The Pentagon will reportedly select the defense company to design and build the U.S. Navy’s next stealth fighter jet as soon as this week, after months of delay in the multi-billion-dollar project.
Defense Secretary Hegseth Okays Move
The decision to move ahead with a selection was made by Defense Secretary Pete Hegseth last week, Reuters reported on Tuesday, citing sources familiar with the matter.
The new carrier-based jet, dubbed F/A-XX, will replace the F/A-18E/F Super Hornet fleet, which has been in service since the 1990s. Boeing Co. (NYSE:BA) and Northrop Grumman Corp. (NYSE:NOC) are competing to be chosen to produce the aircraft.
See how BA shares have performed here.
The F/A-XX is expected to feature advanced stealth capabilities, improved range and endurance, and the ability to integrate with both uncrewed combat aircraft and the Navy’s carrier-based air defense systems. The aircraft is viewed as being central to countering the military threat posed by China.
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Months Of Delays Due To Funding Dispute
A funding dispute in the spring and summer between the Pentagon and Congress delayed the program’s advancement, according to Reuters.
Beyond the funding dispute, there was also debate during the months-long delay about whether defense contractors Northrop and Boeing would struggle to make the jet on schedule, the report added.
See how Northrop shares have performed here.
The Pentagon sought $74 million for research and development funds. Congress put $750 billion to get the F/A-XX jet into its tax-cut and spending bill, which was signed into law this summer, and an additional $1.4 billion for the program was earmarked for 2026.
The quantity of F/A-XX jets, the value, and exact timelines of the program remain classified, Reuters said. But previous such contracts have been worth tens of billions of dollars over their lifetime.
The Pentagon, U.S. Navy, BA and NOC did not immediately respond to Benzinga’s requests for comment.
Price Action
The shares of Boeing were trading 0.58% higher during Monday’s Premarket. BA maintained a stronger price trend over the medium and long terms, as per Benzinga's Edge Stock Rankings. Additional performance details are available here.
Northrop Grumman Corp. shares were up 0.29% during Monday’s premarket. Benzinga's Edge Stock Rankings indicate that NOC maintains a stronger price trend in the short, medium, and long terms. However, the stock's value ranking is relatively poor. Additional performance details are available here.
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