RTX's Arm Opens $255M Worth Military Engine Facility in Oklahoma
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RTX Corporation’s RTX unit, Pratt and Whitney, announced the opening of its largest military engine facility worth $255 million. The 845,000-square-foot facility, located in Oklahoma City, will support global sustainment efforts for key military engines like F135, F117, TF33, F100 and F119.
The site will play a crucial role in supporting various military aircraft, including F-35, F-22, B-52, C-17, E-3, F-15 and F-16. The facility's automation and advanced technologies will improve accuracy, speed and cost-effectiveness of Pratt and Whitney-made jet engines, thereby enhancing RTX’s ability to meet the growing demand for aircraft engines across the globe. It will also incorporate LEED-certified energy-efficient systems and waste-reduction processes, reflecting RTX's commitment to sustainability and operational efficiency.
What’s Favoring RTX?
With rising global 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.
This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 6% for the global aircraft engine market during the 2024-2029 time period.
Such a solid growth prospect should benefit RTX, with its Pratt & Whitney unit being a prominent forerunner in the fighter jet engine industry. This segment provides state-of-the-art engines like the F135, which powers the F-35 fighter jet, the F119 engine used in the F-22 Raptor and the F117 engine that powers the C-17 Globemaster III. These advanced engines ensure high performance, reliability and adaptability, helping RTX to solidify its position as a leading provider of military jet engines. With more than 7,000 Pratt and Whitney military engines currently in service with 34 armed forces worldwide, RTX is well-poised to secure contracts like the latest one involving its jet engines.
Prospects of RTX’s Peers
Other defense companies that are likely to enjoy the perks of the expanding aircraft engine market have been discussed below.
Rolls-Royce Holdings RYCEY: It is a major player in the defense market, providing engines like the AE 1107C, F130, RB199 and many more. Its AE engines power C-130Js, V-22s, Global Hawks and several military, corporate and regional aircraft.
The company’s long-term (three to five years) earnings growth rate is 29.6%. The Zacks Consensus Estimate for RYCEY’s 2024 sales indicates year-over-year growth of 33%.
Safran SA SAFRY: It plays a significant role in the defense industry through its partnership with General Electric in the CFM International joint venture. Safran produces military engines like the M88, which powers the Dassault Rafale fighter jet.
The company’s long-term earnings growth rate is 32.3%. The Zacks Consensus Estimate for SAFRY’s 2024 sales indicates year-over-year growth of 49%.
Curtiss-Wright Corporation CW: It provides important components for the propulsion and engine systems of military jets. The company specializes in valves, actuation systems and sensors that are used to ensure optimal performance and control of jet engines in military aircraft.
The Zacks Consensus Estimate for CW’s 2024 sales indicates year-over-year growth of 7.1%. The consensus estimate for 2024 earnings per share indicates year-over-year growth of 12.6%.
