Collins Aerospace Begins Testing Electric Power Systems for Hybrid-Electric Aviation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 16 2026
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Should l Buy RTX?
Source: Newsfilter
- Electric Power System Testing: Collins Aerospace has initiated preliminary testing of electric motor drive systems at 'The Grid' lab in Rockford, Illinois, marking a crucial step towards demonstrating hybrid-electric technology on a full-scale Pratt & Whitney GTF™ engine, which is expected to enhance engine efficiency for future short- and medium-range aircraft.
- Subsystem Validation: The testing validates hybrid-electric powertrain subsystems, including two megawatt-class motor generators, which will be integrated into a Pratt & Whitney GTF engine demonstrator, facilitating the aviation industry's transition to more electric systems and improving fuel efficiency.
- International Collaboration: The SWITCH project brings together MTU Aero Engines, Pratt & Whitney, Collins Aerospace, GKN Aerospace, Airbus, and several European research institutions, aiming to advance sustainable aviation through hybrid-electric propulsion and more electric aircraft architectures.
- Future Market Potential: Kristin Smith, VP of Electric Power Systems at Collins Aerospace, stated that hybrid-electric technology has the potential to achieve greater fuel efficiency across multiple platforms, including next-generation single-aisle aircraft, which is expected to have a profound impact on the aviation market and drive the industry towards more environmentally friendly practices.
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Analyst Views on RTX
Wall Street analysts forecast RTX stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 198.390
Low
168.00
Averages
195.77
High
215.00
Current: 198.390
Low
168.00
Averages
195.77
High
215.00
About RTX
RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. The Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Award-Winning Innovation: Collins Aerospace's SkyNook solution won the 2026 Crystal Cabin Award at the Aircraft Interiors Expo in Hamburg, highlighting its innovative approach to passenger comfort and enhancing the company's reputation in the aircraft interiors sector.
- Optimized Space Utilization: By deploying a convertible console in the last row of widebody aircraft, SkyNook reclaims commonly underutilized space, allowing passengers to safely secure car seats, bassinets, or pet carriers, thereby improving the overall travel experience.
- Enhanced Privacy and Comfort: The system features a privacy divider that not only provides a visual barrier from the aisle but also dampens sound from the galley and lavatory areas, significantly enhancing passenger privacy and comfort, particularly for families and those with special needs.
- Industry Leadership: This award brings Collins Aerospace's total to 16 Crystal Cabin Awards in the program's 20-year history, further solidifying its leadership position in the global aerospace and defense industry and demonstrating its commitment to future aviation technologies.
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- Liquidation Risk: Spirit Airlines could face liquidation as early as this week due to its second bankruptcy in less than a year and the added pressure from rising fuel prices, significantly worsening its financial situation.
- Bankruptcy Restructuring Challenges: Although Spirit aimed to exit bankruptcy this spring, the surge in fuel costs and intensified market competition pose substantial challenges to its restructuring plans, potentially impacting its future operational capabilities.
- Deteriorating Industry Environment: Post-pandemic, airlines are grappling with soaring wages and costs, shifting customer preferences, and an oversupply of domestic flights leading to falling airfares, making it difficult for Spirit to regain profitability in this challenging landscape.
- Blocked Acquisition Impact: The failed acquisition by JetBlue Airways due to antitrust rulings has left Spirit isolated in a market dominated by larger carriers, exacerbating its financial woes and limiting its strategic options.
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- Significant Contract Value: Raytheon has been awarded a not-to-exceed $234.8 million contract for the AMRAAM Extended Range (ER) transition to production, indicating strong demand and ongoing investment in the defense sector.
- Production Transition Support: This contract supports the necessary activities to transition AMRAAM ER into full-rate production, which is expected to enhance Raytheon's competitiveness in the missile systems market and meet future defense requirements.
- Project Location and Timeline: The work will be performed in Tucson, Arizona, and is expected to be completed by April 13, 2030, providing Raytheon with a clear project timeline and resource allocation opportunities.
- Funding Assurance: At the time of the award, $61.6 million in Foreign Military Sales funds were obligated, ensuring liquidity for the project and reflecting the U.S. government's trust and support for Raytheon's products.
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- Successful Flight Test: Raytheon has successfully completed the first flight test of its RAIVEN sensor system aboard a UH-60 Black Hawk, marking an early milestone for the next-generation electro-optical and infrared platform, showcasing its technological prowess in advanced sensing and survivability systems.
- Comprehensive Situational Awareness: The air-cooled system integrates three sensors, providing 270-degree situational awareness in complete darkness while successfully mapping varied terrains including urban areas, marshland, and coastlines, addressing the military's urgent need for battlefield awareness.
- Significant Market Potential: If widely adopted, RAIVEN could support future revenue growth through upgrades, new platform integrations, and international sales, particularly as defense budgets increasingly favor high-tech surveillance and targeting systems.
- Modular Design Benefits: The RAIVEN system is part of a broader family of modular EO/IR products with an open architecture that allows integration with existing systems and future upgrades, with configurations expandable to a full 360-degree field of view, enhancing threat detection and pilot navigation capabilities.
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- New Investment Opportunities: SpaceX's planned IPO in June 2026, targeting a valuation of $1.75 trillion, is set to become the largest in history, attracting participation from a syndicate of 21 banks including Morgan Stanley and Goldman Sachs, potentially transforming the space investment landscape.
- Accelerated Testing through Partnership: Starfighters Space has signed a Technical Interchange Agreement with Blackstar Orbital to utilize its F-104 aircraft platform for flight testing reusable hypersonic space systems, with operations expected to commence in Q4 FY26, driving rapid advancements in aerospace technology.
- Strong Financial Performance: GE Aerospace is expected to report Q1 2026 earnings based on a solid Q4 performance of $1.57 EPS and $11.9 billion in revenue, benefiting from a record $190 billion backlog and robust demand for defense contracts, showcasing the company's growth potential in the aerospace sector.
- Surging Market Demand: The global space economy is projected to reach $1.8 trillion by 2035, driven by increased government budgets and expanding commercial applications, with Starfighters' partnership with Blackstar aligning perfectly with these growth trends, enhancing the company's critical position in space infrastructure.
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- Market Performance Analysis: Despite concerns over defense capability needs due to the Middle East conflict, RTX (formerly Raytheon) has not seen any gains since the onset of the conflict, indicating market caution regarding its high valuation, with a current P/E ratio of 30 suggesting insufficient investor confidence in future growth.
- Backlog Situation: RTX's backlog stands at $268 billion, significantly exceeding last year's revenue of $88.6 billion; however, this figure may take years to convert into reportable revenue, reflecting the company's slow growth amid capacity constraints.
- Industry Outlook: While the defense industry is typically government-funded and slow-growing, increased military modernization investments by countries like Greece may benefit RTX in the long term, especially as nations ramp up defense budgets in response to regional threats.
- Investment Caution: Analysts set a target price of $219 for RTX, offering less than 10% upside from the current price, and with a dividend yield of only 1.4%, investors should exercise caution, considering the presence of more attractive investment opportunities in the market.
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