Stock Markets February 9, 2026

RTX Secures $230.5 Million Award to Supply F135 Propulsion Materials

Contract aims to safeguard delivery schedule for 138 Lot 20 engines serving U.S. services and international partners

By Sofia Navarro RTX
RTX Secures $230.5 Million Award to Supply F135 Propulsion Materials
RTX

RTX Corp. won a $230.5 million contract from the U.S. Department of War to procure materials for F135 propulsion systems. The award, structured as a fixed-price-incentive and cost-plus-incentive-fee agreement, is intended to protect the delivery timeline for 138 propulsion systems in Lot 20 and covers work across multiple U.S. locations. Funds from Air Force and Navy procurement, non-U.S. Department of Defense partners, and Foreign Military Sales will be obligated at the time of award. The Naval Air Systems Command is the contracting activity for this non-competed agreement.

Key Points

  • RTX received a $230.5 million award to procure materials for F135 propulsion systems for U.S. services and international partners.
  • The contract aims to protect delivery of 138 Lot 20 propulsion systems and combines fixed-price-incentive and cost-plus-incentive-fee elements.
  • Work will be carried out across multiple U.S. sites with specific percentages allocated to East Hartford, CT (17%), Indianapolis, IN (10%), and Middletown, CT (8%); funding of $35.2M (Air Force), $26.6M (Navy), $42.7M (non-U.S. partners) and $126M (Foreign Military Sales) was obligated at award.

RTX Corp. has been awarded a $230.5 million contract to procure materials for F135 propulsion systems that will be used by U.S. military services and international partners, the U.S. Department of War announced.

The award is structured as a combination of a fixed-price-incentive contract and a cost-plus-incentive-fee arrangement. It is intended to protect the delivery schedule for 138 propulsion systems identified as Lot 20.

According to the announcement, the propulsion systems covered by the award will support operations for the Air Force, Marine Corps and Navy, as well as non-U.S. Department of Defense partners and Foreign Military Sales customers.

Work under the contract will be performed at multiple facilities. The award notice specifies that 17% of the work will occur in East Hartford, Connecticut; 10% in Indianapolis, Indiana; and 8% in Middletown, Connecticut. The remaining work will be distributed among other U.S. locations including facilities in Washington, Maine, California, Michigan, Oregon, Georgia, Virginia and New Jersey, along with additional sites across the United States.

The project schedule provided in the award notice sets an expected completion date in May 2031.

At the time the contract was awarded, specific funding lines were identified and will be obligated. The award notice lists $35.2 million in fiscal 2025 Air Force aircraft procurement funds, $26.6 million in Navy aircraft procurement funds, $42.7 million in funds from non-U.S. Department of Defense partners, and $126 million in Foreign Military Sales funds as the obligated amounts associated with this award.

The Naval Air Systems Command, located in Patuxent River, Maryland, is named as the contracting activity responsible for administering this non-competed agreement.


Context and scope

The contract combines incentive-based fixed pricing with cost-reimbursable incentive provisions to align contractor performance with delivery schedule protection for a defined Lot 20 quantity. Work is geographically dispersed, with explicit percentages assigned to several principal sites and a broader remainder across multiple states. Funding was identified across service procurement budgets and international partner and Foreign Military Sales channels and was obligated at the time of award. The Naval Air Systems Command is administering the contract as a non-competed action.

Risks

  • Schedule uncertainty - the project is expected to be completed by May 2031, exposing the delivery timeline to potential delays.
  • Operational complexity - work is distributed across numerous U.S. facilities, which may create logistical and coordination challenges.
  • Procurement structure - this is a non-competed agreement administered by the Naval Air Systems Command, which concentrates contracting authority for this award.

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