Boeing Co. (NYSE: BA) has secured a contract valued at more than $20 billion to develop the U.S. Navy’s F/A-XX next-generation stealth fighter. The award, which covers multiple test aircraft for ground, airworthiness, systems, and weapons-integration testing, was announced by the Pentagon. Boeing defeated Northrop Grumman Corp. (NYSE: NOC) in the competition.

The F/A-XX is intended to replace the Navy’s F/A-18E/F Super Hornets and EA-18G Growlers, beginning in the 2030s. The Pentagon acquisition chief described the aircraft as a “crucial, non-negotiable investment” in long-term U.S. air-combat capability. The platform is designed to dominate contested airspace, extend operational reach, and deliver a decisive combat advantage.

This victory marks Boeing’s second major sixth-generation fighter program win in two years. In 2025, Boeing won a development contract worth more than $20 billion over Lockheed Martin for the Air Force’s F-47. The company stated that the award gives its St. Louis defense operations a major next-generation fighter program as production of the Navy’s Super Hornets and Growlers winds down.

Boeing Defense CEO Steve Parker noted that investments in “new facilities uniquely suited to build multiple products with next-generation capabilities” leave the company ready to execute the program. Navy officials have previously said the sixth-generation platform should bring greater range, advanced sensors, and lethality while integrating with crewed and uncrewed systems.

The Navy competition faced repeated delays over engineering and supply-chain capacity. The Pentagon considered pushing the program back by as much as three years before Congress intervened, providing $750 million in 2025 legislation and another $1.4 billion for fiscal 2026. Lockheed Martin was eliminated from the competition in March 2025.

According to Reuters, the F/A-XX program could ultimately be worth hundreds of billions of dollars as production expands and potential foreign orders emerge. The Navy expects first production aircraft in the 2030s, with the F/A-XX operating alongside more than 270 planned F-35Cs while Super Hornets remain in service into the 2040s.

In after-hours trading on Tuesday, Boeing shares rose 2.20% to $191.81, while Northrop shares fell 2.65% to $491.23.