Boeing scored a contract to build the Pentagon’s next-generation jet fighter, beating out rival Lockheed Martin. The deal has big implications for Boeing’s bottom line, its beleaguered defense unit and the jet maker’s strained relationship with the Trump administration.

The U.S. military awarded Boeing a key new contract to build the latest generation of jet fighters over rival Lockheed Martin. The decision is moving both stocks even as the usefulness of expensive, manned fighters is in debate as cheaper drones proliferate.

President Donald Trump announced the Pentagon’s decision to move forward with a next-generation fighter jet titled F-47 on Friday in joint remarks alongside Secretary of Defense Pete Hegseth from the Oval Office.