Northrop Grumman Anticipates New B-21 Contracts, Eyes Faster Production Pace

Northrop Grumman is preparing for additional U.S. Air Force contracts tied to its B-21 Raider stealth bomber program before the end of this year, according to company CEO Kathy Warden.

During Northrop’s third-quarter earnings call on Tuesday, Warden confirmed that discussions with the Air Force are ongoing regarding a new agreement aimed at accelerating B-21 production.

A congressional budget package passed in July allocated $4.5 billion to expedite the manufacturing of the next-generation bomber. However, Warden noted that recent government shutdown disruptions have temporarily slowed negotiations.

“We remain in active dialogue with the Air Force to determine how best to execute the acceleration,” Warden said. “It’s still early to define what the financial impact will look like.”

If finalized, such an agreement would lead Northrop to expand its production capacity—potentially boosting the company’s revenues as early as 2026.

The Air Force plans to acquire at least 100 B-21 Raiders, which will gradually replace the aging B-2 Spirit and B-1 Lancer fleets throughout the 2030s. Warden emphasized that any expansion beyond the initial 100 aircraft would be handled under a separate negotiation from the production-speed discussions.

Northrop expects to secure a third low-rate initial production (LRIP) contract for the bomber later this year, along with an advance procurement deal to begin sourcing materials for a fifth production lot in late 2025.

The second B-21 aircraft began flight testing in September, a milestone that transitions the program from baseline performance tests to the integration of weapons and mission systems. Several other bombers are currently undergoing ground tests in preparation for their first flights, Warden added.

Earlier this year, Northrop disclosed a $477 million loss on the B-21 program, stemming from a process change designed to accelerate manufacturing timelines. Despite higher-than-expected costs for building engineering and flight-test units, Chief Financial Officer Ken Crews said a restructured contract offset most of those additional expenses, resulting in a near net-zero impact.

“The changes allowed us to better align costs across future production lots,” Crews noted.

The B-21 Raider—developed as part of the Air Force’s Long Range Strike Bomber program—remains one of the Pentagon’s most advanced and secretive platforms. As Northrop and the Air Force move toward scaling up production, the coming months could define how quickly the next era of U.S. strategic bombers takes shape.