Northrop Grumman Corporation (NYSE: NOC) shares declined on Wednesday after the U.S. Navy selected Boeing Co. (NYSE: BA) to develop the next-generation carrier-based fighter jet, the F/A-XX. The Department of Defense announced the award on X, stating the contract is valued at more than $20 billion.
The Pentagon described the program as a multi-fighter competition designed to dominate contested airspace and extend operational reach. The contract covers multiple test aircraft for ground, airworthiness, systems, and weapons-integration testing. The Navy expects the first production aircraft to enter service in the 2030s, operating alongside more than 270 planned F-35Cs, while Super Hornets are expected to remain in service into the 2040s.
A Reuters report noted that the F/A-XX program could eventually be worth hundreds of billions of dollars as production ramps up and foreign orders materialize. Lockheed Martin was eliminated from the competition in March 2025, leaving Boeing and Northrop as finalists.
The Navy competition faced repeated delays due to engineering challenges and supply-chain capacity issues. 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.
Boeing’s Defense CEO Steve Parker stated that investments in new facilities uniquely suited to build multiple products with next-generation capabilities leave the company ready to execute the program. This marks Boeing’s second major fighter win in two years, following its 2025 selection over Lockheed Martin for the Air Force’s F-47 program.
Northrop Grumman stock was down 3.87% at $485.10 at the time of publication, trading near its 52-week low of $479.02.
