Boeing (NYSE: BA) shares closed 3% higher on Friday, leading the Dow Jones Industrial Average after President Donald Trump announced that the plane maker has won a significant contract to build the Air Force’s next-generation F-47 fighter jet.
In a video shared by The Wall Street Journal, Trump stated,
“After a rigorous and thorough competition between some of America’s top aerospace companies, the Air Force is going to be awarding the contract for the next-generation air dominance platform to Boeing.”
The U.S. Air Force later confirmed the decision but didn’t disclose the specific financial details of the contract. However, The Wall Street Journal reported that industry experts forecast the total research, development, and acquisition costs to top $50 billion.
Boeing Defense, Space & Security CEO Steve Parker acknowledged the significance of the achievement, stating,
“We recognize the importance of designing, building, and delivering a 6th-generation fighter capability for the United States Air Force.”
He emphasized that the company had made the largest investment in its defense business history to prepare for this project.
Boeing (NYSE: BA) stock rose 3% on Friday, while Lockheed Martin (NYSE: LMT) shares fell more than 5% after losing the bid to its rival.
Lockheed has been a key supplier to the Air Force, providing the F-22 Raptor and F-35 fighter jets. According to The Journal, the new F-47 is intended to replace the F-22.
“While disappointed with this outcome, we are confident we delivered a competitive solution,” a Lockheed spokesperson said in a statement. “We will await further discussions with the U.S. Air Force.”
