RTX Secures a $1.31B Navy Contract for F135 Propulsion System

RTX Corporation’s RTX 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 DealValued 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 CompaniesOther defense companies that are likely to enjoy the perks of the expanding fighter jet market have been discussed below.Northrop Grumman NOC 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 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 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 MovementShares of RTX have gained 9.5% in the past six months against the industry’s 3.7% decline.Image Source: Zacks Investment ResearchRTX’s Zacks RankRTX currently carries a Zacks Rank #3 (Hold). 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Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks