| Segment Financial Data |
Note 18: Segment Financial Data Our operations, for the periods presented herein, are classified into three principal segments: Collins, Pratt & Whitney, and Raytheon. Our segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. RTX’s chief operating decision maker (CODM) is our Chairman and Chief Executive Officer. The CODM uses segment operating profit as a profitability measure to assess actual and forecasted segment performance to make decisions regarding incentive compensation and the allocation of capital and other investments. Total sales and operating profit by segment include inter-segment sales which are generally recorded at cost-plus a specified fee or at a negotiated fixed price. These pricing arrangements may result in margins different than what the purchasing segment realizes on the ultimate third-party sale. We present a FAS/CAS operating adjustment outside of segment results, which represents the difference between the service cost component of our pension and PRB expense under the Financial Accounting Standards (FAS) requirements of U.S. Generally Accepted Accounting Principles (GAAP) and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment. While the ultimate liability for pension and PRB costs under FAS and CAS is similar, the pattern of cost recognition is different. Over time, we generally expect to recover the related Raytheon pension and PRB liabilities through the pricing of our products and services to the U.S. government. Collins and Pratt & Whitney generally record pension and PRB expense on a FAS basis. 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. These adjustments are not considered part of management’s evaluation of segment results. Results for the quarters ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | 2026 | | (dollars in millions) | Net Sales | Research and Development | Other Segment Items (1) | Operating Profit | Operating Profit Margin | | Collins Aerospace | $ | 8,382 | | $ | (309) | | $ | (6,284) | | $ | 1,789 | | 21.3 | % | | Pratt & Whitney | 9,231 | | (266) | | (8,357) | | 608 | | 6.6 | % | | Raytheon | 8,031 | | (138) | | (6,760) | | 1,133 | | 14.1 | % | | Total segment | 25,644 | | $ | (713) | | $ | (21,401) | | 3,530 | | 13.8 | % | Eliminations and other (2) | (679) | | | | 110 | | | | Corporate expenses and other unallocated items | — | | | | (26) | | | | FAS/CAS operating adjustment | — | | | | 171 | | | | Acquisition accounting adjustments | — | | | | (448) | | | | Consolidated | $ | 24,965 | | | | $ | 3,337 | | 13.4 | % |
(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net. (2) Includes the operating results of certain smaller operations.
| | | | | | | | | | | | | | | | | | | 2025 | | (dollars in millions) | Net Sales | Research and Development | Other Segment Items (1) | Operating Profit | Operating Profit Margin | | Collins Aerospace | $ | 7,621 | | $ | (307) | | $ | (6,054) | | $ | 1,260 | | 16.5 | % | | Pratt & Whitney | 8,423 | | (267) | | (7,405) | | 751 | | 8.9 | % | | Raytheon | 7,045 | | (115) | | (6,071) | | 859 | | 12.2 | % | | Total segment | 23,089 | | $ | (689) | | $ | (19,530) | | 2,870 | | 12.4 | % | Eliminations and other (2) | (611) | | | | (14) | | | | Corporate expenses and other unallocated items | — | | | | (25) | | | | FAS/CAS operating adjustment | — | | | | 199 | | | | Acquisition accounting adjustments | — | | | | (507) | | | | Consolidated | $ | 22,478 | | | | $ | 2,523 | | 11.2 | % |
(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net. (2) Includes the operating results of certain smaller operations. Results for the nine months ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | 2026 | | (dollars in millions) | Net Sales | Research and Development | Other Segment Items (1) | Operating Profit | Operating Profit Margin | | Collins Aerospace | $ | 24,194 | | $ | (938) | | $ | (18,854) | | $ | 4,402 | | 18.2 | % | | Pratt & Whitney | 26,293 | | (738) | | (23,499) | | 2,056 | | 7.8 | % | | Raytheon | 23,245 | | (392) | | (19,837) | | 3,016 | | 13.0 | % | | Total segment | 73,732 | | $ | (2,068) | | $ | (62,190) | | 9,474 | | 12.8 | % | Eliminations and other (2) | (1,983) | | | | 246 | | | | Corporate expenses and other unallocated items | — | | | | (138) | | | | FAS/CAS operating adjustment | — | | | | 514 | | | | Acquisition accounting adjustments | — | | | | (1,393) | | | | Consolidated | $ | 71,749 | | | | $ | 8,703 | | 12.1 | % |
