OKLAHOMA CITY - Pratt & Whitney, a division of Raytheon Technologies Corp (NYSE: NYSE:RTX), has opened a new 845,000-square-foot military engine facility in Oklahoma City, Oklahoma. The $255 million investment is aimed at enhancing the company's capability to sustain a range of military engines, including the F135, F117, TF33, F100, and F119.
The new facility, which represents the largest military engines field location for Pratt & Whitney, is expected to create an additional 100 full-time jobs over the next five years, adding to the current workforce of over 500 full-time employees and 500 contract and partner staff.
Jill Albertelli, president of Military Engines at Pratt & Whitney, emphasized the strategic importance of the Oklahoma City site, saying it is "the heart of our global sustainment network" and is critical to the company's military engine programs.
The expansion more than doubles Pratt & Whitney's footprint in the region and is situated adjacent to Tinker Air Force Base, the U.S. Department of Defense's largest maintenance, repair, and overhaul facility. The location is strategic for supporting a public-private partnership with the U.S. Air Force and enhancing the company's global sustainment network.
Greg Treacy, vice president of Pratt & Whitney in Oklahoma City, highlighted the facility's state-of-the-art features, including automation, advanced technologies, and LEED-certified energy-efficient systems. These enhancements are designed to improve process efficiency, accuracy, and cost-effectiveness while reflecting the company's commitment to sustainability.
The new site will support a variety of military aircraft engines, servicing platforms such as the F-35, F-22, C-17, B-52, E-3, F-15, and F-16, among others. The investment underscores Pratt & Whitney's commitment to meeting current and future defense needs.
This expansion is part of RTX's broader efforts to push the limits of technology and science across its businesses, which include Collins Aerospace and Raytheon (NYSE:RTN), in addition to Pratt & Whitney. RTX reported sales of $69 billion in 2023 and employs over 185,000 people globally.
The information for this article is based on a press release statement.
In other recent news, Raytheon Technologies Corp has been awarded a $525 million contract by the U.S. Navy for the production of Enhanced Sea Sparrow Missiles (ESSM) Block 2. This follows a series of significant developments for the company, including a potential $740 million sale of Stinger missiles to Egypt, and a $133 million arms deal with Singapore for advanced medium-range air-to-air missiles, both with RTX Corp as the principal contractor.
In addition to these developments, RTX Corp has settled a substantial $200 million fine with the U.S. Department of State over alleged civil violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR). CEO Christopher Calio has expressed a preference for streamlining existing operations over engaging in significant mergers and acquisitions.
The company is also actively seeking solutions to labor and supply chain challenges exacerbated by the COVID-19 pandemic. These recent developments have been shaping the company's trajectory, with RTX Corp aiming for cost savings and heightened production capacity across different missile platforms.
Morgan Stanley highlighted the company's strategy, and the NATO SEASPARROW Consortium, which manages the ESSM program, underscores Raytheon's role as a leading defense solutions provider. These are all recent developments, and it is important to note that this information is based on press releases from Raytheon Technologies Corp and the U.S. Department of State.
InvestingPro Insights
Raytheon Technologies Corp's (NYSE: RTX) recent expansion of its Pratt & Whitney division aligns well with the company's strong market position and financial performance. According to InvestingPro data, RTX boasts a substantial market capitalization of $165.33 billion, reflecting its significant presence in the Aerospace & Defense industry.
The company's revenue growth of 7.68% in the most recent quarter suggests that strategic investments like the new Oklahoma City facility are contributing to its top-line expansion. This growth is particularly noteworthy given RTX's already impressive revenue of $72.42 billion over the last twelve months.
InvestingPro Tips highlight RTX's financial strength and market performance. The company has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns that complements its growth initiatives. Additionally, RTX has shown a strong return over the last year, with a remarkable 72.65% price total return.
The new facility's focus on sustainability aligns with RTX's operational approach, as the company operates with a moderate level of debt. This prudent financial management may contribute to its ability to fund significant expansions while maintaining financial stability.
Investors considering RTX should note that it's currently trading near its 52-week high, with a price-to-earnings ratio of 74.97. This high valuation multiple suggests that the market has high expectations for the company's future performance, potentially factoring in the anticipated benefits from investments like the new Pratt & Whitney facility.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for RTX, providing a more comprehensive view of the company's financial health and market position.
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