RTX Corp (RTX) · Material Event (8-K) SEC Filing

EX-99 2 a2026-07x238xkerexhibit99.htm EX-99 DocumentExhibit 99 Media Contact 202.384.2474 Investor Contact 781.522.5123 RTX Reports Q2 2026 ResultsRTX delivers double-digit sales and earnings growth in Q2 Raises 2026 outlook for adjusted sales,* adjusted EPS,* and free cash flow*ARLINGTON, Va., July 23, 2026 RTX (NYSE RTX) reports second quarter 2026 results.Second quarter 2026 Sales of $24.7 billion, up 14 percent versus prior year, and up 16 percent organically* GAAP EPS of $1.57, including $0.27 of acquisition accounting adjustments and $0.05 of restructuring and other net significant and or non-recurring items Adjusted EPS* of $1.89, up 21 percent versus prior year Operating cash flow of $3.5 billion free cash flow* of $2.9 billion Company backlog of $289 billion, including $170 billion of commercial and $119 billion of defense Reached an agreement to sell Raytheon s Blue Canyon Technologies business for $620 millionUpdates outlook for full year 2026 Adjusted sales* of $95.0 - $96.0 billion, up from $92.5 - $93.5 billion Organic sales growth* of 8 to 9 percent, up from 5 to 6 percent Adjusted EPS* of $7.10 - $7.25, up from $6.70 - $6.90 Free cash flow* of $8.50 - $8.75 billion, up from $8.25 - $8.75 billion RTX delivered very strong second quarter results with 16 percent organic sales growth,* including double-digit commercial aftermarket and defense growth, margin expansion across all three segments, and $2.9 billion of free cash flow.* Demand remains robust, and our backlog is up 22 percent year over year, said RTX Chairman and CEO Chris Calio. Given our first half performance and current backlog, we are raising our full year outlook for adjusted sales,* adjusted EPS,* and free cash flow.* RTX is exceptionally well positioned to drive continued growth as we execute on our backlog, increase productivity, expand capacity, and introduce new technologies to our customers. 1*Adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), segment operating profit (loss) and margin percentage (ROS), adjusted segment sales, adjusted segment operating profit (loss) and margin percentage (ROS), adjusted net income, adjusted earnings per share ( EPS ), adjusted effective tax rate, and free cash flow are non-GAAP financial measures. When we provide our expectation for adjusted net sales (also referred to as adjusted sales), adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures (expected diluted EPS and expected cash flow from operations) is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. See Use and Definitions of Non-GAAP Financial Measures below for information regarding non-GAAP financial measures..Second quarter 2026RTX second quarter reported and adjusted sales* were $24.7 billion, up 14 percent over the prior year and 16 percent organically.* GAAP EPS of $1.57 included $0.27 of acquisition accounting adjustments and $0.05 of restructuring and other net significant and or non-recurring items. Adjusted EPS* of $1.89 was up 21 percent versus the prior year.The company reported net income attributable to common shareowners in the second quarter of $2.1 billion which included $0.4 billion of acquisition accounting adjustments and $0.1 billion of restructuring and other net significant and or non-recurring items. Adjusted net income* of $2.6 billion was up 22 percent versus the prior year driven by adjusted segment operating profit growth* across all three segments. Operating cash flow in the second quarter was $3.5 billion and capital expenditures were $0.7 billion, resulting in free cash flow* of $2.9 billion.Summary Financial Results 2nd Quarter ($ in millions, except EPS) 2026 2025 % Change Reported Sales $ 24,708 $ 21,581 14 % Net Income $ 2,139 $ 1,657 29 % EPS $ 1.57 $ 1.22 29 % Adjusted* Sales $ 24,708 $ 21,581 14 % Net Income $ 2,579 $ 2,118 22 % EPS $ 1.89 $ 1.56 21 % Operating Cash Flow $ 3,547 $ 458 674 % Free Cash Flow* $ 2,878 $ (72) NM NM Not Meaningful Segment Results Collins Aerospace 2nd Quarter ($ in millions) 2026 2025 % Change Reported Sales $ 8,210 $ 7,622 8 % Operating Profit $ 1,306 $ 1,173 