The Navy chose Boeing to build its next-generation jet fighter, the F/A-XX, in a deal worth more than $20 billion. The award tasks Boeing with building jets to replace the F/A-18 Super Hornet in the 2030s. Boeing beat Northrop Grumman, its only rival after Lockheed Martin dropped out last year.

The F/A-XX will deliver a decisive combat advantage, according to Michael P. Duffey, undersecretary of defense for acquisition and sustainment. The deal makes Boeing the sole provider of sixth-generation tactical fighters for both the Navy and Air Force.

Sixth-generation aircraft will include advanced stealth, AI sensors, lasers or hypersonic weapons, advanced engines, and drone teaming. Boeing last year won the Air Force’s F-47 jet contract, announced by President Trump alongside Defense Secretary Pete Hegseth and Gen. David Allvin.

The decision may strain Boeing’s production lines, which have faced delays in drone refueling programs. The MQ-25 drone, intended for 2021 flight, flew first in April 2024 and won’t operate until 2029. Boeing recorded over $5 billion in defense contract losses in 2024 and $800 million in 2025, including $2.7 billion for the KC-46 tanker.

Executives aim to avoid fixed-price contracts. CEO Kelly Ortberg said the defense unit improved but still has issues. Northrop Grumman stated it offered a highly survivable, digitally advanced fighter and seeks more information on the selection.