Boeing Stock Jumps 5% as Trump Awards Boeing Next-Generation Fighter Jet Contract Worth Billions

Reuters
03-21

U.S. President Donald Trump on Friday awarded Boeing a contract to build the U.S. Air Force's most sophisticated fighter jet, known as Next Generation Air Dominance, two sources familiar with the situation said.

The NGAD program will replace Lockheed Martin's F-22 Raptor with a crewed aircraft built to enter combat alongside drones. The plane's design remains a closely held secret, but would likely include stealthiness, advanced sensors, and cutting-edge engines.

The engineering and manufacturing development contract is worth more than $20 billion. The winner will eventually receive hundreds of billions of dollars in orders over the contract's multi-decade lifetime.

For Boeing, the win marks a reversal of fortune for a company that has struggled on both the commercial and defense sides of its business. It is a major boost for its St. Louis, Missouri, fighter jet production business.

Shares of Boeing jumped 5% on Friday while its rival Lockheed Martin fell about 5%.

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