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Item 1. Financial Statements

2026-04-21 compared with 2025-10-21 · 175 added, 342 removed, 702 unchanged (42% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Quarter Ended September 30, Nine Months Ended September 30,

Quarter Ended March 31,

(dollars in millions, except per share amounts) 2026 2025

8 unchanged sentences

Total costs and expenses 19,585 18,275

Other income (expense), net 63 134 107 ( 390 )

Other income, net 64 4

Operating profit 2,555 2,035

12 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements

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RTX CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Quarter Ended September 30, Nine Months Ended September 30,

Quarter Ended March 31,

(dollars in millions) 2026 2025

Net income $ 2,157 $ 1,625

Other comprehensive income (loss), before tax:

Other comprehensive (loss) income, before tax:

Foreign currency translation adjustments ( 133 ) 499

1 unchanged sentence

Change in unrealized cash flow hedging ( 85 ) 144

Other comprehensive income (loss), before tax ( 61 ) 772 1,327 434

Income tax benefit (expense) related to items of other comprehensive income (loss) 20 ( 23 ) ( 4 ) 16

Other comprehensive income (loss), net of tax ( 41 ) 749 1,323 450

Other comprehensive (loss) income, before tax ( 245 ) 568

Income tax benefit (expense) related to items of other comprehensive (loss) income 18 ( 20 )

Other comprehensive (loss) income, net of tax ( 227 ) 548

Comprehensive income 1,930 2,173

2 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements

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RTX CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEET

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

(dollars in millions) March 31, 2026 December 31, 2025

Current Assets

40 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements

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RTX CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Nine Months Ended September 30,

Quarter Ended March 31,

(dollars in millions) 2026 2025

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Depreciation and amortization 1,071 1,052

Deferred income tax provision (benefit) 598 ( 119 )

Deferred income tax provision 26 67

Stock compensation cost 132 111

Net periodic pension income ( 956 ) ( 992 )

Net periodic pension and other postretirement income ( 313 ) ( 324 )

Share-based 401(k) matching contributions 192 167

Gain on sale of Cybersecurity, Intelligence and Services (CIS) business, net of transaction costs

Accounts receivable 1,823 ( 372 )

8 unchanged sentences

Capital expenditures ( 546 ) ( 513 )

Dispositions of businesses, net of cash transferred 1,188 1,283

Increase in other intangible assets ( 98 ) ( 104 )

Receipts from settlements of derivative contracts, net 187 3

Receipts (payments) from settlements of derivative contracts, net 72 ( 47 )

Other investing activities, net ( 36 ) ( 14 )

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Repayment of long-term debt ( 500 ) ( 9 )

Change in other short-term borrowings, net 6 31

Dividends paid ( 915 ) ( 840 )

3 unchanged sentences

Effect of foreign exchange rate changes on cash and cash equivalents ( 6 ) 16

Net increase in cash, cash equivalents, and restricted cash 398 105

Net decrease in cash, cash equivalents, and restricted cash ( 599 ) ( 413 )

Cash, cash equivalents, and restricted cash, beginning of period 7,470 5,606

3 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements

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RTX CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Quarter Ended September 30, Nine Months Ended September 30,

Quarter Ended March 31,

(dollars in millions, except per share amounts;

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Ending balance 57,861 54,277

Unearned ESOP Shares

Beginning balance — ( 7 ) — ( 15 )

Share-based 401(k) matching contributions

Ending balance — — — —

Accumulated Other Comprehensive Loss

Beginning balance ( 2,718 ) ( 3,755 )

Other comprehensive income, net of tax ( 41 ) 749 1,323 450

Other comprehensive (loss) income, net of tax ( 227 ) 548

Ending balance ( 2,945 ) ( 3,207 )

4 unchanged sentences

Dividends attributable to noncontrolling interest ( 238 ) ( 64 )

Other — 14 — 14

Ending balance 1,717 1,791

Equity at September 30

Equity at March 31

$ 67,997 $ 63,307

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See accompanying Notes to Condensed Consolidated Financial Statements

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RTX CORPORATION

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Basis of Presentation

The Condensed Consolidated Financial Statements at September 30, 2025 and for the quarters and nine months ended September 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 Condensed Consolidated Financial Statements at March 31, 2026 and for the quarters ended March 31, 2026 and 2025 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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Unless the context otherwise requires, the terms “we,” “our,” “us,” “the Company,” and “RTX” mean RTX Corporation and its subsidiaries.

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.

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 and nine months ended September 30, 2025 and 2024 with respect to Raytheon, we are referring to their September 28, 2025 and September 29, 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 July 21, 2025, we completed the previously announced sale of the actuation and flight control business within our Collins segment for gross proceeds of $ 1.8 billion.

Cash received of $ 1.6 billion, net of cash transferred, included amounts attributable to continuing service agreements supporting the buyer post-closing.

The sale resulted in a pre-tax gain of $ 0.1 billion, which was recorded in Other income (expense), 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 gross proceeds.

The sale of this business was completed on October 6, 2025.

On March 29, 2024, we completed the sale of the 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.

We operate in three segments:

Collins Aerospace (Collins), Pratt & Whitney, and Raytheon.

Raytheon follows a fiscal calendar, while Collins and Pratt & Whitney use calendar quarter ends.

Throughout this Form 10-Q, references to the quarters ended March 31, 2026 and 2025 for Raytheon correspond to its fiscal quarter ends of March 29, 2026 and March 30, 2025, respectively.

