RTX Corporation’s (RTX) business segment, Raytheon, recently secured a deal to support the Evolved Seasparrow Missile (ESSM) and NATO Seasparrow Missile Systems (NSMS) programs. The award has been provided by the Naval Sea Systems Command, Washington, D.C.Details of RTX’s DealValued at $18.5 million, the contract is expected to be completed by December 2025. Per the terms of the deal, RTX will provide engineering and technical services in support of the ESSM and NSMS programs.The majority of the work relate ...

Cockpit upgrade will enable future capabilities through its open systems architectureHUNTSVILLE, Ala., March 17, 2025 /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: RTX) business, has received an $80 million contract to upgrade the avionics system of U.S. Army Black Hawk helicopters for the H-60M MOSA Avionics Architecture Solution program.The upgrade will feature Mosarc®, Collins' family of Modular Open Systems Approach (MOSA)-compliant products, and will streamline technology integration for a complex a ...

Core Viewpoint - RTX is positioned favorably in the commercial aerospace and defense sectors, benefiting from increased flight departures, production ramps from Boeing and Airbus, and heightened defense spending due to geopolitical tensions [1] RTX's Valuation - RTX stock appears undervalued based on Wall Street analyst consensus, with a price-to-free cash flow (FCF) multiple suggesting good value at around 20 times FCF for a mature industrial company [2][5] - Current market cap is $171 billion, with projected EBIT growth from $8.9 billion in 2023 to $13 billion in 2027, and FCF expected to rise from $5.5 billion in 2023 to $9.9 billion in 2027 [3] - The forward price-to-FCF multiple for 2025 is 23.9 times, but adjusting for a potential contamination issue in the geared turbofan engine could present a more attractive valuation of 20.5 times FCF [4] Near- to Medium-Term Outlook - RTX has a substantial backlog of $218 billion, including a defense backlog of $93 billion, indicating strong growth potential [6] - The commercial aerospace sector is expected to see increased production from Airbus and Boeing, with a projected 10% growth in the commercial after-market in 2025 [7] Industry Dynamics - Defense companies typically command a valuation premium due to stable government contracts, while commercial aerospace firms benefit from long-term income streams from servicing aircraft [5] - The U.S. defense budget may face cuts, which could impact future orders and long-term growth, despite current robust sales growth outlook [8][9][10] Investment Consideration - RTX presents an attractive investment opportunity with good return potential, but uncertainties regarding future orders may limit significant outperformance [11]

RTX systems will support development of novel, fuel-efficient aircraft designARLINGTON, Va., March 6, 2025 /PRNewswire/ -- RTX (NYSE: RTX) has entered into three agreements with JetZero, the developer of a novel blended wing body aircraft, to provide key systems for the airframer's full-scale demonstrator. Pratt & Whitney will integrate the PW2040 engine and auxiliary power unit (APU); and Collins Aerospace will provide the nacelle and propulsion mounting structure. Pratt & Whitney and Collins Aerospace are ...

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Core Insights - Pratt & Whitney has completed successful tests on its rotating detonation engine (RDE), leading to increased internal investment to expedite the development of an integrated engine and vehicle ground test in collaboration with the Department of Defense [1][2] Group 1: Technology and Innovation - The rotating detonation engine operates on a different thermodynamic cycle compared to traditional engines, featuring no moving parts, which results in high thermal efficiency and performance [2] - This technology allows for a more compact and cost-effective engine design, enabling additional fuel, sensors, and payload capacity, which is crucial for enhancing the range of defense vehicles [2] Group 2: Company Overview - Pratt & Whitney is a leading entity in the design, manufacture, and service of aircraft engines and auxiliary power units [3] - RTX, the parent company of Pratt & Whitney, is the largest aerospace and defense company globally, with over 185,000 employees and projected sales exceeding $80 billion for 2024 [4]

Core Viewpoint - RTX is currently viewed as a better value opportunity compared to Airbus Group based on various financial metrics and rankings [1]. Valuation Metrics - RTX has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Airbus Group has a Zacks Rank of 4 (Sell) [3]. - RTX's forward P/E ratio is 21.70, compared to Airbus Group's forward P/E of 25.82, suggesting RTX is more attractively priced [5]. - The PEG ratio for RTX is 2.24, while Airbus Group's PEG ratio is 3.41, indicating RTX has a better balance between price and expected earnings growth [5]. - RTX has a P/B ratio of 2.86, significantly lower than Airbus Group's P/B of 6.52, further supporting RTX's valuation advantage [6]. Investment Conclusion - Stronger estimate revision activity and more attractive valuation metrics position RTX as the superior option for value investors at this time [7].

Core Insights - The F135 engine has surpassed one million flight hours, establishing itself as the safest and most reliable fighter engine for the F-35 Lightning II, which has been in operation since 2006 [1][4] - The F135 engine maintains a full mission capability rate of over 94% and has a safety record significantly better than previous generations of fighter engines [1][2] - Pratt & Whitney has delivered over 1,300 F135 production engines to 20 allied nations, highlighting its global reach and commitment to military readiness [4] Operational Readiness - The F135 sustainment network supports multiple global depot facilities, 36 bases, and 12 ships, facilitating Agile Combat Employment, which enhances survivability and combat power [2] - The engine's infrastructure allows for continuous movement, logistics efficiencies, and specialized maintenance skills, essential for modern military operations [2] Future Developments - The F-35 modernization will require enhanced engine performance, which Pratt & Whitney plans to address through the Engine Core Upgrade (ECU), building on the F135's successful track record [3]

Company Performance - RTX shares have increased by 3.1% over the past month and reached a new 52-week high of $133.09, with a year-to-date gain of 14.9% compared to 2.4% for the Zacks Aerospace sector and 2.1% for the Zacks Aerospace - Defense industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $1.54 against a consensus estimate of $1.37 in its last earnings report [2] - For the current fiscal year, RTX is projected to achieve earnings of $6.13 per share on revenues of $84.28 billion, reflecting a 6.98% increase in EPS and a 4.39% increase in revenues [3] Valuation Metrics - RTX has a Value Score of B, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6] - The stock trades at 21.7 times the current fiscal year EPS estimates, which is above the peer industry average of 18 times, while the trailing cash flow basis is at 14.7 times, matching the peer group's average [7] - The PEG ratio for RTX is 2.24, indicating it is not among the top value stocks [7] Zacks Rank - RTX holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, meeting the criteria for investors looking for stocks with strong potential [8] Industry Comparison - The Aerospace - Defense industry is positioned in the top 34% of all industries, suggesting favorable conditions for both RTX and its peer, MTU Aero Engines AG [11] - MTU Aero Engines AG has a Zacks Rank of 1 (Strong Buy) and is expected to post earnings of $8.69 per share on revenues of $9.01 billion for the current fiscal year [10]

Group 1 - The last article on RTX Corporation (NYSE: RTX) stock was published on October 24, 2023, indicating ongoing research and analysis on the company [1] - The investment style emphasized is to provide actionable and clear ideas derived from independent research, suggesting a focus on practical investment strategies [1] Group 2 - The service claims to have assisted members in outperforming the S&P 500 while avoiding significant losses during periods of high volatility in both equity and bond markets [2] - A 100% risk-free trial is offered to potential members, highlighting confidence in the effectiveness of the investment method [2]