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RTX's Unit Gets PW127XT-L Turboprop Engine's Certification
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RTX Corporation’s (RTX - Free Report) business, Pratt & Whitney, has been awarded the type certification for the PW127XT-L regional turboprop engine by Transport Canada Civil Aviation. This marks the 200th type certification since 1963, when the original and now ubiquitous PT6 engine was introduced.
The PW127XT-L engine is set to power the Franco-Italian aircraft, ATR 42-600S regional turboprop jet, capable of short take-off and landing.
Benefits of the PW127XT Series
The PW127XT engine series features the latest materials and technologies that deliver next-level efficiency and time on wing. It comes with a 20% reduction in maintenance costs, 40% extended time on wing and 3% improved fuel efficiency.
This engine will come with a higher thrust rating to enable the ATR 42-600S aircraft to take off from runways as short as 800 meters.
RTX’s Prospects in the Aircraft Engine Market
The aircraft engines market was highly affected by the COVID-19 pandemic due to a downturn in the aviation industry. But with the recovering economy, fleet modernization and expansion plans of airlines, this market is expected to grow.
To this end, the Mordor Intelligence firm expects the Aircraft Engines Market to go from $99.97 billion in 2023 to $124.04 billion by 2028 at a compound annual growth rate (CAGR) of 4.4%.
Such abounding market prospects should boost RTX’s growth opportunities following the latest certification receipt, with its Pratt & Whitney powering the most advanced aircraft in the world. Since 1963, the company’s PW100/150 engine families to which the PW127XT engine belongs have contributed more than 220 million hours toward the fleet total.
Moreover, another variant of this engine, the PW127XT-S, has recently been selected by Deutsche Aircraft to power the D328eco regional turboprop. This engine has a planned entry into service in 2026.
Peer Moves
Apart from RTX, other companies benefiting from the growing aircraft engine market are Safran SA (SAFRY - Free Report) and Textron Inc. (TXT - Free Report) .
Safran has technological expertise in the production of engines for both airplanes and helicopters. The company produces LEAP turbofan engines in partnership with CFM International. In February 2023, Air India signed an agreement with CFM International for 800 LEAP engines. This order included 420 LEAP-1A, 380 LEAP-1B and spares.
SAFRY’s long-term earnings growth is pegged at 38%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 36.3% from that reported in 2022.
Textron System’s Lycoming business comprises more than 700 FAA-certified commercial aircraft engine-type design configurations used in both rotary-wing and fixed-wing aircraft. In August 2023, Lycoming delivered the 1,000th Thunderbolt engine.
TXT’s long-term earnings growth is pegged at 11.7%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 7.2% from that reported in 2022.
Price Performance
In the past year, shares of RTX have lost 13.3% against the industry’s 0.1% increase.
NOC’s long-term earnings growth is pegged at 3.7%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 5.8% from that reported in 2022.
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RTX's Unit Gets PW127XT-L Turboprop Engine's Certification
RTX Corporation’s (RTX - Free Report) business, Pratt & Whitney, has been awarded the type certification for the PW127XT-L regional turboprop engine by Transport Canada Civil Aviation. This marks the 200th type certification since 1963, when the original and now ubiquitous PT6 engine was introduced.
The PW127XT-L engine is set to power the Franco-Italian aircraft, ATR 42-600S regional turboprop jet, capable of short take-off and landing.
Benefits of the PW127XT Series
The PW127XT engine series features the latest materials and technologies that deliver next-level efficiency and time on wing. It comes with a 20% reduction in maintenance costs, 40% extended time on wing and 3% improved fuel efficiency.
This engine will come with a higher thrust rating to enable the ATR 42-600S aircraft to take off from runways as short as 800 meters.
RTX’s Prospects in the Aircraft Engine Market
The aircraft engines market was highly affected by the COVID-19 pandemic due to a downturn in the aviation industry. But with the recovering economy, fleet modernization and expansion plans of airlines, this market is expected to grow.
To this end, the Mordor Intelligence firm expects the Aircraft Engines Market to go from $99.97 billion in 2023 to $124.04 billion by 2028 at a compound annual growth rate (CAGR) of 4.4%.
Such abounding market prospects should boost RTX’s growth opportunities following the latest certification receipt, with its Pratt & Whitney powering the most advanced aircraft in the world. Since 1963, the company’s PW100/150 engine families to which the PW127XT engine belongs have contributed more than 220 million hours toward the fleet total.
Moreover, another variant of this engine, the PW127XT-S, has recently been selected by Deutsche Aircraft to power the D328eco regional turboprop. This engine has a planned entry into service in 2026.
Peer Moves
Apart from RTX, other companies benefiting from the growing aircraft engine market are Safran SA (SAFRY - Free Report) and Textron Inc. (TXT - Free Report) .
Safran has technological expertise in the production of engines for both airplanes and helicopters. The company produces LEAP turbofan engines in partnership with CFM International. In February 2023, Air India signed an agreement with CFM International for 800 LEAP engines. This order included 420 LEAP-1A, 380 LEAP-1B and spares.
SAFRY’s long-term earnings growth is pegged at 38%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 36.3% from that reported in 2022.
Textron System’s Lycoming business comprises more than 700 FAA-certified commercial aircraft engine-type design configurations used in both rotary-wing and fixed-wing aircraft. In August 2023, Lycoming delivered the 1,000th Thunderbolt engine.
TXT’s long-term earnings growth is pegged at 11.7%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 7.2% from that reported in 2022.
Price Performance
In the past year, shares of RTX have lost 13.3% against the industry’s 0.1% increase.
Image Source: Zacks Investment Research
Zacks Rank & Key Pick
RTX currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Northrop Grumman Corp. (NOC - Free Report) , carrying a Zacks Rank #2 (Buy) at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NOC’s long-term earnings growth is pegged at 3.7%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 5.8% from that reported in 2022.