(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net. (2) Includes the operating results of certain smaller operations. | | | | | | | | | | | | | | | | | | | 2025 | | (dollars in millions) | Net Sales | Research and Development | Other Segment Items (1) | Operating Profit | Operating Profit Margin | | Collins Aerospace | $ | 22,460 | | $ | (948) | | $ | (17,991) | | $ | 3,521 | | 15.7 | % | | Pratt & Whitney | 23,420 | | (746) | | (20,851) | | 1,823 | | 7.8 | % | | Raytheon | 20,386 | | (334) | | (17,710) | | 2,342 | | 11.5 | % | | Total segment | 66,266 | | $ | (2,028) | | $ | (56,552) | | 7,686 | | 11.6 | % | Eliminations and other (2) | (1,901) | | | | 22 | | | | Corporate expenses and other unallocated items | — | | | | (110) | | | | FAS/CAS operating adjustment | — | | | | 570 | | | | Acquisition accounting adjustments | — | | | | (1,464) | | | | Consolidated | $ | 64,365 | | | | $ | 6,704 | | 10.4 | % |
(1) Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net. (2) Includes the operating results of certain smaller operations. Capital Expenditures and Depreciation and Amortization segment information for the quarters ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Capital Expenditures | | Depreciation & Amortization | | (dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | | Collins Aerospace | $ | 217 | | | $ | 191 | | | $ | 215 | | | $ | 215 | | | Pratt & Whitney | 268 | | | 236 | | | 201 | | | 189 | | | Raytheon | 160 | | | 128 | | | 139 | | | 138 | | | Total segment | 645 | | | 555 | | | 555 | | | 542 | | | Corporate, eliminations, and other | 104 | | | 59 | | | 25 | | | 23 | | | Acquisition accounting adjustments | — | | | — | | | 488 | | | 526 | | | | | | | | | | | Consolidated | $ | 749 | | | $ | 614 | | | $ | 1,068 | | | $ | 1,091 | |
Capital Expenditures and Depreciation and Amortization segment information for the nine months ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Capital Expenditures | | Depreciation & Amortization | | (dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | | Collins Aerospace | $ | 591 | | | $ | 474 | | | $ | 677 | | | $ | 652 | | | Pratt & Whitney | 635 | | | 568 | | | 605 | | | 577 | | Raytheon | 525 | | | 487 | | | 398 | | | 404 | | Total segment | 1,751 | | | 1,529 | | | 1,680 | | | 1,633 | | | Corporate, eliminations, and other | 213 | | | 128 | | | 74 | | | 65 | | Acquisition accounting adjustments | — | | | — | | | 1,464 | | | 1,521 | | | | | | | | | | | Consolidated | $ | 1,964 | | | $ | 1,657 | | | $ | 3,218 | | | $ | 3,219 | |
Total assets by segment are as follows: | | | | | | | | | | | | | (dollars in millions) | September 30, 2026 | | December 31, 2025 | Collins Aerospace (1) | $ | 72,105 | | | $ | 71,680 | | Pratt & Whitney (1) | 54,954 | | | 52,482 | | Raytheon (1) | 44,827 | | | 44,795 | | | Total segment | 171,886 | | | 168,957 | | | Corporate, eliminations, and other | 4,710 | | | 2,122 | | | | | | | | | | | Consolidated | $ | 176,596 | | | $ | 171,079 | |