Goodwill and Intangible Assets

Changes in our goodwill balances for the nine months ended September 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 September 30, 2025

Changes in our goodwill balances for the quarter ended March 31, 2026 were as follows:

(dollars in millions) Balance as of December 31, 2025 Acquisitions and Divestitures Foreign Currency Translation and Other Balance as of March 31, 2026

Collins Aerospace $ 32,776 $ — $ ( 68 ) $ 32,708

$ 32,223 $ ( 256 ) $ 777 $ 32,744

Pratt & Whitney 1,563 — — 1,563

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Total $ 53,343 $ — $ ( 67 ) $ 53,276

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

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Intangible Assets.

Identifiable intangible assets are comprised of the following:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

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

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Total $ 49,347 $ ( 17,865 ) $ 49,224 $ ( 17,379 )

Amortization of intangible assets for the quarters and nine months ended September 30, 2025 and 2024 was $ 520 million and $ 1,529 million and $ 560 million and $ 1,620 million, respectively.

Amortization of intangible assets for the quarters ended March 31, 2026 and 2025 was $ 494 million and $ 501 million, respectively.

The following is the expected amortization of intangible assets for the remainder of 2026 through 2031:

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Amortization expense $ 1,468 $ 1,911 $ 1,793 $ 1,634 $ 1,602 $ 1,523

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Earnings Per Share

Quarter Ended September 30, Nine Months Ended September 30,

Quarter Ended March 31,

(dollars and shares in millions, except per share amounts) 2026 2025

8 unchanged sentences

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 quarter and nine months ended September 30, 2025, the number of stock awards excluded from the computation was 0.7 million and 1.9 million, respectively.

There were no stock awards excluded from the computation for the quarter ended September 30, 2024, and the number of stock awards excluded from the nine months ended September 30, 2024 was 6.4 million.

For the quarters ended March 31, 2026 and 2025, the number of stock awards excluded from the computation was 2.2 million and 3.2 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

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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.

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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Our EAC adjustments also include the establishment of, and changes to, loss provisions for our contracts accounted for on a percentage-of-completion basis.

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

Quarter Ended September 30, Nine Months Ended September 30,

Quarter Ended March 31,

(dollars in millions, except per share amounts) 2026 2025

1 unchanged sentence

Operating profit ( 162 ) ( 158 )

Income attributable to common shareowners (1)

Net income attributable to common shareowners (1)

( 128 ) ( 125 )

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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 nine months ended September 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) September 30, 2025 December 31, 2024

(dollars in millions) March 31, 2026 December 31, 2025

Accounts receivable $ 13,293 $ 15,041

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Total contract assets and contract liabilities were as follows:

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

(dollars in millions) March 31, 2026 December 31, 2025

Contract assets $ 18,467 $ 17,768

Allowance for expected credit losses ( 397 ) ( 676 )

Contract assets, net 18,070 17,092

1 unchanged sentence

Net contract liabilities $ ( 3,870 ) $ ( 4,523 )

Contract assets, net, increased $ 2.0 billion during the nine months ended September 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 $ 1.5 billion

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during the nine months ended September 30, 2025 primarily due to advances received and billings in excess of sales on certain contracts at Pratt & Whitney.

We recognized revenue of $ 1.5 billion and $ 6.5 billion during the quarter and nine months ended September 30, 2025 related to contract liabilities outstanding as of January 1, 2025 and recognized revenue of $ 1.3 billion and $ 5.7 billion during the quarter and nine months ended September 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 September 30, 2025 and December 31, 2024, respectively.

The increase in allowance for expected credit losses as of September 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 second quarter of 2025.

Contract assets, net increased $ 1.0 billion during the quarter ended March 31, 2026 primarily due to sales in excess of billings on certain contracts at Pratt & Whitney.

The allowance for expected credit losses decreased $ 0.3 billion in the quarter ended March 31, 2026, primarily driven by a write-off related to unrecoverable contract assets reserved in a prior year.

Contract liabilities increased $ 0.3 billion during the quarter ended March 31, 2026 primarily due to advances received and billings in excess of sales on certain contracts at Pratt & Whitney.

We recognized revenue of $ 3.6 billion during the quarter ended March 31, 2026 related to contract liabilities outstanding as of January 1, 2026 and recognized revenue of $ 3.0 billion during the quarter ended March 31, 2025, related to contract liabilities outstanding as of January 1, 2025.

Inventory, net

Inventory, net consisted of the following:

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

(dollars in millions) March 31, 2026 December 31, 2025

Raw materials $ 4,976 $ 4,673

3 unchanged sentences

Borrowings and Lines of Credit

As of September 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 September 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.

As of March 31, 2026, we had a revolving credit agreement with various banks permitting aggregate borrowings of up to $ 5.0 billion, which expires in August 2028.

As of March 31, 2026, there were no borrowings outstanding under this agreement.

From time to time, we use commercial paper borrowings for general corporate purposes, including short-term funding related to

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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 September 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 September 30, 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 nine months ended September 30, 2025 and 2024.

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

As of March 31, 2026, our maximum commercial paper borrowing limit was $ 5.0 billion as the commercial paper is backed by our $ 5.0 billion revolving credit agreement.

At March 31, 2026 and December 31, 2025, we had no commercial paper borrowings outstanding.

We made the following repayment of long-term debt during the quarter ended March 31, 2026:

Date Description of Notes Aggregate Principal Balance (in millions)

August 18, 2025 3.950 % notes due 2025

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

February 27, 2026 5.000 % notes due 2026

Long-term debt consisted of the following:

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

3 Month SOFR plus 1.225 % term loan due 2025

3.950 % notes due 2025 (1)

(dollars in millions) March 31, 2026 December 31, 2025

5.000 % notes due 2026 (1)

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3.500 % notes due 2027 (1)

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

7.200 % notes due 2027 (1)

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3.125 % notes due 2050 (1)

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(dollars in millions) March 31, 2026 December 31, 2025

2.820 % notes due 2051 (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 September 30, 2025 is approximately 12 years.

