Boeing's $20 Billion NGAD Contract Boosts Defense Segment to 31st in Trading Volume

On March 24, 2025, The's trading volume reached 18.12 billion, marking a 62.28% decrease from the previous day. This placed The in the 31st position in terms of trading volume for the day. Boeing (BA) experienced a 1.57% increase, marking its fourth consecutive day of gains, with a total increase of 11.96% over the past four days.

Boeing recently secured a significant contract from the U.S. Air Force to design, build, and deliver next-generation fighter aircraft under the Next Generation Air Dominance (NGAD) program. This contract is valued at $20 billion initially, with potential for additional orders worth hundreds of billions from the U.S. government and its allies. The new fighter jet, named the F-47, is designed to replace the Lockheed Martin F-22 Raptor and will enhance air combat capabilities by fighting alongside drones.

Boeing's focus on thermoplastics and safety improvements, along with the continued development of the Starliner spacecraft, has positioned the company for future growth. The NGAD contract win is expected to strengthen Boeing's position in the U.S. defense market, potentially impacting competitors like Lockheed Martin.

Boeing's defense, space, and security segment secured key contract awards worth $8 billion in the fourth quarter of 2024, resulting in a solid backlog of $64.02 billion as of December 31, 2024. This strong market position is supported by increasing defense spending due to rising military conflicts, terrorism, and border disputes, as well as rapid technological advancements in combat jets.

Boeing's portfolio includes well-established combat jets such as the F/A-18 Super Hornet, F-15, EA-18G Growler, and T-7A Red Hawk. The company's long-term prospects are further bolstered by its commitment to conservative contract terms and its recognition of the importance of avoiding fixed-price development programs.