Boeing BA Stock Soars 14% on $20B F-47 Jet Deal, Lockheed Drops 5%
BA shares are up by 7% today and 14% for the week, after winning te contract to build the F-47 fighter jet, while Lockheed shares are 5% lower.
Boeing Secures Major Defense Contract
Boeing’s stock soared after U.S. President Donald Trump announced that the company had won a $20 billion contract to develop the Air Force’s next-generation fighter jet. This decision aims to counter China’s growing military presence in the Pacific and marks a shift in the U.S. defense strategy, emphasizing a mix of manned fighter jets and AI-powered drones.
The deal is part of the U.S. Air Force’s Next Generation Air Dominance (NGAD) program, which is set to replace Lockheed Martin’s F-22 Raptor. Boeing’s selection over Lockheed Martin for this contract has significantly impacted both companies’ stock prices.
Boeing’s Stock Rises, Lockheed Drops
Following the announcement, Boeing (BA) shares jumped 7% today, adding to a 14% gain for the week. Meanwhile, Lockheed Martin (LMT) saw its stock drop 5% after missing out on the lucrative defense contract.
Despite this major defense win, Boeing continues to face challenges in both its commercial and defense divisions. The company recently reported revenues of $15.24 billion, reflecting a steep 30.8% year-over-year decline and falling 6.4% short of analysts’ expectations. Additionally, adjusted operating profits missed forecasts, highlighting ongoing difficulties.
Trump Praises Boeing’s New Fighter Jet
During the announcement, President Trump praised the new fighter jet’s advanced capabilities, including its superior speed, maneuverability, and payload capacity. “This aircraft is unmatched in performance and will strengthen our air dominance,” Trump stated.
With this contract, Boeing looks to regain momentum despite recent setbacks, while Lockheed will now need to refocus its efforts on other defense opportunities. Investors will be closely watching both companies as the defense sector continues to evolve.
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