11 % ROS 15.9 % 15.4 % 50 bps Adjusted* Sales $ 8,210 $ 7,622 8 % Operating Profit $ 1,370 $ 1,249 10 % ROS 16.7 % 16.4 % 30 bps Collins Aerospace second quarter 2026 reported and adjusted sales* of $8,210 million were up 8 percent versus the prior year. Excluding the impact of divestitures, sales increased 13 percent organically* driven by a 26 percent 2increase in commercial OE, a 10 percent increase in commercial aftermarket, and a 7 percent increase in defense. The increase in commercial OE sales was driven by higher volume on narrowbody and widebody platforms, and the increase in commercial aftermarket sales was primarily driven by growth in parts and repair and modifications and upgrades. The increase in defense sales was driven by higher volume across multiple programs.Collins Aerospace reported operating profit of $1,306 million was up 11 percent versus the prior year. Adjusted operating profit* of $1,370 million was up 10 percent versus the prior year. The growth was driven by drop through on higher commercial and defense volume, which was partially offset by defense mix, higher SG A expense, and the impact of divestitures completed in 2025. Reported operating profit in Q2 2026 included higher restructuring charges associated with cost transformation initiatives. Pratt Whitney 2nd Quarter ($ in millions) 2026 2025 % Change Reported Sales $ 8,889 $ 7,631 16 % Operating Profit $ 738 $ 492 50 % ROS 8.3 % 6.4 % 190 bps Adjusted* Sales $ 8,889 $ 7,631 16 % Operating Profit $ 740 $ 608 22 % ROS 8.3 % 8.0 % 30 bps Pratt Whitney second quarter reported and adjusted sales* of $8,889 million were up 16 percent versus the prior year. The sales growth was driven by a 25 percent increase in commercial aftermarket and a 23 percent increase in military, partially offset by an 8 percent decrease in commercial OE. The increase in commercial aftermarket was driven by higher volume, while the increase in military sales was driven by higher F135 volume, including the benefit of prior year contract award timing. The decrease in commercial OE sales was driven by large commercial engine mix which more than offset increased large commercial engine deliveries. Pratt Whitney reported operating profit of $738 million was up 50 percent versus the prior year. Q2 2025 reported profit included an approximately $100 million charge related to a customer bankruptcy. Adjusted operating profit* of $740 million was up 22 percent versus the prior year. The increase was driven by drop through on higher commercial aftermarket and military volume, as well as military mix. This growth was partially offset by increased large commercial engine deliveries, large commercial engine mix, and higher SG A expense. 3Raytheon 2nd Quarter ($ in millions) 2026 2025 % Change Reported Sales $ 8,269 $ 7,001 18 % Operating Profit $ 1,042 $ 805 29 % ROS 12.6 % 11.5 % 110 bps Adjusted* Sales $ 8,269 $ 7,001 18 % Operating Profit $ 1,043 $ 809 29 % ROS 12.6 % 11.6 % 100 bps Raytheon second quarter reported and adjusted sales* of $8,269 million were up 18 percent versus the prior year. This increase was driven by higher volume on land and air defense systems, naval programs, and air and space defense systems, including Patriot, Standard Missile, and AMRAAM. Raytheon reported operating profit of $1,042 million was up 29 percent versus the prior year. Adjusted operating profit* of $1,043 million was up 29 percent versus the prior year. The increase was driven by higher volume, favorable mix, including Patriot programs, and improved net productivity.About RTXWith more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia. Conference Call on the Second Quarter 2026 Financial ResultsRTX s financial results conference call will be held on Thursday, July 23, 2026 at 7 30 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call.Use and Definitions of Non-GAAP Financial Measures RTX Corporation ( RTX or the Company ) reports its financial results in accordance with accounting principles generally accepted in the United States ( GAAP ). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company s ongoing business performance. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non-GAAP financial measures 4 Non-GAAP measure Definition Adjusted net sales Adjusted sales Represents consolidated net sales (a GAAP measure), excluding net significant and or non-recurring items1 (hereinafter referred to as net significant and or non-recurring items ). Organic sales Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and or non-recurring items. Adjusted operating profit (loss) and margin percentage (ROS) Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and or non-recurring items. Adjusted operating profit margin percentage represents adjusted operating profit (loss) as a percentage of adjusted net sales. Segment operating profit (loss) and margin percentage (ROS) Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding acquisition accounting adjustments2, the FAS CAS operating adjustment3, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin percentage represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other). Adjusted segment sales Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and or non-recurring items. Adjusted segment operating profit (loss) and margin percentage (ROS) Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and or non-recurring items. Adjusted segment operating profit margin percentage represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other). Adjusted net income Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and or non-recurring items. Adjusted earnings per share (EPS) Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and or non-recurring items. Adjusted effective tax rate Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments2, and net significant and or non-recurring items. Free cash flow Free cash flow represents cash flow from operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTX s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX s common stock, and distribution of earnings to shareowners. 1 Net significant and or non-recurring items represent significant nonoperational items and or significant operational items that may occur at irregular intervals.2 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. 3 The FAS CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment.When we provide our expectation for adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), adjusted segment operating profit (loss) and margin percentage (ROS), adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are not available without unreasonable effort due to potentially high 5variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.Cautionary Statement Regarding Forward-Looking Statements This press release contains statements which, to the extent they are not statements of historical or present fact, constitute forward-looking statements under the securities laws. These forward-looking statements are intended to provide RTX Corporation ( RTX ) management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid and are not statements of historical fact. Forward-looking statements can be identified by the use of words such as believe, expect, expectations, plans, strategy, prospects, estimate, project, target, anticipate, will, should, see, guidance, outlook, goals, objectives, confident, on track, designed to, commit, commitment and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, targets and commitments (including for share repurchases or otherwise), and other statements which are not solely historical facts. All forward-looking statements involve risks, uncertainties, changes in circumstances and other factors that are hard to predict, and each of which may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, as amended. Such risks, uncertainties and other factors include, without limitation (1) changes in economic, capital market, and political conditions in the U.S. and globally (2) changes in U.S. or foreign government defense spending, national priorities, and policy positions (3) our performance on our contracts and programs, including our ability to control costs, and our dependence on U.S. government approvals for certain