Technology

RTX Reports 2024 Results and Announces 2025 Outlook

Published

1 year ago

January 28, 2025

RTX exceeds 2024 sales and EPS expectations*; Expects continued sales, earnings, and cash flow growth in 2025

ARLINGTON, Va., Jan. 28, 2025 /PRNewswire/ — RTX (NYSE: RTX) reports fourth quarter 2024 results and announces 2025 outlook.

Fourth quarter 2024

Sales of $21.6 billion, up 9 percent versus prior year, and up 11 percent organically* excluding divestituresGAAP EPS was $1.10 and included $0.30 of acquisition accounting adjustments and $0.14 of restructuring and other net significant and/or non-recurring chargesAdjusted EPS* of $1.54, up 19 percent versus prior yearOperating cash flow of $1.6 billion; free cash flow* of $0.5 billionCompany backlog of $218 billion; including $125 billion of commercial and $93 billion of defenseReturned $852 million of capital to shareowners

Full year 2024

Reported sales of $80.7 billionAdjusted sales* of $80.8 billion, up 9 percent versus prior year, and up 11 percent organically* excluding divestituresGAAP EPS was $3.55 and included $1.20 of acquisition accounting adjustments and $0.98 of restructuring and other net significant and/or non-recurring chargesAdjusted EPS* of $5.73, up 13 percent versus prior yearOperating cash flow of $7.2 billion; free cash flow* of $4.5 billionReturned $3.7 billion of capital to shareowners, returning over $33 billion since the merger

Outlook for full year 2025

Adjusted sales* of $83.0 – $84.0 billion, including 4 to 6 percent organic growth*Adjusted EPS* of $6.00 – $6.15Free cash flow* of $7.0 – $7.5 billion

“RTX delivered a very strong year of performance in 2024 with 11 percent organic sales growth* and 13 percent adjusted EPS growth*, including segment margin expansion* in all three businesses,” said RTX President and CEO Chris Calio.

“We have strong momentum heading into 2025 with a $218 billion backlog and unprecedented demand for our products and solutions. We remain focused on advancing our strategic priorities of executing on our commitments, innovating for growth and harnessing the breadth and scale of RTX, giving us confidence in our 2025 financial outlook.”

Fourth quarter 2024
RTX reported fourth quarter sales of $21.6 billion, up 9 percent over the prior year. GAAP EPS of $1.10 included $0.30 of acquisition accounting adjustments, $0.05 of restructuring, and $0.09 of other net significant and/or non-recurring charges. Adjusted EPS* of $1.54 was up 19 percent versus the prior year.

The company reported net income attributable to common shareowners in the fourth quarter of $1.5 billion which included $408 million of acquisition accounting adjustments, $61 million of restructuring, and $120 million of other net significant and/or non-recurring charges. Adjusted net income* of $2.1 billion was up 18 percent versus the prior year driven by growth in adjusted segment operating profit*, partially offset by higher taxes and lower pension income. Operating cash flow in the fourth quarter was $1.6 billion. Capital expenditures were $1.1 billion, resulting in free cash flow* of $0.5 billion.

Summary Financial Results – Operations Attributable to Common Shareowners

4th Quarter

Twelve Months

($ in millions, except EPS)

2024

2023

% Change

2024

2023

% Change

Reported

Sales

$ 21,623

$ 19,927

9 %

$ 80,738

$ 68,920

17 %

Net Income

$ 1,482

$ 1,426

4 %

$ 4,774

$ 3,195

49 %

EPS

$ 1.10

$ 1.05

5 %

$ 3.55

$ 2.23

59 %

Adjusted*

Sales

$ 21,623

$ 19,824

9 %

$ 80,808

$ 74,305

9 %

Net Income

$ 2,071

$ 1,753

18 %

$ 7,705

$ 7,263

6 %

EPS

$ 1.54

$ 1.29

19 %

$ 5.73

$ 5.06

13 %

Operating Cash Flow

$ 1,561

$ 4,711

(67) %

$ 7,159

$ 7,883

(9) %

Free Cash Flow*

$ 492

$ 3,906

(87) %

$ 4,534

$ 5,468

(17) %

Segment Results

Collins Aerospace

4th Quarter

Twelve Months

($ in millions)

2024

2023

% Change

2024

2023

% Change

Reported

Sales

$ 7,537

$ 7,120

6 %

$ 28,284

$ 26,253

8 %

Operating Profit

$ 1,106

$ 1,126

(2) %

$ 4,135

$ 3,825

8 %

ROS

14.7 %

15.8 %

(110)

bps

14.6 %

—

bps

Adjusted*

Sales

$ 7,537

$ 7,008

8 %

$ 28,284

$ 26,198

8 %

Operating Profit

$ 1,207

$ 1,035

17 %

$ 4,496

$ 3,896

15 %

ROS

16.0 %

14.8 %

120

bps

15.9 %

14.9 %

100

bps

Collins Aerospace had fourth quarter 2024 reported sales of $7,537 million, up 6 percent versus the prior year. The increase in sales was driven by a 13 percent increase in defense and a 12 percent increase in commercial aftermarket, partially offset by a 6 percent decrease in commercial OE. The increase in defense sales was driven by higher volume across multiple programs and platforms, including new programs awarded in 2024. The increase in commercial aftermarket sales was driven by continued growth in commercial air traffic, and the decrease in commercial OE sales was driven by lower narrow-body volume. Adjusted sales* of $7,537 million, were up 8 percent versus the prior year.

Collins Aerospace reported operating profit of $1,106 million, down 2 percent versus the prior year. This included a $155 million charge related to the impairment of contract fulfillment costs which was partially offset by a $99 million gain on the sale of the Hoist & Winch business. Q4 2023 included a benefit of $112 million from a customer settlement. On an adjusted basis, operating profit* of $1,207 million was up 17 percent versus the prior year. Operationally, the increase was driven by drop through on higher commercial aftermarket and defense volume, which was partially offset by lower commercial OE volume and unfavorable commercial OE mix.

Pratt & Whitney

4th Quarter

Twelve Months

($ in millions)

2024

2023

% Change

2024

2023

% Change

Reported

Sales

$ 7,569

$ 6,439

18 %

$ 28,066

$ 18,296

Operating Profit (loss)

$ 504

$ 382

32 %

$ 2,015

$ (1,455)

ROS

6.7 %

5.9 %

bps

7.2 %

(8.0) %

Adjusted*

Sales

$ 7,569

$ 6,439

18 %

$ 28,066

$ 23,697

18 %

Operating Profit

$ 717

$ 405

77 %

$ 2,281

$ 1,688

35 %

ROS

9.5 %

6.3 %

320

bps

8.1 %

7.1 %

100

bps

NM = Not Meaningful

Pratt & Whitney had fourth quarter 2024 reported and adjusted sales of $7,569 million, up 18 percent versus the prior year. The increase was driven by a 31 percent increase in commercial OE, a 17 percent increase in commercial aftermarket, and an 8 percent increase in military. The increase in commercial sales was driven by increased deliveries and favorable OE mix in Large Commercial Engines, and higher commercial aftermarket volume. The increase in military sales was driven by higher volume on F135 production, the F135 Engine Core Upgrade program, and F135 sustainment, which was partially offset by lower sustainment volume across legacy platforms, including the F100 and F117.

Pratt & Whitney reported operating profit of $504 million, up 32 percent versus the prior year. The increase was driven by favorable volume and mix in Large Commercial Engines OE, favorable mix in Pratt Canada aftermarket, and drop through on higher commercial aftermarket and military volume. Pratt & Whitney also benefited from an approximately $70 million insurance recovery. Reported operating profit included a $157 million charge related to a customer bankruptcy. On an adjusted basis, operating profit* of $717 million, was up 77 percent versus the prior year.

Raytheon

4th Quarter

Twelve Months

($ in millions)

2024

2023

% Change

2024

2023

% Change

Reported

Sales

$ 7,157

$ 6,886

4 %

$ 26,713

$ 26,350

1 %

Operating Profit

$ 824

$ 604

36 %

$ 2,594

$ 2,379

9 %

ROS

11.5 %

8.8 %

270

bps

9.7 %

9.0 %

bps

Adjusted*

Sales

$ 7,157

$ 6,886

4 %

$ 26,783

$ 26,350

2 %

Operating Profit

$ 728

$ 618

18 %

$ 2,728

$ 2,434

12 %

ROS

10.2 %

9.0 %

120

bps

10.2 %

9.2 %

100

bps

Raytheon had fourth quarter 2024 reported and adjusted sales of $7,157 million, up 4 percent versus the prior year. The increase in sales was driven by higher volume on land and air defense systems, including Global Patriot, NASAMS and counter-UAS programs, as well as higher volume from the restart of contracts with a Middle East customer. This was partially offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business completed in the first quarter of 2024 and lower volume on air and space defense systems. Excluding the impact of the divestiture, sales were up 10 percent versus the prior year*.

Raytheon reported operating profit of $824 million, up 36 percent versus the prior year. The increase was driven by drop through on higher volume, improved net productivity, and favorable mix which was partially offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business. Reported operating profit included a $102 million benefit related to reserve adjustments associated with the restart of contracts with a Middle East customer. On an adjusted basis, operating profit* of $728 million was up 18 percent versus the prior year.

*Adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin, adjusted segment operating profit (loss) and margin, adjusted net income, adjusted earnings per share (“EPS”), adjusted effective tax rate and free cash flow are non-GAAP financial measures. When we provide our expectation for adjusted net sales (also referred to as adjusted sales), adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures (expected diluted EPS and expected cash flow from operations) is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. See “Use and Definitions of Non-GAAP Financial Measures” below for information regarding non-GAAP financial measures.

About RTX
RTX is the world’s largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia.

Conference Call on the Fourth Quarter 2024 Financial Results
RTX’s financial results conference call will be held on Tuesday, January 28, 2025 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 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

Adjusted net sales / Adjusted sales

Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinafter referred to as “net significant and/or non-recurring items”).

Organic sales

Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items.

Adjusted operating profit (loss) and margin

Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items. Adjusted operating profit margin represents adjusted operating profit (loss) as a percentage of adjusted net sales.

Segment operating profit (loss) and margin

Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding Acquisition Accounting Adjustments2, the FAS/CAS operating adjustment3, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other).

Adjusted segment sales

Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and/or non-recurring items.

Adjusted segment operating profit (loss) and margin

Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and/or non-recurring items. Adjusted segment operating profit margin represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other).

Adjusted net income

Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items.

Adjusted earnings per share (EPS)

Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items.

Adjusted effective tax rate

Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items.

Free cash flow

Free cash flow represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTX’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX’s common stock and distribution of earnings to shareowners.

