense) ( 3 ) 21 21 39

Balance at March 31, 2024 $ ( 562 ) $ ( 2,065 ) $ ( 8 ) $ ( 2,635 )

Balance at June 30, 2024 $ ( 632 ) $ ( 2,102 ) $ 16 $ ( 2,718 )

Segment Financial Data

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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.

RTX’s chief operating decision maker (CODM) is our President and Chief Executive Officer.

RTX’s 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.

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These adjustments are not considered part of management’s evaluation of segment results.

Results for the quarters ended March 31, 2025 and 2024 are as follows:

Results for the quarters ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Net Sales Research and Development Other Segment Items (1)

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Consolidated $ 21,581 $ 2,146 9.9 %

(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net.

(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income (expense), net.

(2) Includes the operating results of certain smaller operations.

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Consolidated $ 19,721 $ 529 2.7 %

(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net.

(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income (expense), net.

(2) Includes the operating results of certain smaller operations.

(3) Operating profit includes a $ 0.4 billion gain, net of transaction and other related costs, related to the sale of the CIS business.

Acquisitions and Dispositions” for additional information.

Capital Expenditures and Depreciation & Amortization segment information for the quarters ended March 31, 2025 and 2024 are as follows:

(3) Operating Profit and Margin includes a $ 0.6 billion charge in the second quarter of 2024 related to the Raytheon Contract Termination.

Changes in Contract Estimates at Completion” for additional information.

(4) Includes a $ 0.9 billion charge in the second quarter of 2024 related to the Resolution of Certain Legal Matters.

Results for the six months ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Net Sales Research and Development Other Segment Items (1)

Operating Profit Operating Profit Margin

Collins Aerospace $ 14,839 $ ( 641 ) $ ( 11,937 ) $ 2,261 15.2 %

Pratt & Whitney 14,997 ( 479 ) ( 13,446 ) 1,072 7.1 %

Raytheon 13,341 ( 219 ) ( 11,639 ) 1,483 11.1 %

Total segment 43,177 $ ( 1,339 ) $ ( 37,022 ) 4,816 11.2 %

Eliminations and other (2)

Corporate expenses and other unallocated items — ( 85 )

FAS/CAS operating adjustment — 371

Acquisition accounting adjustments — ( 957 )

Consolidated $ 41,887 $ 4,181 10.0 %

(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income (expense), net.

(2) Includes the operating results of certain smaller operations.

(dollars in millions) Net Sales Research and Development Other Segment Items (1)

Operating Profit Operating Profit Margin

Collins Aerospace $ 13,672 $ ( 667 ) $ ( 11,038 ) $ 1,967 14.4 %

Pratt & Whitney 13,258 ( 543 ) ( 11,761 ) 954 7.2 %

13,170 ( 169 ) ( 11,878 ) 1,123 8.5 %

Total segment 40,100 $ ( 1,379 ) $ ( 34,677 ) 4,044 10.1 %

Eliminations and other (2)

( 1,074 ) ( 41 )

Corporate expenses and other unallocated items (4)

FAS/CAS operating adjustment — 426

Acquisition accounting adjustments — ( 1,004 )

Consolidated $ 39,026 $ 2,399 6.1 %

(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income (expense), net.

(2) Includes the operating results of certain smaller operations.

(3) Operating Profit and Margin includes a $ 0.6 billion charge in the second quarter of 2024 related to the Raytheon Contract Termination and a $ 0.4 billion gain, net of transaction and other related costs, in the first quarter of 2024 related to the sale of our CIS business.

Changes in Contract Estimates at Completion” and “Note 2:

Acquisitions and Dispositions,” respectively, for additional information.

(4) Includes a $ 0.9 billion charge in the second quarter of 2024 related to the Resolution of Certain Legal Matters.