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The average maturity of our long-term debt as of March 31, 2026 is approximately 12 years.

Employee Benefit Plans

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Contributions to our plans were as follows:

Quarter Ended September 30, Nine Months Ended September 30,

Quarter Ended March 31,

(dollars in millions) 2026 2025

qualified defined benefit plans $ — $ — $ — $ —

International defined benefit plans 1 6 15 18

PRB plans 7 6 18 19

Defined contribution plans $ 463 $ 401

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

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

(dollars in millions) March 31, 2026 December 31, 2025

Non-current pension assets (included in Other assets) $ 2,635 $ 2,339

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

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

(dollars in millions) March 31, 2026 December 31, 2025

Non-current pension liabilities $ 1,459 $ 1,510

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Future pension and postretirement benefit obligations $ 2,015 $ 2,067

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

Quarter Ended September 30,

Nine Months Ended September 30,

Quarter Ended March 31,

(dollars in millions) 2026 2025

6 unchanged sentences

Recognized actuarial net loss 11 5

Net settlement, curtailment, and special termination benefit loss — 4 14 —

Net settlement, curtailment, and special termination benefit gain ( 4 ) —

Non-service pension income ( 356 ) ( 368 )

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

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

(dollars in millions) March 31, 2026 December 31, 2025

Marketable securities held in trusts $ 694 $ 750

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Our effective tax rate for the quarter and nine months ended September 30, 2025 was 17.7 % and 16.8 %, respectively, as compared to 19.5 % and 17.5 % for the quarter and nine months ended September 30, 2024, respectively.

The lower effective tax rate for the quarter ended September 30, 2025 compared to September 30, 2024 was primarily driven by the absence of a $ 0.2 billion tax charge related to U.S.

federal income taxes owed by the Company resulting from a favorable non-U.S.

tax ruling Otis received in the quarter ending September 30, 2024 impacting pre-separation tax years.

The lower effective tax rate also included additional tax expense in the quarter ended September 30, 2025 due to the sale of the Collins actuation and flight control business and higher taxes for 2025, principally driven by the enactment of “An Act to Provide for Reconciliation Pursuant to Title II of the H.

14” on July 4, 2025.

Both periods also included tax benefits associated with certain legal entity reorganizations.

The effective tax rates for the nine months ended September 30, 2025 and 2024 were relatively consistent.

In addition to the items noted above, the effective tax rate for the nine months ended September 30, 2024 included a $ 0.3 billion benefit from the impact of the conclusion of the examination phases of the RTX and Rockwell Collins audits, that was more than offset by an unfavorable impact for the tax cost associated with the sale of the CIS business and the impact of the Resolution of Certain Legal Matters accrued during the second quarter of 2024, in which no tax benefit was recorded.

Our effective tax rate for the quarter ended March 31, 2026 was 14.4 %, as compared to 17.0 % for the quarter ended March 31, 2025.

The lower effective tax rate for the quarter ended March 31, 2026 compared to March 31, 2025 was primarily driven by a higher tax benefit from stock based compensation in the current quarter as well as a lower forecasted annualized effective tax rate for 2026 principally due to a higher Foreign Derived Deduction Eligible Income (FDDEI) benefit from the U.S.

tax legislation enacted in 2025.

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

federal jurisdiction and various state and foreign jurisdictions.

In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Canada, China, France, Germany, India, Poland, Saudi Arabia, Singapore, Switzerland, the United Kingdom, and the United States.

In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Canada, China, France, Germany, India, Poland, Singapore, Switzerland, the United Kingdom, and the United States.

With few exceptions, we are no longer subject to U.S.

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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.

The Company currently expects resolution at the Appeals Division for the RTX, Rockwell, and Raytheon Company protests within the next twelve to eighteen months .

Financial Instruments

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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 $ 24 billion and $ 17 billion at September 30, 2025 and December 31, 2024, respectively.

The present value of the aggregate notional principal of our outstanding foreign currency hedges was $ 26 billion at March 31, 2026 and December 31, 2025.

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

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

(dollars in millions) Balance Sheet Location March 31, 2026 December 31, 2025

Derivatives designated as hedging instruments:

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Other accrued liabilities 94 11

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

At March 31, 2026, 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.

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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 was no longer designated as a net investment hedge and subsequent 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 nine months ended September 30, 2025 and 2024 are presented in “Note 17:

As of March 31, 2026, a portion of our € 500 million euro-denominated long-term debt was designated as a net investment hedge against our investments in European businesses.

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 ended March 31, 2026 and 2025 are presented in “Note 16:

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.

The effect of derivatives not designated as hedging instruments and related items is included within Other income, 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.

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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:

September 30, 2025

March 31, 2026

(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 September 30, 2025, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk.

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As of March 31, 2026, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk.

Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties’ credit risks.

The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(dollars in millions) Carrying

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Long-term debt (excluding finance leases) $ 37,116 $ 34,572 $ 37,627 $ 35,733

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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:

September 30, 2025

March 31, 2026

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

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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) September 30, 2025 December 31, 2024

(dollars in millions) March 31, 2026 December 31, 2025

Current assets $ 14,268 $ 14,703

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These instruments expire on various dates through 2062.

Additional guarantees of project performance for which there is no stated value also remain outstanding.

Additional guarantees of project performance for which there is no stated value also remain

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

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

September 30, 2025 December 31, 2024

As of March 31, 2026 and December 31, 2025, the following financial guarantees were outstanding:

March 31, 2026 December 31, 2025

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

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We have made residual value and other guarantees related to various commercial aerospace customer financing arrangements.

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 was $ 0.1 billion at September 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

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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 $ 0.1 billion at September 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:

Commitments and Contingencies.”

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

We accrue for costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated.