1 Net significant and/or non-recurring items represent significant nonoperational items and/or significant operational items that may occur at irregular intervals.

2 Acquisition Accounting Adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable.

3 The FAS/CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment.

When we provide our expectation for adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin, adjusted segment operating profit (loss) and margin, 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. From time to time, oral or written forward-looking statements may also be included in other information released to the public. 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, the merger (the “merger”) between United Technologies Corporation (“UTC”) and Raytheon Company (“Raytheon”) or the spin-offs by UTC of Otis Worldwide Corporation and Carrier Global Corporation into separate independent companies (the “separation transactions”) in 2020, the pending disposition of Collins’ actuation and flight control business, targets and commitments (including for share repurchases or otherwise), and other statements that are not solely historical facts. All forward-looking statements involve risks, uncertainties and other factors that 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. Such risks, uncertainties and other factors include, without limitation: (1) the effect of changes in economic, capital market and political conditions in the U.S. and globally, such as from the global sanctions and export controls with respect to Russia, and any changes therein, and including changes related to financial market conditions, banking industry disruptions, fluctuations in commodity prices or supply (including energy supply), inflation, interest rates and foreign currency exchange rates, disruptions in global supply chain and labor markets, levels of consumer and business confidence, the imposition of tariffs, and geopolitical risks, including, without limitation, in the Middle East and Ukraine; (2) risks associated with U.S. government sales, including changes or shifts in defense spending due to budgetary constraints, spending cuts resulting from sequestration, a continuing resolution, a government shutdown, the debt ceiling or measures taken to avoid default, or otherwise, and uncertain funding of programs; (3) risks relating to our performance on our contracts and programs, including our ability to control costs, the mix of our contracts and programs, and our inability to pass some or all of our costs on fixed price contracts to the customer, and risks related to our dependence on U.S. government approvals for international contracts; (4) challenges in the development, certification, production, delivery, support and performance of RTX advanced technologies and new products and services and the realization of the anticipated benefits (including our expected returns under customer contracts), as well as the challenges of operating in RTX’s highly-competitive industries both domestically and abroad; (5) risks relating to RTX’s reliance on U.S. and non-U.S. suppliers and commodity markets, including the effect of sanctions, tariffs, delays and disruptions in the delivery of materials and services to RTX or its suppliers and cost increases; (6) risks relating to RTX international operations from, among other things, changes in trade policies and implementation of sanctions, foreign currency fluctuations, economic conditions, political factors, sales methods, U.S. or local government regulations, and our dependence on U.S. government approvals for international contracts; (7) the condition of the aerospace industry; (8) potential changes in policy positions or priorities that emerge from the incoming U.S. presidential administration, including changes in DoD policies or priorities; (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 acquisitions, investments, divestitures (including the pending disposition of Collins’ actuation and flight control business) and other transactions, including the realization of synergies and opportunities for growth and innovation, the assumption of liabilities and other risks and incurrence of related costs and expenses, and risks related to completion of announced divestitures; (11) compliance with legal, environmental, regulatory and other requirements, including, among other things, obtaining regulatory approvals for new technologies and products and export and import requirements such as the International Traffic in Arms Regulations and the Export Administration Regulations, anti-bribery and anticorruption requirements, such as the Foreign Corrupt Practices Act, industrial cooperation agreement obligations, and procurement and other regulations in the U.S. and other countries in which RTX and its businesses operate; (12) the outcome of pending, threatened and future legal proceedings, investigations, and other contingencies, including those related to U.S. government audits and disputes and the potential for suspension or debarment of U.S. government contracting or export privileges as a result thereof; (13) risks related to the previously-disclosed deferred prosecution agreements entered into between the Company and the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order imposed on the Company, and the related investigations by the SEC and DOJ, and the consent agreement between the Company and the Department of State; (14) factors that could impact RTX’s ability to engage in desirable capital-raising or strategic transactions, including its credit rating, capital structure, levels of indebtedness, and related obligations, capital expenditures and research and development spending, and capital deployment strategy including with respect to share repurchases, and the availability of credit, borrowing costs, credit market conditions, and other factors; (15) uncertainties associated with the timing and scope of future 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, including market conditions and the level of other investing activities and uses of cash; (16) risks relating to realizing expected benefits from, incurring costs for, and successfully managing, strategic initiatives such as cost reduction, restructuring, digital transformation and other operational initiatives; (17) risks of 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) risks relating to addressing 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, including, without limitation, the number and expected timing of shop visits, inspection results and scope of work to be performed, turnaround time, availability of new parts, available capacity at overhaul facilities, outcomes of negotiations with impacted customers, and risks related to other engine models that may be impacted by the powder metal matter, and in each case the timing and costs relating thereto, as well as other issues that could impact RTX product performance, including quality, reliability or durability; (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) risks relating to an RTX product safety failure, quality issue or other failure affecting RTX’s or its customers’ or suppliers’ products or systems; (21) risks relating to cybersecurity, including cyber-attacks on RTX’s information technology infrastructure, products, suppliers, customers and partners, and cybersecurity-related regulations; (22) risks related to insufficient indemnity or insurance coverage; (23) risks related to artificial intelligence; (24) risks relating to our intellectual property and certain third-party intellectual property; (25) threats to RTX facilities and personnel, as well as other events outside of RTX’s control such as public health crises, damaging weather or other acts of nature; (26) the effect of changes in accounting estimates for our programs on our financial results; (27) the effect of changes in pension and other postretirement plan estimates and assumptions and contributions; (28) risks relating to an impairment of goodwill and other intangible assets; (29) the effects of climate change and changing climate-related regulations, customer and market demands, products and technologies; and (30) the intended qualification of (i) the merger as a tax-free reorganization and (ii) the separation transactions and other internal restructurings as tax-free to UTC and former UTC shareowners, in each case, for U.S. federal income tax purposes. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the reports of RTX, UTC and Raytheon on Forms S-4, 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission from time to time. 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.

RTX Corporation

Consolidated Statement of Operations

Quarter Ended December 31,

Twelve Months Ended December 31,

(Unaudited)

(dollars in millions, except per share amounts; shares in millions)

2024

2023

2024

2023

Net Sales

$ 21,623

$ 19,927

$ 80,738

$ 68,920

Costs and expenses:

Cost of sales

17,388

15,918

65,328

56,831

Research and development

808

757

2,934

2,805

Selling, general, and administrative

1,574

1,445

5,806

5,809

Total costs and expenses

19,770

18,120

74,068

65,445

Other income (expense), net

258

(30)

(132)

Operating profit

2,111

1,777

6,538

3,561

Non-service pension income

(384)

(446)

(1,518)

(1,780)

Interest expense, net

486

488

1,862

1,505

Income before income taxes

2,009

1,735

6,194

3,836

Income tax expense

449

262

1,181

456

Net income

1,560

1,473

5,013

3,380

Less: Noncontrolling interest in subsidiaries’ earnings

239

185

Net income attributable to common shareowners

$ 1,482

$ 1,426

$ 4,774

$ 3,195

Earnings Per Share attributable to common shareowners:

Basic

$ 1.11

$ 1.05

$ 3.58

$ 2.24

Diluted

$ 1.10

$ 1.05

$ 3.55

$ 2.23

Weighted Average Shares Outstanding:

Basic shares

1,334.4

1,354.9

1,332.1

1,426.0

Diluted shares

1,348.9

1,361.7

1,343.6

1,435.4

RTX Corporation

Segment Net Sales and Operating Profit (Loss)

Quarter Ended

Twelve Months Ended

(Unaudited)

December 31, 2024

December 31, 2023

December 31, 2024

December 31, 2023

(dollars in millions)

Reported

Adjusted

Reported

Adjusted

Reported

Adjusted

Reported

Adjusted

Net Sales

Collins Aerospace

$ 7,537

$ 7,120

$ 7,008

$ 28,284

$ 26,253

$ 26,198

Pratt & Whitney

7,569

6,439

28,066

18,296

23,697

Raytheon

7,157

6,886

26,713

26,783

26,350

Total segments

22,263

20,445

20,333

83,063

83,133

70,899

76,245

Eliminations and other

(640)

(518)

(509)

(2,325)

(1,979)

(1,940)

Consolidated

$ 21,623

$ 19,927

$ 19,824

$ 80,738

$ 80,808

$ 68,920

$ 74,305

Operating Profit (Loss)

Collins Aerospace

$ 1,106

$ 1,207

$ 1,126

$ 1,035

$ 4,135

$ 4,496

$ 3,825

$ 3,896

Pratt & Whitney

504

717

382

405

2,015

2,281

(1,455)

1,688

Raytheon

824

728

604

618

2,594

2,728

2,379

2,434

Total segments

2,434

2,652

2,112

2,058

8,744

9,505

4,749

8,018

Eliminations and other

(8)

(48)

(42)

(81)

Corporate expenses and other unallocated items

(7)

(4)

(110)

(70)

(933)

(107)

(275)

(169)

FAS/CAS operating adjustment

197

282

833

1,127

Acquisition accounting adjustments

(520)

—

(499)

—

(2,058)

—

(1,998)

—

Consolidated

$ 2,111

$ 2,852

$ 1,777

$ 2,271

$ 6,538

$ 10,183

$ 3,561

$ 8,895

Segment Operating Profit (Loss) Margin

Collins Aerospace

14.7 %

16.0 %

15.8 %

14.8 %

14.6 %

15.9 %

14.6 %

14.9 %

Pratt & Whitney

6.7 %

9.5 %

5.9 %

6.3 %

7.2 %

8.1 %

(8.0) %

7.1 %

Raytheon

11.5 %

10.2 %

8.8 %

9.0 %

9.7 %

10.2 %

9.0 %

9.2 %

Total segment

10.9 %

11.9 %

10.3 %

10.1 %

10.5 %

11.4 %

6.7 %

10.5 %

RTX Corporation

Consolidated Balance Sheet

December 31, 2024

December 31, 2023

(dollars in millions)

(Unaudited)

Assets

Cash and cash equivalents

$ 5,578

$ 6,587

Accounts receivable, net

10,976

10,838

Contract assets

14,570

12,139

Inventory, net

12,768

11,777

Other assets, current

7,241

7,076

Total current assets

51,133

48,417

Customer financing assets

2,246

2,392

Fixed assets, net

16,089

15,748

Operating lease right-of-use assets

1,864

1,638

Goodwill

52,789

53,699

Intangible assets, net

33,443

35,399

Other assets

5,297

4,576

Total assets

$ 162,861

$ 161,869

Liabilities, Redeemable Noncontrolling Interest, and Equity

Short-term borrowings

$ 183

$ 189

Accounts payable

12,897

10,698

Accrued employee compensation

2,620

2,491

Other accrued liabilities

14,831

14,917

Contract liabilities

18,616

17,183

Long-term debt currently due

2,352

1,283

Total current liabilities

51,499

46,761

Long-term debt

38,726

42,355

Operating lease liabilities, non-current

1,632

1,412

Future pension and postretirement benefit obligations

2,104

2,385

Other long-term liabilities

6,942

7,511

Total liabilities

100,903

100,424

Redeemable noncontrolling interest

Shareowners’ Equity:

