LONGUEUIL, Quebec - Pratt & Whitney Canada, a business unit of Raytheon Technologies (NYSE: NYSE:RTX), has received type certification from Transport Canada Civil Aviation for its PW545D engine, marking a significant step toward the engine's entry into service.
The certification, achieved on May 9, follows extensive testing, including 630 hours of engine trials and 230 hours of flight testing on Textron (NYSE:TXT) Aviation's Cessna Citation Ascend prototype.
The PW545D engine is slated to power the new Cessna Citation Ascend business jet, with twin engines providing enhanced performance. Significant improvements in the engine include better specific fuel consumption, increased thrust, and longer periods between overhauls.
These advancements stem from an advanced mixer design and efficiency upgrades in the compressor and turbine sections, which contribute to lower fuel burn and reduced operating temperatures.
Additionally, the PW545D is equipped with Full Authority Digital Engine Control (FADEC) technology, a feature common among many PW500 models. This integration allows for the implementation of new auto-throttle technology in the Citation Ascend, streamlining engine management, optimizing efficiency, and lightening pilot workload.
Pratt & Whitney Canada's PW500 engine family has a substantial presence in the aviation industry, with around 4,600 engines currently in service and more than 5,000 produced. The fleet has accumulated approximately 24.5 million flight hours. Besides the Cessna Citation Ascend, PW500 engines are also utilized in other Textron Aviation aircraft, including the Cessna Citation Bravo, Excel, XLS, XLS+, Ultra Encore, and Encore+ models.
Pratt & Whitney Canada has a history of innovation in the design, manufacture, and service of aircraft engines and auxiliary power units. Raytheon (NYSE:RTN) Technologies, the parent company, employs over 185,000 people worldwide and is known for pushing the boundaries of technology and science. The company reported 2023 sales of $69 billion and is based in Arlington, Virginia.
This development is based on a press release statement.
InvestingPro Insights
As Pratt & Whitney Canada, a division of Raytheon Technologies (NYSE: RTX), celebrates the certification of its PW545D engine, the financial metrics and market sentiment surrounding RTX provide a broader context for investors. With a robust Market Cap of $142.03 billion and a Price to Earnings (P/E) Ratio of 42.51, Raytheon Technologies stands as a significant entity in the aerospace and defense sector.
The company's commitment to shareholder value is evident through its aggressive share buyback program, a point of interest for investors as noted in an InvestingPro Tip. Additionally, the Dividend Yield of 2.37% coupled with a consistent history of dividend payments for 54 years straight, underlines RTX's commitment to returning value to shareholders. This stability is further underscored by the company's low price volatility, making it a potentially attractive option for investors seeking steady returns.
Moreover, the Revenue Growth of 3.56% in the last twelve months as of Q1 2024 indicates a steady upward trajectory for the company's earnings. This aligns with another InvestingPro Tip that forecasts net income growth for this year. While the stock trades near its 52-week high, reflecting a strong performance with a 31.43% price total return over the last six months, investors should be mindful of the InvestingPro Tip suggesting the stock is currently in overbought territory.
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