US Navy Awards Northrop Grumman $1.2 Billion for Three More E-2D Hawkeyes

The US Navy has awarded Northrop Grumman Aerospace Systems a contract worth up to $1.196 billion to build three more E-2D Advanced Hawkeye Block II airborne early warning and command-and-control aircraft. Work under the award is scheduled to run through December 2031, according to the Pentagon’s contract announcement.

The deal, issued to Northrop’s Melbourne, Florida facility, was awarded on a sole-source, undefinitized cost-plus basis — a mechanism the US defense acquisition system frequently uses when a platform is needed urgently and final pricing is worked out through follow-on negotiations. At the time of the award, $583.394 million in fiscal year 2026 Navy aircraft procurement funds was obligated.

The E-2D remains the newest member of the E-2 family and functions as the eyes and ears of US carrier strike groups. Its AN/APY-9 radar tracks air, surface and ground targets at long range, feeding data to Aegis-equipped ships and other assets to extend the fleet’s air defense umbrella. The Block II standard adds an upgraded mission computer, refreshed cockpit displays and expanded datalink capacity.

Sustaining the E-2D production line matters beyond the US Navy’s own fleet: Japan and France already operate the aircraft, and continuity of production underpins supply reliability for both the Pentagon and export customers as the Navy retires its older E-2C aircraft. Rising naval competition in the Indo-Pacific has kept demand for wide-area airborne early warning coverage high.

Source: US Department of Defense contract announcement, reported by Naval Technology and ClearanceJobs on July 22, 2026.