The U.S. Navy is expected to announce this week who will build its next-generation carrier-based stealth fighter jet.

Reuters reported on this, citing its own sources.

The Navy will choose one winner for the engineering and manufacturing development (EMD) phase – a significant milestone for the F/A-XX, which is meant to replace the Navy’s F/A-18E/F Super Hornet fleet.

The contract would be worth single-digit billions of dollars in the short term and potentially hundreds of billions over the decades it is expected to run.

The F/A-XX program is one of several advanced capabilities the U.S. military is developing to counter China’s growing assertiveness in the Indo-Pacific region.

The new jet is expected to feature advanced stealth capabilities, improved range and endurance, and the ability to integrate with both uncrewed combat aircraft and the Navy’s carrier-based air defense systems.

The competition has been intense, with Boeing Co (BA.N), opening a new tab, Lockheed Martin (LMT.N), opening a new tab, and Northrop Grumman Corp (NOC.N), opening a new tab submitting detailed proposals and prototypes for evaluation.

According to Reuters, Lockheed Martin was initially seen as a strong contender, but the company struggled to meet the Navy’s specific requirements, including the need for a more advanced radar system and improved carrier landing capabilities.

Reuters reported on March 4 that Lockheed had been eliminated from the competition, but the Navy has not made a formal announcement.

Last week, the Pentagon selected Boeing’s project in the Next Generation Air Dominance (NGAD) competition to develop a promising sixth-generation fighter, designated the F-47.

Boeing’s fighter project surpassed its competitor, Lockheed Martin, which had previously won contracts for two earlier-generation fighter jets, the F-22 and F-35.

The Pentagon will award Boeing a contract to develop the F-47 under the NGAD program, investing over $20 billion in the development and production of the aircraft.