RTX Reports Q3 2026 Results
Strong operational performance drives double-digit sales and earnings growth in Q3;
Raises 2026 outlook for adjusted sales,* adjusted EPS,* and free cash flow* ARLINGTON, Va., October 20, 2026 – RTX (NYSE: RTX) reports third quarter 2026 results.
• Sales of $25.0 billion, up 11 percent versus prior year, and up 12 percent organically*
• GAAP EPS of $1.89, including $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant and/or non-recurring items
• Adjusted EPS* of $2.26, up $0.56, or 33 percent, versus prior year, including $0.25 from IEEPA cost recovery
• Operating cash flow of $2.9 billion, including approximately $0.3 billion from IEEPA recovery; free cash flow* of $2.1 billion
• Company backlog of $340 billion, including $176 billion of commercial and $164 billion of defense
• Awarded Tomahawk and AMRAAM multi-year undefinitized production contracts in the third quarter
“Our strong execution and operational focus in the third quarter enabled RTX to deliver double-digit organic sales growth* across commercial aerospace and defense. Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion,” said RTX Chairman and CEO Chris Calio.
“Given our performance year to date, we are again raising our full year outlook for adjusted sales,* adjusted EPS,* and free cash flow.* We remain focused on increasing output, optimizing our cost structure, and investing in new technologies to support our customers and drive continued growth.” 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 G AAP 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 litigati on, 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.
RTX third quarter reported and adjusted sales* were $25.0 billion, up 11 percent versus the prior year and 12 percent organically.* GAAP EPS of $1.89 included $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant and/or non-recurring items. Adjusted EPS* of $2.26 was up 33 percent versus the prior year, including $0.25 of IEEPA recovery.
The company reported net income attributable to common shareowners in the third quarter of $2.6 billion, which included $0.3 billion of acquisition accounting adjustments and $0.2 billion of restructuring and other net significant and/or non-recurring items. Adjusted net income* of $3.1 billion was up 34 percent versus the prior year driven by $1.1 billion of adjusted segment operating profit growth* across all three segments, including $0.4 billion of IEEPA recovery. This growth was partially offset by higher taxes and lower pension income. Operating cash flow in the third quarter was $2.9 billion, including $0.3 billion of IEEPA recovery. Capital expenditures were $0.7 billion, resulting in free cash flow* of $2.1 billion.
2 Collins Aerospace third quarter 2026 reported and adjusted sales* of $8,382 million were up 10 percent versus the prior year. Excluding the impact of divestitures, sales increased 12 percent organically* driv en by a 23 percent increase in commercial OE, a 9 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, while the increase in commercial aftermarket sales was driven by growth in modifications and upgrades, provisioning, and parts and repair. The increase in defense sales was driven by higher volume across multiple programs.
Collins Aerospace reported operating profit of $1,789 million was up 42 percent versus the prior year. Reported operating profit in Q3 2025 included a gain on the sale of the actuation and flight control business. Adjusted operating profit* of $1,788 million was up 50 percent versus the prior year. The increase was driven by drop through on higher commercial volume, commercial mix, and approximately $250 million of IEEPA recovery.
Pratt & Whitney third quarter re ported and adjusted sales* of $9,231 million were up 10 percent versus the prior year. The sales growth was driven by a 21 percent increase in commercial aftermarket and a 2 percent increase in military, partially offset by a 5 percent decrease in commercial OE. The increase in commercial aftermarket was drive n by higher volume, primarily GTF, while the decrease in commercial OE was driven by large commercial engine mix. The increase in military was driven by higher volume across multiple programs, partially offset by the prior year benefit from contract award timing.
Pratt & Whitney reported operating profit of $608 million was down 19 percent versus the prior year. Reported operating profit included a charge of $363 million related to a customer bankruptcy. Adjusted operating profit* of $968 million was up 29 percent versus the prior year. The increase was driven by drop through on higher commercial aftermarket volume and approximately $160 million of IEEPA recovery. This growth was partially offset by large commercial OE mix, commercial aftermarket mix, and higher SG&A expense. 3 Raytheon
Raytheon third quarter reported and adjusted sales* of $8,031 million were up 14 percent versus the prior year. This increase was driven by higher v olume on naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk.
Raytheon reported operating profit of $1,133 million was u p 32 percent v ersus the prior year. Adjusted operating profit* of $1,134 million was up 32 percent versus the prior year. The increase was driven by improved net productivity, higher volume, and favorable mix, including Patriot programs. Productivity in the quarter included approximately $85 million of benefits associated with an international contract modification and a favorable adjustment related to an offset obligation.
