We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 a $1.31B Navy Contract for F135 Propulsion System
Read MoreHide Full Article
RTX Corporation’s (RTX - Free Report) business unit, Pratt and Whitney, recently secured a modification contract involving the F135 propulsion system. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of RTX’s Deal
Valued at $1.31 billion, the contract is expected to be completed by November 2025. The latest modification enables RTX to provide recurring depot-level maintenance and repair, sustainment support, program management, financial and administrative activities, propulsion integration, replenishment spare part buys and engineering support for all fielded F135 propulsion systems. The company will also offer material management, configuration management, product management support, software sustainment, security management, joint technical data updates, and support equipment management for the F135 propulsion systems.
These modifications will also aid in providing training for the F-35 Lightning II aircraft. The contract will serve the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales (FMS) customers, and non-U.S. Department of Defense (DOD) participants. The majority of work related to this award will be carried out in East Hartford, CT; Oklahoma City, OK; and Indianapolis, IN.
What’s Favoring RTX?
With rising global geopolitical 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 combat jet market, RTX has been constantly upgrading its F135 jet engines. As a recent development in this space, the 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 is likely to 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 Other Defense Companies
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 Grumman has a long-term (three to five years) earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.3%.
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 4.5%. The consensus estimate for LMT’s 2024 sales indicates year-over-year growth of 5.5%.
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, which are essential in the U.S. Navy and Air Force fleet, are exported to allied nations.
Boeing has a long-term earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 23.4%.
RTX Stock’s Price Movement
Shares of RTX have gained 9.5% in the past six months against the industry’s 3.7% decline.
Image: Bigstock
RTX Secures a $1.31B Navy Contract for F135 Propulsion System
RTX Corporation’s (RTX - Free Report) business unit, Pratt and Whitney, recently secured a modification contract involving the F135 propulsion system. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of RTX’s Deal
Valued at $1.31 billion, the contract is expected to be completed by November 2025. The latest modification enables RTX to provide recurring depot-level maintenance and repair, sustainment support, program management, financial and administrative activities, propulsion integration, replenishment spare part buys and engineering support for all fielded F135 propulsion systems. The company will also offer material management, configuration management, product management support, software sustainment, security management, joint technical data updates, and support equipment management for the F135 propulsion systems.
These modifications will also aid in providing training for the F-35 Lightning II aircraft. The contract will serve the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales (FMS) customers, and non-U.S. Department of Defense (DOD) participants. The majority of work related to this award will be carried out in East Hartford, CT; Oklahoma City, OK; and Indianapolis, IN.
What’s Favoring RTX?
With rising global geopolitical 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 combat jet market, RTX has been constantly upgrading its F135 jet engines. As a recent development in this space, the 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 is likely to 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 Other Defense Companies
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 Grumman has a long-term (three to five years) earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.3%.
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 4.5%. The consensus estimate for LMT’s 2024 sales indicates year-over-year growth of 5.5%.
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, which are essential in the U.S. Navy and Air Force fleet, are exported to allied nations.
Boeing has a long-term earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 23.4%.
RTX Stock’s Price Movement
Shares of RTX have gained 9.5% in the past six months against the industry’s 3.7% decline.
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.