The US Navy picked Boeing over Northrop Grumman to lead development of its F/A-XX carrier-based stealth fighter, a contract worth more than $20 billion. Boeing shares rose and Northrop's fell on the news, and the win leaves Boeing as the sole US builder of sixth-generation fighters. Analysts note the fixed-price development phase still carries its own margin risk.
Boeing shares rose circa 2.5% in after-hours trading on Tuesday, September 29, while Northrop Grumman slipped circa 5%, according to Investing.com, after the Navy selected Boeing to lead development of the F/A-XX. Had Northrop prevailed, DefenseScoop noted it would have won its first fighter production deal in more than five decades.
Boeing becomes sole sixth-generation fighter supplier
The win follows Boeing's selection in March 2025 to build the Air Force's F-47. Breaking Defense sources say it now makes Boeing the sole US supplier of sixth-generation fighters. Lockheed Martin, reportedly eliminated earlier from the F/A-XX competition, continues to build the fifth-generation F-35. Reuters said the program could grow to hundreds of billions of dollars over its life as production ramps up and, potentially, as international customers place orders.
Under the contract, Boeing will deliver multiple test aircraft for ground, airworthiness, systems and weapons integration testing. The F/A-XX is set to replace the Navy's F/A-18E/F Super Hornet and EA-18G Growler beginning in the 2030s. On the same day, the Navy also awarded Boeing a roughly $17 million contract to plan and prepare the shutdown of those production lines. SOFREP has reported that Northrop remains the principal subcontractor on parts of the Super Hornet's fuselage, keeping it linked to Boeing's existing fighter.
A decision that came after months of delay
The Pentagon moved to freeze the program in June 2025, and the White House later warned that pressing ahead could endanger the F-47. Congress pushed back, adding close to $900 million above the Navy's request of roughly $75 million for fiscal 2026, and the Navy missed a self-imposed August deadline for the award. Aviation Week reported the award was announced shortly before the end of the fiscal year, when the added funding was due to expire.
Analysts flag margin risk in the development phase
Newsquawk commentary cautioned that stock market reactions to next-generation platform awards have often been muted relative to headline value, because development work has typically been fixed-price. It pointed to Boeing's history of cost overruns and charges on such programs, noting margin risk concentrates in development while production is where these programs have historically earned their returns. Investors will now watch defence appropriations and manufacturing milestones, along with whether Boeing can run the F/A-XX and F-47 programs in parallel.
Source: Investinglive
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