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia. Conference Call on the Third Quarter 2026 Financial Results RTX’s financial results conference call will be held on Tuesday, October 20, 2026 at 8:30 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call. Use and Definitions of Non-GAAP Financial Measures
RTX Corporation (“RTX” or “the Company”) reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company’s ongoing business performance. Other companies may define non- GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in 4 accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non- GAAP financial measures:
Non-GAAP measure Definition Represents consolidated net sales (a GAAP measure), excluding net Adjusted net sales / Adjusted sales significant and/or non-recurring items1(hereinafter referred to as “net significant and/or non-recurring items”). Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of Organic sales foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items. Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition Adjusted operating profit (loss) and accounting adjustments2, and net margin percentage (ROS) 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) represents operating profit (loss) (a GAAP measure) excluding acquisition accounting adjustments2, the FAS/CAS operating adjustment3, Segment operating profit (loss) and Corporate expenses and other margin percentage (ROS) 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). Represents consolidated net sales (a Adjusted segment sales GAAP measure) excluding eliminations and other and net significant and/or non-recurring items. Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net Adjusted segment operating profit significant and/or non-recurring (loss) items. Adjusted segment operating and margin percentage (ROS) 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 represents net income (a GAAP measure), excluding Adjusted net income restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items. Adjusted EPS represents diluted earnings per share (a GAAP measure), Adjusted earnings per share (EPS) excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items. Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax Adjusted effective tax rate impact of restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items. 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 Free cash flow 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 5 margin percentage (ROS), adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Cautionary Statement Regarding Forward-Looking Statements This press release contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. These forward-looking statements are intended to provide RTX Corporation (“RTX”) management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid, and are not statements of historical fact. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “goals,” “objectives,” “confident,” “on track,” “designed to,” “commit,” “commitment” and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, targets and commitments (including for share repurchases or otherwise), and other statements which are not solely historical facts. All forward-looking statements involve risks, uncertainties, changes in circumstances and other factors that are hard to predict and each of which may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward- looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, as amended. Such risks, uncertainties and other factors include, without limitation: (1) changes in economic, capital market, and political conditions in the U.S. and globally; (2) changes in U.S. 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 the anticipated benefits; (5) the 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 RTX and the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order imposed on RTX, and the related investigations by the SEC and DOJ, the consent agreement between RTX and the Department of State, and the administrative agreement between RTX and the Department of the Navy; (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 6 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 personnel, or those of its suppliers or customers, as well as public health crises, damaging weather, acts of nature, or other similar events outside of RTX's control that may affect RTX or its suppliers or customers; (25) changes in accounting estimates for our programs on our financial results; (26) changes in pension and other postretirement plan estimates and assumptions and contributions; (27) an impairment of goodwill and other intangible assets; and (28) climate change and climate-related regulations, and 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. 7
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── (dollars in -Unaudited -Unaudited millions) Assets Cash and cash $ 9,173 $ 7,435 equivalents Accounts receivable, 14,681 14,701 net Contract 18,701 17,092 assets, net Inventory, net 14,953 13,364 Other assets, 8,561 7,740 current Total current 66,069 60,332 assets Customer financing 1,880 2,132 assets Fixed assets, 17,235 16,868 net Operating lease 1,770 1,887 right-of-use assets Goodwill 52,969 53,343 Intangible 30,652 31,845 assets, net Other assets 6,021 4,672 Total assets $ 176,596 $ 171,079 Liabilities, Redeemable Noncontrolling Interest, and Equity Short-term $ 210 $ 204 borrowings Accounts 17,803 15,895 payable Accrued employee 3,155 3,308 compensation Other accrued 14,801 14,350 liabilities Contract 21,550 21,615 liabilities Long-term debt 5,679 3,412 currently due Total current 63,198 58,784 liabilities Long-term debt 31,490 34,288 Operating lease 1,495 1,602 liabilities, non-current Future pension and postretirement 1,913 2,067 benefit obligations Other long-term 7,508 7,200 liabilities Total 105,604 103,941 liabilities Redeemable noncontrolling 28 36 interest Shareowners’ Equity: Common stock 38,673 38,126 Treasury stock -26,712 -26,881 Retained 60,597 56,718 earnings Accumulated other -3,308 -2,718 comprehensive loss Total shareowners’ 69,250 65,245 equity Noncontrolling 1,714 1,857 interest Total equity 70,964 67,102 Total liabilities, redeemable $ 176,596 $ 171,079 noncontrolling interest, and equity
(1) Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments. 13
(1) Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments. 14
(1) Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments. 15
Quarter Ended September 30, ────────────────────────────────────────────────────────────────────────────── -Unaudited (dollars in millions) 2026 2025 Net cash flows provided by operating $ 2,868 $ 4,639 activities Capital expenditures -749 -614 Free cash flow $ 2,119 $ 4,025 Nine Months Ended September 30, -Unaudited (dollars in millions) 2026 2025 Net cash flows provided by operating $ 8,270 $ 6,402 activities Capital expenditures -1,964 -1,657 Free cash flow $ 6,306 $ 4,745
(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.
(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. 17
Description The quarters and nine months ended September 30, 2026 and 2025 include separation costs incurred in advance of the completion of certain divestitures. The quarter and nine months ended September 30, 2026 include a net pre-tax charge of approximately $0.4 billion related to a customer bankruptcy at Pratt & Whitney. The nine months ended September 30, 2025 includes a net pre-tax charge of approximately $0.1 billion related to a customer bankruptcy at Pratt & Whitney. The charges primarily relate to contract asset exposures with specific customers. Management has determined that the nature and Non-GAAP Adjustments significance of these charges is Portfolio transformation and considered unusual and, therefore, divestiture costs not indicative of the Company’s Customer bankruptcy ongoing operational performance. ────────────────────────────────────────────────────────────────────────────── The quarters and nine months ended September 30, 2025 include a pre-tax gain, net of transaction and other related costs, of $0.1 billion associated with the completed sale Gain on sale of businesses, net of of the actuation and flight control transaction and other related costs business at Collins. Management has determined that the nature of the net gain on this divestiture is considered significant and non-operational and, therefore, not indicative of the Company’s ongoing operational performance. The quarter and nine months ended September 30, 2026 include a pre-tax gain of $159 million and $229 million, respectively, related to the increase in fair value on certain investments. The nine months ended September 30, 2025 includes a Gains on investments pre-tax gain of $41 million related to the increase in fair value on an investment. Management has determined that the nature of the gains on these investments is considered significant and non-operational and, therefore, not indicative of the Company’s ongoing operational performance. The nine months ended September 30, 2025 includes a tax benefit of $59 million and a pre-tax benefit on the Tax audit settlements and closures reversal of $54 million of interest accruals both recognized as a result of the closure of the examination phase of multiple state tax audits.
