RTX’s Pratt & Whitney Wins Major $2.8 Billion F135 Production Contract

Pratt & Whitney has won a $2.8 billion production contract for Lot 18 F135 engines. The engines power all three F-35 variants for U.S. and international buyers. The award is an undefinitized contract action, announced on August 26, 2025.

The deal spans production, spare engines, modules, program management, tooling, engineering, and support. To date, the program has delivered 1,300+ engines worldwide. RTX shares rose 1.2% after the news, and Lockheed Martin gained about 1.7% in the stock market.

This award confirms steady demand for the F-35 fleet. It gives clear visibility to partners and suppliers. It also supports jobs across the country.

Key Facts at a Glance

What the New Contract Covers

The Lot 18 effort includes complete propulsion systems and related spares for multiple customers. A related Navy contract modification cites 141 propulsion systems with work running into 2028.

The production package funds tooling and engineering to keep lines stable. It also supports training and sustainment for fielded jets.

Why It Matters for the Stock Market

We see clearer cash flow and backlog visibility for RTX. That can support sentiment in the stock market as deliveries progress.

Lockheed Martin also benefits through airframe output alignment. The engine schedule helps the final assembly tempo and future deliveries.

Impact on RTX

• Revenue runway extends through the Lot 18 window. This improves near-term planning.
• Margin drivers include scale in spares and modules. Execution will be key across suppliers.
• Timeline points to substantial activity through February 2028.

Impact on Lockheed Martin and Partners

• Stable engines support F-35 deliveries for U.S. services and allies.
• Early market reaction showed gains for both prime and engine maker in the stock market.

Jobs and Supply Chain Footprint

The F135 program sustains 67,000+ U.S. jobs across the network. It works with 240 suppliers nationwide. The program added $9.1+ billion to the U.S. economy in 2024.

These figures reflect a broad industrial base that anchors skilled work. They also show the spillover into local communities.

Program Momentum and Next Steps

Pratt & Whitney continues work on the Engine Core Upgrade to enhance durability and power needs. Funding and maturation efforts are active.

Lot 18 activity builds on prior lots and planned future buys. The flow supports fleet growth for 20 allied nations and U.S. services.

What This Means for Investors

We expect steady order coverage and predictability. That supports planning for capital, staffing, and tooling.

The stock market often rewards clear schedules and execution. Watch quarterly updates for delivery cadence and supply health.

How This Shapes the F-35 Ecosystem

Engines, airframes, and sustainment must move together. This award helps align those pieces.

A stronger engine pipeline also supports spares and MRO activity. That helps readiness for users at home and abroad.

Final Thoughts

We see this award as clear proof of demand and execution. It strengthens Pratt & Whitney and supports a large U.S. industrial network.

For the stock market, steady engine flow and broad supplier health can support confidence. Delivery cadence and upgrade progress will matter most.