Common stock

37,434

37,040

Treasury stock

(27,112)

(26,977)

Retained earnings

53,589

52,154

Accumulated other comprehensive loss

(3,755)

(2,419)

Total shareowners’ equity

60,156

59,798

Noncontrolling interest

1,767

1,612

Total equity

61,923

61,410

Total liabilities, redeemable noncontrolling interest, and equity

$ 162,861

$ 161,869

RTX Corporation

Consolidated Statement of Cash Flows

Quarter Ended
December 31,

Twelve Months Ended
December 31,

(Unaudited)

(dollars in millions)

2024

2023

2024

2023

Operating Activities:

Net income

$ 1,560

$ 1,473

$ 5,013

$ 3,380

Adjustments to reconcile net income to net cash flows provided by operating activities from:

Depreciation and amortization

1,139

1,059

4,364

4,211

Deferred income tax (benefit) provision

326

(47)

(402)

Stock compensation cost

109

106

437

425

Net periodic pension and other postretirement income

(334)

(391)

(1,326)

(1,555)

Gain on sale of Cybersecurity, Intelligence and Services business, net of transaction costs

—

(415)

—

Change in:

Accounts receivable

(1,111)

(892)

(175)

(1,805)

Contract assets

410

(2,414)

(753)

Inventory

231

326

(1,474)

(1,104)

Other current assets

(160)

(283)

(402)

(1,161)

Accounts payable and accrued liabilities

(819)

594

1,508

4,016

Contract liabilities

676

1,893

1,872

2,322

Other operating activities, net

159

218

309

Net cash flows provided by operating activities

1,561

4,711

7,159

7,883

Investing Activities:

Capital expenditures

(1,069)

(805)

(2,625)

(2,415)

Dispositions of businesses, net of cash transferred

512

—

1,795

Increase in other intangible assets

(164)

(215)

(611)

(751)

(Payments) receipts from settlements of derivative contracts, net

(145)

(142)

Other investing activities, net

107

Net cash flows used in investing activities

(779)

(978)

(1,534)

(3,039)

Financing Activities:

Proceeds from long-term debt

—

9,940

—

12,914

Repayment of long-term debt

(800)

(403)

(2,500)

(578)

Proceeds from bridge loan

—

10,000

—

10,000

Repayment of bridge loan

—

(10,000)

—

(10,000)

Change in commercial paper, net

—

(997)

—

(524)

Change in other short-term borrowings, net

(35)

(4)

Dividends paid on common stock

(802)

(767)

(3,217)

(3,239)

Repurchase of common stock

(50)

(10,283)

(444)

(12,870)

Other financing activities, net

(181)

(127)

(452)

(317)

Net cash flows used in financing activities

(1,868)

(2,618)

(6,617)

(4,527)

Effect of foreign exchange rate changes on cash and cash equivalents

(39)

(28)

Net increase (decrease) in cash, cash equivalents and restricted cash

(1,125)

1,129

(1,020)

335

Cash, cash equivalents and restricted cash, beginning of period

6,731

5,497

6,626

6,291

Cash, cash equivalents and restricted cash, end of period

5,606

6,626

5,606

6,626

Less: Restricted cash, included in Other assets, current and Other assets

Cash and cash equivalents, end of period

$ 5,578

$ 6,587

$ 5,578

$ 6,587

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin

Quarter Ended
December 31,

Twelve Months Ended
December 31,

(Unaudited)

(dollars in millions – Income (Expense))

2024

2023

2024

2023

Collins Aerospace

Net sales

$ 7,537

$ 7,120

$ 28,284

$ 26,253

Benefits related to litigation matters (1)

—

112

—

Adjusted net sales

$ 7,537

$ 7,008

$ 28,284

$ 26,198

Operating profit

$ 1,106

$ 1,126

$ 4,135

$ 3,825

Restructuring

(17)

(47)

(71)

Gain on sale of business, net of transaction and other related costs (1)

—

Charge associated with initiating alternative titanium sources (1)

—

(175)

—

Segment and portfolio transformation and divestiture costs (1)

(28)

(29)

(83)

(62)

Benefits related to litigation matters (1)

—

119

—

Impairment of contract fulfillment costs (1)

(155)

—

(155)

—

Adjusted operating profit

$ 1,207

$ 1,035

$ 4,496

$ 3,896

Adjusted operating profit margin

16.0 %

14.8 %

15.9 %

14.9 %

Pratt & Whitney

Net sales

$ 7,569

$ 6,439

$ 28,066

$ 18,296

Powder Metal charge (1)

—

(5,401)

Adjusted net sales

$ 7,569

$ 6,439

$ 28,066

$ 23,697

Operating profit (loss)

$ 504

$ 382

$ 2,015

$ (1,455)

Restructuring

(56)

(23)

(102)

(74)

Insurance settlement

—

Powder Metal charge (1)

—

(2,888)

Charges related to a customer insolvency (1)

—

(181)

Expected settlement of a litigation matter (1)

—

(34)

—

Customer bankruptcy (1)

(157)

—

(157)

—

Adjusted operating profit

$ 717

$ 405

$ 2,281

$ 1,688

Adjusted operating profit margin

9.5 %

6.3 %

8.1 %

7.1 %

Raytheon

Net sales

$ 7,157

$ 6,886

$ 26,713

$ 26,350

Contract termination (1)

—

(70)

—

Adjusted net sales

$ 7,157

$ 6,886

$ 26,783

$ 26,350

Operating profit

$ 824

$ 604

$ 2,594

$ 2,379

Restructuring

(6)

(9)

(36)

(42)

Gain on sale of business, net of transaction and other related costs (1)

—

375

—

Segment and portfolio transformation and divestiture costs (1)

—

(5)

—

(13)

Contract termination (1)

—

(575)

—

Middle East contracts restart adjustments (1)

102

—

102

—

Adjusted operating profit

$ 728

$ 618

$ 2,728

$ 2,434

Adjusted operating profit margin

10.2 %

9.0 %

10.2 %

9.2 %

Eliminations and Other

Net sales

$ (640)

$ (518)

$ (2,325)

$ (1,979)

Prior year impact from R&D capitalization IRS notice (1)

—

(9)

—

(39)

Adjusted net sales

$ (640)

$ (509)

$ (2,325)

$ (1,940)

Operating profit (loss)

$ 7

$ (8)

$ (48)

$ (42)

Prior year impact from R&D capitalization IRS notice (1)

—

(9)

—

(39)

Gain on sale of land

—

Charges related to a customer insolvency (1)

—

Adjusted operating profit (loss)

$ 7

$ 1

$ (48)

$ (81)

Corporate expenses and other unallocated items

Operating loss

$ (7)

$ (110)

$ (933)

$ (275)

Restructuring

—

(13)

(9)

(59)

Tax audit settlements (1)

—

(68)

—

Segment and portfolio transformation and divestiture costs (1)

(3)

(11)

(31)

Legal matters (1)

—

(918)

—

Expiration of tax statute of limitations

—

(16)

—

(16)

Tax matters and related indemnification (1)

—

180

—

Adjusted operating loss

$ (4)

$ (70)

$ (107)

$ (169)

FAS/CAS Operating Adjustment

Operating profit

$ 197

$ 282

$ 833

$ 1,127

Acquisition Accounting Adjustments

Operating loss

$ (520)

$ (499)

$ (2,058)

$ (1,998)

Acquisition accounting adjustments

(520)

(499)

(2,058)

(1,998)

Adjusted operating profit

$ —

RTX Consolidated

Net sales

$ 21,623

$ 19,927

$ 80,738

$ 68,920

Total net significant and/or non-recurring items included in Net sales above (1)

—

103

(70)

(5,385)

Adjusted net sales

$ 21,623

$ 19,824

$ 80,808

$ 74,305

Operating profit

$ 2,111

$ 1,777

$ 6,538

$ 3,561

Restructuring

(79)

(44)

(194)

(246)

Acquisition accounting adjustments

(520)

(499)

(2,058)

(1,998)

Total net significant and/or non-recurring items included in Operating profit above (1)

(142)

(1,393)

(3,090)

Adjusted operating profit

$ 2,852

$ 2,271

$ 10,183

$ 8,895

(1)

Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments.

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Adjusted Income, Earnings Per Share, and Effective Tax Rate

Quarter Ended
December 31,

Twelve Months
Ended December 31,

(Unaudited)

(dollars in millions – Income (Expense))

2024

2023

2024

2023

Net income attributable to common shareowners

$ 1,482

$ 1,426

$ 4,774

$ 3,195

Total Restructuring

(79)

(44)

(194)

(246)

Total Acquisition accounting adjustments

(520)

(499)

(2,058)

(1,998)

Total net significant and/or non-recurring items included in Operating profit (1)

(142)

(1,393)

(3,090)

Significant and/or non-recurring items included in Non-service Pension Income

Non-service pension restructuring

—

(2)

(9)

(4)

Pension curtailment related to sale of business (1)

—

Significant non-recurring and non-operational items included in Interest Expense, Net

Tax audit settlements (1)

—

Benefits related to litigation matters

—

Expiration of tax statute of limitations

—

Tax matters and related indemnification (1)

—

(11)

—

Tax effect of restructuring and net significant and/or non-recurring items above

152

516

1,191

Significant and/or non-recurring items included in Income Tax Expense

Tax audit settlements (1)

—

296

—

Expiration of tax statute of limitations

—

Prior year impact from R&D capitalization IRS notice (1)

—

(5)

—

(13)

Tax matters and related indemnification (1)

—

(156)

—

Significant and/or non-recurring items included in Noncontrolling Interest

Noncontrolling interest share of charges related to an insurance settlement

—

(9)

—

Noncontrolling interest share of benefits related to litigation matters (1)

—

Noncontrolling interest share of customer insolvency charges (1)

—

Less: Impact on net income (loss) attributable to common shareowners

(589)

(327)

(2,931)

(4,068)

Adjusted net income attributable to common shareowners

$ 2,071

$ 1,753

$ 7,705

$ 7,263

Diluted Earnings Per Share

$ 1.10

$ 1.05

$ 3.55

$ 2.23

Impact on Diluted Earnings Per Share

(0.44)

(0.24)

(2.18)

(2.83)

Adjusted Diluted Earnings Per Share

$ 1.54

$ 1.29

$ 5.73

$ 5.06

Effective Tax Rate

22.3 %

15.1 %

19.1 %

11.9 %

Impact on Effective Tax Rate

0.4 %

(3.7) %

0.3 %

(6.6) %

Adjusted Effective Tax Rate

21.9 %

18.8 %

18.5 %

(1)

Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments.