Full text with the tables
Exhibit 99
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RTX Reports Q3 2026 Results
Strong operational performance drives double-digit sales and earnings growth in
Q3;
Raises 2026 outlook for adjusted sales,* adjusted EPS,* and free cash flow*
ARLINGTON, Va., October 20, 2026 – RTX (NYSE: RTX) reports third quarter 2026
results.
Third quarter 2026
• Sales of $25.0 billion, up 11 percent versus prior year, and up 12 percent
organically*
• GAAP EPS of $1.89, including $0.26 of acquisition accounting adjustments and
$0.11 of restructuring and other net significant and/or non-recurring items
• Adjusted EPS* of $2.26, up $0.56, or 33 percent, versus prior year, including
$0.25 from IEEPA cost recovery
• Operating cash flow of $2.9 billion, including approximately $0.3 billion from
IEEPA recovery; free cash flow* of $2.1 billion
• Company backlog of $340 billion, including $176 billion of commercial and $164
billion of defense
• Awarded Tomahawk and AMRAAM multi-year undefinitized production contracts in
the third quarter
Updates outlook for full year 2026
• Adjusted sales* of $97.0 - $97.5 billion, up from $95.0 - $96.0 billion
• Organic sales growth* of 10 to 11 percent, up from 8 to 9 percent
• Adjusted EPS* of $7.65 - $7.75, up from $7.10 - $7.25
• Free cash flow* of $9.0 - $9.2 billion, up from $8.50 - $8.75 billion
“Our strong execution and operational focus in the third quarter enabled RTX to
deliver double-digit organic sales growth* across commercial aerospace and
defense. Demand for our products remains robust with over $81 billion of new
commercial and defense awards, resulting in a record backlog of $340 billion,”
said RTX Chairman and CEO Chris Calio.
“Given our performance year to date, we are again raising our full year outlook
for adjusted sales,* adjusted EPS,* and free cash flow.* We remain focused on
increasing output, optimizing our cost structure, and investing in new
technologies to support our customers and drive continued growth.”
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 G AAP 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
litigati on, 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.
IEEPA = International Emergency Economic Powers Act.
Third quarter 2026
RTX third quarter reported and adjusted sales* were $25.0 billion, up 11 percent
versus the prior year and 12 percent organically.* GAAP EPS of $1.89 included
$0.26 of acquisition accounting adjustments and $0.11 of restructuring and other
net significant and/or non-recurring items. Adjusted EPS* of $2.26 was up 33
percent versus the prior year, including $0.25 of IEEPA recovery.
The company reported net income attributable to common shareowners in the third
quarter of $2.6 billion, which included $0.3 billion of acquisition accounting
adjustments and $0.2 billion of restructuring and other net significant and/or
non-recurring items. Adjusted net income* of $3.1 billion was up 34 percent
versus the prior year driven by $1.1 billion of adjusted segment operating
profit growth* across all three segments, including $0.4 billion of IEEPA
recovery. This growth was partially offset by higher taxes and lower pension
income. Operating cash flow in the third quarter was $2.9 billion, including
$0.3 billion of IEEPA recovery. Capital expenditures were $0.7 billion,
resulting in free cash flow* of $2.1 billion.
Summary Financial Results
($ in millions,
except EPS) 3rd Quarter
Reported 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Sales $ 24,965 $ 22,478 11 %
Net Income $ 2,583 $ 1,918 35 %
EPS $ 1.89 $ 1.41 34 %
Adjusted*
Sales $ 24,965 $ 22,478 11 %
Net Income $ 3,091 $ 2,311 34 %
EPS $ 2.26 $ 1.70 33 %
Operating Cash $ 2,868 $ 4,639 -38 %
Flow
Free Cash Flow* $ 2,119 $ 4,025 -47 %
Segment Results
Collins Aerospace
($ in
millions) 3rd Quarter
Reported 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Sales $ 8,382 $ 7,621 10 %
Operating $ 1,789 $ 1,260 42 %
Profit
ROS 21.3 % 16.5 % 480 bps
Adjusted*
Sales $ 8,382 $ 7,621 10 %
Operating $ 1,788 $ 1,194 50 %
Profit
ROS 21.3 % 15.7 % 560 bps
2
Collins Aerospace third quarter 2026 reported and adjusted sales* of $8,382
million were up 10 percent versus the prior year. Excluding the impact of
divestitures, sales increased 12 percent organically* driv en by a 23 percent
increase in commercial OE, a 9 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, while the increase in
commercial aftermarket sales was driven by growth in modifications and upgrades,
provisioning, and parts and repair. The increase in defense sales was driven by
higher volume across multiple programs.
Collins Aerospace reported operating profit of $1,789 million was up 42 percent
versus the prior year. Reported operating profit in Q3 2025 included a gain on
the sale of the actuation and flight control business. Adjusted operating
profit* of $1,788 million was up 50 percent versus the prior year. The increase
was driven by drop through on higher commercial volume, commercial mix, and
approximately $250 million of IEEPA recovery.
