What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-23 compared with 2026-04-21 · 239 added, 138 removed, 380 unchanged (50% of the section changed)

6 unchanged sentences

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.

Throughout this Form 10-Q, references to the quarters and six months ended June 30, 2026 and 2025 for Raytheon correspond to its fiscal quarter ends of June 28, 2026 and June 29, 2025, respectively.

The current status of significant factors affecting our business environment in 2026 is discussed below.

24 unchanged sentences

tax law changes, foreign

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currency exchange rates, sanctions, tariffs, energy costs and supply, levels of air travel, the financial condition of commercial airlines, and the impact from natural disasters and weather conditions create uncertainties that could impact our businesses.

28 unchanged sentences

In February 2026, the U.S.

Supreme Court ruled that U.S.

tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the U.S.

were unauthorized.

The Company is the importer of record for certain products that were previously subject to tariffs under IEEPA and paid approximately $0.5 billion of IEEPA tariffs since their inception.

Court of International Trade (CIT) has ordered the U.S.

Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the United States were unauthorized.

The Company is the importer of record for certain products that were previously subject to IEEPA tariffs and has paid approximately $0.5 billion of such tariffs since their inception.

Court of International Trade (CIT) has ordered U.S.

Customs and Border Protection (CBP) to refund the collected IEEPA tariffs.

The administrative process for seeking refunds of IEEPA tariffs previously paid remains under development and the CIT’s order may be subject to U.S.

government challenge.

Accordingly, there is uncertainty regarding our ability to obtain refunds for IEEPA tariffs previously paid, and as such we have not recorded an anticipated recovery of IEEPA tariffs paid as of March 31, 2026.

We will continue to monitor developments, including actions by the CIT and CBP to establish and execute on a refund process and take appropriate actions when or if they become available.

Further, following the Supreme Court’s ruling invalidating IEEPA tariffs, the U.S.

government imposed new and revised tariffs under various available regimes.

On April 20, 2026, CBP established an online portal through which companies can submit certain IEEPA tariff refund requests.

On June 2, 2026, the U.S.

government appealed the CIT’s order to issue refunds, however, the precise basis and scope of this appeal is currently unknown.

As of June 30, 2026, the Company has submitted refund claims and has received and recognized an immaterial amount of refunds.

The Company expects to submit additional refund claims and will recognize refunds if and when approved.

Following the Supreme Court’s ruling invalidating IEEPA tariffs, the U.S.

government imposed new and revised tariffs under various available regimes which may apply to certain products for which the Company is the importer of record.

We continue to pursue available options to mitigate the impact of tariffs and countermeasures, including (i) utilizing available exemptions or exclusions to tariffs, such as trade agreements, treaties or other statutory relief, (ii) evaluating operational and supply chain changes, and (iii) where feasible, increasing the prices of our goods and services.

Our results for the quarter ended March 31, 2026, reflect our best estimate of the impact of the tariffs then in effect.

Our results for the quarter and six months ended June 30, 2026, reflect our best estimate of the impact of the tariffs then in effect.

As the duration, extent and enforceability of the tariffs and counter tariffs in effect remain uncertain, we are continuing to evaluate the potential future impacts of the imposition of tariffs to our business and financial condition.

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or counter tariffs or other actions taken by other countries will have a material adverse effect upon our results of operations, financial condition, or cash flows.

However, the actual financial impacts of tariffs are dependent upon various factors, most notably, the scope of goods covered by tariffs, the value of our imports subject to tariffs, the rate of tariffs

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applied, the timing and duration of tariffs, the enforceability of tariffs and counter-tariffs, the implementation of tariff and non-tariff countermeasures by countries subject to U.S.

However, the actual financial impacts of tariffs are dependent

upon various factors, most notably, the scope of goods covered by tariffs, the value of our imports subject to tariffs, the rate of tariffs applied, the timing and duration of tariffs, the recoverability and timing of refunds, the enforceability of tariffs and counter-tariffs, the implementation of tariff and non-tariff countermeasures by countries subject to U.S.

tariffs, and our and our suppliers’ ability to mitigate the impacts of tariffs.

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Government’s Budget, Tax Legislation and Executive Orders.

On February 3, 2026, Congress passed and the President signed a spending package to end a U.S.

government shutdown.

The spending package funds the majority of the government through the end of the government’s fiscal year.

On February 3, 2026, Congress passed and the President signed a spending package providing full-year funding for most federal agencies through September 30, 2026.

On April 21, 2026, the President’s proposed Fiscal Year 2027 defense budget seeking $1.5 trillion was released, consisting of $1.15 trillion in base discretionary budget and $350 billion of mandatory funding through reconciliation.

The President submitted a separate supplemental funding request to Congress on June 24, 2026, with approximately $67 billion of the request intended for defense spending, including $21 billion for munitions replenishment.

We are closely monitoring the movement of the requests through Congress.

On July 4, 2025, “An Act to Provide for Reconciliation Pursuant to Title II of the H.

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The project, outlined in a January 27, 2025 Executive Order, calls for the development and deployment of a next-generation missile defense shield.

On May 20, 2025, the DoW announced a draft architecture and implementation plan for the system.

With next generation technologies across land, sea and space that build upon existing, proven defense capabilities, RTX’s portfolio is well-positioned to play a role in delivering reliable solutions for the Golden Dome for America initiative.

RTX’s portfolio is well-positioned to deliver key solutions for the project.

Whether this Executive Order or corresponding funding will have a material impact on our business or results of operations will depend on a variety of factors, including actual awards, award timelines, mission priorities, and future budget determinations.