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin

Quarter Ended
December 31,

Twelve Months Ended
December 31,

(Unaudited)

(dollars in millions)

2024

2023

2024

2023

Net Sales

$ 21,623

$ 19,927

$ 80,738

$ 68,920

Reconciliation to segment net sales:

Eliminations and other

640

518

2,325

1,979

Segment Net Sales

$ 22,263

$ 20,445

$ 83,063

$ 70,899

Reconciliation to adjusted segment net sales:

Net significant and/or non-recurring items (1)

—

112

(70)

(5,346)

Adjusted Segment Net Sales

$ 22,263

$ 20,333

$ 83,133

$ 76,245

Operating Profit

$ 2,111

$ 1,777

$ 6,538

$ 3,561

Operating Profit Margin

9.8 %

8.9 %

8.1 %

5.2 %

Reconciliation to segment operating profit:

Eliminations and other

(7)

Corporate expenses and other unallocated items

110

933

275

FAS/CAS operating adjustment

(197)

(282)

(833)

(1,127)

Acquisition accounting adjustments

520

499

2,058

1,998

Segment Operating Profit

$ 2,434

$ 2,112

$ 8,744

$ 4,749

Segment Operating Profit Margin

10.9 %

10.3 %

10.5 %

6.7 %

Reconciliation to adjusted segment operating profit:

Restructuring

(79)

(31)

(185)

(187)

Net significant and/or non-recurring items (1)

(139)

(576)

(3,082)

Adjusted Segment Operating Profit

$ 2,652

$ 2,058

$ 9,505

$ 8,018

Adjusted Segment Operating Profit Margin

11.9 %

10.1 %

11.4 %

10.5 %

(1)

Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments.

RTX Corporation

Free Cash Flow Reconciliation

Quarter Ended December 31,

(Unaudited)

(dollars in millions)

2024

2023

Net cash flows provided by operating activities

$ 1,561

$ 4,711

Capital expenditures

(1,069)

(805)

Free cash flow

$ 492

$ 3,906

Twelve Months Ended December 31,

(Unaudited)

(dollars in millions)

2024

2023

Net cash flows provided by operating activities

$ 7,159

$ 7,883

Capital expenditures

(2,625)

(2,415)

Free cash flow

$ 4,534

$ 5,468

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Organic Sales Reconciliation

Quarter ended December 31, 2024 compared to the Quarter Ended December 31, 2023

(Unaudited)

(dollars in millions)

Total Reported
Change

Acquisitions &
Divestitures
Change

FX / Other
Change (2)

Organic
Change

Prior Year
Adjusted Sales (1)

Organic Change
as a % of
Adjusted Sales

Collins Aerospace

$ 417

$ (18)

$ (107)

$ 542

$ 7,008

8 %

Pratt & Whitney

1,130

—

(25)

1,155

6,439

18 %

Raytheon

271

(412)

675

6,886

10 %

Eliminations and Other (3)

(122)

(145)

(509)

28 %

Consolidated

$ 1,696

$ (429)

$ (102)

$ 2,227

$ 19,824

11 %

(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.

Twelve Months Ended December 31, 2024 compared to the Twelve Months Ended December 31, 2023

(Unaudited)

(dollars in millions)

Total Reported
Change

Acquisitions &
Divestitures
Change

FX / Other
Change (2)

Organic Change

Prior Year
Adjusted Sales (1)

Organic Change
as a % of
Adjusted Sales

Collins Aerospace

$ 2,031

$ (18)

$ (47)

$ 2,096

$ 26,198

8 %

Pratt & Whitney

9,770

—

5,384

4,386

23,697

19 %

Raytheon

363

(1,274)

(54)

1,691

26,350

6 %

Eliminations and Other (3)

(346)

(357)

(1,940)

18 %

Consolidated

$ 11,818

$ (1,291)

$ 5,293

$ 7,816

$ 74,305

11 %

(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.

Non-GAAP Financial Adjustments

Non-GAAP Adjustments

Description

Benefits related to litigation matters

The quarter and twelve months ended December 31, 2023 includes a net sales benefit of $112 million and $55 million, respectively and a corresponding net operating profit benefit of $119 million and $62 million, respectively related to the settlement of two customer litigation matters at Collins. Management has determined that the nature and significance of these settlements are considered unusual and therefore, not indicative of the Company’s ongoing operational performance.

Segment and portfolio transformation and divestiture costs

The quarters and twelve months ended December 31, 2024 and 2023 include certain segment and portfolio transformation costs incurred in connection with the 2023 completed segment realignment as well as separation costs incurred in advance of the completion of certain divestitures.

Charge associated with initiating alternative titanium sources

The twelve months ended December 31, 2024 includes a net pre-tax charge of $0.2 billion related to the recognition of unfavorable purchase commitments and an impairment of contract fulfillment costs associated with initiating alternative titanium sources at Collins. These charges were recorded as a result of the Canadian government’s imposition of new sanctions in February 2024, which included U.S.- and German-based Russian-owned entities from which we source titanium for use in our Canadian operations. Management has determined that these impacts are directly attributable to the sanctions, incremental to similar costs incurred for reasons other than those related to the sanctions and has determined that the nature of the charge is considered significant and unusual, and therefore, not indicative of the Company’s ongoing operational performance.

Impairment of contract fulfillment costs

The quarter and twelve months ended December 31, 2024 include a net pre-tax charge of $0.2 billion related to an impairment of contract fulfillment costs as a result of a contract cancellation during the fourth quarter of 2024 at Collins. Management has determined that the nature and significance of the charge is considered unusual and, therefore not indicative of the Company’s ongoing operational performance.

Powder Metal charge

The twelve months ended December 31, 2023 includes a net pre-tax charge of $2.9 billion related to the Pratt powder metal matter during the third quarter of 2023. The charge is reflected in the Consolidated Statement of Operations as a reduction of sales of $5.4 billion which was partially offset by a net reduction of cost of sales of $2.5 billion primarily representing our partners’ 49% share of this charge. The charge includes the Company’s current best estimate of expected customer compensation for the estimated duration of the disruption as well as the third quarter Estimate-at-Completion (EAC) adjustment impact of this matter to Pratt & Whitney’s long-term maintenance contracts. Management has determined that these items are directly attributable to the powder metal matter, incremental to similar costs (or income) incurred for reasons other than those related to the powder metal matter and not expected to recur, and therefore, not indicative of the Company’s ongoing operational performance.

Charge related to a customer insolvency

The twelve months ended December 31, 2023 includes a net pre-tax charge of $0.2 billion related to a customer insolvency during the second quarter of 2023. The charge primarily relates to Contract assets and Customer financing assets exposures with the customer. Management has determined that the nature and significance of the charge is considered unusual and, therefore not indicative of the Company’s ongoing operational performance.

Expected settlement of a litigation matter

The twelve months ended December 31, 2024 includes a pre-tax charge of $34 million reflecting the expected settlement value relating to a litigation matter at Pratt & Whitney. Management has determined that the impact is directly attributable to the expected legal settlement and that the nature of the charge is considered non-operational and therefore, not indicative of the Company’s ongoing operational performance.

Customer bankruptcy

The quarter and twelve months ended December 31, 2024 include a net pre-tax charge of approximately $0.2 billion related to a customer bankruptcy during the fourth quarter of 2024 at Pratt & Whitney. The charge primarily relates to contract asset exposures with the customer. Management has determined that the nature and significance of the charge is considered unusual and, therefore not indicative of the Company’s ongoing operational performance.

Contract termination

The twelve months ended December 31, 2024 includes a pre-tax charge of $0.6 billion related to the termination of a fixed price development contract with a foreign customer at Raytheon. The charge includes the write-off of remaining contract assets and settlement with the customer. Management has determined that these impacts are directly attributable to the termination, incremental to similar costs incurred for reasons other than those attributable to the termination and has determined that the nature of the pre-tax charge is considered significant and unusual and therefore, not indicative of the Company’s ongoing operational performance.

Gain on sale of business, net of transaction and other related costs

The quarter and twelve months ended December 31, 2024 includes a pre-tax gain, net of transaction and other related costs, of $0.1 billion associated with the completed sale of the Hoist & Winch business at Collins. The twelve months ended December 31, 2024 also includes a pre-tax gain, net of transaction and other related costs, of $0.4 billion associated with the completed sale of the Cybersecurity, Intelligence and Services (CIS) business at Raytheon. Management has determined that the nature of these net gains on the divestitures is considered significant and non-operational and therefore, not indicative of the Company’s ongoing operational performance.

Middle East contracts restart adjustments

The quarter and twelve months ended December 31, 2024 includes a net operating profit benefit of $0.1 billion primarily related to reserve and contract loss provision adjustments as a result of restarting work under certain contracts with a Middle East customer. Management has determined that the nature and significance of the benefit is considered unusual, therefore not indicative of the Company’s ongoing operational performance.

Prior year impact from R&D capitalization IRS notice

The quarter and twelve months ended December 31, 2023 includes a net pre-tax charge of $9 million and $39 million, respectively and a tax expense increase of $5 million and $13 million, respectively related to the 2022 impact of an IRS notice issued in September 2023 related to the capitalization of research and experimental expenditures for tax purposes. Management has determined that these items are directly attributable to the IRS notice and represents the impact to 2022, incremental to similar costs (or income) incurred for reasons other than the tax law change and not expected to recur, and therefore, not indicative of the Company’s ongoing operational performance.

Tax audit settlements

The twelve months ended December 31, 2024 includes a tax benefit of $0.3 billion recognized as a result of the closure of the examination phase of multiple federal tax audits. In addition, there was a pre-tax charge of $68 million for the write-off of certain tax related indemnity receivables and a pre-tax gain on the reversal of $78 million of interest accruals, both directly associated with these tax audit settlements. Management has determined that the nature of these impacts related to the tax audit settlements is considered significant and non-operational and therefore, not indicative of the Company’s ongoing operational performance.