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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 nine months ended September 30, 2025 and 2024 were as follows:

The changes in the carrying amount of service and product warranties and product performance guarantees for the quarters ended March 31, 2026 and 2025 were as follows:

(dollars in millions) 2026 2025

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Other ( 1 ) 2

Balance as of September 30 $ 1,010 $ 1,042

Balance as of March 31 $ 1,017 $ 1,023

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 September 30, 2025 and December 31, 2024, we had $ 0.8 billion reserved for environmental remediation.

As of both March 31, 2026 and December 31, 2025, we had $ 0.8 billion reserved for environmental remediation.

Commercial Aerospace Financing and Other Commitments.

We had commercial aerospace financing commitments and other contractual commitments of approximately $ 13.3 billion and $ 14.1 billion as of September 30, 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 billion as of both March 31, 2026 and December 31, 2025, on a gross basis before reduction for our collaboration partners’ share.

Aircraft financing commitments, in the form of debt or lease financing, are provided to certain commercial aerospace customers.

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As a result, the fair value of these financing commitments is expected to equal the amounts funded.

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We also have other contractual commitments to make payments to secure certain contractual rights to provide product on new aircraft platforms.

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We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments.

In addition, in connection with our 2012 agreement to acquire Rolls-Royce’s ownership and collaboration interests in IAE, additional payments are due to Rolls-Royce contingent

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upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date.

These flight hour payments are capitalized as collaboration intangible assets as payments are made.

In addition, in connection with our 2012 agreement to acquire Rolls-Royce’s ownership and collaboration interests in IAE, additional payments are due to Rolls-Royce contingent upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date.

These flight hour payments will be capitalized as collaboration intangible assets as payments are made.

Other Financing Arrangements.

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

The stated values of these letters of credit agreements and surety bonds totaled $ 4.1 billion as of September 30, 2025.

The stated values of these letters of credit agreements and surety bonds totaled $ 4.1 billion as of March 31, 2026.

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 September 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.

At March 31, 2026, the aggregate amount of these agreements, both agreed to and anticipated to be agreed to, had an outstanding notional value of approximately $ 14 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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the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency (DCMA), the Inspectors General of the U.S.

Department of Defense (DoD) and other departments and agencies, the Government Accountability Office (GAO), the Department of Justice (DOJ), and Congressional Committees.

Department of War (DoW) and other departments and agencies, the Government Accountability Office (GAO), the Department of Justice (DOJ), and Congressional Committees.

Other areas of our business operations may also be subject to audit and investigation by these and other agencies.

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The Company also entered into a DPA (DPA-2) and a False Claims Act (FCA) settlement agreement with the DOJ to resolve previously disclosed criminal and civil government investigations into defective pricing claims for certain legacy Raytheon Company contracts entered into between 2011 and 2013 and in 2017 (DOJ Investigation and Contract Pricing Disputes).

Under these DPAs and the SEC Administrative Order, Raytheon Company and the Company are required to retain, among other things, an independent compliance monitor satisfactory to the DOJ and the SEC (for a term ending three years from the date on which the monitor is engaged) and are required to undertake certain cooperation and disclosure obligations (for a term commencing on the effective date of DPA-1 and the SEC Administrative Order, as applicable, and ending three years from the date on which the monitor is engaged).

The compliance monitor will oversee Raytheon Company’s and the Company’s compliance with their respective obligations under the DPAs and the SEC Administrative Order.

Under these DPAs and the SEC Administrative Order, Raytheon Company and the Company are required to undertake certain cooperation and disclosure obligations (for a term commencing on the effective date of DPA-1 and the SEC Administrative Order, as applicable, and ending three years from the date on which Raytheon Company and the Company engage an

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independent compliance monitor satisfactory to the DOJ and SEC).

A single independent compliance monitor was selected to oversee Raytheon Company’s and the Company’s compliance with their respective obligations under the DPAs and the SEC Administrative Order, and that monitor was engaged in April 2026.

In 2024, the Company also resolved 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 (CA) with the Department of State (DOS).

The CA, which has a three-year term, requires the Company to

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implement remedial compliance measures and to conduct an external audit of the Company’s International Traffic in Arms Regulations (ITAR) compliance program.

The CA, which has a three-year term, requires the Company to implement remedial compliance measures and to conduct an external audit of the Company’s International Traffic in Arms Regulations (ITAR) compliance program.

The CA also requires appointment of an external, independent Special Compliance Officer (SCO).

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Other than as specifically disclosed in this Form 10-Q, we do not expect these audits, investigations, or disputes to have a material effect on our results of operations, financial condition, or liquidity, either individually or in the aggregate.

Tax Treatment of Carrier and Otis Dispositions.

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.

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.

Pratt & Whitney Powder Metal Matter.

In 2023, Pratt & Whitney determined that a rare condition in powder metal used to manufacture certain engine parts requires accelerated inspection of the PW1100G-JM (PW1100) Geared Turbofan (GTF) fleet, which powers the A320neo family of aircraft (A320neo) (herein referred to as the “Powder Metal Matter”).

In 2023, Pratt & Whitney determined that a rare condition in powder metal used to manufacture certain engine parts requires accelerated inspection of the PW1100 GTF fleet, which powers the A320neo.

This determination was made pursuant to Pratt & Whitney’s safety management system.

On August 4, 2023, Pratt & Whitney issued a special instruction (SI) to operators of PW1100 GTF powered A320neo aircraft, which required accelerated inspections and engine removals covering an initial subset of operational engines, no later than September 15, 2023.

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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 September 30, 2025 and December 31, 2024, we had other accrued liabilities of $ 0.9 billion and $ 1.7 billion, respectively, primarily related to expected

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compensation to customers.

The decrease in the accrual during the nine months ended September 30, 2025 was primarily due to customer compensation in the form of credits issued and cash paid to customers during the period.

