Trump Awards Boeing $20B Contract for Next-Gen Fighter Jet, F-47

Boeing (NYSE:BA) secured a major win with a $20 billion U.S. Air Force contract to build the F-47, a sixth-generation fighter jet under the Next Generation Air Dominance (NGAD) program. President Donald Trump, now the 47th U.S. president, announced the deal, stating, “We’ve given an order for a lot,” without disclosing the full cost. Boeing shares jumped 5%, while rival Lockheed Martin (NYSE:LMT), maker of the F-22 Raptor and F-35, saw shares drop nearly 7% after losing the bid.

The F-47 will feature cutting-edge stealth technology, advanced sensors, and longer range, designed to work alongside unmanned drones. General David Allvin noted the aircraft would be more adaptable, cost-effective, and easier to maintain than the F-22.

This marks a significant turnaround for Boeing, which has faced setbacks in both its commercial and defense units. Cost overruns in programs like the KC-46 tanker and Air Force One upgrades, along with safety issues and delays in 737 MAX production, have plagued the company. Boeing reported an $11.8 billion annual loss in 2024.

Boeing’s defense lead, Steve Parker, emphasized the company’s heavy investment in developing the F-47, calling it their largest in defense history. The jet is expected to boost Boeing’s St. Louis fighter jet division and generate hundreds of billions in long-term revenue.

While Lockheed may still challenge the decision, Trump’s public announcement may limit further disputes. Senator Mark Kelly praised the decision but warned of the need for strong oversight. Meanwhile, Elon Musk voiced concerns over manned jets, advocating for cheaper drone warfare solutions.

As interest from U.S. allies grows, Boeing’s win signals a shift in defense dominance and a major blow to Lockheed’s ambitions.