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RTX has employees, facilities, and operations in the Middle East and we reassess operations regularly, based upon the security situation.

Our and our suppliers’ operations in the region have not been impacted in any material respect, although we could experience

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future delivery delays of certain products as the conflict continues.

Our and our suppliers’ operations in the region have not been impacted in any material respect, although we could experience future delivery delays of certain products as the conflict continues.

We also continue to monitor uncertainties related to energy costs and availability, and associated impacts to our commercial airline customers.

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Actual results in these areas could differ from management’s estimates.

There have been no significant changes in our critical accounting estimates during the quarter ended March 31, 2026.

There have been no significant changes in our critical accounting estimates during the six months ended June 30, 2026.

RESULTS OF OPERATIONS

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

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

Net sales $ 24,708 $ 21,581 $ 46,784 $ 41,887

The factors contributing to the change year-over-year in total net sales for the quarter ended March 31, 2026 are as follows:

(dollars in millions) Quarter Ended March 31, 2026

The factors contributing to the change year-over-year in total net sales for the quarter and six months ended June 30, 2026 are as follows:

(dollars in millions) Quarter Ended June 30, 2026 Six Months Ended June 30, 2026

$ 3,511 $ 5,588

Acquisitions and divestitures, net (391) (761)

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GAAP amounts is provided in the table above.

Net sales increased $2.1 billion organically in the quarter ended March 31, 2026, primarily due to higher organic net sales of $0.8 billion at Pratt & Whitney, $0.7 billion at Collins, and $0.6 billion at Raytheon.

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The decrease in net sales due to Acquisitions and divestitures, net of $0.4 billion for the quarter ended March 31, 2026 was driven by divestitures within our Collins segment of the actuation and flight control business and the Simmonds Precision Products business completed in 2025.

Net sales increased $3.5 billion organically in the quarter ended June 30, 2026, primarily due to higher organic net sales of $1.3 billion at Pratt & Whitney, $1.3 billion at Raytheon, and $1.0 billion at Collins.

Net sales increased $5.6 billion organically in the six months ended June 30, 2026, primarily due to higher organic net sales of $2.0 billion at Pratt & Whitney, $1.8 billion at Raytheon, and $1.7 billion at Collins.

The decrease in net sales due to Acquisitions and divestitures, net of $0.4 billion and $0.8 billion for the quarter and six months ended June 30, 2026, respectively, was driven by divestitures within our Collins segment of the actuation and flight control business and the Simmonds Precision Products business completed in 2025.

See “Segment Review” below for further information by segment.

Quarter Ended March 31, % of Total Net Sales

Quarter Ended June 30, % of Total Net Sales

(dollars in millions) 2026 2025 2026 2025

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Segment Financial Data” within Item 1 of this Form 10-Q for the composition of external net sales by products and services by segment.

Net products sales increased $1.2 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 primarily due to increases in external products sales of $0.6 billion at Raytheon, $0.3 billion at Pratt & Whitney, and $0.3 billion at Collins.

Net services sales increased $0.6 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 primarily due to increases in external services sales of $0.6 billion at Pratt & Whitney.

Net products sales increased $2.4 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 primarily due to increases in external products sales of $1.3 billion at Raytheon, $0.5 billion at Pratt & Whitney, and $0.5 billion at Collins.

Net services sales increased $0.7 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 primarily due to increases in external services sales of $0.7 billion at Pratt & Whitney and $0.1 billion at Collins, partially offset by a decrease in external service sales of $0.1 billion at Raytheon.

Six Months Ended June 30, % of Total Net Sales

(dollars in millions) 2026 2025 2026 2025

Products $ 33,709 $ 30,142 72.1 % 72.0 %

Services 13,075 11,745 27.9 % 28.0 %

Total net sales $ 46,784 $ 41,887 100 % 100 %

Net products sales increased $3.6 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily driven by increases in external products sales of $1.9 billion at Raytheon, $0.8 billion at Pratt & Whitney, and $0.8 billion at Collins.

Net services sales increased $1.3 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily driven by increases in external services sales of $1.3 billion at Pratt & Whitney and $0.1 billion at Collins, partially offset by a decrease in external service sales of $0.1 billion at Raytheon.

Our sales to major customers were as follows:

Quarter Ended March 31, % of Total Net Sales

Quarter Ended June 30, % of Total Net Sales

(dollars in millions) 2026 2025 2026 2025

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

Six Months Ended June 30, % of Total Net Sales

(dollars in millions) 2026 2025 2026 2025

Sales to the U.S.

government (1)

$ 17,268 $ 16,005 36.9 % 38.2 %

Foreign military sales through the U.S.

government 3,801 3,106 8.1 % 7.4 %

Foreign government direct commercial sales 3,265 2,785 7.0 % 6.6 %

Commercial aerospace and other commercial sales 22,450 19,991 48.0 % 47.7 %

Total net sales $ 46,784 $ 41,887 100 % 100 %

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

Cost of Sales

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Percentage of net sales 79.2 % 79.7 % 79.2 % 79.7 %

The factors contributing to the change year-over-year in total cost of sales for the quarter ended March 31, 2026 are as follows:

(dollars in millions) Quarter Ended March 31, 2026

The factors contributing to the change year-over-year in total cost of sales for the quarter and six months ended June 30, 2026 are as follows:

(dollars in millions) Quarter Ended June 30, 2026 Six Months Ended June 30, 2026

$ 2,716 $ 4,306

Acquisitions and divestitures, net (355) (681)

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FAS/CAS operating adjustment 15 27

Acquisition accounting adjustments (13) (13)

Total change $ 2,370 $ 3,662

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GAAP amounts is provided in the table above.