At March 31, 2026 and December 31, 2025, we had other accrued liabilities of $ 0.5 billion and $ 0.7 billion, respectively, related to expected compensation to customers.

The decrease in the accrual during the quarter ended March 31, 2026 was primarily due to customer compensation in the form of credits issued to customers during the period.

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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 ($ 1.4 billion at September 30, 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 ($ 383 million at September 30, 2025 ).

The second claim demands payment of $ 1.1 billion plus interest ($ 437 million at March 31, 2026 ).

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 ($ 203 million at September 30, 2025).

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 ($ 216 million at March 31, 2026).

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.

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The motion for reconsideration was denied on August 29, 2022.

On December 23, 2022, the DCMA filed an appeal to the United States Court of Appeals for the Federal Circuit.

We continue to believe that the ASBCA’s rejection of the DCMA’s asserted measure of the cost of collaborator parts is well supported in fact and law and likely will be sustained.

On December 23, 2022, the government filed an appeal to the United States Court of Appeals for the Federal Circuit (CAFC).

On December 5, 2025, the CAFC issued an opinion which dismissed in part the government’s appeal for lack of jurisdiction, reversed in part the ASBCA’s November 22, 2021 decision with respect to the enforceability of a provision within a 2006 agreement between DCMA and Pratt & Whitney, and remanded the case to the ASBCA for further proceedings.

We continue to believe that the ASBCA’s rejection of the DCMA’s asserted measure of the cost of collaborator parts is well supported in fact and law.

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 ($ 179 million at September 30, 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 ($ 99 million at September 30, 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 ($ 112 million at March 31, 2026).

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

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Thales-Raytheon Systems and Related Matters

As previously disclosed, in 2019, Raytheon Company received a subpoena from the SEC seeking information in connection with an investigation into whether there were improper payments made by Raytheon Company, our TRS joint venture, or anyone acting on their behalf, in connection with TRS or Raytheon Company contracts in certain Middle East countries since 2014.

In the first quarter of 2020, the DOJ advised Raytheon Company it had opened a parallel criminal investigation.

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third quarter of 2020, Raytheon Company received an additional subpoena from the SEC, seeking information and documents as part of its investigation.

Following the government’s and the Company’s own internal investigations, the Company engaged in resolution discussions with the DOJ and the SEC, and during the second quarter of 2024, the Company reached agreements in principle with the DOJ and the SEC as to the principal elements of such resolutions, as previously disclosed on July 25, 2024.

On October 15, 2024, Raytheon Company entered into DPA-1 with the DOJ and on October 16, 2024, the Company settled an administrative proceeding with the SEC to resolve these matters.

Pursuant to DPA-1, the DOJ will defer, for a period of three years , criminal prosecution of Raytheon Company related to Raytheon Company’s conspiracy to violate the anti-bribery provisions of the FCPA and conspiracy to violate the AECA by failing to make related disclosures of certain payments that qualified as fees, commissions, and/or political contributions under Part 130 of the ITAR.

As previously disclosed, on October 15, 2024, Raytheon Company entered into DPA-1 with the DOJ and on October 16, 2024, the Company became subject to an administrative order issued by the SEC (the SEC Administrative Order) to resolve the previously disclosed criminal and civil government investigations into payments made by Raytheon Company and its joint venture, TRS, since 2012 in connection with certain Middle East contracts.

Pursuant to DPA-1, among other terms, the DOJ

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will defer, for a period of three years , criminal prosecution of Raytheon Company related to one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the AECA by failing to make related disclosures of certain payments that qualified as fees, commissions, and/or political contributions under Part 130 of ITAR.

If Raytheon Company and the Company fully comply with all of their respective obligations under DPA-1 during its three-year term (commencing on the effective date of DPA-1 and ending three years from the date on which the monitor is engaged), the DOJ will move for dismissal with prejudice of the deferred charges against Raytheon Company.

DPA-1 provides for a criminal monetary penalty and forfeiture of $ 282 million.

In addition, the SEC’s Administrative Order issued in connection with the administrative proceeding settlement alleged that Raytheon Company violated the anti-bribery, books and records, and internal controls provisions of the FCPA.

The order provides for a $ 102 million payment to the SEC that includes disgorgement, prejudgment interest on disgorgement, and a civil penalty.

Under DPA-1, the SEC’s Administrative Order, and DPA-2 discussed in “DOJ Investigation and Contract Pricing Disputes” below, Raytheon Company and the Company are required, among other things, to retain an independent compliance monitor satisfactory to the DOJ and the SEC (for a term ending three years from the date on which the monitor is engaged) and are required to undertake certain cooperation and disclosure obligations (for a term commencing on the effective date of DPA-1 and the SEC’s Administrative Order, as applicable, and ending three years from the date on which the monitor is engaged).

The compliance monitor will oversee Raytheon Company’s and the Company’s compliance with their respective obligations under DPA-1, the SEC’s Administrative Order, and DPA-2 discussed in “DOJ Investigation and Contract Pricing Disputes” below.

During the fourth quarter of 2024, the Company paid $ 384 million in the aggregate for DPA-1 and the SEC's Administrative Order which was consistent with amounts accrued.

Under DPA-1, the SEC Administrative Order, and DPA-2 discussed in “DOJ Investigation and Contract Pricing Disputes” below, Raytheon Company and the Company are required, to undertake certain cooperation and disclosure obligations (for a term commencing on the effective date of DPA-1 and the SEC Administrative Order, as applicable, and ending three years from the date on which Raytheon Company and the Company engage an independent compliance monitor satisfactory to the DOJ and SEC).

