RTX Corp

Previous wording

We operate in three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. Raytheon follows a fiscal calendar, while Collins and Pratt & Whitney use calendar quarter ends. Throughout this Form 10-Q, references to the quarters and six months ended June 30, 2026 and 2025 for Raytheon correspond to its fiscal quarter ends of June 28, 2026 and June 29, 2025, respectively.

Current wording

We operate in three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. Raytheon follows a fiscal calendar, while Collins and Pratt & Whitney use calendar quarter ends. Throughout this Form 10-Q, references to the periods as of September 30, 2026 and 2025, and to the quarters and nine months ended September 30, 2026 and 2025 for Raytheon correspond to its fiscal quarter ends of September 27, 2026 and September 28, 2025, respectively.

Previous wording

Global Supply Chain. We are dependent on a global supply chain and have experienced supply chain disruptions that resulted in delays and increased costs and adversely affected our performance. These disruptions impacted our ability to procure raw materials, including certain rare earth elements, microelectronics, and certain commodities on a timely basis and/or at expected prices, and are driven by supply chain market constraints and macroeconomic conditions, including inflation and labor market shortages. Current geopolitical conditions, including conflicts and other causes of strained intercountry relations, as well as sanctions and other trade restrictive activities, such as tariffs and export controls, are contributing to these issues. Furthermore, our suppliers and subcontractors have been impacted by these same issues. We have implemented actions and programs to mitigate some of the impacts but anticipate supply chain disruptions to continue.

Current wording

Global Supply Chain. We are dependent on a global supply chain and have experienced supply chain disruptions that resulted in delays and increased costs and adversely affected our performance. These disruptions have impacted our ability to procure raw materials, including certain rare earth elements, microelectronics, and certain commodities on a timely basis and/or at expected prices, and are driven by supply chain market constraints and macroeconomic conditions, including inflation and labor market shortages. Current geopolitical conditions, including conflicts and other causes of strained intercountry relations, as well as sanctions and other trade restrictive activities, such as tariffs and export controls, are contributing to these issues. Furthermore, our suppliers and subcontractors have been impacted by these same issues. We have implemented actions and programs to mitigate some of the impacts but anticipate supply chain disruptions to continue.

Previous wording

The global trade environment is highly dynamic. Since February 2025, the U.S. government has imposed tariffs on imports from all countries with which the U.S. engages in trade. In response, certain countries have announced, and in some cases imposed, tariffs, and non-tariff countermeasures on goods that are imported from the U.S. Our businesses and suppliers import goods subject to U.S. imposed tariffs, as well as goods subject to counter tariffs imposed by other countries. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the United States were unauthorized. The Company is the importer of record for certain products that were previously subject to IEEPA tariffs and has paid approximately $0.5 billion of such tariffs since their inception. The U.S. Court of International Trade (CIT) has ordered U.S. Customs and Border Protection (CBP) to refund the collected IEEPA tariffs. On April 20, 2026, CBP established an online portal through which companies can submit certain IEEPA tariff refund requests. On June 2, 2026, the U.S. government appealed the CIT’s order to issue refunds, however, the precise basis and scope of this appeal is currently unknown. As of June 30, 2026, the Company has submitted refund claims and has received and recognized an immaterial amount of refunds. The Company expects to submit additional refund claims and will recognize refunds if and when approved. Following the Supreme Court’s ruling invalidating IEEPA tariffs, the U.S. government imposed new and revised tariffs under various available regimes which may apply to certain products for which the Company is the importer of record.

Current wording

The global trade environment is highly dynamic. Since February 2025, the U.S. government has imposed tariffs on imports from all countries with which the U.S. engages in trade. In response, certain countries have announced, and in some cases imposed, tariffs, and non-tariff countermeasures on goods that are imported from the U.S. Our businesses and suppliers import goods subject to U.S. imposed tariffs, as well as goods subject to counter tariffs imposed by other countries. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the United States were unauthorized. The Company is the importer of record for certain products that were previously subject to IEEPA tariffs and has paid approximately $0.5 billion of such tariffs since their inception. The U.S. Court of International Trade (CIT) has ordered U.S. Customs and Border Protection (CBP) to refund the collected IEEPA tariffs. On April 20, 2026, CBP established an online portal through which companies can submit certain IEEPA tariff refund requests. On June 2, 2026, the U.S. government appealed the CIT’s order to issue refunds, however, the appeal has not prevented importers from submitting claims and receiving refunds to-date. As of September 30, 2026, the Company has submitted claims and recognized approximately $0.4 billion of approved refunds of which approximately $0.3 billion has been received. Following the Supreme Court’s ruling invalidating IEEPA tariffs, the U.S. government imposed new and revised tariffs under various available regimes which may apply to certain products for which the Company is the importer of record.

