We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RTX Secures $405 Million Contract for F135 Propulsion System
Read MoreHide Full Article
RTX Corporation’s (RTX - Free Report) business division, Pratt and Whitney Military Engines, recently secured a modification contract valued at $405.3 million. The latest modification will enable RTX to procure spares to produce and deliver the F135 propulsion system for the F-35 fighter jet.
The contract will serve the U.S. Air Force, Marine Corps, Navy, non-Department of Defense participants, F-35 Cooperative Program Partners and foreign military sales customers. The majority of work related to this award will be carried out in East Hartford, CT.
Fighter Jet Demand Favoring RTX
With rising global tensions, more nations are investing in technologically advanced combat jets that can perform well in difficult situations to boost their aerial security. This, in turn, has been bolstering the demand for advanced fighter jet engines like the F135.
With the F-35 fighter jet constituting a major portion of the U.S. combat jet market, RTX has been constantly upgrading its F135 jet engines. As a recent development in this space, the company’s Pratt and Whitney business segment built the F135 Engine Core Upgrade, which is the only engine that offers all global F-35 operators the additional power and thermal management capacity needed to enable next-generation weapons systems and sensors.
With nations across the globe striving to strengthen their aerial border, growth prospects for the fighter jet market remain bright. To this end, Mordor Intelligence predicts that the global fighter aircraft market will witness a CAGR of 3.7% during the 2024-2029 period.
This market growth opportunity should boost the demand for combat jet engines. With more than 7,000 Pratt and Whitney military engines currently in service with 34 armed forces worldwide, RTX is well positioned to secure more contracts involving its jet engines, like the latest one, in the future.
Prospects of RTX’s Peers
Other defense companies that are likely to enjoy the perks of the expanding fighter jet market have been discussed below.
Northrop Grumman (NOC - Free Report) is a leading provider of proven manned and unmanned air systems. It builds some of the world’s most advanced aircraft, like the B-2 Spirit Stealth Bomber, A-10 Thunderbolt II and B-21 Raider.
Northrop Gruman has a long-term (three to five years) earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.4%.
Lockheed Martin Corporation (LMT - Free Report) is the manufacturer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.
Lockheed Martin has a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.3%.
The Boeing Company (BA - Free Report) is a significant player in the fighter jet market with its F/A-18 Super Hornet and F-15 Eagle programs. These jets are essential in the U.S. Navy and Air Force fleets and are exported to allied nations.
Boeing has a long-term earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates year-over-year growth of 10.8%.
RTX Stock’s Price Movement
Shares of RTX have gained 11.2% in the past three months compared with the industry’s 2.4% growth.
Image: Shutterstock
RTX Secures $405 Million Contract for F135 Propulsion System
RTX Corporation’s (RTX - Free Report) business division, Pratt and Whitney Military Engines, recently secured a modification contract valued at $405.3 million. The latest modification will enable RTX to procure spares to produce and deliver the F135 propulsion system for the F-35 fighter jet.
The contract will serve the U.S. Air Force, Marine Corps, Navy, non-Department of Defense participants, F-35 Cooperative Program Partners and foreign military sales customers. The majority of work related to this award will be carried out in East Hartford, CT.
Fighter Jet Demand Favoring RTX
With rising global tensions, more nations are investing in technologically advanced combat jets that can perform well in difficult situations to boost their aerial security. This, in turn, has been bolstering the demand for advanced fighter jet engines like the F135.
With the F-35 fighter jet constituting a major portion of the U.S. combat jet market, RTX has been constantly upgrading its F135 jet engines. As a recent development in this space, the company’s Pratt and Whitney business segment built the F135 Engine Core Upgrade, which is the only engine that offers all global F-35 operators the additional power and thermal management capacity needed to enable next-generation weapons systems and sensors.
With nations across the globe striving to strengthen their aerial border, growth prospects for the fighter jet market remain bright. To this end, Mordor Intelligence predicts that the global fighter aircraft market will witness a CAGR of 3.7% during the 2024-2029 period.
This market growth opportunity should boost the demand for combat jet engines. With more than 7,000 Pratt and Whitney military engines currently in service with 34 armed forces worldwide, RTX is well positioned to secure more contracts involving its jet engines, like the latest one, in the future.
Prospects of RTX’s Peers
Other defense companies that are likely to enjoy the perks of the expanding fighter jet market have been discussed below.
Northrop Grumman (NOC - Free Report) is a leading provider of proven manned and unmanned air systems. It builds some of the world’s most advanced aircraft, like the B-2 Spirit Stealth Bomber, A-10 Thunderbolt II and B-21 Raider.
Northrop Gruman has a long-term (three to five years) earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.4%.
Lockheed Martin Corporation (LMT - Free Report) is the manufacturer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.
Lockheed Martin has a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.3%.
The Boeing Company (BA - Free Report) is a significant player in the fighter jet market with its F/A-18 Super Hornet and F-15 Eagle programs. These jets are essential in the U.S. Navy and Air Force fleets and are exported to allied nations.
Boeing has a long-term earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates year-over-year growth of 10.8%.
RTX Stock’s Price Movement
Shares of RTX have gained 11.2% in the past three months compared with the industry’s 2.4% growth.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.