Investing.com -- It was announced Friday that Boeing (NYSE:BA) has been awarded the U.S. Air Force’s Next Generation Air Dominance (NGAD) fighter jet contract, sending the company's shares up more than 5%.

In contrast, shares of Lockheed Martin (NYSE:LMT) dropped more than 4% on Friday.

The contract, worth more than $20 billion, will see Boeing develop a crewed next-generation fighter designed to operate alongside drones. 

The NGAD program aims to replace Lockheed Martin’s F-22 Raptor and strengthen U.S. air capabilities against adversaries.

"The F-47 will be the most advanced, most capable, most lethal aircraft ever built," said U.S. President Donald Trump. "An experimental version of the plane has secretly been flying for almost 5 years and we're confident that it massively overpowers the capabilities of any other nation."

For Boeing, the deal represents a significant victory at a time when the company has faced challenges in both its commercial and defense operations. 

The award is expected to provide a much-needed boost to its St. Louis-based fighter jet production business, which has struggled with underperforming defense contracts in recent years. 

Secretary of Defense Pete Hegseth stated, "This is a big day for our warfighters. This is a big day for our country, a big day in the world." He added, "America is going to have generations in the future of air dominance because of this sixth-generation fighter."

Lockheed’s failure to secure the contract raises questions about its future in high-end fighter development. 

The company was recently eliminated from the U.S. Navy’s competition for its next-generation stealth fighter, adding to its challenges in maintaining a dominant position in the defense sector.

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