Previous wording

We continue to pursue available options to mitigate the impact of tariffs and countermeasures, including (i) utilizing available exemptions or exclusions to tariffs, such as trade agreements, treaties or other statutory relief, (ii) evaluating operational and supply chain changes, and (iii) where feasible, increasing the prices of our goods and services. Our results for the quarter and six months ended June 30, 2026, reflect our best estimate of the impact of the tariffs then in effect. As the duration, extent and enforceability of the tariffs and counter tariffs in effect remain uncertain, we are continuing to evaluate the potential future impacts of the imposition of tariffs to our business and financial condition. Based on current conditions, we do not believe that the tariffs announced by the U.S. or counter tariffs or other actions taken by other countries will have a material adverse effect upon our results of operations, financial condition, or cash flows. However, the actual financial impacts of tariffs are dependent upon various factors, most notably, the scope of goods covered by tariffs, the value of our imports subject to tariffs, the rate of tariffs applied, the timing and duration of tariffs, the recoverability and timing of refunds, the enforceability of tariffs and counter-tariffs, the implementation of tariff and non-tariff countermeasures by countries subject to U.S. tariffs, and our and our suppliers’ ability to mitigate the impacts of tariffs. Changes in any of these factors and actual tariff costs incurred could significantly affect the estimates inherent in our financial statements, including those used in our estimates-at-completion (EACs), and estimates supporting the recoverability of our inventories, contract fulfillment costs, deferred tax assets, intangible assets and goodwill, and could have a material effect on our results of operations and cash flows in the periods recognized and paid.

Current wording

We continue to pursue available options to mitigate the impact of tariffs and countermeasures, including (i) utilizing available exemptions or exclusions to tariffs, such as trade agreements, treaties or other statutory relief, (ii) evaluating operational and supply chain changes, and (iii) where feasible, increasing the prices of our goods and services. Our results for the quarter and nine months ended September 30, 2026, reflect our best estimate of the impact of the tariffs then in effect. As the duration, extent and enforceability of the tariffs and counter tariffs in effect remain uncertain, we are continuing to evaluate the potential future impacts of the imposition of tariffs to our business and financial condition. Based on current conditions, we do not believe that the tariffs announced by the U.S. or counter tariffs or other actions taken by other countries will have a material adverse effect upon our results of operations, financial condition, or cash flows. However, the actual financial impacts of tariffs are dependent upon various factors, most notably, the scope of goods covered by tariffs, the value of our imports subject to tariffs, the rate of tariffs applied, the timing and duration of tariffs, the recoverability and timing of refunds, the enforceability of tariffs and counter-tariffs, the implementation of tariff and non-tariff countermeasures by countries subject to U.S. tariffs, and our and our suppliers’ ability to mitigate the impacts of tariffs. Changes in any of these factors and actual tariff costs incurred could significantly affect the estimates inherent in our financial statements, including those used in our estimates-at-completion (EACs), and estimates supporting the recoverability of our inventories, contract fulfillment costs, deferred tax assets, intangible assets and goodwill, and could have a material effect on our results of operations and cash flows in the periods recognized and paid.

Previous wording

U.S. Government’s Budget, Tax Legislation and Executive Orders. On February 3, 2026, Congress passed and the President signed a spending package providing full-year funding for most federal agencies through September 30, 2026. On April 21, 2026, the President’s proposed Fiscal Year 2027 defense budget seeking $1.5 trillion was released, consisting of $1.15 trillion in base discretionary budget and $350 billion of mandatory funding through reconciliation. The President submitted a separate supplemental funding request to Congress on June 24, 2026, with approximately $67 billion of the request intended for defense spending, including $21 billion for munitions replenishment. We are closely monitoring the movement of the requests through Congress.

Current wording

U.S. Government’s Budget, Tax Legislation and Executive Orders. On February 3, 2026, Congress passed and the President signed a spending package providing full-year funding for most federal agencies through September 30, 2026. On September 2, 2026, the President signed a Continuing Resolution maintaining Fiscal Year 2026 funding levels for federal agencies beyond the September 30 deadline through December 11, 2026. On April 21, 2026, the President’s proposed Fiscal Year 2027 defense budget seeking $1.5 trillion was released, consisting of $1.15 trillion in base discretionary budget and $350 billion of mandatory funding through reconciliation. The President submitted a separate supplemental funding request to Congress on June 24, 2026, with approximately $67 billion of the request intended for defense spending, including $21 billion for munitions replenishment. We continue to closely monitor the movement of the requests through Congress.

