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PARIS - Collins Aerospace, a business unit of RTX (NYSE: RTX), a prominent player in the Aerospace & Defense industry with annual revenues of $81.74 billion, has announced the opening of a new engineering center of excellence in Wolverhampton, UK, and an electric thrust reverser actuation systems (elecTRAS™) production line in Colomiers, France. The expansion is part of the company’s efforts to advance its aircraft electrification capabilities. According to InvestingPro data, RTX maintains strong operational metrics with an EBITDA of $13.38 billion.
The Wolverhampton center is dedicated to the development of next-generation electric thrust reverser actuation systems for commercial aircraft, promising to bring state-of-the-art design and testing facilities to the forefront of aviation technology. The Colomiers facility will focus on the final assembly of these systems, aiming to enhance production efficiency and capacity.
Collins Aerospace, which currently supplies the elecTRAS on the Airbus A350 family, states that the shift from traditional hydraulic-powered systems to elecTRAS could reduce aircraft system weight by 15-20%. This reduction potentially improves fuel efficiency and operational performance, as thrust reversers are critical for slowing down aircraft upon landing. RTX’s focus on innovation has contributed to its impressive revenue growth of 15.11% over the last twelve months. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
Ajay Mahajan, president of Aerostructures at Collins Aerospace, emphasized the company’s commitment to innovation and customer support. "With decades of experience in nacelles, thrust reversers, and aircraft electrification, Collins’ elecTRAS center of excellence and production line will bring together expertise from across the company to deliver new, innovative solutions for our customers and future platforms," he said.
The Wolverhampton site will operate in close collaboration with the Aerostructures headquarters in Chula Vista, California, and other global engineering centers, including the electronic controls and motor systems center of excellence in Solihull, UK.
The announcement comes as Collins Aerospace continues to build on its in-service experience with more than 600 A350XWB aircraft utilizing its elecTRAS, accumulating approximately 11 million flight hours and 1.8 million flight cycles of operational experience by the end of 2024.
This expansion is part of Collins Aerospace’s broader strategy to support sustainable and connected aviation and enhance its global customer base’s operational efficiency. The company’s strong market position is reflected in its stock performance, with a 31.37% total return over the past year and a consistent dividend history spanning 55 consecutive years. The information is based on a recent press release statement from the company and InvestingPro data, which reveals 8 additional key insights about RTX’s financial health and market position.
In other recent news, Raytheon, a segment of RTX, has been awarded several significant contracts with the U.S. Navy, underscoring its ongoing partnership with the military. The company secured a $646 million contract to manufacture AN/SPY-6(V) radars, part of a larger agreement potentially worth $3 billion over five years, aimed at enhancing naval capabilities. Additionally, Raytheon landed a $1.1 billion contract for the production of AIM-9X Block II missiles, marking the largest production deal for the program to date. A further $536 million contract was awarded to support the SPY-6 radar family, including upgrades for destroyers, indicating the radar’s crucial role in naval defense strategies. Raytheon also received a $1.1 billion contract modification for the AIM-9X-4 Block II missiles, with allocations for both domestic and foreign military sales. Meanwhile, analysts at TD Cowen raised their price target for RTX to $155, citing potential margin expansion and a low relative valuation as supporting factors. Despite concerns over timing-related cash flow issues in the second quarter, the analysts maintain a positive long-term outlook for the company. These developments highlight Raytheon’s critical role in defense and RTX’s potential for financial growth.
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