While the Northrop Grumman’s B-21 Raider, the new United States Air Force stealth bomber, was receiving an award, it was already submerged in financial troubles. The aircraft very recently secured one of aviation’s most famous awards at the Aviation Week Grand Laureate Awards for being the future backbone of the American bomber force. This recognition underlines the pioneering spirit and innovative technology that Northrop Grumman is bringing to the effort. Tom Jones, corporate vice president and president of Northrop Grumman Aeronautics Systems.
The B-21 Raider is undergoing rigorous flight tests at Edwards Air Force Base in California, featuring advanced stealth technology and networking. Carrying conventional and nuclear payloads, the aircraft embodies one of the most flexible and lethal platforms in the U.S. military’s kit. The Air Force plans to have at least 100 B-21 bombers in its fleet when it achieves initial operational capability in the mid-2020s.
But the road into production hasn’t been turbulence-free. Northrop Grumman Wednesday reported an almost $1.6 billion pre-tax charge on the B-21 program for the fourth quarter of 2023, mostly because of higher-than-expected production costs and macroeconomic disruptions. The financial strain on Northrop was somewhat predictable because CEO Kathy Warden was on the record warning investors on a repeated basis about program-induced losses as it prepared to move into low-rate initial production (LRIP).
Notwithstanding these jinks, the Pentagon has now moved ahead with the B-21 into production because ground and flight tests of the aircraft have been successful. Highlighting the need for it to design the program to build at scale for credible deterrence against adversaries was the essence of what Under Secretary of Defense for Acquisition & Sustainment William LaPlante described in very clear terms.
The Air Force also announced that the unit cost of the B-21 Raider will be reduced after formal negotiations with Northrop Grumman, representing an encouraging sign for the program. Yet, current unit costs for the aircraft are still classified.
On top of the B-21, the firm is drastically vested in the LGM-35A Sentinel intercontinental ballistic missile program, which has had problems of its own. The costs for Sentinel, a program estimated as the most expensive per unit ICBM program in U.S. history, have grown by no less than 37%, which has again triggered a critical Nunn-McCurdy breach and an automatic review by the Office of the Secretary of Defense. Issues aside, Air Force officials have doubled down on the Sentinel program, underscoring the requirement for it to ensure a reliable, effective nuclear triad.
While Northrop Grumman steers through this financial and logistical conundrum, the company states it is unwavering about its effort to provide state-of-the-art solutions to the United States military. The B-21 Raider is synonymous with advanced capabilities and strategic importance, serving, in essence, the very purpose Northrop Grumman stands for, pushing the limits of technology in aerospace and defense.