A single independent compliance monitor was selected to oversee Raytheon Company’s and the Company’s compliance with their respective obligations under DPA-1, the SEC Administrative Order, and DPA-2 discussed in “DOJ Investigation and Contract Pricing Disputes” below, and that monitor was engaged in April 2026.

During the fourth quarter of 2024, the Company paid $ 384 million in the aggregate for DPA-1 and the SEC Administrative Order which was consistent with amounts accrued.

The Company does not believe that these matters will have a material adverse effect on our results of operations, financial condition, or liquidity.

DOJ Investigation and Contract Pricing Disputes

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.

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.

As previously disclosed on July 25, 2024, following the government’s and the Company’s own internal investigations, the Company engaged in resolution discussions with the DOJ, and during the second quarter of 2024, the Company reached an agreement in principle with the DOJ as to the principal elements of such resolution.

In addition, the Company cooperated with the DOJ with respect to a related civil defective pricing investigation under the FCA.

On October 16, 2024, Raytheon Company entered into DPA-2 and the FCA Settlement Agreement with the DOJ to resolve these matters.

Pursuant to DPA-2, the DOJ will defer, for a period of three years , criminal prosecution of Raytheon Company related to two counts of major fraud against the United States by Raytheon Company involving two legacy contracts.

As previously disclosed, on October 16, 2024, Raytheon Company entered into DPA-2 and a FCA settlement agreement with the DOJ to resolve previously disclosed criminal and civil government investigations into defective pricing claims for certain legacy Raytheon Company contracts entered into between 2011 and 2013, and in 2017.

Pursuant to DPA-2, among other terms, the DOJ will defer, for a period of three years , criminal prosecution of Raytheon Company related to two counts of major fraud against the United States by Raytheon Company involving two legacy contracts.

If Raytheon Company and the Company fully comply with all of their respective obligations in DPA-2 during its three-year term (commencing on the effective date of DPA-1 and ending three years from the date on which the monitor is engaged), the DOJ will move for dismissal with prejudice of the deferred charges against Raytheon Company.

DPA-2 provides for a criminal penalty in the amount of $ 147 million, plus restitution, and the FCA Settlement Agreement provides for an FCA settlement payment in the amount of $ 433 million, which includes restitution that will satisfy the criminal restitution obligation when paid.

Under DPA-2 as well as DPA-1 and the SEC Administrative Order discussed in “Thales-Raytheon Systems and Related Matters” above, Raytheon Company and the Company are required, among other things, to retain an independent compliance monitor satisfactory to the DOJ and the SEC (for a term ending three years from the date on which the monitor is engaged) and are required to undertake certain cooperation and disclosure obligations (for a term commencing on the effective date of DPA-1 and the SEC’s Administrative Order, as applicable, and ending three years from the date on which the monitor is engaged).

The compliance monitor will oversee Raytheon Company’s and the Company’s compliance with their respective obligations under DPA-2 as well as DPA-1 and the SEC Administrative Order discussed in “Thales-Raytheon Systems and Related Matters” above.

Under DPA-2 as well as DPA-1 and the SEC Administrative Order discussed in “Thales-Raytheon Systems and Related Matters” above, Raytheon Company and the Company are required to undertake certain cooperation and disclosure obligations (for a term commencing on the effective date of DPA-1 and the SEC Administrative Order, as applicable, and ending three years from the date on which Raytheon Company and the Company engage an independent compliance monitor satisfactory to the DOJ and SEC).

A single independent compliance monitor was selected to oversee Raytheon Company’s and the Company’s compliance with their respective obligations under DPA-2 as well as DPA-1 and the SEC Administrative Order discussed in “Thales-Raytheon Systems and Related Matters” above, and that monitor was engaged in April 2026.

During the fourth quarter of 2024, the Company paid $ 580 million in the aggregate for DPA-2 and the FCA Settlement Agreement which was consistent with amounts accrued plus interest.

The Company does not believe that these matters will have a material adverse effect on our results of operations, financial condition, or liquidity.

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Trade Compliance Matters

From time to time, we identify, investigate, remediate, and voluntarily disclose violations or potential violations of the ITAR and EAR to the relevant regulators.

In May 2024, the U.S.

DOS Office of Defense Trade Controls Compliance (DTCC) informed the Company of its intent to seek administrative penalties for alleged violations of the AECA and the ITAR.

In May 2024, the DOS Office of Defense Trade Controls Compliance (DTCC) informed the Company of its intent to seek administrative penalties for alleged violations of the AECA and the ITAR.

The DTCC informed us that it considers certain of our voluntary disclosures, primarily identified in connection with the integration of Rockwell Collins and, to a lesser extent, Raytheon Company, filed since 2019 to reflect deficiencies warranting a civil penalty.

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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 $ 218 million in the aggregate as of September 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.

We have $ 218 million accrued in the aggregate as of March 31, 2026 for these matters and the matters being resolved pursuant to the CA.

We are currently unable to estimate the timing or outcome

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of the other voluntarily disclosed export compliance matters that are not subject to the CA.

However, the Company does not believe these matters will have a material adverse effect on our results of operations, financial condition, or liquidity.

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On October 14, 2025, plaintiffs filed a Notice of Appeal to the United States Court of Appeals for the Second Circuit.

Second, multiple shareholder derivative lawsuits were filed against current and former officers and directors of the Company, all of which have now been consolidated into a single action which is pending in the United States District Court for the District of Delaware.

The operative complaint in the consolidated action alleges that the defendants caused the Company to make materially false and misleading statements relating to Pratt & Whitney’s GTF engines, and failed to maintain an adequate system of oversight, disclosure controls and procedures, and internal controls over financial reporting.

Second, multiple shareholder derivative lawsuits have been filed against current and former officers and directors of the Company in the United States District Court for the District of Delaware.