Pratt & Whitney
($ in 3rd
millions) Quarter
Reported 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Sales $ 9,231 $ 8,423 10 %
Operating $ 608 $ 751 -19 %
Profit
ROS 6.6 % 8.9 % -230 bps
Adjusted*
Sales $ 9,231 $ 8,423 10 %
Operating $ 968 $ 751 29 %
Profit
ROS 10.5 % 8.9 % 160 bps
Pratt & Whitney third quarter re ported and adjusted sales* of $9,231 million
were up 10 percent versus the prior year. The sales growth was driven by a 21
percent increase in commercial aftermarket and a 2 percent increase in military,
partially offset by a 5 percent decrease in commercial OE. The increase in
commercial aftermarket was drive n by higher volume, primarily GTF, while the
decrease in commercial OE was driven by large commercial engine mix. The
increase in military was driven by higher volume across multiple programs,
partially offset by the prior year benefit from contract award timing.
Pratt & Whitney reported operating profit of $608 million was down 19 percent
versus the prior year. Reported operating profit included a charge of $363
million related to a customer bankruptcy. Adjusted operating profit* of $968
million was up 29 percent versus the prior year. The increase was driven by drop
through on higher commercial aftermarket volume and approximately $160 million
of IEEPA recovery. This growth was partially offset by large commercial OE mix,
commercial aftermarket mix, and higher SG&A expense.
3
Raytheon
($ in
millions) 3rd Quarter
Reported 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Sales $ 8,031 $ 7,045 14 %
Operating $ 1,133 $ 859 32 %
Profit
ROS 14.1 % 12.2 % 190 bps
Adjusted*
Sales $ 8,031 $ 7,045 14 %
Operating $ 1,134 $ 859 32 %
Profit
ROS 14.1 % 12.2 % 190 bps
Raytheon third quarter reported and adjusted sales* of $8,031 million were up 14
percent versus the prior year. This increase was driven by higher v olume on
naval programs and land and air defense systems, including Patriot, Standard
Missile, and Tomahawk.
Raytheon reported operating profit of $1,133 million was u p 32 percent v ersus
the prior year. Adjusted operating profit* of $1,134 million was up 32 percent
versus the prior year. The increase was driven by improved net productivity,
higher volume, and favorable mix, including Patriot programs. Productivity in
the quarter included approximately $85 million of benefits associated with an
international contract modification and a favorable adjustment related to an
offset obligation.
About RTX
With more than 180,000 global employees, we push the limits of technology and
science to redefine how we connect and protect our world. With industry-leading
capabilities, we advance aviation, engineer integrated defense systems for
operational success, and develop next-generation technology solutions and
manufacturing to help global customers address their most critical challenges.
The company, with 2025 sales of more than $88 billion, is headquartered in
Arlington, Virginia.
Conference Call on the Third Quarter 2026 Financial Results
RTX’s financial results conference call will be held on Tuesday, October 20,
2026 at 8:30 a.m. ET. The conference call will be webcast live on the company's
website at www.rtx.com and will be available for replay following the call. The
corresponding presentation slides will be available for downloading prior to the
call.
Use and Definitions of Non-GAAP Financial Measures
RTX Corporation (“RTX” or “the Company”) reports its financial results in
accordance with accounting principles generally accepted in the United States
(“GAAP”). We supplement the reporting of our financial information determined
under GAAP with certain non-GAAP financial information. The non-GAAP information
presented provides investors with additional useful information but should not
be considered in isolation or as substitutes for the related GAAP measures. We
believe that these non-GAAP measures provide investors with additional insight
into the Company’s ongoing business performance. Other companies may define non-
GAAP measures differently, which limits the usefulness of these measures for
comparisons with such other companies. We encourage investors to review our
financial statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. A reconciliation of the non-GAAP measures
to the corresponding amounts prepared in
4
accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP
financial adjustments are also described in this Appendix. Below are our non-
GAAP financial measures:
Non-GAAP measure Definition
Represents consolidated net sales (a
GAAP measure), excluding net
Adjusted net sales / Adjusted sales significant and/or non-recurring
items1(hereinafter referred to as
“net significant and/or
non-recurring items”).
Organic sales represents the change
in consolidated net sales (a GAAP
measure), excluding the impact of
Organic sales foreign currency translation,
acquisitions and divestitures
completed in the preceding twelve
months and net significant and/or
non-recurring items.
Adjusted operating profit (loss)
represents operating profit (loss)
(a GAAP measure), excluding
restructuring costs, acquisition
Adjusted operating profit (loss) and accounting adjustments2, and net
margin percentage (ROS) 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)
represents operating profit (loss)
(a GAAP measure) excluding
acquisition accounting adjustments2,
the FAS/CAS operating adjustment3,
Segment operating profit (loss) and Corporate expenses and other
margin percentage (ROS) 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).
Represents consolidated net sales (a
Adjusted segment sales GAAP measure) excluding eliminations
and other and net significant and/or
non-recurring items.
Adjusted segment operating profit
(loss) represents segment operating
profit (loss) excluding
restructuring costs, and net
Adjusted segment operating profit significant and/or non-recurring
(loss) items. Adjusted segment operating
and margin percentage (ROS) 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 represents net
income (a GAAP measure), excluding
Adjusted net income restructuring costs, acquisition
accounting adjustments2, and net
significant and/or non-recurring
items.
Adjusted EPS represents diluted
earnings per share (a GAAP measure),
Adjusted earnings per share (EPS) excluding restructuring costs,
acquisition accounting adjustments2,
and net significant and/or
non-recurring items.
Adjusted effective tax rate
represents the effective tax rate (a
GAAP measure), excluding the tax
Adjusted effective tax rate impact of restructuring costs,
acquisition accounting adjustments2,
and net significant and/or
non-recurring items.