Legal matters

The twelve months ended December 31, 2024 includes charges of $0.9 billion related to the expected resolution of several outstanding legal matters. The charge includes an additional accrual of $0.3 billion to resolve the previously disclosed criminal and civil government investigations of defective pricing claims for certain legacy Raytheon Company contracts entered into between 2011 and 2013 and in 2017; an additional accrual of $0.4 billion to resolve the previously disclosed criminal and civil government investigations of improper payments made by Raytheon Company and its joint venture, Thales-Raytheon Systems, in connection with certain Middle East contracts since 2012; and an accrual of $0.3 billion related to certain voluntarily disclosed export controls violations, primarily identified in connection with the integration of Rockwell Collins and, to a lesser extent, Raytheon Company, including certain violations expected to be resolved pursuant to a consent agreement with the Department of State. Management has determined that these impacts are directly attributable to these legacy legal matters and that the nature of the charges are considered significant and unusual and therefore, not indicative of the Company’s ongoing operational performance.

Tax matters and related indemnification

The twelve months ended December 31, 2024 includes the impact of a recent favorable international tax court ruling related to certain tax payments made by a previously separated entity. As a result of this ruling, and the expected reimbursement of international taxes to the previously separated entity, the Company will owe additional U.S. income tax of $0.2 billion and related interest. The Company recorded a pre-tax benefit of $0.2 billion to recognize recovery of the additional taxes and interest owed pursuant to a tax matters agreement entered into in connection with the separation. There was no net income impact in 2024 as a result of this adjustment. We also recognized an income tax benefit of $56 million in response to favorable U.S. Tax Court rulings issued to unrelated taxpayers, but with facts similar to ours. The nature of the tax item in the rulings is subject to the tax matters agreement with previously separated entities and therefore we recorded a pre-tax charge of $32 million for the indemnified amounts. Management has determined that the nature of these impacts to both pre-tax income and income tax expense is considered significant and non-operational and therefore, not indicative of the Company’s ongoing operational performance.

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View original content:https://www.prnewswire.com/news-releases/rtx-reports-2024-results-and-announces-2025-outlook-302361892.html

SOURCE RTX

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4 hours ago

April 24, 2026

Divests its geoscience and petroleum engineering software portfolio to global technology firm SLB in order to sharpen focus on proprietary data and insightsLaunches Titan, a new customer facing AI-powered platform for upstream data and insightsPartners with SLB to distribute S&P Global Energy data and develop new tools

NEW YORK, April 24, 2026 /PRNewswire/ — Today, S&P Global announced strategic innovations and changes to its upstream energy business, beginning with a definitive agreement to sell S&P Global Energy’s geoscience and petroleum engineering software portfolio to SLB, a global technology company driving energy innovation across more than 100 countries. This portfolio of subsurface and engineering software, widely used by U.S. onshore and unconventional operators, includes Kingdom Software, Petra, Harmony Enterprise, Analytics Explorer, SubPUMP, PowerTools, FieldDIRECT, Piper, WellTest, and The Element Platform, together with associated business services.

In addition, S&P Global Energy will launch an AI-powered upstream data platform known as Titan, designed to transform how customers discover, analyze, and act on high-quality data and insights. Built on comprehensive global coverage spanning 113 countries, Titan will serve an estimated 110,000 users across 4,000 client organizations, scaling from individual analysts to global enterprises.

Currently in beta testing with select customers, Titan is scheduled for full commercial launch later this year. The platform consolidates content and analytics into a single, high-performance workspace that accelerates critical decision-making. Titan differentiates through an AI-Powered experience that enables anticipatory discovery, surfacing relevant patterns before users need to search, and helping teams translate upstream market signals into faster commercial and strategic actions.

“This new strategic direction for our upstream business will allow us to transform a core part of our business and deliver enhanced value to our customers,” said Dave Ernsberger, President, S&P Global Energy. “Backed by an innovative new AI-powered platform, Titan, that will fundamentally change how our upstream data is connected and delivered, we are taking a significant leap forward in how we serve global energy markets as the most trusted provider of data and insights. These new investments could not come at a more important time as the world navigates a challenging energy environment, powered by the data and insights we provide.”

Along with launching Titan, divesting these software assets will allow S&P Global Energy to focus on providing world class data and insights and pursue a channel-agnostic approach toward the distribution of its content. As part of this transaction, S&P Global Energy will continue to distribute its leading proprietary data through the divested geoscience and petroleum engineering workflow tools. The parties have also entered an agreement to expand their partnership through further data distribution and collaboration on building new AI models to transform upstream business use cases.

“Unconventional markets demand speed, scale and efficiency,” said Olivier Le Peuch, Chief Executive Officer, SLB. “This software portfolio is widely used by U.S. land operators in their daily workflows. By integrating these capabilities with our industrial-scale digital platforms and AI technologies we can serve customers across the full spectrum of subsurface and planning needs.”

SLB’s upstream energy sector tools and services are designed to deliver insights and manage data to meet diverse client needs across exploration, production, logistics, and midstream infrastructure including pipelines, storage terminals, and ports. The customers include national and international energy companies, and independents, along with midstream-downstream operating companies.

The transaction is subject to the satisfaction of customary conditions, including the receipt of regulatory approvals, and is expected to close in the second half of 2026 or early 2027. Terms of the transaction were not disclosed.

J.P. Morgan Securities LLC is acting as financial advisor to S&P Global. Ropes & Gray LLP is acting as legal advisor to S&P Global. Akin Gump Strauss Hauer & Feld LLP is acting as legal advisor to SLB.

Media Contacts:

Josh Goldstein   
S&P Global Energy 
+1 954-254-4900 
josh.goldstein@spglobal.com 

Orla O’Brien 
S&P Global 
+1 857-407-8559 
orla.obrien@spglobal.com  

About S&P Global Energy
At S&P Global Energy (formerly S&P Global Commodity Insights), our comprehensive view of global energy and commodities markets enables our customers to make superior decisions and create long-term, sustainable value. Our four core capabilities are: Platts for pricing and news; CERA for research and advisory; Horizons for energy expansion and sustainability solutions; and Events for industry collaboration.

S&P Global Energy is a division of S&P Global (NYSE: SPGI). S&P Global enables businesses, governments, and individuals with trusted data, expertise, and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive economically in a rapidly changing global landscape. Learn more at www.spglobal.com/energy.

About SLB
SLB is a global technology company that has driven energy innovation for 100 years. With a global presence in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition.

Forward-Looking Statements: This press release contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events, trends, contingencies or results, appear at various places in this press release and use words like “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “potential,” “predict,” “project,” “strategy,” “target” and similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and “would.” For example, management may use forward-looking statements when addressing topics such as: the outcome of contingencies; future actions by regulators; changes in the Company’s business strategies and methods of generating revenue; the development and performance of the Company’s services and products; the expected impact of acquisitions and dispositions; the Company’s effective tax rates; the Company’s cost structure, dividend policy, cash flows or liquidity; and the anticipated separation of S&P Global Mobility (“Mobility”) into a standalone public company.

Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:

worldwide economic, financial, political, and regulatory conditions (including slower GDP growth or recession, restrictions on trade (e.g., tariffs), instability in the banking sector and inflation), and factors that contribute to uncertainty and volatility (e.g., supply chain risk), geopolitical uncertainty (including military conflict), natural and man-made disasters, civil unrest, public health crises (e.g., pandemics), and conditions that result from legislative, regulatory, trade and policy changes, including from the U.S. administration;the volatility and health of debt, equity, commodities, energy and automotive markets, including credit quality and spreads, the composition and mix of credit maturity profiles, the level of liquidity and future debt issuances, equity flows from active to passive, fluctuations in average asset prices in global equities, demand for investment products that track indices and assessments and trading volumes of certain exchange traded derivatives;the demand and market for credit ratings in and across the sectors and geographies where the Company operates;the Company’s ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, or protect against a system or network disruption that results in regulatory penalties and remedial costs or improper disclosure of confidential information or data;the outcome of litigation, government and regulatory proceedings, investigations and inquiries;concerns in the marketplace affecting the Company’s credibility or otherwise affecting market perceptions of the integrity or utility of independent credit ratings, benchmarks, indices and other services;the level of merger and acquisition activity in the United States and abroad;the level of the Company’s future cash flows and capital investments;the effect of competitive products (including those incorporating artificial intelligence (“AI”)) and pricing, including the level of success of new product developments and global expansion;the impact of customer cost-cutting pressures;a decline in the demand for our products and services by our customers and other market participants;our ability to develop new products or technologies, to integrate our products with new technologies (e.g., AI), or to compete with new products or technologies offered by new or existing competitors;the introduction of competing products (including those developed by AI) or technologies by other companies;our ability to protect our intellectual property from unauthorized use and infringement, including by others using AI technologies, and to operate our business without violating third-party intellectual property rights, including through our own use of AI in our products and services;our ability to attract, incentivize and retain key employees, especially in a competitive business environment;our ability to successfully navigate key organizational changes;the continuously evolving regulatory environment in Europe, the United States and elsewhere around the globe affecting each of our businesses and the products they offer, and our compliance therewith;the Company’s exposure to potential criminal sanctions or civil penalties for noncompliance with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which it operates, including sanctions laws relating to countries such as Iran, Russia and Venezuela, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and local laws prohibiting corrupt payments to government officials, as well as import and export restrictions;the Company’s ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;consolidation of the Company’s customers, suppliers or competitors;the ability of the Company, and its third-party service providers, to maintain adequate physical and technological infrastructure;the Company’s ability to successfully recover from a disaster or other business continuity problem, such as an earthquake, hurricane, flood, civil unrest, protests, military conflict, terrorist attack, outbreak of pandemic or contagious diseases, security breach, cyber attack, data breach, power loss, telecommunications failure or other natural or man-made event;the impact on the Company’s revenue and net income caused by fluctuations in foreign currency exchange rates;the impact of changes in applicable tax or accounting requirements on the Company;the separation of Mobility not being consummated within the anticipated time period or at all;the ability of the separation of Mobility to qualify for tax-free treatment for U.S. federal income tax purposes;any disruption to the Company’s business in connection with the proposed separation of Mobility;any loss of synergies from separating the businesses of Mobility and the Company that adversely impact the results of operations of both businesses, or the companies resulting from the separation of Mobility not realizing all of the expected benefits of the separation; andfollowing the separation of Mobility, the combined value of the common stock of the two publicly-traded companies not being equal to or greater than the value of the Company’s common stock had the separation not occurred.

The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company’s businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company’s filings with the SEC, including Item 1A, Risk Factors in our most recently filed Annual Report on Form 10-K.

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SOURCE S&P Global

Technology

Charter Announces First Quarter 2026 Results

Published

4 hours ago

April 24, 2026

STAMFORD, Conn., April 24, 2026 /PRNewswire/ — Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”), which operates the Spectrum brand, today reported financial and operating results for the three months ended March 31, 2026.