Capital Expenditures and Depreciation and Amortization segment information for the quarters ended June 30, 2025 and 2024 are as follows:

Capital Expenditures Depreciation & Amortization

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Consolidated $ 530 $ 537 $ 1,076 $ 1,072

Capital Expenditures and Depreciation and Amortization segment information for the six months ended June 30, 2025 and 2024 are as follows:

Capital Expenditures Depreciation & Amortization

(dollars in millions) 2025 2024 2025 2024

Collins Aerospace $ 283 $ 272 $ 437 $ 410

Pratt & Whitney 333 346 388 385

Raytheon 359 336 266 253

Total segment 975 954 1,091 1,048

Corporate, eliminations, and other 68 50 42 38

Acquisition accounting adjustments 995 1,045

Consolidated $ 1,043 $ 1,004 $ 2,128 $ 2,131

Total assets by segment are as follows:

(dollars in millions) March 31, 2025 December 31, 2024

(dollars in millions) June 30, 2025 December 31, 2024

Collins Aerospace (1)

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We believe these categories best depict how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors.

Segment sales disaggregated by geographic region based on customer location for the quarters ended March 31, 2025 and 2024 are as follows:

Segment sales disaggregated by geographic region based on customer location for the quarters ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total

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Business segment sales $ 7,622 $ 7,631 $ 7,001 $ ( 673 ) $ 21,581 $ 6,999 $ 6,802 $ 6,511 $ ( 591 ) $ 19,721

Segment sales disaggregated by type of customer for the quarters ended March 31, 2025 and 2024 are as follows:

Segment sales disaggregated by geographic region for the six months ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total

United States $ 6,862 $ 6,678 $ 9,356 $ 107 $ 23,003 $ 6,727 $ 6,283 $ 9,896 $ 80 $ 22,986

Europe 3,480 3,378 1,759 1 8,618 3,260 3,077 1,083 2 7,422

Asia Pacific 1,760 3,111 1,131 — 6,002 1,471 2,528 1,088 1 5,088

Middle East and North Africa 510 325 917 — 1,752 376 310 954 — 1,640

Other regions 904 1,504 104 — 2,512 751 1,059 80 — 1,890

Consolidated net sales 13,516 14,996 13,267 108 41,887 12,585 13,257 13,101 83 39,026

Inter-segment sales 1,323 1 74 ( 1,398 ) — 1,087 1 69 ( 1,157 ) —

Business segment sales $ 14,839 $ 14,997 $ 13,341 $ ( 1,290 ) $ 41,887 $ 13,672 $ 13,258 $ 13,170 $ ( 1,074 ) $ 39,026

Segment sales disaggregated by type of customer for the quarters ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total

Sales to the U.S.

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(1) Excludes foreign military sales through the U.S.

Segment sales disaggregated by sales type for the quarters ended March 31, 2025 and 2024 are as follows:

Segment sales disaggregated by type of customer for the six months ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total

Sales to the U.S.

government (1)

$ 3,511 $ 3,055 $ 9,335 $ 104 $ 16,005 $ 3,194 $ 3,069 $ 9,837 $ 79 $ 16,179

Foreign military sales through the U.S.

government 220 783 2,103 — 3,106 163 696 1,659 — 2,518

Foreign government direct commercial sales 648 328 1,808 1 2,785 626 318 1,434 1 2,379

Commercial aerospace and other commercial sales 9,137 10,830 21 3 19,991 8,602 9,174 171 3 17,950

Consolidated net sales 13,516 14,996 13,267 108 41,887 12,585 13,257 13,101 83 39,026

Inter-segment sales 1,323 1 74 ( 1,398 ) — 1,087 1 69 ( 1,157 ) —

Business segment sales $ 14,839 $ 14,997 $ 13,341 $ ( 1,290 ) $ 41,887 $ 13,672 $ 13,258 $ 13,170 $ ( 1,074 ) $ 39,026

(1) Excludes foreign military sales through the U.S.