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
Free cash flow 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
5
margin percentage (ROS), adjusted EPS, adjusted effective tax rate, and free
cash flow, on a forward-looking basis, a reconciliation of the differences
between the non-GAAP expectations and the corresponding GAAP measures, as
described above, generally are not available without unreasonable effort due to
potentially high variability, complexity, and low visibility as to the items
that would be excluded from the GAAP measure in the relevant future period, such
as unusual gains and losses, the ultimate outcome of pending litigation,
fluctuations in foreign currency exchange rates, the impact and timing of
potential acquisitions and divestitures, and other structural changes or their
probable significance. The variability of the excluded items may have a
significant, and potentially unpredictable, impact on our future GAAP results.
Cautionary Statement Regarding Forward-Looking Statements This press release
contains statements which, to the extent they are not statements of historical
or present fact, constitute “forward-looking statements” under the securities
laws. These forward-looking statements are intended to provide RTX Corporation
(“RTX”) management's current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to be valid, and
are not statements of historical fact. Forward-looking statements can be
identified by the use of words such as “believe,” “expect,” “expectations,”
“plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,”
“will,” “should,” “see,” “guidance,” “outlook,” “goals,” “objectives,”
“confident,” “on track,” “designed to,” “commit,” “commitment” and other words
of similar meaning. Forward-looking statements may include, among other things,
statements relating to future sales, earnings, cash flow, results of operations,
uses of cash, share repurchases, tax payments and rates, research and
development spending, cost savings, other measures of financial performance,
potential future plans, strategies or transactions, credit ratings and net
indebtedness, the Pratt powder metal matter and related matters and activities,
including without limitation other engine models that may be impacted, targets
and commitments (including for share repurchases or otherwise), and other
statements which are not solely historical facts. All forward-looking statements
involve risks, uncertainties, changes in circumstances and other factors that
are hard to predict and each of which may cause actual results to differ
materially from those expressed or implied in the forward-looking statements.
For those statements, we claim the protection of the safe harbor for forward-
looking statements contained in the U.S. Private Securities Litigation Reform
Act of 1995, as amended. Such risks, uncertainties and other factors include,
without limitation: (1) changes in economic, capital market, and political
conditions in the U.S. and globally; (2) changes in U.S. 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 the anticipated benefits; (5) the 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 RTX and the Department of
Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order
imposed on RTX, and the related investigations by the SEC and DOJ, the consent
agreement between RTX and the Department of State, and the administrative
agreement between RTX and the Department of the Navy; (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
6
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
personnel, or those of its suppliers or customers, as well as public health
crises, damaging weather, acts of nature, or other similar events outside of
RTX's control that may affect RTX or its suppliers or customers; (25) changes in
accounting estimates for our programs on our financial results; (26) changes in
pension and other postretirement plan estimates and assumptions and
contributions; (27) an impairment of goodwill and other intangible assets; and
(28) climate change and climate-related regulations, and 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.
7
RTX Corporation
Condensed Consolidated Statement of Operations
Nine
