Boeing wins $20 billion Navy deal for F/A-XX fighter

Boeing shares advanced late Tuesday after the U.S. Navy selected the aerospace defense contractor to lead full-scale development of its next-generation carrier-based strike fighter. The contract is valued at more than $20 billion.

Under the agreement, Boeing will deliver multiple test aircraft for ground, airworthiness, systems, and weapons integration evaluation under the Navy's Next Generation Air Dominance initiative. The platform, designated the F/A-XX, is engineered to fly from aircraft carriers starting in the 2030s. It will operate alongside manned and unmanned platforms, eventually replacing aging F/A-18E/F Super Hornets and EA-18G Growlers while complementing existing F-35C fleets.

Boeing stock climbed 2.5% in after-hours trading following the announcement. Shares of rival defense contractor Northrop Grumman slipped nearly 5% after the decision.

The win provides a multi-decade operational pipeline for Boeing's defense unit across future manufacturing, sustainment, and software integration revenues. Market participants will watch subsequent defense budget appropriations and manufacturing milestones to track the program's financial impact.