WASHINGTON — Northrop Grumman will invest $2.5 billion of its own cash to accelerate production of the B-21 stealth bomber, with $200 million in investments slated to be executed this year, its chief executive said today.
The Air Force and Northrop in February finalized an agreement to increase the B-21 production rate by 25 percent, but CEO Kathy Warden’s comments on a financial earnings call today mark the first time the company has revealed what it plans to spend in order hit the ambitous goal.
The bulk of the $2.5 billion will go toward facilities and most of the funding will be spent during the 2027 to 2029 timeframe, Warden said.
“Importantly, this agreement accelerates production for our customers, enhances the program’s long term economics and creates the potential for a larger program of record,” she said.
As a result of the B-21 deal, Northrop now estimates it will spend $1.85 billion this year on capital expenditures, Warden said.
Air Force officials previously stated that the service would use $4.5 billion in reconciliation funding to help finance the production acceleration. The service currently plans on buying 100 B-21s over the life of the program, but is considering increasing that number to around 145 bombers.
Neither the Air Force nor Northrop have laid out whether the new deal will drive down the cost per B-21, which currently hovers around $700 million per copy. However Warden said today that “the deal improves the economics for the program for the government and Northrop Grumman.”
Northrop is currently on track to deliver the first B-21 to Ellsworth Air Force Base in South Dakota in 2027, Warden said.