First quarter Spectrum Mobile™ lines increased by 368,000 and by 1.8 million over the last twelve months. As of March 31, 2026, Charter served 12.1 million mobile lines.During the first quarter, Spectrum Internet® customers declined by 120,000. As of March 31, 2026, Charter served 29.6 million Internet customers.As of March 31, 2026, customer relationships totaled 31.7 million and connectivity customers totaled 30.5 million.First quarter revenue of $13.6 billion declined 1.0% year-over-year, primarily driven by lower residential video revenue. Residential connectivity revenue grew 0.9% year-over-year.Net income attributable to Charter shareholders totaled $1.2 billion in the first quarter. First quarter Adjusted EBITDA1 of $5.6 billion declined 2.2% year-over-year and declined 1.8% excluding transition expenses.First quarter capital expenditures totaled $2.9 billion and included $812 million of line extensions.First quarter net cash flows from operating activities totaled $4.3 billion versus $4.2 billion in the prior year.First quarter free cash flow1 of $1.4 billion decreased from $1.6 billion in the prior year, primarily due to higher capital expenditures, partly offset by higher operating cash flow.During the first quarter, Charter purchased 4.3 million shares of Charter Class A common stock for $963 million.

“We remain confident about our ability to win in the marketplace and grow over the longer term. That confidence is founded on our advanced network, our core operating strategy of delivering great products at great prices and our focus on increasing customer satisfaction,” said Chris Winfrey, President and CEO of Charter. “As we continue to improve our products, pricing, packaging, and service, and complete our rural and network initiatives, we are poised for improving customer and free cash flow growth.”

Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.

Key Operating Results

Approximate as of

March 31, 2026 (c)

March 31, 2025 (c)

Y/Y Change

Footprint

Estimated Passings (d)

58,661

57,167

2.6 %

Customer Relationships (e)

Residential

29,452

29,914

(1.5) %

Small Business

2,231

2,246

(0.7) %

Total Customer Relationships

31,683

32,160

(1.5) %

Residential

(157)

(50)

(107)

Small Business

(6)

(4)

(2)

Total Customer Relationships Quarterly Net Additions

(163)

(54)

(109)

Total Customer Relationship Penetration of Estimated Passings (f)

54.0 %

56.3 %

(2.3) ppts

Monthly Residential Revenue per Residential Customer (g)

$ 118.44

$ 120.07

(1.4) %

Monthly Small Business Revenue per Small Business Customer (h)

$ 162.71

$ 161.31

0.9 %

Residential Customer Relationships Penetration (i)

One Product Penetration

47.7 %

48.9 %

(1.2) ppts

Two Product Penetration

34.8 %

33.4 %

1.4 ppts

Three or More Product Penetration

17.5 %

17.7 %

(0.2) ppts

Connectivity (j)

Residential

28,446

28,758

(1.1) %

Small Business

2,074

2,080

(0.3) %

Total Connectivity Customers

30,520

30,838

(1.0) %

Residential

(117)

(5)

(112)

Small Business

(3)

(2)

(1)

Total Connectivity Quarterly Net Additions

(120)

(7)

(113)

Internet

Residential

27,524

27,979

(1.6) %

Small Business

2,036

2,045

(0.5) %

Total Internet Customers

29,560

30,024

(1.5) %

Residential

(117)

(55)

(62)

Small Business

(3)

(4)

Total Internet Quarterly Net Additions

(120)

(59)

(61)

Mobile Lines (k)

Residential

11,714

10,031

16.8 %

Small Business

420

334

25.7 %

Total Mobile Lines

12,134

10,365

17.1 %

Residential

344

488

(144)

Small Business

Total Mobile Lines Quarterly Net Additions

368

507

(139)

Video (l)

Residential

12,021

12,160

(1.1) %

Small Business

524

551

(5.0) %

Total Video Customers

12,545

12,711

(1.3) %

Residential

(51)

(167)

116

Small Business

(9)

(14)

Total Video Quarterly Net Additions

(60)

(181)

121

Voice

Residential

4,665

5,372

(13.2) %

Small Business

1,207

1,234

(2.2) %

Total Voice Customers

5,872

6,606

(11.1) %

Mid-Market & Large Business (m)

Mid-Market & Large Business Primary Service Units (“PSUs”)

360

344

4.5 %

Mid-Market & Large Business Quarterly Net Additions

(1)

In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

First quarter total Internet customers decreased by 120,000, compared to a decline of 59,000 during the first quarter of 2025. Spectrum Internet delivers the fastest Internet speeds1 in the nation. Spectrum is evolving its connectivity network to offer symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in several markets. Spectrum expects to complete its network evolution initiative in 2027. Spectrum Advanced WiFi provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy. In February, Spectrum launched its Invincible WiFi™ product, a tri-band advanced WiFi 7 router that integrates 5G cellular and battery backup to keep customers seamlessly and fully connected during a power outage or network disruption. In the first quarter, Spectrum launched its $1,000 savings guarantee; customers signing up to Spectrum Internet and switching two or more mobile lines from Verizon, AT&T or T-Mobile are now guaranteed $1,000 of savings in their first year, or Spectrum will cover the difference.

During the first quarter of 2026, Charter added 368,000 total mobile lines, compared to growth of 507,000 during the first quarter of 2025. Spectrum Mobile offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum Mobile is central to Charter’s converged network strategy to provide customers a differentiated connectivity experience with highly competitive, simple data plans and pricing.

Total video customers decreased by 60,000 in the first quarter of 2026, compared to a decline of 181,000 in the first quarter of 2025, with the improvement driven by simplified pricing and packaging and benefits from the inclusion of programmers’ streaming applications in Spectrum’s expanded basic video packages. As of March 31, 2026, Charter had 12.5 million total video customers.

Spectrum TV Select video customers now receive up to approximately $120 per month (soon to be approximately $126 per month) of programmers’ streaming application retail value at no extra cost, including the ad-supported versions of Disney+, Hulu, ESPN Unlimited, HBO Max, Paramount+, Peacock, AMC+, ViX, Tennis Channel and Fox One, with Discovery+ launching soon. In October 2025, Spectrum unveiled the Spectrum App Store, an innovative digital marketplace where Spectrum TV customers can activate, manage and upgrade the streaming apps included with their video plans. The Spectrum App Store also allows Spectrum customers without a traditional TV package to purchase and manage streaming apps à la carte.

During the first quarter of 2026, total wireline voice customers declined by 174,000, compared to a decline of 278,000 in the first quarter of 2025. As of March 31, 2026, Charter had 5.9 million total wireline voice customers.

Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the first quarter of 2026, Charter activated 89,000 subsidized rural passings. Within Charter’s subsidized rural footprint, total customer relationships increased by 41,000 in the first quarter of 2026.

Fastest Speeds claim based on Broadband Download Speed among the top 5 national providers in Opensignal USA: Fixed Broadband Experience Report – May 2025. Based on Opensignal independent analysis of mean download speed.

Fastest Wireless Speeds based on combined mean download speed results for 4G, 5G and Wi-Fi across converged users on the top 5 national providers in November 2025 report.

First Quarter Financial Results
(in millions)

Three Months Ended March 31,

2026

2025

% Change

Revenues:

Internet

$ 5,852

$ 5,930

(1.3) %

Mobile service

1,052

914

15.1 %

Connectivity

6,904

6,844

0.9 %

Video

3,252

3,580

(9.2) %

Voice

338

356

(5.0) %

Residential revenue

10,494

10,780

(2.7) %

Small business

1,090

1,088

0.2 %

Mid-market & large business

749

734

2.1 %

Commercial revenue

1,839

1,822

1.0 %

Advertising sales

358

340

5.3 %

Other

906

793

14.2 %

Total Revenues

$ 13,597

$ 13,735

(1.0) %

Net income attributable to Charter shareholders

$ 1,163

$ 1,217

(4.4) %

Net income attributable to Charter shareholders margin

8.6 %

8.9 %

Adjusted EBITDA1

$ 5,637

$ 5,763

(2.2) %

Adjusted EBITDA margin

41.5 %

42.0 %

Capital expenditures

$ 2,855

$ 2,399

19.0 %

Net cash flows from operating activities

$ 4,304

$ 4,236

1.6 %

Free cash flow1

$ 1,372

$ 1,564

(12.3) %

All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

Revenues

First quarter revenue decreased by 1.0% year-over-year to $13.6 billion, driven by lower residential video revenue partly due to costs allocated to programmer streaming applications and netted within video revenue and lower residential Internet revenue, partly offset by an increase in residential mobile service revenue and higher mobile device revenue. Excluding advertising sales revenue and costs allocated to programmer streaming applications and netted within video revenue, first quarter total revenue grew by 0.1% year-over-year.

Residential revenue totaled $10.5 billion in the first quarter, a decrease of 2.7% year-over-year, driven by a year-over-year decline in residential customers of 1.5% and a decrease in monthly residential revenue per residential customer of 1.4%.

First quarter 2026 monthly residential revenue per residential customer totaled $118.44, a decrease of 1.4% compared to the prior year period. The decline was driven by a higher mix of lower priced video packages within Charter’s video customer base, $218 million of costs allocated to programmer streaming applications and netted within video revenue versus $47 million in the prior year period and a decline in video customers during the last year, partly offset by promotional rate step-ups, rate adjustments and the growth of Spectrum Mobile. Excluding costs allocated to programmer streaming applications and netted within video revenue, monthly residential revenue per residential customer increased 0.3% compared to the prior year period.

Internet revenue declined 1.3% year-over-year to $5.9 billion, driven by a decline in Internet customers year-over year, partly offset by a favorable change in bundled revenue allocation year-over-year, promotional rate step-ups and rate adjustments.

First quarter mobile service revenue totaled $1.1 billion, an increase of 15.1% year-over-year, driven by mobile line growth and rate adjustments, partly offset by less favorable bundled revenue allocation year-over-year.

Video revenue totaled $3.3 billion in the first quarter, a decrease of 9.2% compared to the prior year period, driven by a higher mix of lower priced video packages within Charter’s video customer base, $218 million of costs allocated to programmer streaming applications and netted within video revenue versus $47 million in the prior year period, more unfavorable bundled revenue allocation year-over-year and a decline in video customers during the last year, partly offset by promotional rate step-ups and video rate adjustments that pass through programmer rate increases.

Voice revenue decreased by 5.0% year-over-year to $338 million, driven by a decline in wireline voice customers, partly offset by voice rate adjustments.