Total cost of sales increased $1.6 billion organically for the quarter ended March 31, 2026, primarily driven by the organic net sales increases at Raytheon, Pratt & Whitney, and Collins noted above.

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The decrease in total cost of sales due to Acquisitions and divestitures, net of $0.3 billion for the quarter ended March 31, 2026, was driven by the divestitures within our Collins segment of the actuation and flight control business and the Simmonds Precision Products business completed in 2025.

Other cost of sales increased $0.1 billion in the quarter ended March 31, 2026, primarily driven by unfavorable foreign exchange rate impacts.

The decrease in restructuring costs in the quarter ended March 31, 2026, relates primarily to higher workforce reductions initiated in the quarter ended March 31, 2025 at Collins.

Total cost of sales increased $2.7 billion and $4.3 billion organically for the quarter and six months ended June 30, 2026, respectively, primarily driven by the organic net sales increases at Pratt & Whitney, Raytheon, and Collins noted above.

The decrease in total cost of sales due to Acquisitions and divestitures, net of $0.4 billion and $0.7 billion for the quarter and six months ended June 30, 2026, respectively, was driven by divestitures within our Collins segment noted above.

The decrease in restructuring costs in the six months ended June 30, 2026, was primarily due to lower severance related costs recognized in 2026 at Collins .

The increase in Other cost of sales in the six months ended June 30, 2026, was primarily driven by unfavorable foreign exchange rate impacts.

For discussion on FAS/CAS operating adjustment, see the “FAS/CAS operating adjustment” subsection under the “Segment Review” section below.

For discussion on Acquisition accounting adjustments, see the “Acquisition accounting adjustments” subsection under the “Segment Review” section below.

Quarter Ended March 31, % of Total Net Sales

Quarter Ended June 30, % of Total Net Sales

(dollars in millions) 2026 2025 2026 2025

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Total cost of sales $ 19,575 $ 17,205 79.2 % 79.7 %

Net products cost of sales increased $0.7 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, primarily driven by increases in external products cost of sales at Raytheon, Pratt & Whitney, and Collins, each driven by the products sales changes noted above.

Net services cost of sales increased $0.6 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, primarily due to increases in external services cost of sales at Pratt & Whitney, driven by the services sales changes noted above.

Net products cost of sales increased $1.8 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025, primarily driven by increases in external products cost of sales at Raytheon, Pratt & Whitney, and Collins, each driven by the products sales changes noted above.

Net services cost of sales increased $0.6 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025, primarily driven by increases in external services cost of sales at Pratt & Whitney and Collins, each driven by the services sales changes noted above.

Six Months Ended June 30, % of Total Net Sales

(dollars in millions) 2026 2025 2026 2025

Cost of sales

Products $ 27,802 $ 25,272 59.4 % 60.3 %

Services 9,255 8,123 19.8 % 19.4 %

Total cost of sales $ 37,057 $ 33,395 79.2 % 79.7 %

Net products cost of sales increased $2.5 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by increases in external products cost of sales at Raytheon, Pratt & Whitney, and Collins, each driven by the products sales changes noted above.

Net services cost of sales increased $1.1 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by increases in external products cost of sales at Pratt & Whitney and Collins, each driven by the products sales changes noted above.

Research and Development

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Selling, General, and Administrative

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Percentage of net sales 6.7 % 7.3 % 6.7 % 7.2 %

Selling, general, and administrative expenses increased for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, primarily driven by increased employee compensation costs, partially offset by lower restructuring costs.

Selling, general, and administrative expenses increased for the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025, primarily driven by higher compensation and other costs across the businesses, partially offset by the absence of a charge related to a customer bankruptcy recorded at Pratt & Whitney in 2025.

Selling, general, and administrative expenses increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by higher compensation and other costs across the businesses, partially offset by the absence of a charge related to a customer bankruptcy recorded at Pratt & Whitney in 2025 and lower restructuring costs in 2026 as compared to 2025 as a result of ongoing cost reduction efforts driven by various workforce reductions at Collins.

Other Income, Net

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Other income, net includes equity earnings in unconsolidated entities, royalty income, foreign exchange gains and losses, and other ongoing and non-recurring items.

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The increase in Other income, net of $0.1 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, was primarily due to gains related to the increase in fair value on investments in the quarter ended March 31, 2026.

The increase in Other income, net in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, was primarily due to higher gains related to the increase in fair value on investments in 2026 and favorable foreign exchange impacts, partially offset by the impact of a litigation matter in 2026.

Operating Profit

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Operating profit margin 11.4 % 9.9 % 11.5 % 10.0 %

The increase in Operating profit of $0.5 billion for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 was primarily driven by an increase in the organic operating performance of our segments of approximately $0.4 billion and a decrease in restructuring charges of $0.1 billion.

The increase in Operating profit of $0.7 billion for the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 was primarily driven by an increase in the organic operating profit of our segments of approximately $0.5 billion and the absence of a charge related to a customer bankruptcy recorded at Pratt & Whitney in 2025.

The increase in Operating profit of $1.2 billion for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by an increase in the organic operating profit of our segments of approximately $0.9 billion, the absence of a charge related to a customer bankruptcy recorded at Pratt & Whitney in 2025, and lower restructuring costs in 2026 as compared to 2025.

Non-service Pension Income

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Interest Expense, Net

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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(1) Primarily consists of the gains or losses on assets associated with certain of our nonqualified deferred compensation and employee benefit plans, the gains or losses on liabilities associated with certain of our nonqualified deferred compensation plans, and non-operating dividend income.

