RTX's Pratt & Whitney awarded F135 Engine Core Upgrade contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 30 2024
0mins
Should l Buy RTX?
Source: PRnewswire
Contract Award: Pratt & Whitney has secured a $1.3 billion contract to advance the F135 Engine Core Upgrade, enhancing engine durability and supporting future capabilities for the F-35 aircraft.
Economic Impact: The F135 program significantly contributes to economic growth, supporting over 57,000 jobs across 43 states in the U.S., with bipartisan support from congressional advocates ensuring its continued development.
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Analyst Views on RTX
Wall Street analysts forecast RTX stock price to rise
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 187.150
Low
168.00
Averages
195.77
High
215.00
Current: 187.150
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.
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- Diverse Funding Sources: The funding for this contract includes $220 million from FY24 Navy, $210 million from Air Force, $800 million from FY25 Navy, $730 million from Air Force, $380 million from F-35 partner funds, and $1.47 billion from FMS funds, ensuring financial stability for the project.
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- Diverse Funding Sources: The funding for this contract includes $220 million from FY24 Navy, $210 million from Air Force, $800 million from FY25 Navy, $730 million from Air Force, $380 million from F-35 partner funds, and $1.47 billion from FMS funds, ensuring financial stability for the project.
- Contracting Authority: The Naval Air Systems Command is the contracting activity, reflecting the U.S. government's trust in RTX for defense projects, which also provides a stable revenue stream for the company.
- Optimistic Market Outlook: With increasing global defense spending, RTX's role in missile production and the F-35 program is becoming increasingly critical, expected to drive future growth potential and shareholder returns.
See More
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- Significant Contract Value: Collins Elbit Vision Systems LLC has secured a $585.01 million contract to produce and deliver Lot 18-19 helmet-mounted display hardware for the U.S. Air Force, Navy, and Marine Corps, showcasing the company's strong position in the defense sector.
- Project Timeline: The work is expected to be completed by July 2029, indicating Collins Elbit's commitment to long-term defense projects while providing predictability for future revenue streams.
- Funding Structure: No funds will be obligated at the award, meaning Collins Elbit will need to initially bear costs, which may impact short-term cash flow, but the long-term benefits are substantial.
- Contractor Background: The contract is managed by the Naval Air Systems Command, further solidifying the positions of RTX Corporation and Elbit Systems of America in the defense contracting market, potentially paving the way for future contract opportunities.
See More
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, allowing investors to stay informed about market dynamics and investment opportunities.
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- Production Capacity Enhancement: The company has committed over $1 billion in the past five years to expand and modernize its production capacity, resulting in a 20% increase in current F135 production rates compared to previous contracts, which will accelerate delivery times and meet customer demands.
- Economic Impact: The F135 program supports over 66,000 jobs and generated more than $9 billion in economic impact domestically in 2025, highlighting its significant contribution to the U.S. economy.
- Strengthened International Collaboration: Pratt & Whitney has delivered over 1,400 F135 engines for the F-35 program, involving 20 allied nations, further solidifying its position and influence in the global defense market.
See More
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- Funding Milestone: Saronic has successfully raised $1.75 billion, more than doubling its valuation from $4 billion to $9.25 billion, indicating strong market demand for its autonomous vessel technology amid U.S. military modernization efforts.
- Production Expansion: The company aims to build over 20 ships annually by 2027, scaling its supply chain and establishing the new Port Alpha shipyard in Texas to meet increasing military demands and enhance U.S. naval defense capabilities.
- Intensifying Market Competition: Saronic's autonomous vessel designs are intended to mitigate military risks and assist the U.S. in regaining dominance over China, reflecting a rapid shift towards unmanned systems in modern warfare environments.
- Historic Production Goals: Mavrookas stated that the company is on track to quintuple production at its main shipyard in Franklin, Louisiana, over the next 12 months, marking production levels not seen in the U.S. since World War II and further driving innovation in defense technology.
See More
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- Production Capacity Expansion: Saronic plans to build over 20 ships annually by 2027, utilizing the funding to scale its supply chain and construct the new Port Alpha shipyard in Texas, aimed at meeting the increasing demands of the U.S. military.
- Global Challenge Response: The U.S. government is leaning on innovative defense technologies like Saronic's to counter low-cost drone threats from Iran and to modernize its military, ensuring maritime supremacy in competition with China.
- Historic Production Goals: CEO Dino Mavrookas stated that Saronic aims to help the U.S. achieve production levels not seen since World War II by reconfiguring vessel designs for autonomy, thereby reducing risks to military forces in dangerous environments.
See More
