Leeham News and Analysis
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Leeham News and Analysis
- Bjorn’s Corner: New engine development. Part 5. Turbofan design problems April 26, 2024
- Airbus 1Q2024 results: Airbus CEO: “A350 in-service experience drives positive reputation and orders” April 25, 2024
- A350-1000 or 777-9? Part 3 April 25, 2024
- Boeing CEO promises company is turning around…again April 24, 2024
- Solid start for stand-alone GE Aerospace despite cuts to LEAP output April 23, 2024
RTX FY and Q4 2023 Earnings: Pratt GTF Propulsion Prognosis Improves, Collins Enjoys Widebody Renaissance Tailwinds
By Chris Sloan
Jan. 23, 2024, (c) Leeham News: 
RTX, the parent company of Pratt & Whitney and Collins Aerospace, reported during its fourth-quarter earnings call slivers of good news in the GTF program, which enters its ninth year of service – mostly in the headlines for the wrong reasons of poor reliability. Despite beating performance guarantees, the beleaguered powerplant family has been besieged by durability, operational, and production shortcomings since it entered service with the inauguration of Airbus A320neo service by Lufthansa back in January 2016 and EIS with the Bombardier C Series operated by Swiss (now Airbus A220) in July 2016.
The overall money metrics picture is upbeat despite weakness in military-based segments, higher production costs, and the continued Odyssey of the Pratt Geared TurboFan platform.
Pratt & Whitney reported an ascendant fourth quarter 2023 sales trajectory of $6.4 billion – up 14 percent versus the prior year. Commercial OE drove a 20% increase, while aftermarket rose 18%. Pratt reported $23.6 billion in sales for the entire year – an increase of 25%. Pratt’s full-year operating profit climbed by 25% versus 2023 to $382 million. The propulsion producer attributed its full-year profit growth to higher commercial aftermarket and OE mix.
Analysts were cautiously optimistic about the results. “While it’s no doubt a positive that the GTF is on track, there is still quite some way to go before RTX can declare ‘mission accomplished.’ But if RTX can hit its targets on GTF and also gradually improve the performance at Raytheon, then the stock looks inexpensive at 14.5x 2025 P/E,” said Vertical Research Analyst Robert Stallard.
2024 Outlook: A Mixed Bag for Propulsion OEMs
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By Chris Sloan and Gordon Smith
January 11, 2033, © Leeham News: In 2023, a slew of problems plagued propulsion providers, with Pratt & Whitney’s GTF Engine and supply-chain
shortcomings grabbing the bulk of negative headlines and customer complaints. There were bright spots for all the big three with a slew of significant orders, emerging technologies, and critical management shifts.
As the calendar turns to 2024, all eyes will be on a return to fulfilling enormous backlogs, supporting OEM production rate increases, and returning GTF-propelled planes to the skies – while edging towards new technologies, both incremental and revolutionary.
Summary
- Pratt and its operators navigate massive AOGs (aircraft on ground) and unhappy customer claims for its GTF.
- The GTF Advantage closes in on EIS.
- GTF maladies open the door to a possible new platform, the long-mooted Airbus A220-500.
- The X66A Tranonic-Truss-Braced Wing offers promise for both Pratt’s GTF and GE’s future RISE engines.
- GEnx and GE-9X win blockbuster campaigns on the 787 and 777X as the 777X hurtles toward certification.
- CFM’s LEAP goes from strength to strength on the heels of MAX orders and 737-7 and 737-10 certification and entry-into-service.
- Fixing LEAP durability and delivery challenges.
- Rolls-Royce Trent troubles continue to draw the ire of customers.
- UltraFan testing moves forward in Roll’s quest to build a next-generation engine platform for the 2030s. Read more
RTX Q3 Earnings: Pratt GTF Powder Contamination Problem Guidance Largely Unchanged, But Big Questions Loom
By Chris Sloan
Oct. 24, 2023, (c) Leeham News: “I believe we have our arms around the operational and financial impacts of the powdered metal issue,” said Greg Hayes, RTX Chairman and Chief Executive Officer, during today’s third quarter earnings call primarily dominated by the Pratt & Whitney GTF powerplant’s ongoing quality control saga.
“With the analysis substantially complete, we do not expect any significant incremental financial impact as a result of those fleet management plans,” Hayes emphasized, with Pratt re-affirming its September projections with no changes to the previous recalls.