A propulsion system for an aircraft includes a gas generating core engine that generates an exhaust gas flow that is expanded through a turbine section. A power turbine engine is forward of the core engine and is coupled to drive a propulsor. A hydrogen fuel system supplies hydrogen fuel to the combustor through a fuel flow path. A condenser extracts water from the exhaust gas flow. A water separator is in communication with the condenser and directs the extracted water to a water storage tank. An evaporator receives a portion of the water that is extracted by the condenser and generates a steam flow. The steam flow is injected into the core flow path upstream of the turbine section.