RTX Begins 2MW Hybrid-Electric Powertrain Testing, Projects 18% Upside from Quadrupling Missiles
Collins Aerospace has begun integrated lab testing of two megawatt-class electric motor generators, controllers and power distribution systems in Rockford, Illinois for the EU's Clean Aviation SWITCH project as a precursor to full-scale hybrid-electric Pratt & Whitney GTF™ engine demonstration. RTX expects missile production to more than quadruple from 2022 levels by 2033, with expanded capacity and projected revenue gains driving an 18% price target increase from $227.44 to $240.91.
1. Hybrid-Electric Powertrain Testing Launch
Collins Aerospace initiated integrated validation of key powertrain subsystems, including two megawatt-class motor generators, controllers and solid-state power distribution panels at The Grid lab in Rockford, Illinois. This marks the first phase in the EU-backed SWITCH project toward demonstrating a hybrid-electric Pratt & Whitney GTF™ engine for short- and medium-range aircraft efficiency optimization.
2. Missile Production Expansion and Forecast
RTX is set to more than quadruple its missile production from 2022 baseline levels, with major capacity investments slated post-2028. The ramp-up supports projected revenue growth through 2033, prompting an 18% increase in the price target to $240.91 based on backloaded financial upside from defense order momentum.