The complaints in these actions allege that the defendants caused the Company to make materially false and misleading statements relating to Pratt & Whitney’s GTF engines, and failed to maintain an adequate system of oversight, disclosure controls and procedures, and internal controls over financial reporting.

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

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These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax, and other laws.

In some instances, claims for substantial monetary damages are asserted against the Company and

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its subsidiaries and could result in fines, penalties, compensatory or treble damages, or non-monetary relief.

In some instances, claims for substantial monetary damages are asserted against the Company and its subsidiaries and could result in fines, penalties, compensatory or treble damages, or non-monetary relief.

We do not believe that these matters will have a material adverse effect upon our results of operations, financial condition, or liquidity.

Accumulated Other Comprehensive Loss.

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

A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters ended March 31, 2026 and 2025 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 September 30, 2025

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

Other comprehensive income (loss) before reclassifications, net 29 20 ( 57 ) ( 8 )

Amounts reclassified, pre-tax ( 13 ) ( 32 ) ( 8 ) ( 53 )

Tax benefit (expense) ( 1 ) 7 14 20

Balance at September 30, 2025 $ 429 $ ( 2,901 ) $ 40 $ ( 2,432 )

Nine Months Ended September 30, 2025

Quarter Ended March 31, 2026

Balance at December 31, 2025 $ 492 $ ( 3,304 ) $ 94 $ ( 2,718 )

Other comprehensive income (loss) before reclassifications, net 1,391 ( 159 ) 202 $ 1,434

Other comprehensive loss before reclassifications, net ( 133 ) ( 3 ) ( 69 ) ( 205 )

Amounts reclassified, pre-tax — ( 24 ) ( 16 ) ( 40 )

Tax benefit (expense) — 46 ( 50 ) ( 4 )

Balance at September 30, 2025 $ 429 $ ( 2,901 ) $ 40 $ ( 2,432 )

(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:

Tax (expense) benefit ( 4 ) 7 15 18

Balance at March 31, 2026 $ 355 $ ( 3,324 ) $ 24 $ ( 2,945 )

(1) The amount of foreign currency translation recognized in Other Comprehensive (Loss) Income (OCI) includes gains (losses) relating to net investment hedges, as further discussed in “Note 11:

Financial Instruments”.

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(dollars in millions) Foreign Currency Translation (1)

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

Quarter Ended September 30, 2024

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

Other comprehensive income (loss) before reclassifications, net 749 ( 72 ) 125 802

Amounts reclassified, pre-tax — ( 44 ) 14 ( 30 )

Tax benefit (expense) 6 11 ( 40 ) ( 23 )

Balance at September 30, 2024 $ 123 $ ( 2,207 ) $ 115 $ ( 1,969 )

Nine Months Ended September 30, 2024

Quarter Ended March 31, 2025

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

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Tax benefit (expense) 1 9 ( 30 ) ( 20 )

Balance at September 30, 2024 $ 123 $ ( 2,207 ) $ 115 $ ( 1,969 )

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

(1) The amount of foreign currency translation recognized in OCI includes gains (losses) relating to net investment hedges, as further discussed in “Note 11:

Financial Instruments”.

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Segment Financial Data

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

Results for the quarters ended September 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 $ 7,621 $ ( 307 ) $ ( 6,054 ) $ 1,260 16.5 %

Pratt & Whitney 8,423 ( 267 ) ( 7,405 ) 751 8.9 %

Raytheon 7,045 ( 115 ) ( 6,071 ) 859 12.2 %

Total segment 23,089 $ ( 689 ) $ ( 19,530 ) 2,870 12.4 %

Eliminations and other (2)

( 611 ) ( 14 )

Corporate expenses and other unallocated items — ( 25 )

FAS/CAS operating adjustment — 199

Acquisition accounting adjustments — ( 507 )

Consolidated $ 22,478 $ 2,523 11.2 %

(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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Results for the quarters ended March 31, 2026 and 2025 are as follows:

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

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Eliminations and other (2)

( 611 ) ( 14 )

Corporate expenses and other unallocated items — ( 42 )

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Consolidated $ 22,076 $ 2,555 11.6 %

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

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

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

Results for the nine months ended September 30, 2025 and 2024 are as follows:

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

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Consolidated $ 20,306 $ 2,035 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 $ 20,747 $ ( 1,036 ) $ ( 16,682 ) $ 3,029 14.6 %

Pratt & Whitney 20,497 ( 800 ) ( 18,186 ) 1,511 7.4 %

19,556 ( 294 ) ( 17,492 ) 1,770 9.1 %

Total segment 60,800 $ ( 2,130 ) $ ( 52,360 ) 6,310 10.4 %

Eliminations and other (2)

( 1,685 ) ( 55 )

Corporate expenses and other unallocated items (4)

FAS/CAS operating adjustment — 636

Acquisition accounting adjustments — ( 1,538 )

Consolidated $ 59,115 $ 4,427 7.5 %

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

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

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

Capital Expenditures Depreciation & Amortization

(dollars in millions) 2025 2024 2025 2024

Collins Aerospace $ 191 $ 165 $ 215 $ 197

Pratt & Whitney 236 218 189 196

Raytheon 128 142 138 128

Total segment 555 525 542 521

Corporate, eliminations, and other 59 27 23 20

Acquisition accounting adjustments 526 553

Consolidated $ 614 $ 552 $ 1,091 $ 1,094

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

Capital Expenditures and Depreciation and Amortization segment information for the quarters ended March 31, 2026 and 2025 are as follows:

Capital Expenditures Depreciation & Amortization

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Total assets by segment are as follows:

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

(dollars in millions) March 31, 2026 December 31, 2025

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.

