Northrop Grumman anticipates receiving new U.S. Air Force contracts for its B-21 Raider stealth bomber program by the end of 2023, as announced by Chief Executive Officer Kathy Warden during an earnings call with investors on Tuesday. The company is also in discussions with the Air Force regarding a potential agreement aimed at accelerating the production of the B-21.

The budget reconciliation bill passed by Congress in July allocates $4.5 billion to expedite B-21 production. Warden noted that active discussions with the Air Force continue, although the ongoing federal government shutdown has hindered progress. If an agreement is reached, Northrop plans to increase its investments to boost production rates. Warden indicated that an acceleration in the B-21 program could lead to higher revenue for Northrop starting in 2026, but she refrained from providing specific financial projections at this time.

The U.S. Air Force is set to purchase a minimum of 100 B-21 bombers as replacements for its aging B-2 Spirit stealth bombers and B-1 Lancers in the 2030s. Should the Air Force decide to procure more than 100 B-21s, this would be addressed in a separate negotiation distinct from the discussions about production acceleration.

Warden also confirmed that the program is on schedule to secure a contract for the third low-rate initial production lot of the B-21, as well as an advanced procurement contract to obtain necessary components for the fifth production lot by the fourth quarter of 2025.

Additionally, the start of flight tests for the second B-21 in September marks a significant milestone for the program. This phase will transition from general flight evaluations to the integration of weapons and mission systems. Several other B-21 units are currently undergoing ground testing in preparation for their initial flights.

In April, Northrop Grumman reported a $477 million loss on the B-21 program due to changes in the production process intended to expedite manufacturing. On Tuesday, Chief Financial Officer Ken Crews stated that the higher costs associated with developing the engineering and manufacturing flight test aircraft had raised expectations for the costs of the low-rate initial production units. However, a contract restructuring aimed at the B-21 has mitigated the anticipated losses on subsequent production lots, effectively balancing out the increased costs.

Stephen Losey, the air warfare reporter for Defense News, has previously covered leadership issues at Air Force Times and military operations for Military.com.