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Textron Secures Potential $677M Navy Training Aircraft Production Contract

A Textron (NYSE: TXT) subsidiary will manufacture up to 64 multi-engine training systems to replace the U.S. Navy’s T-44C Pegasus trainer platform under a potential $677.2 million contract.

Naval Air Systems Command said Wednesday the branch initially ordered 10 aircraft for approximately $113.1 million through the firm-fixed-price contract awarded to Textron Aviation.

The company will provide spares, support equipment and training services to naval aviators as part of the agreement.

“The T-54A will include the latest avionics and navigational updates, such as virtual reality and augmented reality devices, to ensure pilots are ready to face any challenges that come their way in tomorrow’s battlespace,” said Capt. Holly Shoger, program manager of the Naval Undergraduate Flight Training Systems Program Office.

Textron Aviation will incorporate digital displays, ultra high and very high radios, automatic dependent surveillance-broadcast, radars and an integrated global positioning and inertial navigation system into the METS aircraft.

Navy, Coast Guard and Marine Corps pilots will use the T-54A to learn how to operate V-22 Osprey, C-130 Hercules, E-2D Hawkeye and P-8 Poseidon and planes.

NAVAIR expects the company to deliver the new aircraft within the 2024-2026 timeframe and plans to sunset the legacy T-44C six months after the initial delivery is completed.

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