RTX Secures $3.8 Billion F135 Engine Contract For F-35 Lot 18 And 19 Production

RTX Secures Major F135 Engine Contract For F-35 Production

RTX has secured a $3.8 billion F135 engine contract to support ongoing F-35 production, reinforcing its central role in powering the Joint Strike Fighter fleet. The award, issued by Naval Air Systems Command, finalizes production terms for Lot 18 and advances procurement for Lot 19 aircraft.

The contract modification converts a previously undefinitized agreement into a finalized structure while adding new production scope. It reflects continued demand for the F-35 program across U.S. services and international partners.

Scope And Structure Of The Contract

The $3,813,591,875 modification covers the production of F135 propulsion systems, the sole engine used across all variants of the F-35 fighter. This includes aircraft operated by the U.S. Air Force, Navy, and Marine Corps, as well as allied nations participating in the program and Foreign Military Sales customers.

The contract combines cost-plus-incentive-fee and fixed-price incentive elements. This hybrid structure is commonly used in large defense programs to balance cost control with performance incentives, particularly when production complexity remains high.

Funding allocations reflect the multinational nature of the F-35 program. Contributions come from U.S. fiscal year 2024 and 2025 aircraft procurement budgets, alongside partner nation funding and a significant share from Foreign Military Sales.

Notably, more than $1.46 billion of the total comes from FMS customers, highlighting continued export demand for the F-35 platform.

Industrial Base And Production Footprint

Work under the F135 engine contract will be distributed across a broad U.S. industrial base. Key locations include Connecticut, Indiana, Washington, Maine, California, and several other states, with additional work conducted both within and outside the continental United States.

East Hartford, Connecticut, accounts for the largest share at 17 percent, reflecting RTX’s primary engine manufacturing hub. Other notable contributions come from Indianapolis, Middletown, and Kent, Washington.

This distributed production model supports supply chain resilience and aligns with Pentagon priorities to maintain a robust domestic defense industrial base.

From an operational standpoint, the wide geographic spread also reduces risk tied to localized disruptions, a factor that has gained importance in recent years due to global supply chain pressures.

Program Significance And Strategic Context

The F135 engine contract is a critical component of the broader F-35 program, which remains the cornerstone of U.S. and allied tactical airpower. As production transitions from early low-rate initial production to more sustained output, engine manufacturing has become a key pacing element.

Delays or inefficiencies in propulsion system delivery can directly impact aircraft rollout schedules. By definitizing Lot 18 and advancing Lot 19 procurement, the Pentagon is signaling confidence in production stability moving forward.

The inclusion of international partner funding also underscores the program’s long-term sustainability. Countries across Europe, Asia, and the Middle East continue to invest in the F-35, ensuring steady demand for engines well into the next decade.

At the same time, the reliance on a single engine type for all F-35 variants continues to draw attention. While it simplifies logistics and maintenance, it also creates a single point of dependency within the supply chain. This makes contracts like this one essential for maintaining production continuity.

Funding Breakdown And Timeline

The contract pulls from multiple funding streams, including:

• FY2024 Navy aircraft procurement
• FY2024 Air Force aircraft procurement
• FY2025 Navy and Air Force procurement funds
• Cooperative program partner contributions
• Foreign Military Sales funding

A portion of the obligated funds, approximately $430.8 million, is set to expire at the end of the current fiscal year. This adds urgency to execution timelines and reinforces the need for efficient contract performance.

The program is scheduled for completion by March 2028, aligning with projected F-35 production timelines for Lot 18 and Lot 19 aircraft.

Acquisition Strategy And Industry Implications

The contract was awarded on a non-competitive basis, consistent with RTX’s position as the sole manufacturer of the F135 engine. While this limits competition, it reflects the technical complexity and certification requirements associated with fifth-generation fighter propulsion systems.

From a policy perspective, the award highlights ongoing challenges in balancing competition with program continuity in high-end defense systems. Developing an alternative engine for the F-35 would require significant investment and time, making near-term competition unlikely.

However, the scale of the contract and the long-term demand profile could renew discussions around future propulsion upgrades or alternative engine programs.

Outlook For The F-35 Program

The latest F135 engine contract reinforces the steady momentum of the F-35 program despite past cost and sustainment concerns. Continued investment from both the United States and international partners suggests strong confidence in the platform’s operational value.

As production ramps up and more aircraft enter service globally, engine reliability, maintenance efficiency, and lifecycle cost will remain key focus areas.

For RTX, the contract secures a significant revenue stream while strengthening its position within the defense propulsion market.