When United Technologies and Raytheon combine later this year, the latter company will contribute most of the future military revenues. However, it is the Pratt & Whitney unit of United Technologies that will provide the enterprise’s most valuable military franchise. That franchise is the F135 engine, which powers all three variants of the F-35 fighter, plus the Air Force’s next-generation bomber. Without the power, reliability and stealth of the F135 engine, the 21st century’s most ubiquitous tactical aircraft would not be possible. F135 is the most advanced fighter engine ever built, and also the safest. It will generate sizable aftermarket revenues for half a century, because as of today it has no competitor and plenty of room to grow. With budget walls closing in, it isn’t likely a successor to Raytheon Technologies’ most important military franchise will materialize for decades to come–and when it does, Pratt will probably be the entity building it. I have written a commentary for Forbes here.
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