The decrease in Interest expense of $0.1 billion for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, was primarily driven by long-term debt repayments.

Quarter Ended March 31,

The decrease in Interest expense for the quarter and six months ended June 30, 2026 compared to the quarter and six months ended June 30, 2025, was primarily driven by long-term debt repayments.

Quarter Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Effective income tax rate 18.0 % 15.4 % 16.3 % 16.2 %

The lower effective tax rate for the quarter ended March 31, 2026 compared to quarter ended 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.

The effective tax rate for the quarter ended June 30, 2026 is higher compared to June 30, 2025.

The effective tax rate for the quarter ended June 30, 2025 included a tax benefit associated with the conclusion of the Internal Revenue Service (IRS) examination of RTX’s 2020 tax year as well as a higher tax benefit from stock based compensation as compared to the quarter ended June 30, 2026.

The effective tax rate for the quarter ended June 30, 2026 includes a net benefit associated with legal entity reorganizations.

The effective tax rate for the six months ended June 30, 2026 and June 30, 2025 are relatively consistent.

However, the effective tax rate for the six months ended June 30, 2026 includes a higher tax benefit from stock based compensation, a lower forecasted annualized effective tax rate for 2026 principally due to a higher Foreign Derived Deduction Eligible Income benefit resulting from the U.S.

tax legislation enacted in 2025, and a net tax benefit for certain legal entity reorganizations.

In addition, the effective tax rate for the six months ended June 30, 2025 includes the impact from the IRS examination noted above.

Net Income Attributable to Common Shareowners

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

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

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Diluted earnings per share $ 1.57 $ 1.22 $ 3.08 $ 2.36

Net income attributable to common shareowners for the quarter ended March 31, 2026 includes the following:

Net income attributable to common shareowners for the quarter ended June 30, 2026 includes the following:

• acquisition accounting adjustments of $0.4 billion, net of tax, which had an unfavorable impact on diluted earnings per share (EPS) of $0.27.

Net income attributable to common shareowners for the quarter ended March 31, 2025 includes the following:

Net income attributable to common shareowners for the quarter ended June 30, 2025 includes the following:

• acquisition accounting adjustments of $0.4 billion, net of tax, which had an unfavorable impact on diluted EPS of $0.28.

Net income attributable to common shareowners for the six months ended June 30, 2026 includes the following:

• acquisition accounting adjustments of $0.7 billion, net of tax, which had an unfavorable impact on diluted EPS of $0.54.

Net income attributable to common shareowners for the six months ended June 30, 2025 includes the following:

• acquisition accounting adjustments of $0.7 billion, net of tax, which had an unfavorable impact on diluted EPS of $0.55;

• restructuring charges of $0.1 billion, net of tax, which had an unfavorable impact on diluted EPS of $0.10.

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SEGMENT REVIEW

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Collins, Pratt & Whitney, and Raytheon.

Segments are generally based on the management structure of the businesses and the grouping of similar operations, based on capabilities and technologies, where each management organization has general operating autonomy over diversified products and services.

products and services.

Total segment net sales and segment operating profit include intercompany sales and profit, which are ultimately eliminated within Eliminations and other, which also includes certain smaller non-reportable segments.

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Total net sales by segment were as follows:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Eliminations and other (1)

(660) (673) (1,304) (1,290)

Consolidated $ 24,708 $ 21,581 $ 46,784 $ 41,887

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Operating profit by segment was as follows:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Given that we have thousands of individual contracts, and given the types and complexity of the assumptions and estimates we must make on an on-going basis, and the nature of the work required to be performed under our contracts, we have both favorable and unfavorable EAC adjustments in the ordinary course.

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We had the following net EAC adjustments for the periods presented:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

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Backlog and Bookings.

Total backlog was $271 billion and $268 billion as of March 31, 2026 and December 31, 2025, respectively.

Total backlog includes commercial backlog of $162 billion and $161 billion as of March 31, 2026 and December 31, 2025, and defense backlog of $109 billion and $107 billion as of March 31, 2026 and December 31, 2025, respectively.

Total backlog was $289 billion and $268 billion as of June 30, 2026 and December 31, 2025, respectively.

Total backlog includes commercial backlog of $170 billion and $161 billion as of June 30, 2026 and December 31, 2025, and defense backlog of $119 billion and $107 billion as of June 30, 2026 and December 31, 2025, respectively.

We believe bookings are an important measure of future performance for our defense businesses.

Our defense operations consist primarily of our Raytheon segment and operations in the defense businesses within our Collins and Pratt & Whitney segments.

Defense bookings were approximately $14 billion and $9 billion for the quarters ended March 31, 2026 and 2025, respectively.

Defense bookings were approximately $23 billion and $12 billion for the quarters ended June 30, 2026 and 2025, respectively, and approximately $37 billion and $21 billion for the six months ended June 30, 2026 and 2025, respectively.

Bookings are impacted by the timing and amounts of awards in a given period, which are subject to numerous factors, including:

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Collins Aerospace

Quarter Ended March 31,

(dollars in millions) 2026 2025 Change

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 Change 2026 2025 Change

Net sales $ 8,210 $ 7,622 8 % $ 15,812 $ 14,839 7 %

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Operating profit margins 15.9 % 15.4 % 16.5 % 15.2 %

Quarter Ended March 31, 2026 Compared with Quarter Ended March 31, 2025

Quarter Ended June 30, 2026 Compared with Quarter Ended June 30, 2025

Factors Contributing to Total Change

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GAAP amounts is provided in the table above.

