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RTX Secures a $670M Navy Contract for F135 Propulsion Spares
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Key Takeaways
{\"0\":\"RTX won a $670.2M modification contract to supply F135 propulsion system spares for the F-35 program.\",\"1\":\"Work will be largely executed in East Hartford, CT, with project completion expected by December 2028.\",\"2\":\"RTX shares rose 29.6% in the past year, outpacing the industry\'s 12.5% growth.\"}
RTX Corporation (RTX - Free Report) recently announced that its Pratt & Whitney business segment has clinched a $670.2 million modification contract involving the F135 propulsion system. The award was offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Per the terms of the contract, RTX will supply initial spares for the production and delivery of the F135 propulsion system to support the F-35 Joint Strike Fighter program.
The project is anticipated to be completed by December 2028. The majority of work under this contract will be executed in East Hartford, CT.
RTX’s Role in Global Aircraft Engine Spare Parts Space
The rising demand for aerial defense superiority and continuous military aircraft and associated technology modernization initiatives, amid intensifying geopolitical risks, have been boosting the increased need for combat-proven jets like F-35. This, in turn, is driving the demand for the F135 propulsion system and its associated spare parts, as more flight hours are utilized for operations and training purposes. The latest contract win is a bright example of that.
Looking ahead, the adoption of new military platforms, increased emphasis on state-of-the-art defense jet components and parts, as well as rising global defense spending, are contributing to the growth prospects of the defense side of the global aircraft engine spare parts industry. To this end, the Metastat Insight firm expects the global Aircraft Engine Spare Parts market to reach $434.1 million by 2032, at a compound annual growth rate of 5.5% from 2025 to 2032.
Such solid market growth prospects should bode well for prominent engine makers and parts suppliers like RTX’s Pratt & Whitney. Impressively, for selected engine models, this business segment offers strategically selected line-maintenance OEM parts and tools, ranging from ignition exciter, fuel impending bypass switch, to oil temperature sensor provided in the Remote Maintenance Kit.
Other Stocks to Watch
RTX apart, other aerospace stocks that should benefit from the growth prospects of the global jet engine spare parts market are discussed below:
GE Aerospace (GE - Free Report) : With its TrueChoice Material portfolio, GE offers high-quality OEM new and used parts that help enhance engine performance and reduce the cost of operations.
GE’s long-term (three to five years) earnings growth rate is 15.84%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) is pinned at $5.87, indicating a year-over-year increase of 27.6%.
Lockheed Martin (LMT - Free Report) : Its Derco company is the sole and exclusive distributor of Pratt & Whitney F-100-PW-220/229 engine system spares. The F100 engine powers the F-15 and F-16 fighter aircraft.
LMT’s long-term earnings growth rate is 10.27%. The Zacks Consensus Estimate for 2025 sales is pinned at $74.21 billion, indicating a year-over-year increase of 4.5%.
Safran (SAFRY - Free Report) : Its Safran aircraft engines divison supplies new jet engine spare parts for MRO providers worldwide. Moreover, CFM Materials, a 50/50 joint subsidiary of GE and Safran Aircraft Engines, offers its customers used spare parts with an OEM (Original Engine Manufacturer) warranty.
SAFRY’s long-term earnings growth rate is 20.73%. The Zacks Consensus Estimate for 2025 sales is pinned at $35.62 billion, indicating a year-over-year increase of 36.3%.
RTX Stock’s Price Performance
In the past year, shares of the company have risen 29.6% compared with the industry’s 12.5% growth.
Image: Bigstock
RTX Secures a $670M Navy Contract for F135 Propulsion Spares
Key Takeaways
RTX Corporation (RTX - Free Report) recently announced that its Pratt & Whitney business segment has clinched a $670.2 million modification contract involving the F135 propulsion system. The award was offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Per the terms of the contract, RTX will supply initial spares for the production and delivery of the F135 propulsion system to support the F-35 Joint Strike Fighter program.
The project is anticipated to be completed by December 2028. The majority of work under this contract will be executed in East Hartford, CT.
RTX’s Role in Global Aircraft Engine Spare Parts Space
The rising demand for aerial defense superiority and continuous military aircraft and associated technology modernization initiatives, amid intensifying geopolitical risks, have been boosting the increased need for combat-proven jets like F-35. This, in turn, is driving the demand for the F135 propulsion system and its associated spare parts, as more flight hours are utilized for operations and training purposes. The latest contract win is a bright example of that.
Looking ahead, the adoption of new military platforms, increased emphasis on state-of-the-art defense jet components and parts, as well as rising global defense spending, are contributing to the growth prospects of the defense side of the global aircraft engine spare parts industry. To this end, the Metastat Insight firm expects the global Aircraft Engine Spare Parts market to reach $434.1 million by 2032, at a compound annual growth rate of 5.5% from 2025 to 2032.
Such solid market growth prospects should bode well for prominent engine makers and parts suppliers like RTX’s Pratt & Whitney. Impressively, for selected engine models, this business segment offers strategically selected line-maintenance OEM parts and tools, ranging from ignition exciter, fuel impending bypass switch, to oil temperature sensor provided in the Remote Maintenance Kit.
Other Stocks to Watch
RTX apart, other aerospace stocks that should benefit from the growth prospects of the global jet engine spare parts market are discussed below:
GE Aerospace (GE - Free Report) : With its TrueChoice Material portfolio, GE offers high-quality OEM new and used parts that help enhance engine performance and reduce the cost of operations.
GE’s long-term (three to five years) earnings growth rate is 15.84%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) is pinned at $5.87, indicating a year-over-year increase of 27.6%.
Lockheed Martin (LMT - Free Report) : Its Derco company is the sole and exclusive distributor of Pratt & Whitney F-100-PW-220/229 engine system spares. The F100 engine powers the F-15 and F-16 fighter aircraft.
LMT’s long-term earnings growth rate is 10.27%. The Zacks Consensus Estimate for 2025 sales is pinned at $74.21 billion, indicating a year-over-year increase of 4.5%.
Safran (SAFRY - Free Report) : Its Safran aircraft engines divison supplies new jet engine spare parts for MRO providers worldwide. Moreover, CFM Materials, a 50/50 joint subsidiary of GE and Safran Aircraft Engines, offers its customers used spare parts with an OEM (Original Engine Manufacturer) warranty.
SAFRY’s long-term earnings growth rate is 20.73%. The Zacks Consensus Estimate for 2025 sales is pinned at $35.62 billion, indicating a year-over-year increase of 36.3%.
RTX Stock’s Price Performance
In the past year, shares of the company have risen 29.6% compared with the industry’s 12.5% growth.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.