Northrop Grumman CEO Kathy Warden announced that the company expects to receive new contracts for the B-21 Raider stealth bomber programme from the US Air Force by the end of the year. Warden stated that the company continues to actively work on a possible agreement with the Air Force to accelerate B-21 production.
Congress Support and Acceleration Plans
The budget reconciliation bill passed by Congress in July allocated $4.5 billion to accelerate B-21 production. Warden stated that Northrop was in active discussions with the Air Force about how to use this funding, but that the short-term shutdown of the federal government had slowed these negotiations.
CEO Warden said that if such an agreement is reached, Northrop plans to invest more to increase the production rate. Stating that the acceleration of the B-21 programme will mean that the company will generate higher revenue in 2026, Warden noted that it is too early to make revenue forecasts: “The actual production rates, timing and final outcome of the negotiations with the Air Force will determine what this financial profile will look like.”
New Turning Points in the Production Phase
The Air Force intends to purchase at least 100 B-21s to replace the B-2 Spirit and B-1 Lancer squadrons scheduled for retirement in the 2030s. Warden emphasised that if the army decided to purchase more than 100 B-21s, this issue would be dealt with through a separate negotiation process.
Warden also confirmed that the programme is on track to receive a contract for the third batch of low-rate initial production (LRIP) and has received a pre-supply contract to begin procurement of components and resources for the fifth batch in the fourth quarter of 2025.
Critical Phase in Flight Tests
Stating that the second B-21 flight tests, which began in September, are “an important milestone” for the programme, Warden said that this new test phase will focus on the integration of weapons and mission systems beyond the overall flight performance of the aircraft.
He added that a large number of B-21s are also undergoing ground tests in preparation for their first flight, and that these tests will minimise risks by verifying the performance of the aircraft.
Effect of Previous Loss on Financial Statements
Northrop Grumman announced a $477 million loss on the B-21 programme in April. Ken Crews, the company’s Chief Financial Officer, noted that this loss was due to the higher-than-expected cost of producing the engineering and manufacturing development (EMD) flight test aircraft, which increased the cost of building the first production bombers. However, Crews said that the contract restructuring has almost completely eliminated the expected losses on the remaining low-rate initial production batches, which essentially amounts to a payout for the company.