The organic net sales increase of $0.7 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 primarily relates to higher commercial aerospace OEM sales of $0.3 billion, higher commercial aerospace aftermarket sales of $0.2 billion, and higher defense sales of $0.2 billion.

The increase in commercial OEM sales was primarily driven by higher volume on narrowbody and widebody programs and the increase in commercial aftermarket sales was driven by higher provisioning and parts and repair volume.

The organic net sales increase of $1.0 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 primarily relates to higher commercial aerospace OEM sales of $0.5 billion, higher commercial aerospace aftermarket sales of $0.3 billion, and higher defense sales of $0.2 billion.

The increase in defense sales was primarily due to higher volume across multiple programs and platforms .

The organic operating profit increase of $0.1 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 was primarily due to the commercial and defense sales volume increases as discussed above, partially offset by the impact of higher tariffs and unfavorable commercial OEM mix.

Operating profit also benefited from lower research and development expenses.

The decrease in net sales and operating profit due to acquisitions / divestitures, net in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 relates to the divestiture of the actuation and flight control business and the Simmonds Precision Products business completed in 2025.

The decrease in restructuring costs during the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 relates primarily to higher workforce reductions initiated in the quarter ended March 31, 2025.

Defense Bookings – In the quarter ended March 31, 2026, Collins recorded $3 billion in defense bookings, comprised of a number of smaller individual bookings under $0.5 billion.

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The organic operating profit increase of $0.1 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 was due to higher commercial aerospace operating profit of $0.2 billion driven by the higher sales volume discussed above.

Defense operating profit decreased slightly, principally driven by the impact of mix that more than offset the higher sales volume discussed above.

Operating profit was also impacted by higher selling, general and administrative expenses.

The decrease in net sales and operating profit due to acquisitions / divestitures, net in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 relates to the divestitures of the actuation and flight control business and the Simmonds Precision Products business completed in 2025.

Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025

Factors Contributing to Total Change

(dollars in millions) Organic (1)

Acquisitions /

Divestitures, net Restructuring

Costs Other Total Change

Net sales $ 1,709 $ (787) $ — $ 51 $ 973

Operating profit 253 (54) 97 56 352

(1) See “Segment Review” above for definition of organic.

A reconciliation of these measures to reported U.S.

GAAP amounts is provided in the table above.

The organic net sales increase of $1.7 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily relates to higher commercial aerospace OEM sales of $0.8 billion, higher commercial aerospace aftermarket sales of $0.5 billion, and higher defense sales of $0.4 billion.

The increase in defense sales was primarily due to higher volume across multiple programs and platforms.

The organic operating profit increase of $0.3 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily due to higher commercial aerospace operating profit of $0.2 billion primarily due to the volume increases discussed above, partially offset by the impact of higher tariffs.

Defense operating profit in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 increased $0.1 billion as the benefit of higher volume was partially offset by mix.

Operating profit was also impacted by higher selling, general and administrative expenses.

The decrease in net sales due to acquisitions / divestitures, net in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 relates to the divestitures of the actuation and flight control business and the Simmonds Precision Products business completed in 2025.

The decrease in restructuring costs in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily due to lower severance related costs recognized in 2026.

Defense Bookings – In the quarter and six months ended June 30, 2026, Collins recorded $2 billion and $5 billion, respectively, in defense bookings, comprised of a number of smaller individual bookings under $0.5 billion.

Pratt & Whitney

Quarter Ended March 31,

(dollars in millions) 2026 2025 Change

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 Change 2026 2025 Change

Net sales $ 8,889 $ 7,631 16 % $ 17,062 $ 14,997 14 %

1 unchanged sentence

Operating profit margins 8.3 % 6.4 % 8.5 % 7.1 %

Quarter Ended March 31, 2026 Compared with Quarter Ended March 31, 2025

Quarter Ended June 30, 2026 Compared with Quarter Ended June 30, 2025

Factors Contributing to Total Change

8 unchanged sentences

GAAP amounts is provided in the table above.

The organic net sales increase of $0.8 billion in the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, was driven by a $0.7 billion increase in commercial aftermarket sales, primarily reflecting higher volume.

Military sales increased $0.1 billion primarily due to higher F135 production volume.

These increases were partially offset by lower commercial OEM sales volume.

The organic operating profit increase of $0.1 billion in the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025 was primarily driven by higher commercial aerospace operating profit of $0.1 billion.

This increase resulted from higher commercial aftermarket volume as discussed above, partially offset by lower commercial OEM operating profit contribution due to higher operational costs, including tariffs.

Organic operating profit also benefited from higher military operating profit driven by the sales volume discussed above.

These increases were partially offset by higher selling, general, and administrative expenses.

Defense Bookings – In the quarter ended March 31, 2026, Pratt & Whitney recorded $4 billion in defense bookings.

The organic net sales increase of $1.3 billion in the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025, was driven by a $0.9 billion increase in commercial aftermarket sales, primarily reflecting higher volume.

Military sales increased $0.5 billion primarily due to higher F135 production volume, which includes the benefit from the Q3 2025 contract award timing.

These increases were partially offset by lower commercial OEM sales of $0.1 billion as higher volume was more than offset by mix in large commercial engines.

The organic operating profit increase of $0.1 billion in the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025 was primarily driven by higher commercial aerospace operating profit of $0.1 billion.

This increase resulted from higher commercial aftermarket volume as discussed above, partially offset by lower commercial OEM operating profit contribution due to the volume and mix discussed above.