Quar… Mont…
Ended Ended
Sept… Sept…
30, 30,
──────────────────────────────────────────────────────────────────────────────
-Una… -Una…
(do…
in
mil…
exc…
per 2026 2025 2026 2025
sha…
amo…
sha…
in
mil…
Net $ 24,9… $ 22,4… $ 71,7… $ 64,365
Sal…
Cos…
and
exp…
Cost
of 19,1… 17,8… 56,2… 51,293
sales
Rese…
and 711 684 2,064 2,018
deve…
Sell…
gene… 1,918 1,436 5,052 4,457
and
admi…
Total
costs 21,7… 20,0… 63,3… 57,768
and
expe…
Oth…
inc… 161 63 287 107
net
Ope… 3,337 2,523 8,703 6,704
pro…
Non-…
pens… -345 -364 -1,0… -1,081
inco…
Inte…
expe… 381 449 1,188 1,349
net
Inc…
bef… 3,301 2,438 8,563 6,436
inc…
tax…
Inco…
tax 593 432 1,449 1,080
expe…
Net 2,708 2,006 7,114 5,356
inc…
Less:
Nonc…
inte… 125 88 333 246
in
subs…
earn…
Net
inc…
att… $ 2,583 $ 1,918 $ 6,781 $ 5,110
to
com…
sha…
Ear…
Per
Sha…
att…
to
com…
sha…
Basic $ 1.91 $ 1.43 $ 5.02 $ 3.81
Dilu… $ 1.89 $ 1.41 $ 4.96 $ 3.77
Wei…
Ave…
Sha…
Out…
Basic 1,35… 1,34… 1,35… 1,340…
shar…
Dilu… 1,36… 1,35… 1,36… 1,354…
shar…
8
RTX Corporation
Segment Net Sales and Operating Profit (Loss)
…
… …
… …
──────────────────────────────────────────────────────────────────────────────
… …
… … … …
… … … …
… … … …
… … … … … … …
$ … $ … $ … $ … $ … $ … $ …
… … … … … … …
… … … … … … …
… … … … … … …
… … … … … … …
$ … $ … $ … $ … $ … $ … $ …
$ … $ … $ … $ … $ … $ … $ …
… … … … … … …
… … … … … … …
… … … … … … …
… … … … … … …
… … … … … … …
… … … … … … …
… — … — … — —
$ … $ … $ … $ … $ … $ … $ …
… % … % … % … % … % … % …
… % … % … % … % … % … % …
… % … % … % … % … % … % …
… % … % … % … % … % … % …
9
RTX Corporation
Condensed Consolidated Balance Sheet
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
(dollars in -Unaudited -Unaudited
millions)
Assets
Cash and cash $ 9,173 $ 7,435
equivalents
Accounts
receivable, 14,681 14,701
net
Contract 18,701 17,092
assets, net
Inventory, net 14,953 13,364
Other assets, 8,561 7,740
current
Total current 66,069 60,332
assets
Customer
financing 1,880 2,132
assets
Fixed assets, 17,235 16,868
net
Operating
lease 1,770 1,887
right-of-use
assets
Goodwill 52,969 53,343
Intangible 30,652 31,845
assets, net
Other assets 6,021 4,672
Total assets $ 176,596 $ 171,079
Liabilities,
Redeemable
Noncontrolling
Interest, and
Equity
Short-term $ 210 $ 204
borrowings
Accounts 17,803 15,895
payable
Accrued
employee 3,155 3,308
compensation
Other accrued 14,801 14,350
liabilities
Contract 21,550 21,615
liabilities
Long-term debt 5,679 3,412
currently due
Total current 63,198 58,784
liabilities
Long-term debt 31,490 34,288
Operating
lease 1,495 1,602
liabilities,
non-current
Future pension
and
postretirement 1,913 2,067
benefit
obligations
Other
long-term 7,508 7,200
liabilities
Total 105,604 103,941
liabilities
Redeemable
noncontrolling 28 36
interest
Shareowners’
Equity:
Common stock 38,673 38,126
Treasury stock -26,712 -26,881
Retained 60,597 56,718
earnings
Accumulated
other -3,308 -2,718
comprehensive
loss
Total
shareowners’ 69,250 65,245
equity
Noncontrolling 1,714 1,857
interest
Total equity 70,964 67,102
Total
liabilities,
redeemable $ 176,596 $ 171,079
noncontrolling
interest, and
equity
10
RTX Corporation
Condensed Consolidated Statement of Cash Flows
Nine
Quarter Months
Ended Ended
Septem… Septem…
30, 30,
──────────────────────────────────────────────────────────────────────────────
-Unaud… -Unaud…
(doll…
in 2026 2025 2026 2025
milli…
Opera…
Activ…
Net $ 2,708 $ 2,006 $ 7,114 $ 5,356
income
Adjus…
to
recon…
net
income
to
net
cash
flows
provi…
by
opera…
activ…
from:
Depre…
and 1,068 1,091 3,218 3,219
amort…
Defer…
income 90 477 60 598
tax
provi…
Stock
compe… 159 113 455 337
cost
Net
perio…
pensi…
and -304 -320 -920 -956
other
postr…
income
Share…
401(k) 135 128 474 435
match…
contr…
Change
in:
Accou… -717 -351 377 -1,488
recei…
Contr… -242 -934 -2,184 -2,124
assets
Inven… -543 182 -1,686 -1,015
Other
curre… -552 -879 -974 -979
assets
Accou…
payab…
and 1,806 2,237 2,753 2,096
accru…
liabi…
Contr… -980 986 -688 1,329
liabi…
Other
opera… 240 -97 271 -406
activ…
net
Net
cash
flows
provi… 2,868 4,639 8,270 6,402
by
opera…
activ…
Inves…
Activ…
Capit… -749 -614 -1,964 -1,657
expen…
Dispo…
of
busin… — 1,188 — 1,188
net of
cash
trans…
Incre…
in
other -73 -121 -229 -347
intan…
assets
Recei…
from
