The U.S. Air Force in December 2025 awarded Northrop Grumman contracts for the next production lot of B-21 Raider bombers, along with advanced procurement for a future lot, as the two sides continue negotiations for a potential rate increase.

Northrop CEO Kathy Warden, in a Jan. 27 earnings call, announced the awards of an undisclosed amount for Lot 3 low-rate initial production and Lot 5 advanced procurement as the company had expected.

The Air Force in a subsequent statement said it had secured milestone decision authority approval for the awards and executed the contracts in December.

Warden highlighted that the program has been meeting “key milestones,” to include the first flight of the second aircraft in September 2025. There has not been an update on a third flight test aircraft since.

The Air Force and Northrop Grumman have outlined a goal to accelerate bomber production, along with a strong likelihood that the program of record will increase beyond the current level of 100. The One Big Beautiful Bill Act passed last summer included $4.5 billion to speed up production, though it is not yet clear how this will be spent.

“We continue to work closely with the Air Force on plans to increase the production rate of the program,” Warden says. “Our priority is to establish a mutually beneficial agreement that accelerates the delivery of this game-changing capability to our nation.”

Warden says she is confident there will be an agreement this quarter.

“We are still working through the finer points of that deal and its financial implications for the company,” she says.

Warden told investors the company is expecting to invest $2 billion to $3 billion “over a period” to increase production capacity over a multiyear period. The greater impact of the investments, and potential returns, will happen in 2027, 2028 and into 2029, she says.