Organic operating profit also benefited from higher military operating profit of

$0.1 billion driven by the sales volume discussed above and favorable mix.

These increases were partially offset by higher selling, general, and administrative expenses of $0.1 billion.

The increase in other operating profit of $0.1 billion in the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025, primarily relates to the absence of a $0.1 billion charge related to a customer bankruptcy in 2025.

Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025

Factors Contributing to Total Change

(dollars in millions) Organic (1)

Acquisitions /

Divestitures, net Restructuring

Costs Other Total Change

Net sales $ 2,044 $ — $ — $ 21 $ 2,065

Operating profit 232 — 15 129 376

(1) See “Segment Review” above for definition of organic.

A reconciliation of these measures to reported U.S.

GAAP amounts is provided in the table above.

The organic net sales increase of $2.0 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, was driven by higher commercial aftermarket sales of $1.6 billion, primarily reflecting higher volume.

The increase also includes higher military sales of $0.6 billion due to higher F135 production volume which includes the benefit from the Q3 2025 contract award timing.

These increases were partially offset by a $0.2 billion decrease in commercial OEM sales as higher volume was more than offset by mix in large commercial engines.

The organic operating profit increase of $0.2 billion in the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was primarily driven by higher commercial aerospace profit of $0.2 billion.

The increase was primarily driven by higher commercial aftermarket volume as discussed above, partially offset by lower commercial OEM operating profit contribution driven by the higher volume and mix, including higher production costs, as discussed above.

Organic operating profit also included higher military operating profit of $0.1 billion, driven by F135 production sales discussed above as well as favorable mix.

These increases were partially offset by an increase in selling, general, and administrative expenses of $0.1 billion.

The increase in other operating profit of $0.1 billion in the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily relates to the absence of a $0.1 billion charge related to a customer bankruptcy in 2025.

Defense Bookings – In the quarter ended June 30, 2026, Pratt & Whitney recorded $1 billion in defense bookings, comprised of a number of smaller individual bookings under $0.5 billion.

In the six months ended June 30, 2026, Pratt & Whitney recorded $5 billion in defense bookings.

In addition to a number of smaller individual bookings, Pratt & Whitney booked $3.8 billion for F135 production.

Quarter Ended March 31,

(dollars in millions) 2026 2025 Change

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 Change 2026 2025 Change

Net sales $ 8,269 $ 7,001 18 % $ 15,214 $ 13,341 14 %

2 unchanged sentences

Defense Bookings $ 19,898 $ 9,399 112 % $ 26,533 $ 13,795 92 %

Quarter Ended March 31, 2026 Compared with Quarter Ended March 31, 2025

Quarter Ended June 30, 2026 Compared with Quarter Ended June 30, 2025

Factors Contributing to Total Change

8 unchanged sentences

GAAP amounts is provided in the table above.

The organic net sales increase of $0.6 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 was primarily due to higher net sales of $0.5 billion from land and air defense systems programs driven by higher net sales on Patriot programs.

Also contributing to the increase was higher net sales of $0.3 billion from naval power programs primarily driven by higher volume on Standard Missile programs.

The organic operating profit increase of $0.2 billion in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 was primarily due to a favorable change in mix and other performance of approximately $0.1 billion, and higher volume of approximately $0.1 billion.

The favorable change in mix and other performance was primarily driven by increased production on Patriot programs.

The increase in volume was principally driven by higher net sales described above.

The organic net sales increase of $1.3 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 was primarily due to higher net sales of $0.5 billion from land and air defense systems programs driven by higher net sales on Patriot programs, higher net sales of $0.4 billion from naval power programs primarily driven by higher volume on Standard Missile programs, and higher net sales of $0.2 billion on air and space defense systems programs principally due to higher volume on advanced medium-range air-to-air missile (AMRAAM) programs.

The organic operating profit increase of $0.2 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 was primarily due to higher volume of approximately $0.1 billion, and a favorable change in mix and other performance of approximately $0.1 billion.

The increase in volume was principally driven by the higher net sales discussed above.

The favorable change in mix and other performance was primarily driven by increased production on Patriot programs including the timing of contract awards received in the quarter.

Operating profit also benefited from a favorable change in net EAC adjustments spread across numerous programs.

Table of Content s

Defense Backlog and Bookings – Backlog was $74 billion as of March 31, 2026 and $75 billion as of December 31, 2025.

In the quarter ended March 31, 2026, Raytheon recorded $7 billion in defense bookings.

In addition to a number of smaller individual bookings, Raytheon booked $628 million to provide Patriot systems for the Netherlands and $1.6 billion on a number of classified contracts.

Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025

Factors Contributing to Total Change

(dollars in millions) Organic (1)

Acquisitions /

Divestitures, net Restructuring

Costs Other Total Change

Net sales $ 1,844 $ — $ — $ 29 $ 1,873

Operating Profit 404 — (1) (3) 400

(1) See “Segment Review” above for definition of organic.

A reconciliation of this measure to the reported U.S.

GAAP amount is provided in the table above.

The organic net sales increase of $1.8 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily due to higher net sales of $1.0 billion from land and air defense systems programs driven by higher net sales on Patriot programs, higher net sales of $0.6 billion from naval power programs primarily driven by higher volume on Standard Missile programs, and higher net sales of $0.2 billion on air and space defense systems programs principally due to higher volume on AMRAAM programs.

The organic operating profit increase of $0.4 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily due to higher volume of approximately $0.2 billion and a favorable change in mix and other performance of approximately $0.2 billion.

The increase in volume was principally driven by the higher net sales discussed above.

