1 hour ago
9
TLDR
- The U.S. Navy selected Boeing for a $20 billion contract to build the F/A-XX sixth-generation fighter jet.
- Shares of BA climbed 2% during after-hours trading on Tuesday after the announcement.
- Northrop Grumman was defeated in the competitive bidding process.
- Boeing now holds both Pentagon sixth-generation fighter contracts, including the Air Force’s F-47 awarded in 2025.
- The new F/A-XX aircraft is slated for deployment in the 2030s to succeed the Navy’s current F/A-18E/F Super Hornet fleet.
Shares of Boeing climbed 2% during after-hours trading on Tuesday. The gain followed the U.S. Navy’s announcement that it selected the aerospace manufacturer to build its next-generation F/A-XX fighter aircraft.
The awarded contract totals more than $20 billion. It encompasses the complete full-scale development stage of the next-generation fighter program.
Northrop Grumman was the losing bidder in this competition. Shares of Northrop declined 3% following the announcement.
Boeing has now secured its second significant sixth-generation fighter contract within a two-year span. The aerospace giant previously won the Air Force’s F-47 contract in 2025, where it defeated Lockheed Martin.
The company now controls both of the Pentagon’s advanced sixth-generation fighter initiatives. This represents an unusual achievement for a single defense contractor.
Understanding the F/A-XX Initiative
The F/A-XX aircraft is designed to serve as the Navy’s next sixth-generation carrier-launched fighter. Current projections place its operational debut sometime during the 2030s.
This new platform will gradually replace the Navy’s current fleet of F/A-18E/F Super Hornets and EA-18G Growlers. These aircraft have served as the primary workhorses of carrier strike groups for decades.
The initiative is part of the Navy’s broader Next Generation Air Dominance strategy. Military planners envision the new fighter operating at extended ranges and integrating seamlessly with unmanned aerial systems.
Pentagon acquisition leader Michael Duffey described the F/A-XX as a “crucial, non-negotiable investment” in future aerial combat dominance. He emphasized its role in preserving American superiority in highly contested operational environments.
The awarded contract encompasses multiple test platforms. These aircraft will undergo comprehensive ground evaluations, flight trials, weapons integration, and systems validation.
A Competition Nearly Derailed
The selection process faced significant challenges. Pentagon officials at one stage contemplated delaying the entire program by as much as three years because of engineering complexities and supply-chain obstacles.
Congressional intervention kept the initiative on schedule. Legislative leaders authorized an additional $750 million in 2025 and followed with $1.4 billion for fiscal year 2026 to maintain program momentum.
Lockheed Martin was eliminated from consideration in March 2025. This narrowed the field to Boeing and Northrop as the sole remaining competitors.
Boeing Defense CEO Steve Parker highlighted the company’s strategic facility investments as a competitive advantage. He noted that these modernized production sites are engineered to simultaneously support multiple advanced-generation aircraft programs.
According to Reuters, the F/A-XX program could ultimately generate hundreds of billions in revenue once serial production begins. International sales may significantly increase that figure over time.
The Navy anticipates receiving initial production aircraft during the 2030s. The F/A-XX will operate in conjunction with more than 270 planned F-35C aircraft, while the Super Hornet fleet is projected to remain operational through the 2040s.
According to TipRanks, BA holds a Strong Buy consensus rating with 17 Buy recommendations and one Hold rating. Analysts’ average price target of $272 suggests potential upside of nearly 45% from current trading levels.
Despite Tuesday’s after-hours rally, Boeing shares remain down 14% year-to-date. The stock settled at $191.81 in regular trading prior to the contract announcement.
The post Boeing (BA) Stock Surges on Massive $20B Navy Fighter Jet Deal appeared first on Blockonomi.
English (US) ·