Boeing Stock Rises After $20 Billion Navy Fighter Jet Award

Boeing shares rose about 2% after the Pentagon selected the aerospace company over Northrop Grumman to develop the US Navy's next-generation F/A-XX fighter jet.

Boeing has been selected to develop the US Navy's next-generation F/A-XX fighter under a contract valued at more than $20 billion. [Photo: The Boeing Company Facebook]

The contract is valued at more than $20 billion for the full-scale development phase, according to the Pentagon. It includes multiple test aircraft for ground, airworthiness, systems and weapons-integration testing.

The F/A-XX is intended to replace aging F/A-18E/F Super Hornets and EA-18G Growlers as they leave the Navy fleet in the 2030s.

The program will give Boeing responsibility for the Navy's next-generation fighter after the company was selected in 2025 to develop the Air Force's F-47 sixth-generation fighter.

The Navy award strengthens Boeing's position in the US sixth-generation tactical-aircraft market. Boeing is also developing manufacturing capacity in St. Louis to support next-generation aircraft programs.