Commercial revenue increased by 1.0% year-over-year to $1.8 billion, driven by mid-market and large business revenue growth of 2.1% year-over-year and an increase in small business revenue of 0.2%. Mid-market and large business revenue excluding wholesale increased by 2.8% year-over-year, mostly reflecting PSU growth. The year-over-year increase in first quarter 2026 small business revenue was driven by a 0.9% increase year-over-year in monthly small business revenue per small business customer, mostly offset by a decline in small business customer relationships year-over-year.

First quarter advertising sales revenue of $358 million increased by 5.3% compared to the year-ago quarter, primarily driven by higher political revenue. Excluding political revenue in both periods, advertising sales revenue decreased by 3.4% year-over-year driven by lower linear advertising revenue, partly offset by higher streaming advertising revenue.

Other revenue totaled $906 million in the first quarter, an increase of 14.2% compared to the first quarter of 2025, primarily driven by higher mobile device sales.

Operating Costs and Expenses

First quarter total operating costs and expenses declined 0.2% year-over-year to $8.0 billion driven by lower programming costs, mostly offset by higher other costs of revenue.

First quarter programming costs decreased by $214 million, or 9.3% as compared to the first quarter of 2025, reflecting $218 million of costs allocated to programmer streaming applications and netted within video revenue versus $47 million in the prior year period, a higher mix of lower cost packages within Charter’s video customer base and fewer video customers, partly offset by contractual programming rate increases and renewals.

Other costs of revenue increased by $181 million, or 11.4% year-over-year, primarily driven by higher mobile service direct costs, higher mobile device sales and higher advertising sales costs given higher political revenue.

Field and technology operations expenses decreased by $24 million, or 1.8% year-over-year, primarily driven by lower labor expense.

Customer operations expenses decreased by $6 million, or 0.8% year-over-year, primarily due to a decrease in bad debt expense.

Marketing and residential sales expenses decreased by $30 million or 3.2% year-over-year, due to lower marketing and labor expenses.

Transition expenses represent incremental costs incurred to prepare for the integration of the previously announced Cox transaction.

Other expenses increased by $57 million, or 5.3% as compared to the first quarter of 2025, primarily due to one-time benefits of $75 million in the prior year period.

Net Income Attributable to Charter Shareholders

Net income attributable to Charter shareholders totaled $1.2 billion in the first quarter of 2026 and 2025, with lower Adjusted EBITDA and higher depreciation and amortization, partly offset by a decrease in other operating expenses due to a non-strategic asset impairment charge in the first quarter of 2025.

Net income per basic common share attributable to Charter shareholders totaled $9.27 in the first quarter of 2026 compared to $8.59 during the same period last year. The increase was primarily the result of a 11.4% decrease in basic weighted average common shares outstanding versus the prior year period, partly offset by the factors described above.

Adjusted EBITDA

First quarter Adjusted EBITDA of $5.6 billion declined by 2.2% year-over-year, reflecting a decline in revenue of 1.0%, partly offset by a decrease in operating costs and expenses of 0.2%. Excluding transition expenses, Adjusted EBITDA declined 1.8% year-over-year.

Capital Expenditures

Capital expenditures totaled $2.9 billion in the first quarter of 2026, an increase of $456 million compared to the first quarter of 2025 given timing of spend, with higher upgrade/rebuild (primarily network evolution) and CPE, partly offset by lower line extension spend.

Charter continues to expect full year 2026 capital expenditures, excluding impacts from the previously announced Cox transaction, to total approximately $11.4 billion. The actual amount of capital expenditures in 2026 will depend on a number of factors including, but not limited to, the pace of Charter’s network evolution and expansion initiatives, supply chain timing and growth rates in Charter’s residential and commercial businesses.

Cash Flow and Free Cash Flow

During the first quarter of 2026, net cash flows from operating activities totaled $4.3 billion, an increase from $4.2 billion in the prior year. The year-over-year increase was primarily due to a less unfavorable change in working capital, partly offset by lower Adjusted EBITDA and higher cash paid for interest.

Free cash flow in the first quarter of 2026 totaled $1.4 billion, a decrease of $192 million compared to the first quarter of 2025. The year-over-year decrease in free cash flow was driven by higher capital expenditures, partly offset by a less unfavorable change in accrued expenses related to capital expenditures and higher net cash flows from operating activities.

Liquidity & Financing

As of March 31, 2026, total principal amount of debt was $94.3 billion and Charter’s credit facilities provided approximately $4.6 billion of additional liquidity in excess of Charter’s $517 million cash position.

In January 2026, CCO Holdings, LLC (“CCO Holdings”) and CCO Holdings Capital Corp. jointly issued $1.75 billion aggregate principal amount of 7.000% senior notes due February 2033 at par and $1.25 billion aggregate principal amount of 7.375% senior notes due February 2036 at par. In February 2026, CCO Holdings and CCO Holdings Capital Corp. redeemed $750 million in aggregate principal amount of the outstanding 5.500% senior notes due 2026 and $2.25 billion in aggregate principal amount of the outstanding 5.125% senior notes due 2027.

Share Repurchases

During the three months ended March 31, 2026, Charter purchased 4.3 million shares of Charter Class A common stock for $963 million.

Webcast

Charter will host a webcast on Friday, April 24, 2026 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.

The webcast can be accessed live via the Company’s investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.

Additional Information Available on Website

The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2026, which will be posted on the “Results & SEC Filings” section of the Company’s investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the “SEC”). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the “Results & SEC Filings” section.

Use of Adjusted EBITDA and Free Cash Flow Information

The Company uses certain measures that are not defined by U.S. generally accepted accounting principles (“GAAP”) to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the Addendum to this release.

Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company’s businesses as well as other non-cash or special items, and is unaffected by the Company’s capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.

Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.

Management and Charter’s board of directors use Adjusted EBITDA and free cash flow to assess Charter’s performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company’s credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company’s debt covenants refer to these expenses as management fees, which were $366 million for both the three months ended March 31, 2026 and 2025.

About Charter

Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company with services available to nearly 59 million homes and small to large businesses across 41 states through its Spectrum brand. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.

More information about Charter can be found at corporate.charter.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under “Risk Factors” from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as “believe,” “future,” “expect,” “anticipate,” “should,” “planned,” “will,” “may,” “intend,” “estimated,” “aim,” “on track,” “target,” “opportunity,” “tentative,” “positioning,” “designed,” “create,” “predict,” “project,” “initiatives,” “seek,” “would,” “could,” “continue,” “ongoing,” “upside,” “increases,” “grow,” “focused on” and “potential,” among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:

our ability to sustain and grow revenues and cash flow from operations by offering Internet, mobile, video, voice, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures;the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite (“DBS”) operators, wireless and satellite broadband and telephone providers, digital subscriber line (“DSL”) providers, fiber to the home providers and providers of video content over broadband Internet connections;general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;our ability to develop and deploy new products and technologies including consumer services and service platforms;any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements);the ability to hire and retain key personnel;the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets;our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions;our ability to satisfy the conditions to consummate the Liberty Broadband Combination and/or the Cox Transactions and/or to consummate the Liberty Broadband Combination and/or the Cox Transactions in a timely manner or at all;the risks related to us being restricted in the operation of our business while the Liberty Broadband Merger Agreement and the Cox Communications Transaction Agreement are in effect;other risks related to the Liberty Broadband Combination as described in the definitive joint proxy statement/prospectus with respect to the Liberty Broadband Combination, filed by Charter on January 22, 2025, including the sections entitled “Risk Factors” and “Where You Can Find More Information” included therein; andother risks related to the Cox Transactions as described in the definitive proxy statement with respect to the Cox Transactions, filed by Charter on July 2, 2025, including the sections entitled “Risk Factors” and “Where You Can Find More Information” included therein.

All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES

(dollars in millions)

Three Months Ended
March 31,

Last Twelve Months Ended
March 31,

2026

2025

2026

2025

Net income attributable to Charter shareholders

$ 1,163

$ 1,217

$ 4,933

$ 5,194

Plus: Net income attributable to noncontrolling interest

200

192

787

788

Interest expense, net

1,256

1,241

5,057

5,154

Income tax expense

465

445

1,712

1,648

Depreciation and amortization

2,211

2,181

8,741

8,664

Stock compensation expense

203

222

654

659

Other, net

139

265

698

728

Adjusted EBITDA (a)

$ 5,637

$ 5,763

$ 22,582

$ 22,835

Net cash flows from operating activities

$ 4,304

$ 4,236

$ 16,145

$ 15,454

Less: Purchases of property, plant and equipment

(2,855)

(2,399)

(12,115)

(10,877)

Change in accrued expenses related to capital expenditures

(77)

(273)

782

886

Free cash flow (a)

$ 1,372

$ 1,564

$ 4,812

$ 5,463

The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.

UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA

(dollars in millions)

Three Months Ended March 31,

2026

2025

% Change

REVENUES:

Internet

$ 5,852

$ 5,930

(1.3) %

Mobile service

1,052

914

15.1 %

Connectivity

6,904

6,844

0.9 %

Video

3,252

3,580

(9.2) %

Voice

338

356

(5.0) %

Residential revenue

10,494

10,780

(2.7) %

Small business

1,090

1,088

0.2 %

Mid-market & large business

749

734

2.1 %

Commercial revenue

1,839

1,822

1.0 %

Advertising sales

358

340

5.3 %

Other

906

793

14.2 %

Total Revenues

13,597

13,735

(1.0) %

COSTS AND EXPENSES:

Programming

2,088

2,302

(9.3) %

Other costs of revenue

1,765

1,584

11.4 %

Field and technology operations

1,258

1,282

(1.8) %

Customer operations

766

772

(0.8) %

Marketing and residential sales

919

949

(3.2) %

Transition expenses

—

n/a

Other expense (b)

1,140

1,083

5.3 %

Total operating costs and expenses (b)

7,960

7,972

(0.2) %

Adjusted EBITDA (a)

$ 5,637

$ 5,763

(2.2) %

All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 7.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in millions, except per share data)

Three Months Ended March 31,

2026

2025

REVENUES

$ 13,597

$ 13,735

COSTS AND EXPENSES:

Operating costs and expenses (exclusive of items shown separately below)

8,163

8,194

Depreciation and amortization

2,211

2,181

Other operating expenses, net

123

10,389

10,498

Income from operations

3,208

3,237

OTHER INCOME (EXPENSES):

Interest expense, net

(1,256)

(1,241)

Other expenses, net

(124)

(142)

(1,380)

(1,383)

Income before income taxes

1,828

1,854

Income tax expense

(465)

(445)

Consolidated net income

1,363

1,409

Less: Net income attributable to noncontrolling interests

(200)

