Boeing won a U.S. Navy contract worth more than $20 billion to develop the F/A-XX, a sixth-generation strike fighter that will replace the service's aging F/A-18 Super Hornet fleet, the Pentagon announced Wednesday.
The deal sent Boeing shares up 3.1% in premarket trading. Northrop Grumman, which also bid for the contract, fell 3.5%. Boeing repeatedly beat Northrop in the competition for the government deal.
The F/A-XX will feature open mission systems architecture, advanced mission systems and expanded operational reach, Boeing said in a separate statement. The contract will be carried out over a long-term phase, according to the defense departments.
"The F/A-XX is a critical pillar in our commitment to maintaining peace through strength," said Michael P. Duffey, Under Secretary of War for acquisition and sustainment. "F/A-XX will dominate contested airspace, extend operational reach, and deliver a decisive combat advantage for the warfighter."
It is Boeing's second major sixth-generation fighter contract in a year. The Air Force selected the company in 2025 to build its F-47 fighter, giving Boeing a central role in two of the Pentagon's most expensive aircraft programs.
The win is a boost for Boeing's defense division, which has faced scrutiny over delays and cost overruns on several programs. The company's commercial arm, meanwhile, is dealing with a separate setback.
Boeing recently disclosed a software glitch in some 737 Max 10 aircraft that could affect certain landing procedures. The Federal Aviation Administration delayed certification of the plane on Monday as a result.
"We haven't concluded whether this is a safety-of-flight issue or not, but we will be delaying the 10 ... until we're satisfied that we don't have an issue here," FAA Administrator Bryan Bedford said at a press conference.
The F/A-XX program is meant to keep the Navy's carrier air wings competitive against advanced threats from China and Russia. Sixth-generation fighters are expected to fly farther, carry heavier payloads and link more tightly with drones and other aircraft than current jets.
The Navy has not said how many F/A-XX aircraft it plans to buy or when the first ones will enter service. The Super Hornets the new jet will replace have been the backbone of carrier flight decks since the late 1990s.
Boeing shares have swung sharply this year as investors weigh its defense wins against troubles in its commercial business. The company has not yet commented on how the F/A-XX work will be divided among its facilities.
