Pentagon's pick of Boeing to build next-generation F-47 fighter jets in $50B deal stuns experts

Core Insights - The Trump administration awarded Boeing the contract to build the next-generation F-47 fighter jets, surprising industry observers and beating out Lockheed Martin [1][2][3] - The contract could exceed $50 billion, providing a critical opportunity for Boeing to stabilize after financial setbacks and safety scandals [3][12] - Boeing will benefit from a "cost-plus" agreement, which covers development costs and guarantees profit, contrasting with its recent fixed-price deals that resulted in losses [4] Company Performance - Boeing has not successfully introduced a new commercial or military aircraft in over a decade, raising skepticism about its capabilities [1][5] - The company has limited experience with stealth technology, which is essential for the F-47, and has faced challenges in other defense projects [5][6] - Boeing's recent military aircraft, such as the T-7 trainer, were co-developed with Saab, indicating a lack of independent production experience [6] Industry Context - The F-47 is designed to operate alongside semi-autonomous drones and features advanced stealth technology, crucial for countering China's military expansion [4] - Boeing's selection over Lockheed Martin has left Wall Street analysts surprised and Lockheed officials disappointed [2][11] - The decision reflects a significant shift in the competitive landscape of military aircraft production, with Boeing needing to recruit skilled engineers to meet technological demands [5][6]