Previous wording

We continue to closely monitor impacts to RTX’s business, customers, suppliers, employees, and operations in Israel, the Middle East, and the region at large due to the conflict in Iran and increased regional instability and tensions. RTX has employees, facilities, and operations in the Middle East and we reassess operations regularly, based upon the security situation. Our and our suppliers’ operations in the region have not been impacted in any material respect, although we could experience future delivery delays of certain products as the conflict continues. We also continue to monitor uncertainties related to energy costs and availability, and associated impacts to our commercial airline customers. Given the volatile nature of the situation, the potential impacts to RTX are subject to change.

Current wording

We continue to closely monitor impacts to RTX’s business, customers, suppliers, employees, and operations in Israel, the Middle East, and the region at large due to ongoing conflicts and increased regional instability and tensions. RTX has employees, facilities, and operations in the Middle East and we reassess operations regularly, based upon the security situation. Our and our suppliers’ operations in the region have not been impacted in any material respect, although we could experience future delivery delays of certain products as the conflict continues. Our commercial airline customers are experiencing elevated jet fuel prices due to the conflict, and sustained fuel-cost increases may reduce passenger demand or capacity and affect demand for our products and services. We are monitoring these conditions closely, as sustained fuel cost increases and macroeconomic pressures, also could negatively affect the financial condition of certain airline customers, particularly low-cost carriers. Given the volatile nature of the situation, the potential impacts to RTX are subject to change.

Previous wording

Preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Management believes the most complex and sensitive judgments, because of their significance to the Condensed Consolidated Financial Statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. See “Critical Accounting Estimates” within Item 7 and “Note 1: Basis of Presentation and Summary of Accounting Principles” within Item 8 of our 2025 Annual Report on Form 10-K, which describe the significant accounting estimates and policies used in preparation of the Consolidated Financial Statements. Actual results in these areas could differ from management’s estimates. There have been no significant changes in our critical accounting estimates during the six months ended June 30, 2026.

Current wording

Preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Management believes the most complex and sensitive judgments, because of their significance to the Condensed Consolidated Financial Statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. See “Critical Accounting Estimates” within Item 7 and “Note 1: Basis of Presentation and Summary of Accounting Principles” within Item 8 of our 2025 Annual Report on Form 10-K, which describe the significant accounting estimates and policies used in preparation of the Consolidated Financial Statements. Actual results in these areas could differ from management’s estimates. There have been no significant changes in our critical accounting estimates during the nine months ended September 30, 2026.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

Net sales increased $2.6 billion organically in the quarter ended September 30, 2026, primarily due to higher organic net sales of $1.0 billion at Raytheon, $0.9 billion at Collins, and $0.8 billion at Pratt & Whitney.

Previous wording

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

Current wording

Net sales increased $8.2 billion organically in the nine months ended September 30, 2026, primarily due to higher organic net sales of $2.9 billion at Pratt & Whitney, $2.8 billion at Raytheon, and $2.6 billion at Collins.

Previous wording

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

Current wording

The decrease in net sales due to Acquisitions and divestitures, net of $0.1 billion and $0.9 billion for the quarter and nine months ended September 30, 2026, respectively, was driven by divestitures within our Collins segment including the actuation and flight control business and the Simmonds Precision Products business completed in 2025.

Previous wording

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

Current wording

Net products sales increased $2.0 billion in the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025 primarily due to increases in external products sales of $1.1 billion at Raytheon, $0.7 billion at Collins, and $0.2 billion at Pratt & Whitney.

Previous wording

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

Current wording

Net services sales increased $0.5 billion in the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025 primarily due to increases in external services sales of $0.6 billion at Pratt & Whitney partially offset by a decrease in external service sales of $0.1 billion at Raytheon.

Previous wording

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

Current wording

Net products sales increased $5.6 billion in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily driven by increases in external products sales of $3.1 billion at Raytheon, $1.5 billion at Collins, and $1.0 billion at Pratt & Whitney.

Previous wording

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

Current wording

Net services sales increased $1.8 billion in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily driven by increases in external services sales of $1.9 billion at Pratt & Whitney and $0.1 billion at Collins, partially offset by a decrease in external service sales of $0.2 billion at Raytheon.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

Total cost of sales increased $1.4 billion and $5.8 billion organically for the quarter and nine months ended September 30, 2026, respectively, primarily driven by the organic net sales increases at Raytheon, Pratt & Whitney and Collins noted above. Organic cost of sales for the quarter and nine months ended September 30, 2026 at Pratt & Whitney and Collins includes the benefit of $0.4 billion of tariff refunds.

