Boeing Wins $20 Billion Navy Fighter Contract, Northrop Grumman Shares Plummet

Boeing's shares rose by 2.5% in after-hours trading on Tuesday, September 29, following its selection as the lead developer for the US Navy's F/A-XX carrier-based stealth fighter program, valued at over $20 billion.

The contract award comes after a long delay, with the Pentagon freezing the program in June 2025 and Congress adding close to $900 million above the Navy's request of roughly $75 million for fiscal 2026. The Navy had missed its self-imposed August deadline for the award.

Boeing will deliver multiple test aircraft for ground, airworthiness, systems, and weapons integration testing under the contract. Reuters notes that the program could grow to hundreds of billions of dollars over its lifetime as production ramps up and international customers place orders.

Northrop Grumman, which was a rival bidder for the contract, saw its shares slip by 5% in after-hours trading on Tuesday. The company had been seen as a strong contender for the award, with some analysts predicting it would have won if it had bid lower or offered more concessions.

Lockheed Martin, which continues to build the fifth-generation F-35, was reportedly eliminated from the F/A-XX competition earlier. Boeing's win makes it the sole US supplier of sixth-generation fighters following its selection in March 2025 to build the Air Force's F-47.