international contracts (4) challenges in the development, certification, production, delivery, support, and performance of RTX's advanced technologies and new products and services and the realization of anticipated benefits (5) challenges of operating in RTX's highly-competitive industries both domestically and abroad (6) our reliance on U.S. and non-U.S. suppliers and commodity markets, including cost increases and disruptions in the delivery of materials and services to RTX or our suppliers (7) changes in trade policies, implementation of sanctions, imposition of tariffs (and counter-tariffs), and other trade measures and restrictions, foreign currency fluctuations, and sales methods (8) the economic condition of the aerospace industry (9) the ability of RTX to attract, train, qualify, and retain qualified personnel and maintain its culture and high ethical standards, and the ability of our personnel to continue to operate our facilities and businesses around the world (10) the scope, nature, timing, and challenges of managing and completing acquisitions, investments, divestitures, and other transactions (11) compliance with legal, environmental, regulatory, and other requirements in the U.S. and other countries in which RTX and its businesses operate (12) pending, threatened, and future legal proceedings, investigations, audits, and other contingencies (13) the previously-disclosed deferred prosecution agreements entered into between the Company and the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order imposed on the Company, and the related investigations by the SEC and DOJ, and the consent agreement between the Company and the Department of State (14) RTX's ability to engage in desirable capital-raising or strategic transactions (15) repurchases by RTX of its common stock, or declarations of cash dividends, which may be discontinued, accelerated, suspended, or delayed at any time due to various factors (16) realizing expected benefits from, incurring costs for, and successfully managing strategic initiatives such as cost reduction, restructuring, digital transformation, and other operational initiatives (17) additional tax exposures due to new tax legislation or other developments in the U.S. and other countries in which RTX and its businesses operate (18) the identified rare condition in powder metal used to manufacture certain Pratt Whitney engine parts requiring accelerated removals and inspections of a significant portion of the PW1100G-JM Geared Turbofan (GTF) fleet (19) changes in production volumes of one or more of our significant customers as a result of business, labor, or other challenges, and the resulting effect on its or their demand for our products and services (20) an RTX product safety failure, quality issue, or other failure affecting RTX's or its customers' or suppliers' products or systems (21) cybersecurity, including cyber-attacks on RTX's information technology infrastructure, products, suppliers, customers and partners, and cybersecurity-related regulations (22) insufficient indemnity or insurance coverage (23) our intellectual property and certain third-party intellectual property (24) threats to RTX facilities and 6personnel, or those of its suppliers or customers, as well as public health crises, damaging weather, acts of nature, or other similar events outside of RTX's control that may affect RTX or its suppliers or customers (25) changes in accounting estimates for our programs on our financial results (26) changes in pension and other postretirement plan estimates and assumptions and contributions (27) an impairment of goodwill and other intangible assets and (28) climate change and climate-related regulations, and any related customer and market demands, products and technologies. For additional information on identifying factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements, see the reports of RTX filed with or furnished to the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and RTX assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.7RTX CorporationCondensed Consolidated Statement of Operations