Boeing caught a break this week with two pieces of good news that sent its stock up more than 10% over the past five days.
The U.S. Air Force on Friday selected the aerospace giant to build and deliver its next suite of fighter jets, beating out other top aerospace companies, namely Lockheed Martin. The Next-Generation Air Dominance (NGAD) Platform is something no other country can match, according to President Donald Trump.
“The F-47 will be the most advanced, most capable, most lethal aircraft ever built. An experimental version of the plane has secretly been flying for almost five years, and we’re confident that it massively overpowers the capabilities of any other nation,” Trump said while announcing the contract along with Defense Secretary Pete Hegseth.
BOEING TO BUILD NEXT-GEN ‘F-47’ US FIGHTER JET, TRUMP ANNOUNCES
The program is intended to replace Lockheed Martin’s F-22 Raptor. Lockheed shares fell 5.7% for the week.
The value of the contract was not disclosed.
“We recognize the importance of designing, building and delivering a sixth-generation fighter capability for the United States Air Force. In preparation for this mission, we made the most significant investment in the history of our defense business, and we are ready to provide the most advanced and innovative NGAD aircraft needed to support the mission,” said Steve Parker, interim president and CEO of Boeing Defense, Space and Security.
BOEING CEO SAYS MUSK HELPING TO SPEED UP DELAYED AIR FORCE ONE JETS
Other Boeing jets include the F/A-18, F-15 Eagle, B-52 Stratofortress and a modified version of the 747 that is used as Air Force One.
The contract is welcome news for Boeing, which has been struggling with a federal probe over quality control issues. In January 2024, a door plug blew out of an Alaska Airlines Boeing 737 Max 9, prompting a domino effect of headwinds, including several whistleblowers who spoke out about manufacturing and safety lapses.
Two months later, CEO Dave Calhoun announced his intent to step down at the end of 2024. He was replaced by Kelly Ortberg in August.
The second win for Boeing was delivered by Chief Financial Officer Brian West, who told investors Wednesday the company’s cash flow is improving.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“And then free cash flow, we’re seeing less working capital drag. So, that could be better when we close the quarter, and it could be in the hundreds of millions of cash flow better. So, we think we’re off to a good start for the year,” West said during a presentation at the Bank of America Global Industrials Conference.
“Boeing for this year was always going to be about safety, quality and stability. And, so far, we’re off to a pretty good start on all three dimensions.”