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    Should RTX’s Latest US$3.81 Billion F‑35 Engine Award Reshape the Defense Case for RTX (RTX)?

    Simply Wall St·04/05/2026 00:28:51
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    • RTX Corp.’s Pratt & Whitney unit recently secured a US$3.81 billion contract modification to definitize Lot 18 and support Lot 19 F135 propulsion system production for the F‑35 program, with work spread across multiple U.S. sites and completion scheduled by March 2028.
    • This award, alongside wider defense budget increases and growing replenishment needs after recent conflicts, underscores RTX’s central role in supplying engines and advanced systems across U.S., partner, and foreign military fleets.
    • With this latest multi‑billion‑dollar F135 engine award in hand, we’ll examine how it reshapes RTX’s defense‑driven investment narrative.

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    RTX Investment Narrative Recap

    To own RTX today, you need to believe in the durability of its mixed commercial aerospace and defense cash flows, with defense providing ballast when civil demand softens. The new US$3.81 billion F135 award reinforces RTX’s near term defense backlog, but it does not remove key risks around engine reliability costs and the company’s dependence on government budgets for future orders.

    This contract sits alongside Pratt & Whitney’s earlier US$6.6 billion F135 award for Lots 18–19, reinforcing how central F 35 engine work has become to RTX’s defense story. Together, these programs tie RTX even more closely to U.S. and partner defense spending cycles, which cuts both ways when investors think about catalysts and budget risk concentration.

    Yet investors should also be aware that heavy reliance on government and defense contracts could quickly become a headwind if...

    Read the full narrative on RTX (it's free!)

    RTX's narrative projects $105.7 billion revenue and $9.8 billion earnings by 2029.

    Uncover how RTX's forecasts yield a $217.21 fair value, a 11% upside to its current price.

    Exploring Other Perspectives

    RTX 1-Year Stock Price Chart
    RTX 1-Year Stock Price Chart

    Three members of the Simply Wall St Community value RTX between US$189.27 and US$217.21 per share, reflecting quite different expectations. Against that backdrop, the latest multi billion dollar F135 engine awards highlight how sensitive RTX’s performance remains to future government defense spending decisions, which readers may want to compare with other views before forming their own stance.

    Explore 3 other fair value estimates on RTX - why the stock might be worth as much as 11% more than the current price!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    • A great starting point for your RTX research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
    • Our free RTX research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RTX's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.