The Pentagon awarded Boeing a $20 billion contract to develop and build the US Navy’s next-generation fighter jets, officials announced Tuesday (local time).
The Pentagon awarded Boeing a $20 billion contract to develop and build the US Navy’s next-generation fighter jets, officials announced Tuesday (local time).
The deal marks Boeing’s second major fighter-jet contract in a row, ending months of delays in a programme considered important to US efforts to counter China in the Pacific, Reuters reported.
In March 2025, Boeing was selected to build the US Air Force’s new F-47 fighter jets, giving the company two major sixth-generation jet contracts in consecutive years.
How was Boeing selected?
The competition for the Navy’s next-generation fighter narrowed to Boeing and Northrop Grumman after Lockheed Martin Corp. was removed from the race in March 2025, when US Navy officials determined that its design had not met the required criteria.
Boeing was subsequently selected over Northrop Grumman Corp. for the $20 billion development contract to produce the test aircraft. The programme could eventually be worth hundreds of billions of dollars as production increases and international customers potentially place orders.
Throughout the competition, Boeing was considered a strong contender because of its extensive experience developing carrier-based fighters for the US Navy, including the F/A-18E/F Super Hornet, which the new aircraft is intended to replace.
The company’s experience also helped address concerns among defence officials about whether Boeing had enough engineers and suppliers to work on both the F-47 and the Navy’s new fighter at the same time. Those concerns now appear to have been resolved in Boeing’s favour.
Following the announcement, the aerospace company’s shares were trading 2.25 per cent higher on Tuesday, while Northrop shares were down 3.5 per cent.
Boeing’s St. Louis facilities to get production boost
The latest contract is expected to provide a significant boost to Boeing’s fighter production operations in St. Louis, Missouri, where the company is shutting down its F/A-18E/F Super Hornet and EA-18G Growler production lines.
In a statement, Steve Parker, president and chief executive officer of Boeing Defense, Space & Security, said Boeing had 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.”
Here’s what we know about the new fighter jet
The new aircraft, currently known as the F/A-XX programme, will serve as the central fighter platform within the Navy’s Next Generation Air Dominance (NGAD) family of systems.
It 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.
According to Michael Duffy, the Pentagon’s chief weapons buyer, the fighter jet “represents a crucial, non-negotiable investment in America’s national security and long-term air combat capabilities.”
The contract comes as China rapidly advances its combat aircraft capabilities, including aircraft Beijing has described as sixth-generation designs. The development has added pressure on the US Navy to ensure it has a modern carrier-based fighter capable of serving through the 2030s and beyond.
(with agency inputs)
About the Author
Swati Gandhi
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.
Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.
At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.
She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.
Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