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Segment sales disaggregated by geographic region based on customer location for the quarters ended September 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 $ 3,631 $ 3,198 $ 4,858 $ 47 $ 11,734 $ 3,401 $ 3,346 $ 4,615 $ 49 $ 11,411

Europe 1,690 2,227 1,306 2 5,225 1,611 1,535 973 1 4,120

Asia Pacific 1,001 2,003 561 2 3,567 825 1,449 515 — 2,789

Middle East and North Africa 291 215 226 — 732 236 179 213 — 628

Other regions 387 781 52 — 1,220 380 730 31 — 1,141

Consolidated net sales 7,000 8,424 7,003 51 22,478 6,453 7,239 6,347 50 20,089

Inter-segment sales 621 ( 1 ) 42 ( 662 ) — 622 — 39 ( 661 ) —

Business segment sales $ 7,621 $ 8,423 $ 7,045 $ ( 611 ) $ 22,478 $ 7,075 $ 7,239 $ 6,386 $ ( 611 ) $ 20,089

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

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Segment sales disaggregated by geographic region based on customer location for the quarters ended March 31, 2026 and 2025 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 $ 7,602 $ 8,173 $ 6,945 $ ( 644 ) $ 22,076 $ 7,217 $ 7,366 $ 6,340 $ ( 617 ) $ 20,306

Segment sales disaggregated by type of customer for the quarters ended September 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)

$ 1,766 $ 1,759 $ 4,834 $ 50 $ 8,409 $ 1,757 $ 1,595 $ 4,595 $ 49 $ 7,996

Foreign military sales through the U.S.

government 141 607 1,119 — 1,867 85 433 984 — 1,502

Foreign government direct commercial sales 264 188 1,025 — 1,477 319 196 702 1 1,218

Commercial aerospace and other commercial sales 4,829 5,870 25 1 10,725 4,292 5,015 66 — 9,373

Consolidated net sales 7,000 8,424 7,003 51 22,478 6,453 7,239 6,347 50 20,089

Inter-segment sales 621 ( 1 ) 42 ( 662 ) — 622 — 39 ( 661 ) —

Business segment sales $ 7,621 $ 8,423 $ 7,045 $ ( 611 ) $ 22,478 $ 7,075 $ 7,239 $ 6,386 $ ( 611 ) $ 20,089

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

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

Segment sales disaggregated by type of customer for the quarters ended March 31, 2026 and 2025 are as follows:

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

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

Segment sales disaggregated by sales type for the quarters ended September 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 $ 5,441 $ 4,767 $ 6,013 $ 43 $ 16,264 $ 5,024 $ 4,119 $ 5,524 $ 41 $ 14,708

Services 1,559 3,657 990 8 6,214 1,429 3,120 823 9 5,381

Consolidated net sales 7,000 8,424 7,003 51 22,478 6,453 7,239 6,347 50 20,089

Inter-segment sales 621 ( 1 ) 42 ( 662 ) — 622 — 39 ( 661 ) —

Business segment sales $ 7,621 $ 8,423 $ 7,045 $ ( 611 ) $ 22,478 $ 7,075 $ 7,239 $ 6,386 $ ( 611 ) $ 20,089

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

Segment sales disaggregated by sales type for the quarters ended March 31, 2026 and 2025 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 $ 7,602 $ 8,173 $ 6,945 $ ( 644 ) $ 22,076 $ 7,217 $ 7,366 $ 6,340 $ ( 617 ) $ 20,306

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

(dollars in millions) 2025 2024

Fixed-price $ 4,089 $ 3,409

Cost-type 2,914 2,938

Consolidated net sales 7,003 6,347

Inter-segment sales 42 39

Business segment sales $ 7,045 $ 6,386

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

Raytheon segment sales disaggregated by contract type for the quarters ended March 31, 2026 and 2025 are as follows:

(dollars in millions) 2026 2025

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Business segment sales $ 6,945 $ 6,340

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Remaining Performance Obligations (RPO)

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

Total RPO was approximately $ 251 billion as of September 30, 2025.

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

Total RPO was approximately $ 271 billion as of March 31, 2026.

Of the total RPO as of March 31, 2026, we expect approximately 25 %

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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.

Accounting Pronouncements

In September 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which better aligns the accounting guidance to how software is developed by eliminating project stages from capitalization criteria.

In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2025-10;

Accounting for Government Grants Received by Business Entities, which provides guidance on how companies should recognize, measure, and present government grants received.

The new standard is effective for annual and interim reporting periods beginning after December 15, 2028.

The standard allows for a modified prospective, modified retrospective, or retrospective transition.

Early adoption is permitted.

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

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which better aligns the accounting guidance to how software is developed by eliminating project stages from capitalization criteria.

The new standard is effective for annual reporting periods beginning after December 15, 2027 and interim periods within those annual reporting periods.

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In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires a tabular disclosure of the amounts of specified natural expense categories included in each relevant expense caption.

Additionally, ASU 2024-03 requires the disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.

Additionally, the standard requires the disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.

The new standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, on a prospective basis.

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

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, to enhance income tax reporting disclosures and require disclosure of specific categories in the tabular rate reconciliation as well as further disaggregation of income taxes paid for individually significant jurisdictions.

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

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

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

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With respect to the unaudited condensed consolidated financial information of RTX for the quarters and nine months ended September 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 October 21, 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 March 31, 2026 are not expected to have a material impact on our results of operations, financial condition, or liquidity.

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With respect to the unaudited condensed consolidated financial information of RTX for the quarters ended March 31, 2026 and 2025, 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 21, 2026, 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 September 30, 2025, and the related condensed consolidated statements of operations, of comprehensive income, and of changes in equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and the condensed consolidated statement of cash flows for the nine-month periods ended September 30, 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 March 31, 2026, 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, 2026 and 2025, 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

October 21, 2025

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April 21, 2026

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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