The Boeing Co. BA has secured a $2.8 billion contract from the U.S. Space Force to develop and produce strategic satellite communications systems.
What Happened: The contract covers Boeing’s Evolved Strategic Satellite Communications (ESS) program, which will deliver two satellites with options for two additional units.
The ESS program serves as the space-based component of the U.S. nuclear command, control, and communications (NC3) architecture, providing critical connectivity for presidential communications and joint strategic forces worldwide.
“It’s a critical time to advance U.S. space capabilities to ensure peace through strength,” said Cordell DeLaPena, U.S. Space Force Program Executive Officer for the Military Communications and Positioning, Navigation, and Timing Directorate. “The strategic communication mission requires protection, power and always-available capability, even through adversary attempts to interrupt our connectivity.”
The ESS satellites will operate in geostationary orbit approximately 22,000 miles above Earth, offering enhanced capacity, flexibility, reliability and resilience compared to current strategic communications satellites. Boeing has been executing technical maturation and risk reduction work under a rapid prototyping contract since 2020.
“We designed an innovative system to provide guaranteed communication to address an evolving threat environment in space,” said Kay Sears, Vice President and General Manager of Boeing Space, Intelligence and Weapon Systems.
Why It Matters: The spacecraft will utilize highly protected waveforms and classified technologies developed in partnership with the U.S. Department of Defense. Boeing is scheduled to deliver the first of two space vehicles by 2031.
This contract win comes as Boeing’s stock has gained over 16.82% in the past year, with shares trading at $215.92 as of Thursday.
The company recently completed delivery of its ninth and tenth O3b mPOWER satellites, continuing its partnership with network operator SES to enhance space-based internet access.
However, Boeing faces ongoing safety scrutiny following a Japan Airlines flight emergency landing Monday after a Boeing 737-800 experienced a pressurization system failure, forcing a rapid descent from 32,800 feet. All 191 passengers and crew survived without injuries.
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