- Rolls-Royce (OTCPK:RYCEY, OTCPK:RYCEF) is awarded a contract to provide upgraded engines for the U.S. Air Force's B-52 bomber fleet in an award that could grow to $2.6B, the Department of Defense announces, beating out General Electric (NYSE:GE) and incumbent Pratt & Whitney (NYSE:RTX).
- Rolls-Royce was given an initial six-year $501M base contract to supply 608 engines for installation on the Air Force's 76 active-duty and reserve B-52s, which could grow to $2.6B if all options are exercised.
- GE's bids included its CF34-10 and Passport engines, while Raytheon's Pratt & Whitney offered its PW800.
- The Pentagon says the work will be performed at the Rolls-Royce facility in Indianapolis, where the company says it has invested more than $600M in advanced manufacturing and technology.
- Rolls-Royce also could be a beneficiary of Australia's recent switch to nuclear-powered submarines away from a planned purchase of French diesel vessels.