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.

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.

Shares of Boeing rose nearly 5% after the U.S. company beat out Lockheed Martin LMT.N for the deal. Lockheed's shares fell nearly 7%.