Boeing Wins $20 Billion U.S. Navy Next-Generation Fighter Development Contract

Boeing (NYSE:BA) has been selected to develop the U.S. Navy’s next-generation stealth fighter under a contract valued at $20 billion, giving the company its second major sixth-generation fighter programme following its selection for the U.S. Air Force’s F-47.

The Pentagon announced the F/A-XX decision on Tuesday, with Boeing selected ahead of Northrop Grumman (NYSE:NOC). The development contract covers the production of test aircraft.

The programme could ultimately expand to hundreds of billions of dollars over its lifetime as production increases and potentially attracts orders from international customers.

Boeing was also selected in March last year to develop the Air Force’s F-47 stealth fighter, giving the company two major U.S. sixth-generation fighter contracts in consecutive years.

F/A-XX to Replace Navy’s Super Hornet Fleet

Boeing had been considered a contender in the F/A-XX competition because of its history of producing carrier-based fighters for the U.S. Navy, including the F/A-18E/F Super Hornet that the new aircraft is designed to replace.

That experience came alongside questions from defence officials over whether Boeing had sufficient engineering and supplier capacity to execute both the F-47 and F/A-XX programmes simultaneously.

The F/A-XX is planned as the centrepiece of the Navy’s Next Generation Air Dominance family of systems.

The aircraft is expected to feature advanced stealth capabilities, improved range and endurance, and the ability to integrate with uncrewed combat aircraft and the Navy’s carrier-based air defence systems.

The Navy also plans to acquire more than 270 Lockheed Martin (NYSE:LMT) F-35C aircraft for its carrier fleet. The F-35C is expected to operate alongside the F/A-XX after the new fighter enters service.

First production F/A-XX aircraft are expected during the 2030s, while the Super Hornet fleet, which has been in service since the 1990s, is expected to continue operating into the 2040s.

Contract Supports Boeing’s St. Louis Fighter Operations

The contract provides additional work for Boeing’s fighter production operations in St. Louis, Missouri, as the company shuts down the F/A-18E/F Super Hornet and EA-18G Growler production lines.

Steve Parker, president and chief executive officer of Boeing Defense, Space & Security, said the company had invested in facilities designed to support multiple advanced aircraft programmes.

“We’ve made investments in new facilities uniquely suited to build multiple products with next-generation capabilities, our dedicated and talented team is ready to execute this critical program,” Parker said.

Boeing shares rose 2.25% in extended trading on Tuesday following the announcement, while Northrop Grumman shares declined 3.5%.

Pentagon Describes F/A-XX as Long-Term Air Combat Investment

Michael Duffey, the Pentagon’s chief weapons buyer, described the F/A-XX as an important part of the country’s future air combat capabilities.

The aircraft “represents a crucial, non-negotiable investment in America’s national security and long-term air combat capabilities,” Duffey said in a statement.

Before securing the F-47 and F/A-XX contracts, Boeing had largely exited the fighter business, according to Jeremiah Gertler, an aerospace expert at the Center for Strategic and International Studies.

Gertler said questions remain about the degree of overlap between Boeing’s two new fighter programmes.

“What we don’t know yet is how much F-47 DNA is in the F/A-XX. Are they being developed together or separately?” he said.

Engineering Capacity Had Been a Focus Before Award

The Pentagon had previously sought to delay the F/A-XX contract because of concerns that the U.S. defence industry did not have sufficient engineering capacity to develop two sixth-generation fighters simultaneously.

Questions had also been raised over Boeing’s ability to provide enough engineers and suppliers to execute both the F-47 and Navy fighter programmes at the same time.

Members of Congress from Missouri from both major parties supported continued funding for the programme.

Republican Senator Eric Schmitt said the F/A-XX and F-47 programmes could increase opportunities for engineering and technology employment in Missouri.

“With modernized systems and promising new capabilities, F/A-XX and F-47 production will create more opportunities to attract engineering and technology talent to Missouri,” Schmitt said in a statement.

Workers assembling Boeing fighter jets also conducted a 101-day strike last year before returning to work without securing concessions from the company.

Congress Provided Funding Following Programme Delays

The F/A-XX programme has faced several years of delays and funding disputes.

Some Pentagon officials had sought to delay the programme by as much as three years, citing concerns about engineering and supply-chain capacity.

Congress subsequently provided funding to continue the programme, including $750 million in the 2025 tax-cut and spending law and an additional $1.4 billion for fiscal 2026.

Lockheed Martin was eliminated from the competition in March 2025 after Navy officials determined that its design had not met the required criteria, leaving Boeing and Northrop Grumman as the finalists.

The programme forms part of the Navy’s plans to modernise its carrier-based combat aircraft as China develops advanced combat aircraft, including designs Beijing describes as sixth-generation.

The Navy has faced pressure to advance the programme to avoid the possibility of operating without a modern carrier-based fighter during the 2030s and beyond.

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