(1) Total assets include acquired intangible assets and the property, plant, and equipment fair value adjustment. Related amortization expense is included in Acquisition accounting adjustments. We disaggregate our contracts from customers by geographic region based on customer location, by type of customer, and by sales type. Our geographic region based on customer location uses end user customer location where known or practical to determine, or in instances where the end user customer is not known or not practical to determine, uses “ship to” location as the customer location. In addition, for our Raytheon segment, we disaggregate our contracts from customers by contract type. We believe these categories best depict how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. Segment sales disaggregated by geographic region based on customer location for the quarters ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | 2025 | | (dollars in millions) | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | United States | $ | 4,118 | | $ | 3,632 | | $ | 5,441 | | $ | 50 | | $ | 13,241 | | | $ | 3,631 | | $ | 3,198 | | $ | 4,858 | | $ | 47 | | $ | 11,734 | | | Europe | 1,819 | | 2,457 | | 1,394 | | — | | 5,670 | | | 1,690 | | 2,227 | | 1,306 | | 2 | | 5,225 | | | Asia Pacific | 986 | | 1,964 | | 570 | | 1 | | 3,521 | | | 1,001 | | 2,003 | | 561 | | 2 | | 3,567 | | | Middle East and North Africa | 286 | | 148 | | 541 | | — | | 975 | | | 291 | | 215 | | 226 | | — | | 732 | | | Other regions | 487 | | 1,019 | | 52 | | — | | 1,558 | | | 387 | | 781 | | 52 | | — | | 1,220 | | | | | | | | | | | | | | | Consolidated net sales | 7,696 | | 9,220 | | 7,998 | | 51 | | 24,965 | | | 7,000 | | 8,424 | | 7,003 | | 51 | | 22,478 | | | Inter-segment sales | 686 | | 11 | | 33 | | (730) | | — | | | 621 | | (1) | | 42 | | (662) | | — | | | Business segment sales | $ | 8,382 | | $ | 9,231 | | $ | 8,031 | | $ | (679) | | $ | 24,965 | | | $ | 7,621 | | $ | 8,423 | | $ | 7,045 | | $ | (611) | | $ | 22,478 | |
Segment sales disaggregated by geographic region for the nine months ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | 2025 | | (dollars in millions) | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | United States | $ | 11,746 | | $ | 10,540 | | $ | 15,803 | | $ | 158 | | $ | 38,247 | | | $ | 10,493 | | $ | 9,876 | | $ | 14,214 | | $ | 154 | | $ | 34,737 | | | Europe | 5,396 | | 6,721 | | 3,783 | | 2 | | 15,902 | | | 5,170 | | 5,605 | | 3,065 | | 3 | | 13,843 | | | Asia Pacific | 2,859 | | 5,368 | | 1,753 | | 1 | | 9,981 | | | 2,761 | | 5,114 | | 1,692 | | 2 | | 9,569 | | | Middle East and North Africa | 750 | | 599 | | 1,598 | | — | | 2,947 | | | 801 | | 540 | | 1,143 | | — | | 2,484 | | | Other regions | 1,431 | | 3,046 | | 195 | | — | | 4,672 | | | 1,291 | | 2,285 | | 156 | | — | | 3,732 | | | | | | | | | | | | | | | Consolidated net sales | 22,182 | | 26,274 | | 23,132 | | 161 | | 71,749 | | | 20,516 | | 23,420 | | 20,270 | | 159 | | 64,365 | | | Inter-segment sales | 2,012 | | 19 | | 113 | | (2,144) | | — | | | 1,944 | | — | | 116 | | (2,060) | | — | | | Business segment sales | $ | 24,194 | | $ | 26,293 | | $ | 23,245 | | $ | (1,983) | | $ | 71,749 | | | $ | 22,460 | | $ | 23,420 | | $ | 20,386 | | $ | (1,901) | | $ | 64,365 | |
Segment sales disaggregated by type of customer for the quarters ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | 2025 | | (dollars in millions) | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | Sales to the U.S. government (1) | $ | 1,865 | | $ | 1,672 | | $ | 5,289 | | $ | 49 | | $ | 8,875 | | | $ | 1,766 | | $ | 1,759 | | $ | 4,834 | | $ | 50 | | $ | 8,409 | | | Foreign military sales through the U.S. government | 102 | | 694 | | 1,339 | | — | | 2,135 | | | 141 | | 607 | | 1,119 | | — | | 1,867 | | | Foreign government direct commercial sales | 276 | | 243 | | 1,218 | | 1 | | 1,738 | | | 264 | | 188 | | 1,025 | | — | | 1,477 | | | Commercial aerospace and other commercial sales | 5,453 | | 6,611 | | 152 | | 1 | | 12,217 | | | 4,829 | | 5,870 | | 25 | | 1 | | 10,725 | | | Consolidated net sales | 7,696 | | 9,220 | | 7,998 | | 51 | | 24,965 | | | 7,000 | | 8,424 | | 7,003 | | 51 | | 22,478 | | | Inter-segment sales | 686 | | 11 | | 33 | | (730) | | — | | | 621 | | (1) | | 42 | | (662) | | — | | | Business segment sales | $ | 8,382 | | $ | 9,231 | | $ | 8,031 | | $ | (679) | | $ | 24,965 | | | $ | 7,621 | | $ | 8,423 | | $ | 7,045 | | $ | (611) | | $ | 22,478 | |
