Lockheed Martin (LMT, Financial) shares climbed more than 2% in pre market trading on friday as investors anticipated a major U.S. government decision on the next-generation fighter jet contract. The White House is set to announce the winner on Friday, according to Bloomberg News.
Lockheed Martin and Boeing (BA, Financial) are competing for the contract, which covers the full-scale development of the Next Generation Air Dominance (NGAD) fighter. The program, classified in nature, is designed to operate alongside autonomous drones.
The contract decision follows nearly two years since the U.S. Air Force issued a formal request for proposals. The program could receive up to $16 billion in research and development funding through 2028, based on fiscal 2025 budget projections.
For Boeing, winning the contract would be a major victory after significant setbacks, such as losing the F-35 program to Lockheed Martin in 2001 and ongoing delays with its KC-46 refueling tanker project.
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