GE Aerospace completed the Assembly Readiness Review for its XA102 adaptive cycle engine. This milestone validates the design and supply chain for the U.S. Air Force’s next-generation fighter program. The engine is a lead contender to power the successor to the F-22.

Pratt & Whitney also finished the same readiness review for its competing XA103 engine. Both companies are now positioned to compete for the NGAP contract expected to be awarded in late 2026.

The program's outcome will have long-term implications for the defense industrial base. These developments specifically impact companies within the XAR ETF.