The favorable change in mix and other performance was primarily driven by increased production on Patriot programs including the timing of contract awards received in the second quarter of 2026.

Operating profit also benefited from a favorable change in net EAC adjustments spread across numerous programs.

Defense Backlog and Bookings – Backlog was $86 billion as of June 30, 2026 and $75 billion as of December 31, 2025.

In the quarter ended June 30, 2026, Raytheon recorded $20 billion in defense bookings.

In addition to a number of smaller individual bookings, Raytheon booked $3.7 billion to provide Patriot GEM-T interceptors for Ukraine, $1.1 billion to provide AIM-9X Sidewinder Block II short-range air-to-air missiles for U.S.

and international customers, $1.1 billion to provide AMRAAM to the U.S.

Air Force and international customers, $988 million to provide Patriot GEM-T interceptors to Poland through the North Atlantic Treaty Organization (NATO) Support and Procurement Agency (NSPA), $833 million for Evolved SeaSparrow Missiles (ESSM) for the U.S.

Navy and international customers, $827 million to provide Lower Tier Air and Missile Defense Sensors (LTAMDS) to the U.S.

Army, $821 million for National Advanced Surface-to-Air Missile Systems (NASAMS) for an international customer, $658 million to provide StormBreaker to the U.S.

Air Force, U.S.

Navy, and international customers, $542 million for Standard Missile-3 (SM-3) for the Missile Defense Agency (MDA), and $4.1 billion on a number of classified and confidential contracts.

In the six months ended June 30, 2026, Raytheon recorded $27 billion in defense bookings.

In addition to these bookings above, Raytheon booked $628 million to provide Patriot systems for the Netherlands and $1.6 billion on a number of classified contracts.

Corporate and Eliminations and other

2 unchanged sentences

Net Sales Operating Profit

Quarter Ended March 31, Quarter Ended March 31,

Quarter Ended June 30, Quarter Ended June 30,

(dollars in millions) 2026 2025 2026 2025

1 unchanged sentence

Corporate expenses and other unallocated items — — (70) (47)

Net Sales Operating Profit

Six months ended June 30, Six months ended June 30,

(dollars in millions) 2026 2025 2026 2025

Eliminations and other $ (1,304) $ (1,290) $ 136 $ 36

Corporate expenses and other unallocated items — — (112) (85)

The increase in eliminations and other operating profit of in the quarter and six months ended June 30, 2026 compared to the quarter and six months ended June 30, 2025 was primarily due to higher gains related to the increase in fair value on investments.

FAS/CAS operating adjustment

6 unchanged sentences

The components of the FAS/CAS operating adjustment were as follows:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

6 unchanged sentences

The components of Acquisition accounting adjustments were as follows:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

3 unchanged sentences

Acquisition accounting adjustments $ (474) $ (487) $ (945) $ (957)

Table of Content s

Acquisition accounting adjustments related to acquisitions in each segment were as follows:

Quarter Ended March 31,

Quarter Ended June 30, Six Months Ended June 30,

(dollars in millions) 2026 2025 2026 2025

6 unchanged sentences

LIQUIDITY AND FINANCIAL CONDITION

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

(dollars in millions) June 30, 2026 December 31, 2025

Cash and cash equivalents $ 8,305 $ 7,435

7 unchanged sentences

capital expenditures, customer financing requirements, investments in and divestitures of businesses, dividends, common stock repurchases, pension funding, access to the commercial paper markets, adequacy of available bank lines of credit, redemptions of debt, and the ability to attract long-term capital at satisfactory terms.

At March 31, 2026, we had cash and cash equivalents of $6.8 billion, of which approximatel y 30% was held by RTX’s foreign subsidiaries.

At June 30, 2026, we had cash and cash equivalents of $8.3 billion, of which approximatel y 27% was held by RTX’s foreign subsidiaries.

We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct our business and the cost effectiveness with which those funds can be accessed.

3 unchanged sentences

Our ability to access global debt markets and the related cost of these borrowings depends on the strength of our credit rating and market conditions.

Our S&P Global rating remains at BBB+/stable.

In May 2026, our S&P Global rating was affirmed and our outlook was revised from BBB+/stable to BBB+/positive.

In February 2026, our Moody’s Investors Service outlook improved from Baa1/stable to Baa1/positive.

Though the Company expects to continue having adequate access to funds, declines in our credit ratings or Company outlook could result in higher borrowing costs.

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.

As of June 30, 2026, we had a revolving credit agreement with various banks permitting aggregate borrowings of up to $5.0 billion, which expires in August 2028.

As of June 30, 2026, there were no borrowings outstanding under this agreement.

From time to time, we use commercial paper borrowings for general corporate purposes, including short-term funding related to potential acquisitions, pension contributions, debt refinancing, dividend payments, and repurchases of our common stock.

The commercial paper notes have original maturities of not more than 364 days from the date of issuance.

As of 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, we had no commercial paper borrowings outstanding.

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

As of June 30, 2026, our maximum commercial paper borrowing limit was $5.0 billion as the commercial paper is backed by our $5.0 billion revolving credit agreement.

At June 30, 2026, we had no commercial paper borrowings outstanding.

We made the following repayment of long-term debt during the six months ended June 30, 2026:

Date Description of Notes Aggregate Principal Balance (in millions)

February 27, 2026 5.000% notes due 2026

We have an existing universal shelf registration statement, which we filed with the SEC on September 18, 2025, for an indeterminate amount of debt and equity securities for future issuance, subject to our internal limitations on the amount of debt to be issued under this shelf registration statement.

