Boeing Inc. (NYSE:BA) shares are trading higher Friday after the company secured a major U.S. Air Force contract for the Next Generation Air Dominance fighter jet.
What To Know: According to Reuters, President Donald Trump awarded Boeing the contract for the Next Generation Air Dominance (NGAD) program, which will replace Lockheed Martin's F-22 Raptor with a new crewed aircraft designed to operate alongside drones.
The contract is worth over $20 billion for the engineering and manufacturing phase, with total orders expected to reach hundreds of billions over its lifetime. The NGAD fighter's design details remain classified but will likely include stealth capabilities, advanced sensors, and high-performance engines.
This contract is a major win for Boeing after years of struggles in both its commercial and defense divisions. The company has faced production and safety issues in its commercial aircraft business, as well as challenges securing new defense contracts. The NGAD deal provides a major boost to Boeing's fighter jet production operations in St. Louis, Missouri, securing work for the facility for years to come.
BA Price Action: Boeing shares were up 5.40% at $182.22 at the time of writing, according to Benzinga pro.
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