Pratt & Whitney, PBS Group partner on next-gen auxiliary power unit

EAST HARTFORD, Conn. - Pratt & Whitney, an RTX (NYSE:RTX) business, has signed an agreement with Czech-based PBS Group to develop a next-generation auxiliary power unit (APU) for commercial and military aircraft applications.

The collaboration, announced Thursday, will focus on creating APUs with higher power density and reduced size and weight compared to current models. The units will be designed for use in fighters, rotorcraft, and business jets. This strategic move aligns with RTX’s strong market position, reflected in its impressive revenue of $83.6 billion in the last twelve months.

The partnership was facilitated by the Industrial Cooperation Section of the Czech Ministry of Defense, which supports projects connecting domestic and international partners in the defense industry.

APUs are compact engines that provide power to start main aircraft engines and supply electrical power and compressed air for aircraft systems. The companies claim the new APU will offer enhanced capabilities for both fixed-wing and helicopter platforms.

"Advanced APUs are essential for both defense and commercial aviation, delivering the reliable, efficient power needed to keep aircraft mission-ready on the ground and optimized for performance in the air," said Jessica Villardi, vice president of Fighter and Mobility Programs at Pratt & Whitney, according to the press release.

The next-generation APU is being designed to operate at high altitudes and provide additional electrical power and enhanced thermal management capabilities.

PBS Velká Bíteš, a member of PBS GROUP, is one of only four companies globally authorized to develop and certify civil APUs, according to Milan Macholán, CEO of PBS Velká Bíteš. The company has been manufacturing auxiliary power units since the 1970s.

RTX, formerly known as Raytheon Technologies, reported sales exceeding $80 billion in 2024 and employs approximately 185,000 people globally. The company has maintained dividend payments for 55 consecutive years, demonstrating long-term stability. For deeper insights into RTX’s financial health and growth potential, including 12 additional exclusive ProTips, check out the comprehensive research available on InvestingPro.

In other recent news, RTX Corp. has been awarded a significant $670.2 million contract modification for F135 propulsion system spares, supporting the Joint Strike Fighter program. This contract involves RTX’s Pratt and Whitney Military Engines division, which will handle the procurement and delivery of these spares. Additionally, the U.S. State Department has approved a $570 million deal for the Netherlands to acquire AIM-120C-8 missiles, with RTX Corp. as the principal contractor.

Raytheon Co., a part of RTX, has secured a $43.2 million contract modification from the U.S. Department of Defense for redesigning the Steering Control Section of the Standard Missile 6 (SM-6). In another development, Raytheon UK, also part of RTX, will supply Landshield Plus anti-jamming systems for CV90 vehicles under a contract with BAE Systems.

On the analyst front, Bernstein has raised its price target for RTX Corp. to $157, citing a strong defense outlook, particularly within the Raytheon unit and positive trends for the Collins division. These recent developments highlight the company’s ongoing involvement in major defense contracts and the positive sentiment from analysts regarding its future prospects.

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