Boeing Secures $20 Billion F/A-XX Contract Dominating Sixth-Generation Fighters

Boeing has secured another major fighter jet contract, further solidifying its dominance in the sixth-generation fighter market. The company recently won the F/A-XX contract from the U.S. Navy, complementing its earlier victory with the Air Force's F-47 contract. Both contracts are valued at $20 billion each for the development phase, potentially bringing in tens of billions more in production.

This dual victory marks a significant turnaround for Boeing, which struggled with defense contracts just a dozen years ago. The F/A-XX contract aims to replace the Navy's aging F/A-18 Super Hornets with a stealthier, longer-range fighter jet capable of controlling military strike drones. The F-47, awarded in March 2025, is another sixth-generation fighter designed for the Air Force.

Boeing's monopoly on sixth-generation fighter production positions it favorably against competitors like Lockheed Martin and Northrop Grumman. The company's defense unit, Boeing Defense, Space, and Security (BDS), has returned to profitability after years of losses. Analysts predict sustained profitability for Boeing, especially with these long-term defense contracts.

However, investors should consider that Boeing was not listed among the top 10 stocks recommended by The Motley Fool Stock Advisor. Despite this, the company's defense sector appears poised for decades of growth, given the substantial investments required for these advanced fighter programs.