Quarter Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) (dollars in millions, except per share amounts shares in millions) 2026 2025 2026 2025 Net Sales $ 24,708 $ 21,581 $ 46,784 $ 41,887 Costs and expenses Cost of sales 19,575 17,205 37,057 33,395 Research and development 726 697 1,353 1,334 Selling, general, and administrative 1,658 1,573 3,134 3,021 Total costs and expenses 21,959 19,475 41,544 37,750 Other income, net 62 40 126 44 Operating profit 2,811 2,146 5,366 4,181 Non-service pension income (348) (351) (703) (717) Interest expense, net 417 457 807 900 Income before income taxes 2,742 2,040 5,262 3,998 Income tax expense 493 315 856 648 Net income 2,249 1,725 4,406 3,350 Less Noncontrolling interest in subsidiaries earnings 110 68 208 158 Net income attributable to common shareowners $ 2,139 $ 1,657 $ 4,198 $ 3,192 Earnings Per Share attributable to common shareowners Basic $ 1.58 $ 1.24 $ 3.11 $ 2.38 Diluted $ 1.57 $ 1.22 $ 3.08 $ 2.36 Weighted Average Shares Outstanding Basic shares 1,350.7 1,340.6 1,349.2 1,338.8 Diluted shares 1,365.0 1,354.0 1,364.7 1,352.9 8RTX CorporationSegment Net Sales and Operating Profit (Loss) Quarter Ended Six Months Ended (Unaudited) (Unaudited) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (dollars in millions) Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted Net Sales Collins Aerospace $ 8,210 $ 8,210 $ 7,622 $ 7,622 $ 15,812 $ 15,812 $ 14,839 $ 14,839 Pratt Whitney 8,889 8,889 7,631 7,631 17,062 17,062 14,997 14,997 Raytheon 8,269 8,269 7,001 7,001 15,214 15,214 13,341 13,341 Total segments 25,368 25,368 22,254 22,254 48,088 48,088 43,177 43,177 Eliminations and other (660) (660) (673) (673) (1,304) (1,304) (1,290) (1,290) Consolidated $ 24,708 $ 24,708 $ 21,581 $ 21,581 $ 46,784 $ 46,784 $ 41,887 $ 41,887 Operating Profit (Loss) Collins Aerospace $ 1,306 $ 1,370 $ 1,173 $ 1,249 $ 2,613 $ 2,668 $ 2,261 $ 2,476 Pratt Whitney 738 740 492 608 1,448 1,451 1,072 1,198 Raytheon 1,042 1,043 805 809 1,883 1,888 1,483 1,487 Total segments 3,086 3,153 2,470 2,666 5,944 6,007 4,816 5,161 Eliminations and other 98 28 24 (17) 136 66 36 (5) Corporate expenses and other unallocated items (70) 7 (47) (42) (112) (34) (85) (71) FAS CAS operating adjustment 171 171 186 186 343 343 371 371 Acquisition accounting adjustments (474) (487) (945) (957) Consolidated $ 2,811 $ 3,359 $ 2,146 $ 2,793 $ 5,366 $ 6,382 $ 4,181 $ 5,456 Segment Operating Profit Margin Collins Aerospace 15.9 % 16.7 % 15.4 % 16.4 % 16.5 % 16.9 % 15.2 % 16.7 % Pratt Whitney 8.3 % 8.3 % 6.4 % 8.0 % 8.5 % 8.5 % 7.1 % 8.0 % Raytheon 12.6 % 12.6 % 11.5 % 11.6 % 12.4 % 12.4 % 11.1 % 11.1 % Total segment 12.2 % 12.4 % 11.1 % 12.0 % 12.4 % 12.5 % 11.2 % 12.0 % 9RTX CorporationCondensed Consolidated Balance Sheet June 30, 2026 December 31, 2025 (dollars in millions) (Unaudited) (Unaudited) Assets Cash and cash equivalents $ 8,305 $ 7,435 Accounts receivable, net 13,942 14,701 Contract assets, net 18,980 17,092 Inventory, net 14,409 13,364 Other assets, current 8,276 7,740 Total current assets 63,912 60,332 Customer financing assets 1,902 2,132 Fixed assets, net 16,965 16,868 Operating lease right-of-use assets 1,727 1,887 Goodwill 52,928 53,343 Intangible assets, net 31,043 31,845 Other assets 5,495 4,672 Total assets $ 173,972 $ 171,079 Liabilities, Redeemable Noncontrolling Interest, and Equity Short-term borrowings $ 229 $ 204 Accounts payable 16,998 15,895 Accrued employee compensation 2,356 3,308 Other accrued liabilities 15,695 14,350 Contract liabilities 22,671 21,615 Long-term debt currently due 5,296 3,412 Total current liabilities 63,245 58,784 Long-term debt 31,858 34,288 Operating lease liabilities, non-current 1,473 1,602 Future pension and postretirement benefit obligations 1,956 2,067 Other long-term liabilities 7,296 7,200 Total liabilities 105,828 103,941 Redeemable noncontrolling interest 28 36 Shareowners Equity Common stock 38,424 38,126 Treasury stock (26,758) (26,881) Retained earnings 58,020 56,718 Accumulated other comprehensive loss (3,309) (2,718) Total shareowners equity 66,377 65,245 Noncontrolling interest 1,739 1,857 Total equity 