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RTX Secures $306M Contract to Support F135 Propulsion Systems
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RTX Corporation’s (RTX - Free Report) business segment, Pratt & Whitney, recently clinched a contract involving its F135 propulsion systems. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $305.6 million, the contract is expected to be completed by July 2026. Per the terms of the deal, RTX will procure long-lead time materials to support the low-rate initial production of the 18th lot of F135 propulsion systems, for the F-35 Lightning II Joint Strike Fighter aircraft. Work related to this deal will be carried out in various locations within as well as outside the continental U.S.
The contract will serve the U.S. Navy, Air Force, Marine Corps, Foreign Military Sales (FMS) customers and non-U.S. Department of Defense participants.
RTX’s Growth Prospects
Combat aircraft witnessed a surge in demand with the rapid rise in political risks and global terrorism. In this context, F-35 jets, built by America’s largest defense contractor, Lockheed Martin (LMT - Free Report) , enjoy a lucrative position in the combat aircraft arena. These jets also witness a steady flow of orders from the U.S. Army, seven international partner countries and eight FMS customers.
Lockheed has delivered 944 F-35 airplanes since the program's inception, with 421 jets in the backlog as of Jun 25, 2023. This reflects the solid demand that this jet program enjoys in the defense space, resulting in multiple order wins for both LMT and RTX. The latest contract win is a bright example of that.
The production of F-35 jets is expected to continue for several years, given the U.S. government's current inventory target of 2,456 aircraft for the Air Force, Marine Corps and Navy.
Consequently, Pratt & Whitney, which builds F-35’s engine, is likely to witness more order inflows for the F-35 engine and its propulsion system in the coming days, like the latest one. This should significantly bolster RTX’s top line.
Peer Growth
Apart from Lockheed and RTX, defense majors that stand to benefit from the expanding production rates of F-35 have been discussed below.
Northrop Grumman (NOC - Free Report) : The company renders its expertise in carrier aircraft and low-observable stealth technology for the F-35 program. Northrop Grumman is part of the international partnership involved in building three variants of the F-35 jets.
It is engaged in the design and production of the AN/ASQ-242 Communications, Navigation and Identification avionics suite, which can be dynamically programmed to arm the F-35 pilot with multiple-mission capabilities, engineered for seamless transition from one mission phase to the next.
BAE Systems (BAESY - Free Report) : This defense major’s short takeoff and vertical landing experience, along with air systems sustainment, supports F-35’s combat capabilities. The company provides an electronic warfare suite for F-35, which includes fully integrated radar warning (targeting support and self-protection) to detect and defeat surface and airborne threats.
In 2023, BAE Systems celebrated the delivery of its 1000th rear fuselage to Lockheed from its facilities in the North West of the U.K. In the United States, BAE Systems’ test pilots and engineers are working to get the aircraft ready to meet the needs of its customers.
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RTX Secures $306M Contract to Support F135 Propulsion Systems
RTX Corporation’s (RTX - Free Report) business segment, Pratt & Whitney, recently clinched a contract involving its F135 propulsion systems. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $305.6 million, the contract is expected to be completed by July 2026. Per the terms of the deal, RTX will procure long-lead time materials to support the low-rate initial production of the 18th lot of F135 propulsion systems, for the F-35 Lightning II Joint Strike Fighter aircraft.
Work related to this deal will be carried out in various locations within as well as outside the continental U.S.
The contract will serve the U.S. Navy, Air Force, Marine Corps, Foreign Military Sales (FMS) customers and non-U.S. Department of Defense participants.
RTX’s Growth Prospects
Combat aircraft witnessed a surge in demand with the rapid rise in political risks and global terrorism. In this context, F-35 jets, built by America’s largest defense contractor, Lockheed Martin (LMT - Free Report) , enjoy a lucrative position in the combat aircraft arena. These jets also witness a steady flow of orders from the U.S. Army, seven international partner countries and eight FMS customers.
Lockheed has delivered 944 F-35 airplanes since the program's inception, with 421 jets in the backlog as of Jun 25, 2023. This reflects the solid demand that this jet program enjoys in the defense space, resulting in multiple order wins for both LMT and RTX. The latest contract win is a bright example of that.
The production of F-35 jets is expected to continue for several years, given the U.S. government's current inventory target of 2,456 aircraft for the Air Force, Marine Corps and Navy.
Consequently, Pratt & Whitney, which builds F-35’s engine, is likely to witness more order inflows for the F-35 engine and its propulsion system in the coming days, like the latest one. This should significantly bolster RTX’s top line.
Peer Growth
Apart from Lockheed and RTX, defense majors that stand to benefit from the expanding production rates of F-35 have been discussed below.
Northrop Grumman (NOC - Free Report) : The company renders its expertise in carrier aircraft and low-observable stealth technology for the F-35 program. Northrop Grumman is part of the international partnership involved in building three variants of the F-35 jets.
It is engaged in the design and production of the AN/ASQ-242 Communications, Navigation and Identification avionics suite, which can be dynamically programmed to arm the F-35 pilot with multiple-mission capabilities, engineered for seamless transition from one mission phase to the next.
BAE Systems (BAESY - Free Report) : This defense major’s short takeoff and vertical landing experience, along with air systems sustainment, supports F-35’s combat capabilities. The company provides an electronic warfare suite for F-35, which includes fully integrated radar warning (targeting support and self-protection) to detect and defeat surface and airborne threats.
In 2023, BAE Systems celebrated the delivery of its 1000th rear fuselage to Lockheed from its facilities in the North West of the U.K. In the United States, BAE Systems’ test pilots and engineers are working to get the aircraft ready to meet the needs of its customers.