settl…
of 7 42 8 187
deriv…
contr…
net
Other
inves… -42 -24 -224 -87
activ…
net
Net
cash
flows
(used
in) -857 471 -2,409 -716
provi…
by
inves…
activ…
Finan…
Activ…
Repay…
of -2 -1,500 -526 -2,289
long-…
debt
Change
in
comme… — -1,432 — —
paper,
net
Divid… -984 -910 -2,882 -2,660
paid
Repur…
of — — — -50
common
stock
Other
finan… -190 -81 -677 -333
activ…
net
Net
cash
flows
used -1,176 -3,923 -4,085 -5,332
in
finan…
activ…
Effect
of
forei…
excha…
rate
chang… 3 -10 -16 44
on
cash
and
cash
equiv…
Net
incre…
in
cash,
cash 838 1,177 1,760 398
equiv…
and
restr…
cash
Cash,
cash
equiv…
and
restr… 8,392 4,827 7,470 5,606
cash,
begin…
of
period
Cash,
cash
equiv…
and 9,230 6,004 9,230 6,004
restr…
cash,
end of
period
Less:
Restr…
cash,
inclu…
in
Other 57 38 57 38
asset…
curre…
and
Other
assets
Cash
and
cash $ 9,173 $ 5,966 $ 9,173 $ 5,966
equiv…
end of
period
11
RTX Corporation
Reconciliation of Adjusted (Non-GAAP) Results
Adjusted Sales, Adjusted Operating Profit (Loss) & Operating Profit (Loss)
Margin
Nine
Quar… Mont…
Ended Ended
Sept… Sept…
30, 30,
──────────────────────────────────────────────────────────────────────────────
-Una… -Una…
(do…
in
mil… 2026 2025 2026 2025
-
Inc…
(Ex…
Col…
Aer…
Net $ 8,382 $ 7,621 $ 24,194 $ 22,4…
sal…
Ope… $ 1,789 $ 1,260 $ 4,402 $ 3,521
pro…
Res… 6 -17 -49 -169
Gain
on
sale
of
bus…
net — 95 — 95
of
tra…
and
oth…
rel…
cos…
Por…
tra…
and -5 -12 -5 -75
div…
cos…
Adj…
ope… $ 1,788 $ 1,194 $ 4,456 $ 3,670
pro…
Adj…
ope… 21.3% 15.7% 18.4% 16.3%
pro…
mar…
Pra…
&
Whi…
Net $ 9,231 $ 8,423 $ 26,293 $ 23,4…
sal…
Ope… $ 608 $ 751 $ 2,056 $ 1,823
pro…
Res… 3 — — -18
Cus… -363 — -363 -108
ban…
Adj…
ope… $ 968 $ 751 $ 2,419 $ 1,949
pro…
Adj…
ope… 10.5% 8.9% 9.2% 8.3%
pro…
mar…
Ray…
Net $ 8,031 $ 7,045 $ 23,245 $ 20,3…
sal…
Ope… $ 1,133 $ 859 $ 3,016 $ 2,342
pro…
Res… -1 — -6 -4
Adj…
ope… $ 1,134 $ 859 $ 3,022 $ 2,346
pro…
Adj…
ope… 14.1% 12.2% 13.0% 11.5%
pro…
mar…
Eli…
and
Oth…
Net $ -679 $ -611 $ -1,983 $ -1,9…
sal…
Ope… $ 110 $ -14 $ 246 $ 22
pro…
Gai…
on 159 — 229 41
inv…
Adj…
ope… $ -49 $ -14 $ 17 $ -19
pro…
(lo…
Cor…
exp…
and
oth…
una…
ite…
Ope… $ -26 $ -25 $ -138 $ -110
loss
Res… -1 -2 -10 -11
Tax
aud…
set… — — — -5
and
clo…
Lit… — — -69 —
mat…
Adj…
ope… $ -25 $ -23 $ -59 $ -94
pro…
(lo…
FAS…
Ope…
Adj…
Ope… $ 171 $ 199 $ 514 $ 570
pro…
Acq…
Acc…
Adj…
Ope… $ -448 $ -507 $ -1,393 $ -1,4…
loss
Acq…
acc… -448 -507 -1,393 -1,4…
adj…
Adj…
ope… $ — $ — $ — $ —
loss
RTX
Con…
Net $ 24,9… $ 22,478 $ 71,749 $ 64,3…
sal…
Ope… $ 3,337 $ 2,523 $ 8,703 $ 6,704
pro…
Res… 7 -19 -65 -202
Acq…
acc… -448 -507 -1,393 -1,4…
adj…
12
Total net
significant and/or
non-recurring items
included in
Operating profit
above(1) (209) 83 (208) (52)
──────────────────────────────────────────────────────────────────────────────
Adjusted operating $ 3,987 $ 2,966 $ 10,369 $ 8,422
profit
(1) Refer to “Non-GAAP Financial Adjustments” below for a description of these
adjustments.
13
RTX Corporation
Reconciliation of Adjusted (Non-GAAP) Results
Adjusted Income, Earnings Per Share, and Effective Tax Rate
Nine
Quar… Mont…
Ended Ended
Sept… Sept…
30, 30,
──────────────────────────────────────────────────────────────────────────────
-Una… -Una…
(do…
in
mil… 2026 2025 2026 2025
-
Inc…
(Ex…
Net
inc…
att… $ 2,583 $ 1,918 $ 6,781 $ 5,110
to
com…
sha…
Tot… 7 -19 -65 -202
Res…
Tot…
Acq… -448 -507 -1,393 -1,4…
acc…
adj…
Tot…
net
sig…
and…
non… -209 83 -208 -52
ite…
inc…
in
Ope…
pro…
Sig…
and…
non…
ite…
inc…
in
Non…
Pen…
Inc…
Non…
pen… -3 — -7 —
res…
Sig…
non…
and
non…
ite…
inc…
in
Int…
Exp…
Net
Tax
aud…
set… — — — 54
and
clo…
Int…
tax — — — -35
mat…
Tax
eff…
of
res…
and
net 145 50 359 330
sig…
and…
non…
ite…
abo…
Sig…
and…
non…
ite…
inc…
in
Inc…
Tax
Exp…
Tax
aud…
set… — — — 59
and
clo…
Les…
Imp…
on
net
inc… -508 -393 -1,314 -1,3…
att…
to
com…
sha…
Adj…
net
inc…
att… $ 3,091 $ 2,311 $ 8,095 $ 6,420
to
com…
sha…
Dil…
Ear… $ 1.89 $ 1.41 $ 4.96 $ 3.77
Per
Sha…
Imp…
on
Dil… -0.37 -0.29 -0.97 -0.97
Ear…
Per
Sha…
Adj…
Dil…
Ear… $ 2.26 $ 1.70 $ 5.93 $ 4.74
Per
Sha…
Eff…
Tax 18.0% 17.7% 16.9% 16.8%
Rate
Imp…
on
Eff… (0.7)% 1.0% (0.8)% (1.3…
Tax
Rate
Adj…
Eff… 18.7% 16.7% 17.7% 18.1%
Tax
Rate
(1) Refer to “Non-GAAP Financial Adjustments” below for a description of these
adjustments.
14
RTX Corporation
Reconciliation of Adjusted (Non-GAAP) Results
Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin
Nine
Quar… Mon…
Ended End…
Sept… Sep…
30, 30,
──────────────────────────────────────────────────────────────────────────────
-Una… -Una…
(do…
in 2026 2025 2026 2025
mil…
Net $ 24,9… $ 22,… $ 71,… $ 64,3…
Sal…
Rec…
to
seg…
net
sal…
Eli…
and 679 611 1,9… 1,901
oth…
Seg…
Net $ 25,6… $ 23,… $ 73,… $ 66,2…
Sal…
Ope… $ 3,337 $ 2,5… $ 8,7… $ 6,704
Pro…
Ope…
Pro… 13.4 % 11.2 % 12.1 % 10.4 %
Mar…
Rec…
to
seg…
ope…
pro…
Eli…
and -110 14 -246 -22
oth…
Cor…
exp…
and 26 25 138 110
oth…
una…
ite…
FAS…
ope… -171 -199 -514 -570
adj…
Acq…
acc… 448 507 1,3… 1,464
adj…
Seg…
Ope… $ 3,530 $ 2,8… $ 9,4… $ 7,686
Pro…
Seg…
Ope… 13.8 % 12.4 % 12.8 % 11.6 %
Pro…
Mar…
Rec…
to
adj…
seg…
ope…
pro…
Res… 8 -17 -55 -191
Net
sig…
and… -368 83 -368 -88
non…
ite…
Adj…
Seg… $ 3,890 $ 2,8… $ 9,8… $ 7,965
Ope…
Pro…
Adj…
Seg…
Ope… 15.2 % 12.1 % 13.4 % 12.0 %
Pro…
Mar…
(1) Refer to “Non-GAAP Financial Adjustments” below for a description of these
adjustments.
15
RTX Corporation
Free Cash Flow Reconciliation
Quarter Ended
September 30,
──────────────────────────────────────────────────────────────────────────────
-Unaudited
(dollars in millions) 2026 2025
Net cash flows
provided by operating $ 2,868 $ 4,639
activities
Capital expenditures -749 -614
Free cash flow $ 2,119 $ 4,025
Nine Months Ended
September 30,
-Unaudited
(dollars in millions) 2026 2025
Net cash flows
provided by operating $ 8,270 $ 6,402
activities
Capital expenditures -1,964 -1,657
Free cash flow $ 6,306 $ 4,745
16
RTX Corporation
Reconciliation of Adjusted (Non-GAAP) Results
Organic Sales Reconciliation
Qu…
en…
Se…
30,
20…
co…
to
the
Qu…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
-U…
Or…
Ac… FX Pr… Ch…
(… To… & / Or… Ye… as
in Re… Di… Ot… Ch… Ad… a %
m… Ch… Ch… Ch… Sa… of
Ad…
Sa…
C… $ 761 $ -1… $ -8 $ 907 $ 7,6… 12 %
A…
P…
& 808 — -8 816 8,4… 10 %
W…
R… 986 — 6 980 7,0… 14 %
E…
a… -68 14 10 -92 -611 15 %
O…
C… $ 2,… $ -1… $ — $ 2,… $ 22,… 12 %
(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.
Ni…
Mo…
En…
Se…
30,
20…
co…
to
the
Ni…
Mo…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
-U…
Or…
Ac… FX Pr… Ch…
(… To… & / Or… Ye… as
in Re… Di… Ot… Ch… Ad… a %
m… Ch… Ch… Ch… Sa… of
Ad…
Sa…
C… $ 1,… $ -9… $ 43 $ 2,… $ 22… 12 %
A…
P…
& 2,… — 13 2,… 23… 12 %
W…
R… 2,… — 35 2,… 20… 14 %
E…
a… -82 40 -21 -1… -1… 5 %
O…
C… $ 7,… $ -8… $ 70 $ 8,… $ 64… 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.
17
Non-GAAP Financial Adjustments
Description
The quarters and nine months ended
September 30, 2026 and 2025 include
separation costs incurred in advance
of the completion of certain
divestitures.
The quarter and nine months ended
September 30, 2026 include a net
pre-tax charge of approximately $0.4
billion related to a customer
bankruptcy at Pratt & Whitney. The
nine months ended September 30, 2025
includes a net pre-tax charge of
approximately $0.1 billion related
to a customer bankruptcy at Pratt &
Whitney. The charges primarily
relate to contract asset exposures
with specific customers. Management
has determined that the nature and
Non-GAAP Adjustments significance of these charges is
Portfolio transformation and considered unusual and, therefore,
divestiture costs not indicative of the Company’s
Customer bankruptcy ongoing operational performance.
──────────────────────────────────────────────────────────────────────────────
The quarters and nine months ended
September 30, 2025 include a pre-tax
gain, net of transaction and other
related costs, of $0.1 billion
associated with the completed sale
Gain on sale of businesses, net of of the actuation and flight control
transaction and other related costs business at Collins. Management has
determined that the nature of the
net gain on this divestiture is
considered significant and
non-operational and, therefore, not
indicative of the Company’s ongoing
operational performance.
The quarter and nine months ended
September 30, 2026 include a pre-tax
gain of $159 million and $229
million, respectively, related to
the increase in fair value on
certain investments. The nine months
ended September 30, 2025 includes a
Gains on investments pre-tax gain of $41 million related
to the increase in fair value on an
investment. Management has
determined that the nature of the
gains on these investments is
considered significant and
non-operational and, therefore, not
indicative of the Company’s ongoing
operational performance.
The nine months ended September 30,
2025 includes a tax benefit of $59
million and a pre-tax benefit on the
Tax audit settlements and closures reversal of $54 million of interest
accruals both recognized as a result
of the closure of the examination
phase of multiple state tax audits.
18