RTX Secures $2.8 Billion Pentagon Deal to Power F-35 Fleet

RTX Corporation secured a $2.8 billion undefinitized contract from the U.S. Department of Defense to produce F135 engines for the F-35 Lightning II fighter jet. The deal covers engines for various aircraft versions, spare parts, and production support. RTX stock gained 1.13% to $158.04 on Tuesday.

RTX Corporation (RTX.N) has been awarded a $2.8 billion undefinitized contract by the U.S. Department of Defense to produce F135 engines for the F-35 Lightning II fighter jet. The deal encompasses engines for various aircraft versions, spare parts, and production support. The announcement was made on Tuesday, August 26, 2025.

The contract will fund the production of F135 engines that power Lockheed Martin's F-35 jets for U.S. and international customers. Pratt & Whitney, a subsidiary of RTX, has so far delivered over 1,300 F135 production engines to the U.S. and allied nations. The contract will support the ongoing production of these engines, ensuring a steady supply for the F-35 fleet.

RTX's shares rose 1.2% in early trading following the announcement, while Lockheed Martin's stock increased by about 1.7%. The contract highlights RTX's central role in powering the F-35 fleet, which is considered one of the most technologically advanced propulsion systems in use today.

The nearly $2.8 billion in funding is divided among multiple contributors. The Navy has allocated about $656 million across 2024 and 2025 procurement accounts. The Air Force will provide $614.6 million, while international foreign military sales customers contribute $513.7 million. Additional partner nations in the F-35 program are providing $228.5 million. This distribution underscores the global nature of the F-35 program, which involves multiple allied nations as direct buyers and development partners.

The contract comes as part of a broader effort by the U.S. military to modernize its aircraft fleet and ensure the continued availability of critical components. Pratt & Whitney's facilities in Connecticut, Indiana, Washington, and Maine will be involved in the production of these engines, with deliveries expected to be completed by February 2028.

The F135 engine is designed to provide the thrust, range, and stealth capability that define the Joint Strike Fighter. Its advanced design and integration with the aircraft's systems offer unprecedented reliability and performance, making it a key component in the F-35's operational success.

The contract is significant for RTX, as it reinforces the company's position as a leading provider of aerospace components. The deal also highlights the continued demand for the F-35, which is a cornerstone of the U.S. military's air power strategy. As the U.S. and its allies continue to invest in the F-35 program, RTX is well-positioned to benefit from this growing market.

References:
[1] https://www.reuters.com/business/aerospace-defense/rtxs-pratt-whitney-secures-28-billion-contract-f135-engines-2025-08-26/
[2] https://www.defensenews.com/air/2025/08/25/navy-awards-pratt-29b-contract-to-build-more-f-35-engines/
[3] https://aviationa2z.com/index.php/2025/08/26/us-navy-awards-pw-deal-for-new-f-35-engines/