The Impact of Pratt & Whitney Engine Delays on RTX Stock
The Impact of Pratt & Whitney Engine Delays on RTX Stock :For investors in the aerospace and defense sector, the journey of RTX Corporation (NYSE: RTX) over the last two years has been a masterclass in crisis management and market resilience. At the heart of this saga lies the Pratt & Whitney Geared Turbofan (GTF) engine, a technological marvel that became a multi-billion dollar headache.
As we move through late 2025, the dust is finally beginning to settle. Understanding how these delivery delays and technical “powder metal” issues impacted RTX’s stock price—and why the company is currently seeing a resurgence—is essential for any US-based investor looking at the industrial sector.
The Origin of the Crisis: The “Powder Metal” Issue
In July 2023, RTX (formerly Raytheon Technologies) shocked the market by announcing a “rare condition” in the powder metal used to manufacture high-pressure turbine disks in its GTF engines. These engines power the Airbus A320neo, one of the world’s most popular commercial jets.
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The immediate fallout was severe:
- Mass Inspections: Over 600 to 700 engines required accelerated removals and inspections.
- Grounded Fleets: At its peak, hundreds of aircraft were grounded, leaving airlines like Spirit, JetBlue, and Wizz Air in a bind.
- Financial Blow: RTX recognized a staggering $3 billion pre-tax charge in Q3 2023 to compensate customers and fix the defects.
Market Reaction: The 2023 Stock Crash
The announcement sent RTX stock into a tailspin. Shares plummeted from the mid-$90s to a multi-year low of approximately $70.00 by late 2023. Investors feared that the long-term liability and reputational damage would cripple Pratt & Whitney’s ability to compete with rivals like CFM International.
The Turning Point: 2024–2025 Recovery
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Despite the initial panic, RTX entered 2025 with a “stabilization” strategy that has largely succeeded. Management shifted from crisis mode to execution, ramping up Maintenance, Repair, and Overhaul (MRO) capacity to get engines back on wings faster.
Key Factors Driving the 2025 Stock Surge
By mid-2025, RTX stock didn’t just recover; it broke out, reaching new highs near $180.00. Several factors fueled this 100%+ rally from the lows:
- Defense Segment Strength: While Pratt & Whitney struggled, the Raytheon defense unit saw record demand due to global geopolitical tensions. The backlog for Patriot missile systems and other munitions provided a massive safety net.
- Increased Shop Throughput: In 2025, RTX achieved a 30% growth in MRO output. Faster turnaround times (averaging 110 days) significantly reduced the “Aircraft on Ground” (AOG) numbers.
- The “GTF Advantage”: RTX began delivering the updated “Advantage” configuration of the engine in late 2025, which addresses previous durability concerns.
RTX Financial Snapshot: 2024 vs. 2025
| Metric | 2024 (Actual) | 2025 (Projected/Reported) |
| Adjusted Sales | $80.7 Billion | $86.5 – $87.0 Billion |
| Adjusted EPS | $5.54 | $6.10 – $6.20 |
| Free Cash Flow | $4.3 Billion | $7.0 – $7.5 Billion |
| Backlog | $196 Billion | $251 Billion |
What Investors Should Watch Next
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While the worst of the GTF delays appear to be in the rearview mirror, aerospace investing always carries risks.
Investor Note: “The market has priced in the recovery, but execution remains paramount. Watch for the ‘burn-off’ of the $251 billion backlog as a signal of sustained profitability.”
- Tariff Impacts: Ongoing trade discussions and tariffs have created minor headwinds for Collins Aerospace and Pratt & Whitney, though strong demand has so far offset these costs.
- Airline Compensation: RTX continues to pay out significant sums to airlines for grounded planes. Any extension of the “return-to-service” timeline for grounded jets (currently stretching into 2026 for some carriers) could hit margins.
- The Next Gen Transition: The transition to the GTF Advantage engine must be flawless to ensure Pratt & Whitney maintains its market share against GE and Safran.
Conclusion: A Resilient Giant
The Pratt & Whitney engine delivery delays were a significant “black swan” event for RTX. However, the company’s ability to leverage its defense backlog while aggressively fixing its commercial engine issues has turned a potential catastrophe into a story of resilience. For US investors, RTX has evolved from a “value trap” in late 2023 to a growth-and-income powerhouse in late 2025.