The U.S. Navy has awarded Boeing Company (NYSE:BA) a $3.4 billion contract to manufacture P-8A Poseidon aircraft for the Royal Canadian Air Force and three additional P-8s for the German Navy.

In November 2023, Canada announced its decision to acquire the P-8A Poseidon to replace its current fleet of CP-140 Auroras. The first P-8A for Canada is expected to be delivered in 2026.

The first P-8A for Canada is expected to be delivered in 2026. Boeing’s economic promises to Canada so far have the potential to generate annual benefits of more than 3,000 jobs for Canadian industry and value-chain partners.

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Germany has added three additional aircraft since the initial procurement of five P-8 aircraft in June 2021, bringing the total number of P-8s for the German Navy to eight.

The first aircraft will be delivered in 2025, to replace Germany’s fleet of P-3 Orions.

“The Poseidon is a proven aircraft, with more than 600,000 flight hours, that will serve Canada and Germany well in today’s challenging security environment and for decades to come,” said Philip June, vice president and program manager, P-8A program.

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Price Action: BA shares are trading higher by 0.14% at $204.00 in premarket on the last check Friday.

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