68,116 67,102 Total liabilities, redeemable noncontrolling interest, and equity $ 173,972 $ 171,079 10RTX CorporationCondensed Consolidated Statement of Cash Flows Quarter Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) (dollars in millions) 2026 2025 2026 2025 Operating Activities Net income $ 2,249 $ 1,725 $ 4,406 $ 3,350 Adjustments to reconcile net income to net cash flows provided by operating activities from Depreciation and amortization 1,079 1,076 2,150 2,128 Deferred income tax (benefit) provision (56) 54 (30) 121 Stock compensation cost 164 113 296 224 Net periodic pension and other postretirement income (303) (312) (616) (636) Share-based 401(k) matching contributions 147 140 339 307 Change in Accounts receivable (729) (765) 1,094 (1,137) Contract assets (963) (484) (1,942) (1,190) Inventory (330) (384) (1,143) (1,197) Other current assets 47 25 (422) (100) Accounts payable and accrued liabilities 2,102 (538) 947 (141) Contract liabilities 198 (30) 292 343 Other operating activities, net (58) (162) 31 (309) Net cash flows provided by operating activities 3,547 458 5,402 1,763 Investing Activities Capital expenditures (669) (530) (1,215) (1,043) Increase in other intangible assets (58) (122) (156) (226) (Payments) receipts from settlements of derivative contracts, net (71) 192 1 145 Other investing activities, net (146) (49) (182) (63) Net cash flows used in investing activities (944) (509) (1,552) (1,187) Financing Activities Repayment of long-term debt (24) (780) (524) (789) Change in commercial paper, net 1,432 1,432 Dividends paid (983) (910) (1,898) (1,750) Repurchase of common stock (50) Other financing activities, net (62) (95) (487) (252) Net cash flows used in financing activities (1,069) (353) (2,909) (1,409) Effect of foreign exchange rate changes on cash and cash equivalents (13) 38 (19) 54 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,521 (366) 922 (779) Cash, cash equivalents and restricted cash, beginning of period 6,871 5,193 7,470 5,606 Cash, cash equivalents and restricted cash, end of period 8,392 4,827 8,392 4,827 Less Restricted cash, included in Other assets, current and Other assets 87 45 87 45 Cash and cash equivalents, end of period $ 8,305 $ 4,782 $ 8,305 $ 4,782 11RTX CorporationReconciliation of Adjusted (Non-GAAP) Results Adjusted Sales, Adjusted Operating Profit (Loss) Operating Profit (Loss) Margin Quarter Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) (dollars in millions - Income (Expense)) 2026 2025 2026 2025 Collins Aerospace Net sales $ 8,210 $ 7,622 $ 15,812 $ 14,839 Operating profit $ 1,306 $ 1,173 $ 2,613 $ 2,261 Restructuring (64) (39) (55) (152) Segment and portfolio transformation and divestiture costs (1) (37) (63) Adjusted operating profit $ 1,370 $ 1,249 $ 2,668 $ 2,476 Adjusted operating profit margin 16.7% 16.4% 16.9% 16.7% Pratt Whitney Net sales $ 8,889 $ 7,631 $ 17,062 $ 14,997 Operating profit $ 738 $ 492 $ 1,448 $ 1,072 Restructuring (2) (8) (3) (18) Customer bankruptcy (1) (108) (108) Adjusted operating profit $ 740 $ 608 $ 1,451 $ 1,198 Adjusted operating profit margin 8.3% 8.0% 8.5% 8.0% Raytheon Net sales $ 8,269 $ 7,001 $ 15,214 $ 13,341 Operating profit $ 1,042 $ 805 $ 1,883 $ 1,483 Restructuring (1) (4) (5) (4) Adjusted operating profit $ 1,043 $ 809 $ 1,888 $ 1,487 Adjusted operating profit margin 12.6% 11.6% 12.4% 11.1% Eliminations and Other Net sales $ (660) $ (673) $ (1,304) $ (1,290) Operating profit $ 98 $ 24 $ 136 $ 36 Gain on investment (1) 70 41 70 41 Adjusted operating profit (loss) $ 28 $ (17) $ 66 $ (5) Corporate expenses and other unallocated items Operating loss $ (70) $ (47) $ (112) $ (85) Restructuring (8) (9) (9) Tax audit settlements and closures (1) (5) (5) Litigation matter (1) (69) (69) Adjusted operating profit (loss) $ 7 $ $ (42) $ (34) $ $ (71) FAS CAS Operating Adjustment Operating profit $ 171 $ 186 $ 343 $ 371 Acquisition Accounting Adjustments Operating loss $ (474) $ (487) $ (945) $ (957) Acquisition accounting adjustments (474) (487) (945) (957) Adjusted operating loss $ $ $ $ RTX Consolidated Net sales $ 24,708 $ 21,581 $ 46,784 $ 41,887 Operating