(1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by type of customer for the nine months ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | 2025 | | (dollars in millions) | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | Sales to the U.S. government (1) | $ | 5,453 | | $ | 4,951 | | $ | 15,585 | | $ | 154 | | $ | 26,143 | | | $ | 5,277 | | $ | 4,814 | | $ | 14,169 | | $ | 154 | | $ | 24,414 | | | Foreign military sales through the U.S. government | 344 | | 1,808 | | 3,784 | | — | | 5,936 | | | 361 | | 1,390 | | 3,222 | | — | | 4,973 | | | Foreign government direct commercial sales | 817 | | 633 | | 3,546 | | 7 | | 5,003 | | | 912 | | 516 | | 2,833 | | 1 | | 4,262 | | | Commercial aerospace and other commercial sales | 15,568 | | 18,882 | | 217 | | — | | 34,667 | | | 13,966 | | 16,700 | | 46 | | 4 | | 30,716 | | | Consolidated net sales | 22,182 | | 26,274 | | 23,132 | | 161 | | 71,749 | | | 20,516 | | 23,420 | | 20,270 | | 159 | | 64,365 | | | Inter-segment sales | 2,012 | | 19 | | 113 | | (2,144) | | — | | | 1,944 | | — | | 116 | | (2,060) | | — | | | Business segment sales | $ | 24,194 | | $ | 26,293 | | $ | 23,245 | | $ | (1,983) | | $ | 71,749 | | | $ | 22,460 | | $ | 23,420 | | $ | 20,386 | | $ | (1,901) | | $ | 64,365 | |
(1) Excludes foreign military sales through the U.S. government as above. Segment sales disaggregated by sales type for the quarters ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | 2025 | | (dollars in millions) | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Products | $ | 6,105 | | $ | 4,956 | | $ | 7,155 | | $ | 42 | | $ | 18,258 | | | $ | 5,441 | | $ | 4,767 | | $ | 6,013 | | $ | 43 | | $ | 16,264 | | | Services | 1,591 | | 4,264 | | 843 | | 9 | | 6,707 | | | 1,559 | | 3,657 | | 990 | | 8 | | 6,214 | | | Consolidated net sales | 7,696 | | 9,220 | | 7,998 | | 51 | | 24,965 | | | 7,000 | | 8,424 | | 7,003 | | 51 | | 22,478 | | | Inter-segment sales | 686 | | 11 | | 33 | | (730) | | — | | | 621 | | (1) | | 42 | | (662) | | — | | | Business segment sales | $ | 8,382 | | $ | 9,231 | | $ | 8,031 | | $ | (679) | | $ | 24,965 | | | $ | 7,621 | | $ | 8,423 | | $ | 7,045 | | $ | (611) | | $ | 22,478 | |
Segment sales disaggregated by sales type for the nine months ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | 2025 | | (dollars in millions) | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Collins Aerospace | Pratt & Whitney | Raytheon | Other | Total | | Products | $ | 17,470 | | $ | 13,904 | | $ | 20,458 | | $ | 135 | | $ | 51,967 | | | $ | 15,959 | | $ | 12,922 | | $ | 17,394 | | $ | 131 | | $ | 46,406 | | | Services | 4,712 | | 12,370 | | 2,674 | | 26 | | 19,782 | | | 4,557 | | 10,498 | | 2,876 | | 28 | | 17,959 | | | Consolidated net sales | 22,182 | | 26,274 | | 23,132 | | 161 | | 71,749 | | | 20,516 | | 23,420 | | 20,270 | | 159 | | 64,365 | | | Inter-segment sales | 2,012 | | 19 | | 113 | | (2,144) | | — | | | 1,944 | | — | | 116 | | (2,060) | | — | | | Business segment sales | $ | 24,194 | | $ | 26,293 | | $ | 23,245 | | $ | (1,983) | | $ | 71,749 | | | $ | 22,460 | | $ | 23,420 | | $ | 20,386 | | $ | (1,901) | | $ | 64,365 | |
Raytheon segment sales disaggregated by contract type for the quarters ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | (dollars in millions) | 2026 | | 2025 | | | | | | Fixed-price | $ | 4,798 | | | $ | 4,089 | | | Cost-type | 3,200 | | | 2,914 | | | Consolidated net sales | 7,998 | | | 7,003 | | | Inter-segment sales | 33 | | | 42 | | | Business segment sales | $ | 8,031 | | | $ | 7,045 | |
Raytheon segment sales disaggregated by contract type for the nine months ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | (dollars in millions) | 2026 | | 2025 | | Fixed-price | $ | 13,966 | | | $ | 11,685 | | | Cost-type | 9,166 | | | 8,585 | | | Consolidated net sales | 23,132 | | | 20,270 | | | Inter-segment sales | 113 | | | 116 | | | Business segment sales | $ | 23,245 | | | $ | 20,386 | |
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