(192)

Net income attributable to Charter shareholders

$ 1,163

$ 1,217

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS:

Basic

$ 9.27

$ 8.59

Diluted

$ 9.17

$ 8.42

Weighted average common shares outstanding, basic

125,488,486

141,591,396

Weighted average common shares outstanding, diluted

126,849,271

144,574,684

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

March 31,

December 31

2026

2025

ASSETS

(unaudited)

CURRENT ASSETS:

Cash and cash equivalents

$ 517

$ 477

Accounts receivable, net

3,510

3,680

Prepaid expenses and other current assets

933

987

Total current assets

4,960

5,144

INVESTMENT IN CABLE PROPERTIES:

Property, plant and equipment, net

47,198

46,444

Customer relationships, net

324

440

Franchises

67,471

Goodwill

29,710

Total investment in cable properties, net

144,703

144,065

OTHER NONCURRENT ASSETS

4,981

5,004

Total assets

$ 154,644

$ 154,213

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable, accrued and other current liabilities

$ 12,375

$ 12,556

Current portion of long-term debt

—

750

Total current liabilities

12,375

13,306

LONG-TERM DEBT

94,414

94,006

EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY

1,596

1,447

DEFERRED INCOME TAXES

20,049

19,841

OTHER LONG-TERM LIABILITIES

5,140

5,094

SHAREHOLDERS’ EQUITY:

Controlling interest

16,385

16,054

Noncontrolling interests

4,685

4,465

Total shareholders’ equity

21,070

20,519

Total liabilities and shareholders’ equity

$ 154,644

$ 154,213

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)

Three Months Ended March 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Consolidated net income

$ 1,363

$ 1,409

Adjustments to reconcile consolidated net income to net cash flows from operating activities:

Depreciation and amortization

2,211

2,181

Stock compensation expense

203

222

Noncash interest, net

Deferred income taxes

214

(27)

Other, net

126

233

Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:

Accounts receivable

(48)

Prepaid expenses and other assets

(235)

Accounts payable, accrued liabilities and other

169

493

Net cash flows from operating activities

4,304

4,236

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, plant and equipment

(2,855)

(2,399)

Change in accrued expenses related to capital expenditures

(77)

(273)

Other, net

(42)

(132)

Net cash flows from investing activities

(2,974)

(2,804)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings of long-term debt

7,216

1,393

Borrowings of equipment installment plan financing facility

148

121

Repayments of long-term debt

(7,499)

(1,609)

Payments for debt issuance costs

(30)

—

Purchase of treasury stock

(1,026)

(802)

Proceeds from exercise of stock options

Purchase of noncontrolling interest

—

(20)

Distributions to noncontrolling interest

(2)

(3)

Other, net

(115)

(169)

Net cash flows from financing activities

(1,306)

(1,072)

NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

360

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period

598

506

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period

$ 622

$ 866

CASH PAID FOR INTEREST

$ 1,067

$ 995

As of March 31, 2026, December 31, 2025, March 31, 2025 and December 31, 2024, cash, cash equivalents and restricted cash includes $105 million, $121 million, $70 million and $47 million of restricted cash included in prepaid expenses and other current assets in the consolidated balance sheets, respectively.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED SUMMARY OF OPERATING STATISTICS

(in thousands, except per customer and penetration data)

Approximate as of

March 31,
2026 (c)

December 31,
2025 (c)

March 31,
2025 (c)

Footprint

Estimated Passings (d)

58,661

58,399

57,167

Customer Relationships (e)

Residential

29,452

29,609

29,914

Small Business

2,231

2,237

2,246

Total Customer Relationships

31,683

31,846

32,160

Residential

(157)

(125)

(50)

Small Business

(6)

(2)

(4)

Total Customer Relationships Quarterly Net Additions

(163)

(127)

(54)

Total Customer Relationship Penetration of Estimated Passings (f)

54.0 %

54.5 %

56.3 %

Monthly Residential Revenue per Residential Customer (g)

$ 118.44

$ 117.19

$ 120.07

Monthly Small Business Revenue per Small Business Customer (h)

$ 162.71

$ 159.85

$ 161.31

Residential Customer Relationships Penetration (i)

One Product Penetration

47.7 %

48.0 %

48.9 %

Two Product Penetration

34.8 %

34.5 %

33.4 %

Three or More Product Penetration

17.5 %

17.7 %

Connectivity (j)

Residential

28,446

28,563

28,758

Small Business

2,074

2,077

2,080

Total Connectivity Customers

30,520

30,640

30,838

Residential

(117)

(95)

(5)

Small Business

(3)

—

(2)

Total Connectivity Quarterly Net Additions

(120)

(95)

(7)

Internet

Residential

27,524

27,641

27,979

Small Business

2,036

2,039

2,045

Total Internet Customers

29,560

29,680

30,024

Residential

(117)

(119)

(55)

Small Business

(3)

—

(4)

Total Internet Quarterly Net Additions

(120)

(119)

(59)

Mobile Lines (k)

Residential

11,714

11,370

10,031

Small Business

420

396

334

Total Mobile Lines

12,134

11,766

10,365

Residential

344

406

488

Small Business

Total Mobile Lines Quarterly Net Additions

368

428

507

Video (l)

Residential

12,021

12,072

12,160

Small Business

524

533

551

Total Video Customers

12,545

12,605

12,711

Residential

(51)

(167)

Small Business

(9)

(5)

(14)

Total Video Quarterly Net Additions

(60)

(181)

Voice

Residential

4,665

4,832

5,372

Small Business

1,207

1,214

1,234

Total Voice Customers

5,872

6,046

6,606

Mid-Market & Large Business (m)

Mid-Market & Large Business Primary Service Units (“PSUs”)

360

357

344

Mid-Market & Large Business Quarterly Net Additions

See footnotes on page 7.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CAPITAL EXPENDITURES

(dollars in millions)

Three Months Ended March 31,

2026

2025

Customer premise equipment (n)

$ 668

$ 473

Scalable infrastructure (o)

310

293

Upgrade/rebuild (p)

675

395

Support capital (q)

390

360

Capital expenditures, excluding line extensions

2,043

1,521

Subsidized rural construction line extensions

426

467

Other line extensions

386

411

Total line extensions (r)

812

878

Total capital expenditures

$ 2,855

$ 2,399

Capital expenditures included in total related to:

Commercial services

$ 286

$ 273

Subsidized rural construction initiative (s)

$ 427

$ 468

Mobile

$ 60

$ 53

See footnotes on page 7.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

FOOTNOTES

(a)

Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net such as special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.

(b)

Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.

(c)

We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, at March 31, 2026, December 31, 2025 and March 31, 2025, customers included approximately 87,600, 82,300 and 92,200 customers, respectively, whose accounts were over 60 days past due, approximately 7,800, 9,700 and 10,700 customers, respectively, whose accounts were over 90 days past due and approximately 13,600, 13,600 and 17,000 customers, respectively, whose accounts were over 120 days past due.

(d)

Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and small business and mid-market & large business sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.

(e)

Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, mobile, video and voice services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units (“MDUs”) and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude mid-market & large business customer relationships.

(f)

Penetration represents residential and small business customers as a percentage of estimated passings.

(g)

Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter.

(h)

Monthly small business revenue per small business customer is calculated as total small business quarterly revenue divided by three divided by average small business customer relationships during the respective quarter.

(i)

One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships.

(j)

Connectivity customers represent all customers receiving our Internet and/or mobile connectivity services.

(k)

Mobile lines include phones and tablets which require one of our standard rate plans (e.g., “Unlimited” or “By the Gig”). Mobile lines exclude wearables and other devices that do not require standard phone rate plans.

(l)

Video customers only include customers that purchase Spectrum traditional or streaming linear video packages and exclude customers that only purchase streaming applications.

(m)

Mid-market & large business PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.

(n)

Customer premise equipment includes equipment and devices located at the customer’s premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs.

(o)

Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment).

(p)

Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative.

(q)

Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment).

(r)

Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).

(s)

The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments, excluding customer premise equipment and installation.

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SOURCE Charter Communications, Inc.

Technology

KVB Futures Marks Its First Anniversary with Heartfelt CSR Initiative, Sharing Joy This Easter Season

Published

4 hours ago

April 24, 2026

JAKARTA, Indonesia, April 24, 2026 /PRNewswire/ — Marking its first anniversary, KVB Futures celebrates a year of growth and milestones by hosting its inaugural Corporate Social Responsibility (CSR) initiative under the #BetterTogether vision at Yayasan Pondok Kasih Mandiri, Jakarta. Held in conjunction with Easter, the initiative reflects the company’s commitment to creating meaningful connections with the community through activities such as Easter egg colouring, a communal meal, and a donation handover to the foundation’s children.

The event was attended by President Director Tonny Fong, alongside the Compliance Director and KVB staff, highlighting KVB Futures’ commitment at the leadership level to actively contribute to social impact initiatives and community development.

“At KVB Futures, we believe that meaningful impact begins with care. This initiative reflects our responsibility to support and give back to the community, and we hope to continue creating a positive and lasting difference through our actions.”
Tonny Fong, President Director of KVB Futures.

In celebration of this first anniversary milestone, KVB Futures also introduces its Loyalty Program as a form of appreciation for its loyal clients. The program is designed to reward clients for their continuous trading activities, where each transaction contributes to earning exclusive rewards. Through this initiative, clients are encouraged to grow together with KVB Futures while enjoying additional benefits beyond the trading experience. Rewards offered under the program range from international travel, motorcycles, gold, iPhones, to vouchers reflecting the company’s commitment to delivering tangible value to its clients.

Beyond business growth, this initiative marks the beginning of KVB Futures’ long-term commitment to community engagement and sustainable impact. The company aims to continue developing meaningful programs that not only strengthen relationships with the community but also reinforce its position as a trusted, responsible, and people-first brokerage in Indonesia.

About KVB Futures

PT KVB Futures is a fully regulated brokerage under BAPPEBTI, operating in accordance with applicable regulations of OJK and Bank Indonesia (BI), and is ISO-certified to ensure high standards of security and operational excellence.

KVB Futures offers multi-asset trading services, including foreign exchange, gold, silver, oil, global stock indices, and US stock CFDs. With its KVB app at the core, KVB Futures combines innovative technology and a client-first approach to deliver a seamless, reliable, and competitive trading experience in Indonesia.

KVB Futures Contact

+62 851-1701-0756 | brand@kvb.co.id

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/kvb-futures-marks-its-first-anniversary-with-heartfelt-csr-initiative-sharing-joy-this-easter-season-302752543.html

SOURCE KVB Futures