The U.S. Air Force (USAF) and Northrop Grumman continue talks to expand production of the new B-21 Raider stealth bomber, according to the company’s president and CEO, Kathy Warden, who confirmed the information on October 21. The executive stated that several B-21s are currently undergoing ground tests, while two units are already taking part in flight trials.
During a company earnings conference, Warden indicated that the second B-21 began flying in September and that ongoing tests are helping to “validate performance and minimize risk.” She added that this second aircraft marks progress in the test campaign, moving from flight characteristics assessment to weapons and mission systems integration.
The program’s progress opens the possibility for the Air Force to award early procurement contracts for the low-rate initial production lots (Lot 3 and Lot 5) before the end of 2025. “We are in active discussions with the customer that would allow us to accelerate the production pace,” Warden said, referring to the $4.5 billion allocation approved by the U.S. Congress to expand the B-21’s production capacity.
The executive explained that production rates, schedules, and the outcome of negotiations with the Air Force will define the financial outlook of the program. She also acknowledged that the process has been delayed by the partial government shutdown but estimated that talks would resume soon. “We expect greater clarity in the coming months on what that acceleration could look like,” she said.
If an agreement is reached, Warden anticipated that Northrop Grumman would make additional investments to increase production, with the possibility of achieving better profit margins. However, she clarified that expanding production capacity is independent of any future decision to increase the total number of bombers to be built.
So far, the B-21 program has represented a low-margin effort for the company, as the first lots are being produced under fixed-price contracts. In April, Northrop Grumman reported a $477 million loss tied to a “process change” intended to streamline production. Warden noted that increasing the production rate would generate higher sales and require new investments, though these are expected to be offset by greater long-term returns.
Meanwhile, the company’s Chief Financial Officer, Ken Crews, stated that during the third quarter, estimates for completing the low-rate initial production phase of the program were reviewed, with no significant changes from previously recognized losses. He added that higher-than-expected costs in the test aircraft were largely offset by a “contract restructuring.”
The expansion of the B-21 program has not been included in Northrop Grumman’s future growth projections, nor has a potential contract for the F/A-XX, the naval version of the Next Generation Air Dominance (NGAD) program. Regarding the latter, Warden remarked that a possible win would not translate into an immediate revenue increase, as it is a development program with lower margins but structured as a “cost-plus” contract, meaning it offers reasonable returns.
The B-21 Raider, considered the future backbone of the USAF’s Strategic Bomber Force, is designed to replace the B-1 Lancer and B-2 Spirit. Its mission is to ensure strategic deterrence capability through deep strike and long-range missions capable of penetrating advanced air defenses. The Air Force expects the new bomber to enter service in 2025, with a planned production of at least 100 units.
*Images for illustrative purposes only.
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