RTX Wins a Contract for F135 Propulsion System in Support of F-35 Jets

RTX Corporation’s RTX business segment, Raytheon, 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 $60 million, the contract is expected to be completed by December 2027. The latest modification enables RTX to produce and supply F135 propulsion systems in support of the 18th lot of F-35 aircraft.The contract will serve the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales (FMS) customers, and F-35 Cooperative Program Partners. The majority of work related to this award will be carried out in Cromwell, CT; San Diego, CA; and Portland, OR.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 jets and thereby their engines like the F135, built by RTX’s Pratt & Whitney business.With nations across the globe striving to strengthen their aerial border, growth prospects for the fighter jet market thus remain bright. To this end, the Mordor Intelligence firm predicts that the global fighter aircraft market will witness a CAGR of 3.7% during the 2025-2030 period.This market growth opportunity is likely to boost the demand for combat jet engines. With more than 7,500 Pratt and Whitney military engines currently in service with 30 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 StocksOther 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 3.9%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.7%.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 10.3%. The consensus estimate for LMT’s 2025 sales indicates year-over-year growth of 4.5%. 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 also exported to U.S.-allied nations.Boeing has a long-term earnings growth rate of 17.9%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 28.8%.RTX Stock’s Price MovementShares of RTX have gained 13.1% in the past three months compared with the industry’s 9.4% growth.Image Source: Zacks Investment ResearchRTX’s Zacks RankRTX currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks