RTX's Pratt & Whitney receives full funding for F135 Engine Core Upgrade in FY 2024 Defense Appropriations bill

Rhea-AI Summary

Pratt & Whitney, an RTX business, secures full funding for F135 Engine Core Upgrade to enable Block 4 capabilities in 2029, receiving $497 million in fiscal year 2024 Defense Appropriations bill. The upgrade aims to enhance F-35's propulsion system durability and maintain U.S. and allies' fighter engine technology edge.

Defense Industry Analyst

The full funding of Pratt & Whitney's F135 Engine Core Upgrade (ECU) as part of the fiscal year 2024 Defense Appropriations bill is a significant event for stakeholders in the defense sector. The ECU project is designed to enhance the F-35's propulsion system, which directly impacts the performance and capabilities of a critical asset in the U.S. and allied military fleets. The allocation of $497 million towards the ECU indicates a strong commitment from the government to maintain technological superiority in defense through advanced fighter engines.

For investors, this funding translates into a stable revenue stream for Pratt & Whitney and, by extension, its parent company RTX. This can potentially lead to a positive outlook for RTX's stock, as the defense industry often values long-term, government-backed contracts which provide financial predictability. Additionally, the project's compatibility with all F-35 variants and its retrofittable nature suggest a broad market within the existing F-35 user base, further expanding the potential for return on investment.

From an economic standpoint, the ECU's reliance on the existing F135 global sustainment network and domestic workforce underscores a commitment to U.S. job retention and economic contribution. The support of over 57,000 jobs and the involvement of 225 suppliers with a $2.2 billion economic impact in the previous year showcases the ECU project's role not only in national security but also in economic vitality.

Military Technology Expert

The F135 Engine Core Upgrade promises to deliver Block 4 capabilities, which are expected to include enhancements in power, thermal management and durability. These improvements are critical as they ensure that the F-35 remains capable in an evolving threat landscape where adversaries are also advancing their technologies. The ECU's retrofittable feature allows for the existing fleet to be upgraded without the need for entirely new engines, which is a cost-effective approach to maintaining a cutting-edge fighter fleet.

Furthermore, the Next-Generation Adaptive Propulsion program's support, including Pratt & Whitney's XA103 adaptive engine, highlights the ongoing innovation in military propulsion technology. Adaptive engines are poised to revolutionize fighter aircraft performance by offering variable cycle operations that can optimize fuel efficiency or thrust as needed. This technology not only has implications for military strategy but could also influence future commercial aerospace designs, as efficiency and performance become increasingly important in both sectors.

The emphasis on these advanced technologies reaffirms the Department of Defense's strategy to invest in next-generation capabilities. For the defense industry, this represents a trend towards more adaptable and advanced systems that can adapt to various mission requirements, offering a glimpse into the future of military aviation technology.

Aerospace Supply Chain Analyst

The F135 ECU funding announcement is also noteworthy for the aerospace supply chain. The reliance on an established network of over 225 suppliers indicates a robust and intricate supply chain that is integral to the success of such defense projects. For businesses within this supply chain, the continuation of the F135 program represents sustained demand for their products and services, which can lead to increased production, investment in capacity and potentially new job creation.

The economic impact of over $2.2 billion contributed to the U.S. economy in 2023 from this program alone highlights the significant multiplier effect defense contracts can have on the broader economy. It is also indicative of the strategic importance of maintaining a domestic supply base for national security interests. For investors and companies within the aerospace supply chain, the ECU funding serves as a positive indicator of the health and potential growth of the defense aerospace sector.

It is important for these suppliers to maintain quality and delivery standards to ensure their continued participation in such defense contracts. Any disruptions or issues within the supply chain could have cascading effects on the overall program timeline and budget, which in turn could influence investor sentiment and RTX's financial performance.

Program remains on track to enable Block 4 capabilities in 2029

EAST HARTFORD, Conn., March 23, 2024 /PRNewswire/ -- Pratt & Whitney, an RTX (NYSE: RTX) business, has received full funding in the recently passed fiscal year 2024 Defense Appropriations bill for its F135 Engine Core Upgrade, which will modernize the F-35's propulsion system to increase durability and fully-enable Block 4 capabilities and beyond starting in 2029. 

"This bill will allow Pratt & Whitney to deliver the current and future propulsion capabilities that will keep the United States and its allies on the cutting edge of fighter engine technology," said Jill Albertelli, president of Pratt & Whitney Military Engines. "We are incredibly thankful to our congressional allies for their steadfast commitment to supporting these programs." 

$497 million was allocated to the F135 ECU, which will move into detailed design later this year. The ECU is compatible with all three variants of the F-35, will be retrofittable, and will be available to all F-35 operators. The ECU will utilize the same F135 global sustainment network and domestic workforce already in place, supporting more than 57,000 jobs and 225 suppliers that contributed more than $2.2B to the U.S. economy in 2023. 

"We are thankful that Congress has embraced and enacted the Defense Department's decision to upgrade the F135 with the Engine Core Upgrade, the lowest-risk, most cost-effective solution to modernizing the F-35," said Jeff Shockey, senior vice president, RTX government relations. "We are fortunate to enjoy continued bipartisan and bicameral support and leadership from our congressional advocates on this critical capability for the warfighter; particularly Sen. Susan Collins, Rep. Rosa DeLauro, and many other members that continue to be staunch advocates of the F135 program."

The defense bill also includes continued support for the Next-Generation Adaptive Propulsion program, a portion of which will be provided for Pratt & Whitney's XA103 adaptive engine to continue moving toward detailed design review for the prototype engine. Pratt & Whitney remains well-positioned to support concurrent development programs with the capacity and expertise to meet customers' evolving propulsion needs.

About Pratt & Whitney  

Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines and auxiliary power units. To learn more visit www.prattwhitney.com.

About RTX

With more than 185,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $69 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com.

 

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SOURCE RTX

What is the purpose of the F135 Engine Core Upgrade for RTX (NYSE: RTX)?

The upgrade aims to modernize the F-35's propulsion system to increase durability and fully-enable Block 4 capabilities and beyond starting in 2029.

How much funding did Pratt & Whitney receive for the F135 Engine Core Upgrade?

Pratt & Whitney received $497 million in the recently passed fiscal year 2024 Defense Appropriations bill for the F135 Engine Core Upgrade.

Who expressed gratitude for the funding of the F135 Engine Core Upgrade?

Jill Albertelli, president of Pratt & Whitney Military Engines, expressed gratitude for the funding of the F135 Engine Core Upgrade.

Which other program received support in the defense bill?

The Next-Generation Adaptive Propulsion program received continued support in the defense bill.

Who are some of the key congressional advocates mentioned in the press release?

Sen. Susan Collins, Rep. Rosa DeLauro, and many other members are mentioned as staunch advocates of the F135 program.