Previous wording

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

Current wording

The decrease in total cost of sales due to Acquisitions and divestitures, net of $0.1 billion and $0.8 billion for the quarter and nine months ended September 30, 2026, respectively, was driven by divestitures completed in 2025 within our Collins segment noted above.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

The decrease in Other cost of sales in thenine months ended September 30, 2026, was primarily driven by favorable foreign exchange rate impacts.

Previous wording

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

Current wording

Net services cost of sales increased $0.4 billion in the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025, primarily driven by increases in external services cost of sales at Pratt & Whitney and Collins, each driven by the services sales changes noted above, slightly offset by lower service cost of sales at Raytheon.

Previous wording

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

Current wording

Net services cost of sales increased $1.5 billion in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by increases in external service cost of sales at Pratt & Whitney and Collins, each driven by the service sales changes noted above, slightly offset by lower service cost of sales at Raytheon.

Previous wording

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

Current wording

Selling, general, and administrative expenses increased for the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025, primarily driven by a $0.4 billion charge at Pratt & Whitney related to a customer bankruptcy during the third quarter of 2026 and higher employee related costs across the businesses.

Previous wording

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

Current wording

Selling, general, and administrative expenses increased for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a $0.3 billion increase in customer bankruptcy related charges recorded at Pratt & Whitney and higher employee related costs and other costs across the businesses.

Previous wording

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

Current wording

The increase in Other income, net in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, was primarily due to higher net gains of $0.2 billion related to the increase in fair value on investments in 2026 and favorable foreign exchange impacts, partially offset by the absence of a $0.1 billion gain from the sale of the actuation and flight control business in the third quarter of 2025 and the impact of a litigation matter in 2026.

Previous wording

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

Current wording

The increase in Operating profit of $0.8 billion for the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025 was primarily driven by an increase in the organic operating profit of our segments of approximately $1.1 billion which includes the benefit of $0.4 billion of tariff refunds. Operating profit also benefited from gains on investments of $0.2 billion. These increases were partially offset by a $0.4 billion charge at Pratt & Whitney related to a customer bankruptcy during the third quarter of 2026 and the absence of a $0.1 billion gain on sale of the actuation and flight control business in third quarter of 2025.

Previous wording

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

Current wording

The increase in Operating profit of $2.0 billion for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily driven by an increase in the organic operating profit of our segments of approximately $2.0 billion, which includes the benefit of $0.4 billion of tariff refunds. Operating profit also benefited from gains on investments of $0.2 billion and lower restructuring costs in 2026 as compared to 2025. These items were partially offset by a $0.3 billion increase in customer bankruptcy related charges recorded at Pratt & Whitney and the absence of a $0.1 billion gain on sale of the actuation and flight control business in the third quarter of 2025.

Previous wording

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

Current wording

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

Previous wording

The effective tax rate for the six months ended June 30, 2026 and June 30, 2025 are relatively consistent. However, the effective tax rate for the six months ended June 30, 2026 includes a higher tax benefit from stock based compensation, a lower forecasted annualized effective tax rate for 2026 principally due to a higher Foreign Derived Deduction Eligible Income benefit resulting from the U.S. tax legislation enacted in 2025, and a net tax benefit for certain legal entity reorganizations. In addition, the effective tax rate for the six months ended June 30, 2025 includes the impact from the IRS examination noted above.

Current wording

The effective tax rate for the quarter and nine months ended September 30, 2026 compared to the quarter and nine months ended September 30, 2025 are relatively consistent. The effective tax rate for the quarter and nine months ended September 30, 2026 includes a lower forecasted annualized effective tax rate for 2026 principally due to a higher Foreign Derived Deduction Eligible Income benefit resulting from the U.S. tax legislation enacted in 2025. The effective tax rate for the quarter and nine months ended September 30, 2025 includes tax benefits for certain legal entity reorganizations partially offset by tax expense due to the sale of the Collins actuation and flight control business.

Previous wording

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

Current wording

•acquisition accounting adjustments of $0.3 billion, net of tax, which had an unfavorable impact on diluted earnings per share (EPS) of $0.26;

Previous wording

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

Current wording

•acquisition accounting adjustments of $0.4 billion, net of tax, which had an unfavorable impact on diluted EPS of $0.29.

Previous wording

Backlog and Bookings. Total backlog was $289 billion and $268 billion as of June 30, 2026 and December 31, 2025, respectively. Total backlog includes commercial backlog of $170 billion and $161 billion as of June 30, 2026 and December 31, 2025, and defense backlog of $119 billion and $107 billion as of June 30, 2026 and December 31, 2025, respectively.

Current wording

Backlog and Bookings. Total backlog was $340 billion and $268 billion as of September 30, 2026 and December 31, 2025, respectively. Total backlog includes commercial backlog of $176 billion and $161 billion as of September 30, 2026 and December 31, 2025, respectively and defense backlog of $164 billion and $107 billion as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

We believe bookings are an important measure of future performance for our defense businesses. Our defense operations consist primarily of our Raytheon segment and operations in the defense businesses within our Collins and Pratt & Whitney segments. Defense bookings were approximately $23 billion and $12 billion for the quarters ended June 30, 2026 and 2025, respectively, and approximately $37 billion and $21 billion for the six months ended June 30, 2026 and 2025, respectively.

Current wording

We believe bookings are an important measure of future performance for our defense businesses. Our defense operations consist primarily of our Raytheon segment and operations in the defense businesses within our Collins and Pratt & Whitney segments. Defense bookings were approximately $59 billion and $23 billion for the quarters ended September 30, 2026 and 2025, respectively, and approximately $96 billion and $44 billion for the nine months ended September 30, 2026 and 2025, respectively. The increase in defense bookings for the quarter and nine months ended September 30, 2026, was primarily due to multi-year DoW contracts awarded to Raytheon to accelerate production of Tomahawk cruise missiles for approximately $23 billion and AMRAAM missiles for approximately $14.3 billion.

Previous wording

The organic net sales increase of $1.0 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 primarily relates to higher commercial aerospace OEM sales of $0.5 billion, higher commercial aerospace aftermarket sales of $0.3 billion, and higher defense sales of $0.2 billion. The increase in commercial OEM sales was primarily driven by higher volume on narrowbody and widebody programs and the increase in commercial aftermarket sales was driven by higher volume across all aftermarket sales channels. The increase in defense sales was primarily due to higher volume across multiple programs and platforms.

Current wording

The organic net sales increase of $0.9 billion in the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025 primarily relates to higher commercial aerospace OEM sales of $0.4 billion, higher commercial aerospace aftermarket sales of $0.3 billion, and higher defense sales of $0.2 billion. The increase in commercial OEM sales was primarily driven by higher volume on narrowbody and widebody programs and the increase in commercial aftermarket sales was primarily driven by higher volume across all aftermarket sales channels. The increase in defense sales was primarily due to higher volume across multiple programs and platforms.

Previous wording

The organic operating profit increase of $0.1 billion in the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025 was due to higher commercial aerospace operating profit of $0.2 billion driven by the higher sales volume discussed above. Defense operating profit decreased slightly, principally driven by the impact of mix that more than offset the higher sales volume discussed above. Operating profit was also impacted by higher selling, general and administrative expenses.

Current wording

The organic operating profit increase of $0.6 billion in the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025 was due to higher commercial aerospace operating profit of $0.4 billion and tariff refunds of $0.2 billion. The increase in commercial aerospace operating profit was driven by the higher sales volume discussed above and favorable mix. Defense operating profit was relatively flat, as the impact from higher sales volume discussed above was mostly offset by mix.

Previous wording

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

Current wording

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

Previous wording

The organic net sales increase of $1.7 billion in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily relates to higher commercial aerospace OEM sales of $0.8 billion, higher commercial aerospace aftermarket sales of $0.5 billion, and higher defense sales of $0.4 billion. The increase in commercial OEM sales was primarily driven by higher volume on narrowbody and widebody programs and the increase in commercial aftermarket sales was driven by higher volume across all aftermarket sales channels. The increase in defense sales was primarily due to higher volume across multiple programs and platforms.

Current wording

The organic net sales increase of $2.6 billion in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily relates to higher commercial aerospace OEM sales of $1.2 billion, higher commercial aerospace aftermarket sales of $0.8 billion, and higher defense sales of $0.6 billion. The increase in commercial OEM sales was primarily driven by higher volume on narrowbody and widebody programs and the increase in commercial aftermarket sales was driven by higher volume across all aftermarket sales channels. The increase in defense sales was primarily due to higher volume across multiple programs and platforms.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

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

Previous wording

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

Current wording

Defense Bookings– In the quarter ended and nine months ended September 30, 2026, Collins recorded $3 billion and $8 billion in defense bookings, respectively, comprised of several smaller individual bookings under $0.5 billion.