Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

RTX Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income from continuing operations	7,069)	5,013)	3,380)	5,327)	4,145)
Depreciation and amortization	4,378)	4,364)	4,211)	4,108)	4,557)
Deferred income tax provision (benefit)	789)	(47)	(402)	(1,663)	(88)
Stock compensation cost	519)	437)	425)	420)	442)
Net periodic pension and other postretirement income	(1,011)	(1,326)	(1,555)	(1,413)	(1,414)
Share-based 401(k) matching contributions	573)	353)	261)	—)	—)
Gain on sale of Cybersecurity, Intelligence and Services (CIS) business, net of transaction costs	—)	(415)	—)	—)	—)
Debt extinguishment costs	—)	—)	—)	—)	649)
Accounts receivable	(3,235)	(175)	(1,805)	437)	(570)
Contract assets	(2,643)	(2,414)	(753)	(234)	(1,594)
Inventory	(532)	(1,474)	(1,104)	(1,575)	163)
Other current assets	(1,055)	(402)	(1,161)	(1,027)	(566)
Accounts payable and accrued liabilities	3,418)	1,508)	4,016)	2,075)	917)
Contract liabilities	2,773)	1,872)	2,322)	846)	1,372)
Change in operating capital	(1,274)	(1,085)	1,515)	522)	(278)
Other operating activities, net	(476)	(135)	48)	(133)	(871)
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities	3,498)	2,146)	4,503)	1,841)	2,997)
Net cash flows provided by operating activities	10,567)	7,159)	7,883)	7,168)	7,142)
Capital expenditures	(2,627)	(2,625)	(2,415)	(2,288)	(2,134)
Payments on customer financing assets	(233)	(218)	(117)	(150)	(231)
Receipts from customer financing assets	161)	202)	212)	179)	389)
Investments in businesses	—)	—)	—)	(66)	(1,088)
Dispositions of businesses, net of cash transferred	1,931)	1,795)	6)	94)	1,879)
Increase in other intangible assets	(492)	(611)	(751)	(487)	(308)
(Payments) receipts from settlements of derivative contracts, net	118)	(142)	14)	(205)	(16)
Other investing activities, net	(123)	65)	12)	94)	145)
Net cash flows used in investing activities	(1,265)	(1,534)	(3,039)	(2,829)	(1,364)
Proceeds from long-term debt	—)	—)	12,914)	1)	4,062)
Repayment of long-term debt	(3,429)	(2,500)	(578)	(3)	(4,254)
Proceeds from bridge loan	—)	—)	10,000)	—)	—)
Repayment of bridge loan	—)	—)	(10,000)	—)	—)
Debt extinguishment costs	—)	—)	—)	—)	(649)
Change in commercial paper, net	—)	—)	(524)	518)	(160)
Change in other short-term borrowings, net	—)	(4)	87)	(29)	47)
Dividends paid	(3,574)	(3,217)	(3,239)	(3,128)	(2,957)
Repurchase of common stock	(50)	(444)	(12,870)	(2,803)	(2,327)
Net transfer to discontinued operations	—)	—)	—)	—)	(71)
Other financing activities, net	(433)	(452)	(317)	(415)	(447)
Net cash flows used in financing activities	(7,486)	(6,617)	(4,527)	(5,859)	(6,756)
Net cash used in operating activities	—)	—)	—)	—)	(71)
Net cash provided by financing activities	—)	—)	—)	—)	71)
Net cash used in discontinued operations	—)	—)	—)	—)	—)
Effect of foreign exchange rate changes on cash and cash equivalents	48)	(28)	18)	(42)	(1)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,864)	(1,020)	335)	(1,562)	(979)
Cash, cash equivalents and restricted cash, beginning of year	5,606)	6,626)	6,291)	7,853)	8,832)
Cash, cash equivalents and restricted cash, end of year	7,470)	5,606)	6,626)	6,291)	7,853)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The financial information reveals a complex cash flow pattern over the five-year period. While net cash flows from operating activities generally increased, significant fluctuations occurred in investing and financing activities, impacting overall cash positions. Net income from continuing operations demonstrated volatility, with increases in 2022 and 2025, a decrease in 2023, and moderate growth in 2024.

Operating Activities: Net cash flows provided by operating activities exhibited an overall upward trend, increasing from US$7,142 million in 2021 to US$10,567 million in 2025. Adjustments to reconcile income to net cash flows were substantial throughout the period, ranging from US$1,841 million to US$4,503 million. Changes in operating capital were variable, moving from a negative US$278 million in 2021 to a positive US$1,515 million in 2023 before becoming negative again in 2024 and 2025. Accounts receivable, contract assets, inventory, and other current assets all consistently represented cash outflows, with increasing negative values over time, particularly in 2024 and 2025. Accounts payable and accrued liabilities, and contract liabilities consistently provided cash inflows.
Investing Activities: Net cash flows used in investing activities were consistently negative, ranging from US$1,364 million to US$3,039 million. Capital expenditures remained relatively stable, averaging approximately US$2,400 million annually. Significant activity was observed in dispositions of businesses, providing substantial cash inflows in 2021 and 2024. Investments in businesses were notable in 2021, representing a significant cash outflow. An increase in other intangible assets consistently required cash outflows. Payments and receipts from customer financing assets were relatively small but present each year.
Financing Activities: Net cash flows used in financing activities were consistently negative, with a particularly large outflow in 2023 (US$4,527 million). Proceeds from long-term debt were significant in 2021 and 2023, including a large bridge loan in 2023. Repayment of long-term debt was substantial throughout the period. Dividends paid and repurchase of common stock consistently represented significant cash outflows. The repurchase of common stock was particularly high in 2023. Debt extinguishment costs were present in 2021.
Cash Position: The net increase (decrease) in cash, cash equivalents, and restricted cash fluctuated considerably. A significant decrease was observed in 2021 and 2022, followed by an increase in 2023 and a decrease in 2024, and a substantial increase in 2025. The ending cash balance increased from US$7,853 million in 2022 to US$7,470 million in 2025, despite the fluctuations in net cash flow.
Notable Items: The gain on the sale of the Cybersecurity, Intelligence and Services business in 2024 resulted in a US$415 million cash outflow. Deferred income tax provisions/benefits were volatile, with a significant benefit in 2022 and a substantial provision in 2025. Stock compensation cost remained relatively stable. Net periodic pension and other postretirement income consistently represented a cash outflow, though decreasing over time.

Overall, the company generated positive cash flow from operations but experienced significant cash outflows related to investing and financing activities. The financing activities were heavily influenced by debt management and shareholder returns. The fluctuations in cash flow suggest active portfolio management and strategic financial decisions were being made throughout the period.

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RTX Corp. (NYSE:RTX)

Cash Flow Statement