Table of Content s

We have an existing universal shelf registration statement, which we filed with the Securities and Exchange Commission (SEC) on September 18, 2025, for an indeterminate amount of debt and equity securities for future issuance, subject to our internal limitations on the amount of debt to be issued under this shelf registration statement.

We believe our cash on hand and future operating cash flows will be sufficient to meet our future operating cash needs.

1 unchanged sentence

Cash Flow - Operating Activities

Quarter Ended March 31,

Six Months Ended June 30,

(dollars in millions) 2026 2025

1 unchanged sentence

$ 5,402 $ 1,763

Cash flows provided by operating activities increased by $0.6 billion for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, primarily due to higher net income after adjustments to reconcile to net cash provided by operating activities, driven by our segment performance.

The change in net working capital was relatively consistent year over year, as a decrease in accounts receivable was partially offset by a decrease in accounts payable and accrued liabilities and an increase in net contract asset and contract liabilities.

The decrease in accounts receivable, including collaborator receivables, was primarily due to the timing of collections.

The decrease in accounts payable and accrued liabilities was driven by the timing of payments, including collaborator payables, changes in accrued employee compensation driven by incentive compensation payments and tax payments, partially offset by higher material purchases.

The change in net contract asset and contract liability activity resulted from lower billings relative to revenue recognition during the period, primarily at Pratt & Whitney.

Cash flows provided by operating activities increased by $3.6 billion for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to higher net income after adjustments to reconcile to net cash provided by operating activities driven by our segment performance and favorable changes in net working capital.

The favorable changes in net working capital were primarily driven by a decrease in accounts receivable and an increase in accounts payable and accrued liabilities, partially offset by an increase in net contract assets and contract liabilities.

The decrease in accounts receivable was primarily due to timing of collections, including factoring, as a result of increased sales volume, as discussed below.

The increase in accounts payable and accrued liabilities was driven by the timing of payments and higher material purchases.

The change in net contract assets and contract liabilities resulted from higher sales in excess of billings in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily at Pratt & Whitney.

The Company enters into various factoring agreements with third-parties to sell certain of its receivables, primarily related to customer facilitated programs.

The activity in these agreements is generally dependent on underlying delivery volumes within our commercial OEM programs.

Factoring activity resulted in a $0.2 billion increase in cash provided by operating activities during the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025.

We made tax payments, net of refunds of $0.3 billion and $0.1 billion in the quarters ended March 31, 2026 and 2025, respectively.

Factoring activity resulted in a $1.5 billion increase in cash provided by operating activities during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

We made tax payments, net of refunds of $0.7 billion in both the six months ended June 30, 2026 and 2025.

While the timing of cash flows are subject to a number of variables, for the Powder Metal Matter we estimate the accrual for expected customer compensation to be utilized consistent with the timing of execution of the fleet management plan, the period of increased aircraft on ground levels, and contractual terms with customers.

1 unchanged sentence

Cash Flow - Investing Activities

Quarter Ended March 31,

Six Months Ended June 30,

(dollars in millions) 2026 2025

2 unchanged sentences

Our investing activities primarily include capital expenditures, cash investments in customer financing assets, investments in and dispositions of businesses, payments related to our collaboration intangible assets and contractual rights to provide product on new aircraft platforms, and settlements of derivative contracts not designated as hedging instruments.

The change in cash flows used in investing activities in the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, was primarily related to higher receipts from settlements of derivative contracts of $0.1 billion.

The change in cash flows used in investing activities in the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily related to increased capital expenditures of $0.2 billion and lower receipts from settlements of derivative contracts of $0.1 billion.

Cash Flow - Financing Activities

Quarter Ended March 31,

Six Months Ended June 30,

(dollars in millions) 2026 2025

2 unchanged sentences

Our financing activities primarily include the issuance and repayment of commercial paper and other short-term and long-term debt, payment of dividends, and stock repurchases.

The $0.8 billion change in cash flows used in financing activities in the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, was primarily driven by higher long-term debt repayments of $0.5 billion.

The $1.5 billion change in cash flows used in financing activities in the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily driven by the absence of proceeds from commercial paper borrowings of $1.4 billion in the six months ended June 30, 2025.

Refer to “Note 9:

Borrowings and Lines of Credit” within Item 1 of this Form 10-Q for additional information on debt repayments.

Table of Content s

At March 31, 2026, management had remaining authority to repurchase approximately $0.6 billion of our common stock under the October 21, 2023 share repurchase program.

Borrowings and Lines of Credit” within Item 1 of this Form 10-Q for additional information on borrowings and lines of credit.

At June 30, 2026, management had remaining authority to repurchase approximately $0.6 billion of our common stock under the October 21, 2023 share repurchase program.

Under the 2023 program, shares may be purchased on the open market, in privately negotiated transactions, under accelerated share repurchase (ASR) programs, and under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.

1 unchanged sentence

Our ability to repurchase shares is subject to applicable law.

On April 30, 2026, the Board of Directors declared a dividend of $0.73 per share payable June 11, 2026 to shareowners of record at the close of business on May 22, 2026.

On June 26, 2026, the Board of Directors declared a dividend of $0.73 per share payable September 3, 2026 to shareowners of record at the close of business on August 14, 2026.

Quantitative and Qualitative Disclosures About Market Risk

There has been no significant change in our exposure to market risk during the quarter ended March 31, 2026.

There has been no significant change in our exposure to market risk during the six months ended June 30, 2026.

For discussion of our exposure to market risk, refer to Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” contained in our 2025 Form 10-K.

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 2. Management’s Discussion and Analysis