The profits have the potential to measure in the hundreds of billions of dollars—so pouring $2 billion into a program as important as the B-21 Raider is possibly just a smart investment.
Northrop Grumman has revealed that losses relating to the B-21 Raider program now stand in excess of $2 billion. Northrop’s newest loss, reported at $477 million (or $397 million after tax write-offs), stems from a change in the manufacturing process and to an increase in the cost and quantity of materials needed to build the stealth bomber.
The more-expensive changes to the manufacturing process are a calculated risk. The changes will allow Northrop Grumman to increase B-21 production rates, but in the short term have resulted in a nine-figure loss for the storied defense contractor. According to Northrop Grumman CEO Kathy Warden, the production changes “positions us to ramp to the quantities needed in full rate production. And even…we can ramp beyond the quantities in the program of record, which is something that we and the government decided was important for the optionality to support the scenarios that they have been looking at, to increase the current build rate.”
Northrop Grumman Is Spending Money to Make Money
Making aircraft is an inherently risky venture. Manufacturers must forecast multiple complicated variables to anticipate costs and needs and the potential for profits years and decades down the line. Of course, the profits have the potential to measure in the hundreds of billions of dollars—so pouring $2 billion into the hole for a program as important as the B-21 Raider is possibly just a smart investment.
But pouring $2 billion into the hole is still pouring $2 billion into the hole—it’s going to make the average person, and even the average aerospace corporation, blink.
“The latest B-21 charge brings total losses on the program up to more than $2 billion, ,following an earlier pre-tax charge of $1.56 billion previously announced in January 2024, which was the result of inflation and workforce disruptions,” Breaking Defense reported. “The U.S. Air Force has declined to release detailed contract information for the B-21 program, but Northrop is obligated to cover costs over a certain threshold on [low-rate initial production] LRIP aircraft under the terms of the fixed-price contract it signed in 2015.”
Is the B-21 Raider Worth the Investment?
The Air Force is all in on the B-21 Raider at this point—with plans to phase out both the B-1 Lancer and the B-2 Spirit to make way for Northrop’s newest stealth bomber. The B-21 program is still shrouded in heavy secrecy, but all indications suggest that the program is proceeding smoothly through its engineering, development and manufacturing (EMD) phase and early flight testing.
The B-21’s specifications have not been disclosed, but released imagery of the aircraft in flight show an aircraft that bears a strong resemblance to the B-2 Spirit, another Northrop product and the world’s first (and only) operational stealth bomber. Yet, as other nations’ anti-aircraft systems are catching up with the B-2’s stealth technology, the operational value of the flying wing bomber has decreased, raising questions about survivability in a great power conflict with a sophisticated adversary with modern air defense systems. The B-21 is meant to renew the U.S.’s strategic advantage, with stealth performance that can evade modern detection systems—incentive for Northrop to plug ahead despite the up front losses.
About the Author: Harrison Kass
Harrison Kass is a senior defense and national security writer with over 1,000 total pieces on issues involving global affairs. An attorney, pilot, guitarist, and minor pro hockey player, Harrison joined the US Air Force as a Pilot Trainee but was medically discharged. Harrison holds a BA from Lake Forest College, a JD from the University of Oregon, and an MA from New York University. Harrison listens to Dokken.
Image: Wikimedia Commons.
