Defense Conglomerate RTX's Pratt & Whitney Unit Wins Defense Contract Worth Up To $870M

RTX Corp's RTX Pratt & Whitney won a long-term TF33 engine sustainment contract worth up to $870 million from the Defense Logistics Agency. 

As per the contract, Pratt & Whitney will offer complete engine sustainment services for a global fleet of around 1,000 engines for six years, with an option of extending for another four years. 

The contract services will include maintenance, spare parts, program management, field service, repairs, and engineering support.

Jill Albertelli, president of Military Engines at Pratt & Whitney, said, "An engine's sustainment phase is a critical but often underappreciated portion of military readiness. The TF33 enterprise is maturing beyond the conventional approach to a more complete, advance sustainment process that will maximize the TF33's support to many missions across the globe through 2050."

Also Read: RTX & Rafael To Launch Missile Production Hub In Arkansas: Production Ramp-Up Scheduled For 2025

Last month, RTX reported a third-quarter FY23 adjusted net sales increased by 12% YoY to $18.95 billion, beating the consensus of $18.59 billion.

At the end of the quarter, the backlog was $190 billion, of which $115 billion was from commercial aerospace and $75 billion was from defense.

Price Action: RTX shares are trading higher by 0.30% at $80.93 on the last check Wednesday.