profit $ 2,811 $ 2,146 $ 5,366 $ 4,181 Restructuring (75) (51) (72) (183) Acquisition accounting adjustments (474) (487) (945) (957) Total net significant and or non-recurring items included in Operating profit above (1) 1 (109) 1 (135) Adjusted operating profit $ 3,359 $ 2,793 $ 6,382 $ 5,456 (1) Refer to Non-GAAP Financial Adjustments below for a description of these adjustments.12RTX CorporationReconciliation of Adjusted (Non-GAAP) Results Adjusted Income, Earnings Per Share, and Effective Tax Rate Quarter Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) (dollars in millions - Income (Expense)) 2026 2025 2026 2025 Net income attributable to common shareowners $ 2,139 $ 1,657 $ 4,198 $ 3,192 Total Restructuring (75) (51) (72) (183) Total Acquisition accounting adjustments (474) (487) (945) (957) Total net significant and or non-recurring items included in Operating profit (1) 1 (109) 1 (135) Significant and or non-recurring items included in Non-service Pension Income Non-service pension restructuring (2) (4) Significant non-recurring and non-operational items included in Interest Expense, Net Tax audit settlements and closures (1) 11 54 International tax matter (1) (35) Tax effect of restructuring and net significant and or non-recurring items above 110 142 214 280 Significant and or non-recurring items included in Income Tax Expense Tax audit settlements and closures (1) 33 59 Less Impact on net income attributable to common shareowners (440) (461) (806) (917) Adjusted net income attributable to common shareowners $ 2,579 $ 2,118 $ 5,004 $ 4,109 Diluted Earnings Per Share $ 1.57 $ 1.22 $ 3.08 $ 2.36 Impact on Diluted Earnings Per Share (0.32) (0.34) (0.59) (0.68) Adjusted Diluted Earnings Per Share $ 1.89 $ 1.56 $ 3.67 $ 3.04 Effective Tax Rate 18.0% 15.4% 16.3% 16.2% Impact on Effective Tax Rate (0.3)% (2.9)% (0.7)% (2.6)% Adjusted Effective Tax Rate 18.3% 18.3% 17.0% 18.8% (1) Refer to Non-GAAP Financial Adjustments below for a description of these adjustments.13RTX CorporationReconciliation of Adjusted (Non-GAAP) Results Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin Quarter Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) (dollars in millions) 2026 2025 2026 2025 Net Sales $ 24,708 $ 21,581 $ 46,784 $ 41,887 Reconciliation to segment net sales Eliminations and other 660 673 1,304 1,290 Segment Net Sales $ 25,368 $ 22,254 $ 48,088 $ 43,177 Operating Profit $ 2,811 $ 2,146 $ 5,366 $ 4,181 Operating Profit Margin 11.4 % 9.9 % 11.5 % 10.0 % Reconciliation to segment operating profit Eliminations and other (98) (24) (136) (36) Corporate expenses and other unallocated items 70 47 112 85 FAS CAS operating adjustment (171) (186) (343) (371) Acquisition accounting adjustments 474 487 945 957 Segment Operating Profit $ 3,086 $ 2,470 $ 5,944 $ 4,816 Segment Operating Profit Margin 12.2 % 11.1 % 12.4 % 11.2 % Reconciliation to adjusted segment operating profit Restructuring (67) (51) (63) (174) Net significant and or non-recurring items (1) (145) (171) Adjusted Segment Operating Profit $ 3,153 $ 2,666 $ 6,007 $ 5,161 Adjusted Segment Operating Profit Margin 12.4 % 12.0 % 12.5 % 12.0 % (1) Refer to Non-GAAP Financial Adjustments below for a description of these adjustments.14RTX CorporationFree Cash Flow Reconciliation Quarter Ended June 30, (Unaudited) (dollars in millions) 2026 2025 Net cash flows provided by operating activities $ 3,547 $ 458 Capital expenditures (669) (530) Free cash flow $ 2,878 $ (72) Six Months Ended June 30, (Unaudited) (dollars in millions) 2026 2025 Net cash flows provided by operating activities $ 5,402 $ 1,763 Capital expenditures (1,215) (1,043) Free cash flow $ 4,187 $ 720 15RTX CorporationReconciliation of Adjusted (Non-GAAP) Results Organic Sales Reconciliation Quarter ended June 30, 2026 compared to the Quarter Ended June 30, 2025 (Unaudited) (dollars in millions) Total Reported Change Acquisitions Divestitures Change FX Other Change (2) Organic Change Prior Year Adjusted Sales (1) Organic Change as a % of Adjusted Sales Collins Aerospace $ 588 $ (404) $ 11 $ 981 $ 7,622 13 % Pratt Whitney 1,258 (16) 1,274 7,631 17 % Raytheon 1,268 12 1,256 7,001 18 % Eliminations and Other (3) 13 13 (673) % Consolidated $ 3,127 $ (391) $ 7 $ 3,511 $ 21,581 16 % (1) For the full Non-GAAP reconciliation of adjusted sales refer to Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit Operating Profit Margin. (2) Includes other significant non-operational items and or significant operational items that may occur at irregular intervals.(3) FX Other Change includes the transactional impact of foreign exchange hedging at Pratt Whitney Canada, which is included in Pratt Whitney s FX Other Change, but excluded for Consolidated RTX. Six Months Ended June 30, 2026 compared to the Six Months Ended June 30, 2025 (Unaudited) (dollars in millions) Total Reported Change Acquisitions Divestitures Change FX Other Change (2) Organic Change Prior Year Adjusted Sales (1) Organic Change as a % of Adjusted Sales Collins Aerospace $ 973 $ (787) $ 51 $ 1,709 $ 14,839 12 % Pratt Whitney 2,065 21 2,044 14,997 14 % Raytheon 1,873 29 1,844 13,341 14 % Eliminations and Other (3) (14) 26 (31) (9) (1,290) 1 % Consolidated $ 4,897 $ (761) $ 70 $ 5,588 $ 41,887 13 % (1) For the full Non-GAAP reconciliation of adjusted sales refer to Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit Operating Profit Margin. (2) Includes other significant non-operational items and or significant operational items that may occur at irregular intervals.(3) FX Other Change includes the transactional impact of foreign exchange hedging at Pratt Whitney Canada, which is included in Pratt Whitney s FX Other Change, but excluded for Consolidated RTX. 16Non-GAAP Financial Adjustments Non-GAAP Adjustments Description Segment and portfolio transformation and divestiture costs The quarter and six months ended June 30, 2025 include separation costs incurred in advance of the completion of certain divestitures. Customer bankruptcy The quarter and six months ended June 30, 2025 include a net pre-tax charge of approximately $0.1 billion related to a customer bankruptcy at Pratt Whitney. The charge primarily relates to contract asset exposures with a customer. Management has determined that the nature and significance of the charge is considered unusual and, therefore, not indicative of the Company s ongoing operational performance. Gain on investment The quarter and six months ended June 30, 2026 and quarter and six months ended June 30, 2025, include a pre-tax gain of $70 million and $41 million, respectively, related to the increase in fair value on an investment. Management has determined that the nature of the gain on investment to be significant and non-operational, and, therefore, not indicative of the Company s ongoing operational performance. Tax audit settlements and closures The quarter and six months ended June 30, 2025 include a tax benefit of $59 million and a pre-tax benefit on the reversal of $54 million of interest accruals both recognized as a result of the closure of the examination phase of multiple state tax audits. In addition, in the quarter and six months ended June 30, 2025, there was a tax benefit of $33 million and a net pre-tax benefit of $6 million from thereversal of interest accruals and the write-off of certain tax related indemnity receivables associatedwith the closure of a federal tax audit. Litigation matter The quarter and six months ended June 30, 2026 include a pre-tax charge of $69 million related to a litigation matter. Management considers this charge non-operational and directly attributable to the litigation matter and, therefore, not indicative of the Company s ongoing operational performance. International tax matter During the six months ended June 30, 2025, the Company recorded the impact of an unfavorable decision related to an international tax matter for the years ended December 31, 2015 to December 31, 2019, resulting in interest expense, net of $35 million and a tax benefit of $8 million. Management has determined that the nature of this impact related to the tax matter is considered significant and non-operational, and, therefore, not indicative of the Company s ongoing operational performance. 17