You’re looking for Pratt and Whitney stock, right? Well, here is the first thing you need to know: you can’t actually buy it. At least, not directly. Pratt & Whitney is a massive subsidiary of RTX Corporation (formerly Raytheon Technologies), so if you want a piece of those jet engines, you’re buying shares of RTX on the New York Stock Exchange.
Honestly, it's a wild time to be looking at this company. As of mid-January 2026, the stock is hovering around $200, which is kind of incredible when you consider the absolute mess they've been cleaning up for the last couple of years.
The Powder Metal Mess (And Why It Still Matters)
If you've been following the news, you know about the "powder metal" issue. Basically, a rare condition in the metal used for engine parts meant that hundreds of Geared Turbofan (GTF) engines—the ones powering a huge chunk of the Airbus A320neo fleet—had to be pulled off planes for inspections.
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It wasn't just a tiny glitch. We’re talking about a multi-billion dollar headache.
As we head into 2026, the aviation industry is still feeling the sting. At the peak, about 650 jets were sitting idle on the ground because they didn't have working engines. Imagine being an airline like Air Astana, which recently reported that unplanned engine removals wiped out $24 million from their earnings in just one quarter. That’s the kind of drama Pratt & Whitney has been dealing with.
The good news? The "green shoots" are starting to show.
Chris Calio, the CEO of RTX, has been telling investors that the worst of the shop visits might finally be peaking. The company is redesigning blades and speeding up the maintenance pipeline. But make no mistake: analysts like those at Aviation Week Network expect aircraft-on-ground levels to stay elevated through most of 2026.
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The Military Muscle: F-35 and Beyond
While the commercial side is a bit of a soap opera, the military side is basically a fortress. Pratt & Whitney makes the F135 engine. That is the only engine that powers the F-35 Lightning II, which is the backbone of modern air power for the U.S. and its allies.
You don't just "cancel" a contract like that.
Just a few months ago, in late 2025, the U.S. Navy handed Pratt a $1.6 billion contract just for sustainment and spare parts. And even though there’s been some bickering about delays—the GAO recently pointed out that every single F135 engine delivered in 2024 was late—the government keeps signing the checks because there isn't a viable alternative.
By the numbers: RTX (Pratt & Whitney Parent) Financials
- Recent Stock Price: ~$200.30
- Total Backlog: A staggering $251 billion (as of late 2025).
- Dividend: Currently $0.68 per quarter, though there's a new "policy shock" we need to talk about.
- 2026 EPS Estimate: Analysts are looking at roughly $7.62 for the full year.
The Trump Executive Order: A New Risk for Investors
Now, here is where things get "kinda" complicated. In early January 2026, President Trump signed an executive order that basically told defense contractors to "get it together."
The order threatens to block dividends and stock buybacks for companies that are underperforming on government contracts. Because RTX has had some public struggles with delivery timelines and the GTF engine saga, the stock took a bit of a sentiment hit.
Is the dividend actually at risk?
Most experts, including those at Simply Wall St, think the primary risk is "headline risk" rather than a total loss of cash flow. RTX has paid dividends for 19 straight years. They have billions in free cash flow. But if the Pentagon starts writing "no buyback" clauses into new contracts, the "total return" story for the stock changes.
Is Pratt and Whitney Stock Actually a Buy?
Investors are split. On one hand, you have Citigroup setting price targets as high as $227. They see the $251 billion backlog and realize that the world needs these engines, regardless of the current maintenance bottlenecks.
On the other hand, Goldman Sachs has been more cautious, with targets closer to $168, citing the ongoing costs of the GTF inspections and the new political pressure from Washington.
If you’re looking at Pratt and Whitney stock as a long-term play, you’re basically betting on two things:
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- That the engine maintenance backlog finally clears by 2027.
- That the military business remains "too big to fail" despite the political noise.
What You Should Do Next
If you’re serious about putting money into RTX, don't just look at the stock ticker.
Keep an eye on the January 27, 2026, earnings call. That is when the company will lay out its official guidance for the rest of the year. You want to listen specifically for two things: the "Free Cash Flow" projection and any updates on the "Engine Core Upgrade" for the F-35.
If the cash flow holds steady despite the new executive orders, the stock might just have the legs to hit those $220+ targets. But if they warn about more GTF delays, it might be a bumpy ride for a few more months.
Your Action Plan:
- Check the Q4 2025 earnings report on January 27 for the "Aircraft on Ground" (AOG) count. If that number is falling, it’s a massive buy signal.
- Monitor the F-35 Lot 18/19 contract negotiations in Spring 2026. A finalized deal here will lock in revenue for years.
- Watch the dividend ex-date on February 23, 2026. If the company maintains the $0.68 payout despite the executive order, it shows management is confident.