The Department of War and the U.S. Navy have chosen Boeing to develop the Navy's next-generation fighter jet under a $20 billion development contract, beating out rival Northrop Grumman.
Key facts
- Boeing won the U.S. Navy's next-generation fighter development contract, according to the Pentagon.
- The development contract is worth $20 billion and covers production of test aircraft.
- Boeing beat out rival Northrop Grumman for the deal.
- The Department of War and the U.S. Navy announced the decision on Tuesday.
- Boeing shares rose 3% following the announcement, according to CNBC.
The Department of War and the U.S. Navy said Tuesday that they have chosen aircraft manufacturer Boeing to develop the Navy’s next generation of fighter jets, according to CNBC.
Boeing beat out rival Northrop Grumman for the development contract, which is worth $20 billion and covers the production of test aircraft, CNBC reported.
The announcement marks a significant win for Boeing in a closely watched competition for the Navy’s future fighter program.
Investors responded positively to the news. Boeing shares rose 3% after the deal was secured, according to CNBC.
The reporting attributes the decision directly to the Department of War and the U.S. Navy, which named Boeing as the selected manufacturer.
Details beyond the contract value, the production of test aircraft, and the identity of the competing bidder were not specified in the available reporting.
Why it matters
Large defense contracts like this one shape the future of U.S. military capabilities and can have major financial consequences for the companies involved. The $20 billion award positions Boeing at the center of the Navy's next-generation fighter program, while rival Northrop Grumman misses out on a significant deal.
Frequently asked questions
How much is the Boeing Navy fighter contract worth?
According to CNBC, the development contract is worth $20 billion and covers the production of test aircraft.
Who did Boeing beat to win the contract?
Boeing beat out rival Northrop Grumman for the development contract, according to CNBC.
How did Boeing's stock react to the news?
Boeing shares rose 3% after the company secured the U.S. Navy deal, CNBC reported.