Segment sales disaggregated by sales type for the quarters ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total

Products $ 5,408 $ 4,123 $ 5,975 $ 45 $ 15,551 $ 5,027 $ 3,849 $ 5,657 $ 29 $ 14,562

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Business segment sales $ 7,622 $ 7,631 $ 7,001 $ ( 673 ) $ 21,581 $ 6,999 $ 6,802 $ 6,511 $ ( 591 ) $ 19,721

Raytheon segment sales disaggregated by contract type for the quarters ended March 31, 2025 and 2024 are as follows:

Segment sales disaggregated by sales type for the six months ended June 30, 2025 and 2024 are as follows:

(dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total

Products $ 10,518 $ 8,155 $ 11,381 $ 88 $ 30,142 $ 9,860 $ 7,806 $ 11,124 $ 75 $ 28,865

Services 2,998 6,841 1,886 20 11,745 2,725 5,451 1,977 8 10,161

Consolidated net sales 13,516 14,996 13,267 108 41,887 12,585 13,257 13,101 83 39,026

Inter-segment sales 1,323 1 74 ( 1,398 ) — 1,087 1 69 ( 1,157 ) —

Business segment sales $ 14,839 $ 14,997 $ 13,341 $ ( 1,290 ) $ 41,887 $ 13,672 $ 13,258 $ 13,170 $ ( 1,074 ) $ 39,026

Raytheon segment sales disaggregated by contract type for the quarters ended June 30, 2025 and 2024 are as follows:

(dollars in millions) 2025 2024

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Business segment sales $ 7,001 $ 6,511

Raytheon segment sales disaggregated by contract type for the six months ended June 30, 2025 and 2024 are as follows:

(dollars in millions) 2025 2024

Fixed-price $ 7,596 $ 6,611

Cost-type 5,671 6,490

Consolidated net sales 13,267 13,101

Inter-segment sales 74 69

Business segment sales $ 13,341 $ 13,170

Remaining Performance Obligations (RPO)

RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied.

Total RPO was approximately $ 217 billion as of March 31, 2025.

Of the total RPO as of March 31, 2025, we expect approximately 25 % will be recognized as revenue over the next 12 months.

Total RPO was approximately $ 236 billion as of June 30, 2025.

Of the total RPO as of June 30, 2025, we expect approximately 25 % will be recognized as revenue over the next 12 months.

Approximately 45 % of our RPO relates to long-term commercial aerospace maintenance contracts at Pratt & Whitney, which are generally expected to be realized over a span of up to 20 years.

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The new standard is effective for fiscal years beginning after December 15, 2024, on a prospective basis.

Early adoption and

retrospective application are permitted.

We are currently evaluating the impact on our disclosures of adopting this new pronouncement.

Other new pronouncements issued but not effective until after March 31, 2025 are not expected to have a material impact on our results of operations, financial condition, or liquidity.

With respect to the unaudited condensed consolidated financial information of RTX for the quarters ended March 31, 2025 and 2024, PricewaterhouseCoopers LLP (PwC) reported that it has applied limited procedures in accordance with professional standards for a review of such information.

However, its report dated April 22, 2025, appearing below, states that the firm did not audit and does not express an opinion on that unaudited condensed consolidated financial information.

Other new pronouncements issued but not effective until after June 30, 2025 are not expected to have a material impact on our results of operations, financial condition, or liquidity.

With respect to the unaudited condensed consolidated financial information of RTX for the quarters and six months ended June 30, 2025 and 2024, PricewaterhouseCoopers LLP (PwC) reported that it has applied limited procedures in accordance with professional standards for a review of such information.

However, its report dated July 22, 2025, appearing below, states that the firm did not audit and does not express an opinion on that unaudited condensed consolidated financial information.

PwC has not carried out any significant or additional audit tests beyond those that would have been necessary if their report had not been included.

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Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of RTX Corporation and its subsidiaries (the “Company”) as of March 31, 2025, and the related condensed consolidated statements of operations, of comprehensive income, of changes in equity, and of cash flows for the three-month periods ended March 31, 2025 and 2024, including the related notes (collectively referred to as the “interim financial information”).

We have reviewed the accompanying condensed consolidated balance sheet of RTX Corporation and its subsidiaries (the “Company”) as of June 30, 2025, and the related condensed consolidated statements of operations, of comprehensive income, and of changes in equity for the three-month and six-month periods ended June 30, 2025 and 2024, and the condensed consolidated statement of cash flows for the six-month periods ended June 30, 2025 and 2024, including the related notes (collectively referred to as the “interim financial information”).

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

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Boston, Massachusetts

April 22, 2025

July 22, 2025

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements