Boeing Awarded 2.47 Billion Contract for KC-46A Tanker Production

Boeing Secures $2.47 Billion Contract for Lot 12 KC-46A Tanker Production

On November 25, 2025, the United States Air Force officially awarded Boeing a significant contract valued at $2.47 billion. This agreement, designated as the Lot 12 production contract, authorizes the construction of 15 additional KC-46A Pegasus tankers. This latest award underscores the military’s continued reliance on the Pegasus airframe to modernize its aerial refueling capabilities, ensuring production stability at Boeing’s Everett, Washington facility through June 2029.

The KC-46A program serves as the cornerstone of the U.S. Air Force’s strategy to replace aging aerial refueling fleets. With this new acquisition, the total number of KC-46A aircraft under contract globally has risen to 183. This figure represents a mix of domestic orders for the U.S. Air Force and international contracts, highlighting the airframe’s growing role in global defense logistics despite a history of developmental complexities. The Lot 12 award is a critical step in maintaining the industrial base required to support the fleet’s expansion.

We observe that this contracts comes at a pivotal time for the program. While the platform has faced scrutiny regarding technical hurdles and financial performance, the Air Force’s commitment to these 15 additional units signals a focus on long-term fleet recapitalization. As the service retires older airframes, such as the KC-10 Extender and the KC-135 Stratotanker, the steady delivery of the KC-46A becomes essential for maintaining global reach and power projection capabilities.

Production Milestones and Global Fleet Expansion

The Lot 12 contract ensures that the production line in Everett remains active and efficient. According to the contract details, the work for these 15 aircraft is expected to be completed by June 30, 2029. This timeline provides a clear trajectory for the workforce and supply chain involved in the program. As of late November 2025, Boeing has successfully delivered 98 KC-46A tankers to the U.S. Air Force. These aircraft are already heavily utilized, having surpassed 150,000 flight hours globally across a variety of mission sets, including aerial refueling, cargo transport, and aeromedical evacuation.

Beyond the domestic requirements of the United States, the KC-46A is expanding its footprint among key allies. The global contract count of 183 aircraft includes commitments from international partners. Japan, for instance, has six aircraft on contract, with four already delivered as of early 2025. Similarly, Israel has contracted for four aircraft, with deliveries anticipated to commence in 2025. These international sales are vital for interoperability during joint operations and help distribute the program’s industrial footprint.

The operational tempo of the existing fleet demonstrates the aircraft’s growing utility. In October 2024, the U.S. Air-Forces executed the first full-scale operational combat deployment of a KC-46A squadron to the Middle East under U.S. Central Command (CENTCOM). This deployment marks a significant maturation of the system, proving its ability to operate in real-world combat environments. The aircraft is currently certified to refuel nearly all receiver aircraft in the U.S. inventory, although specific limitations remain regarding the A-10 Warthog and the E-7 Wedgetail.

“The contract brings the total number of KC-46A aircraft under contract globally to 183, reinforcing the type’s role as the backbone of the future U.S. aerial refueling fleet.”

Technical Challenges and Financial Context

While the Lot 12 award secures future production, the program continues to navigate significant financial and technical headwinds. The KC-46A is produced under a fixed-price contract structure, which places the burden of cost overruns on the manufacturer rather than the taxpayer. Since the program’s inception in 2011, Boeing has recorded over $7 billion in pre-tax charges. Most recently, in late 2024, the company took a $661 million charge attributed to supply chain instability and labor disruptions that impacted production efficiency.

From a technical perspective, the primary focus remains on the Remote Vision System (RVS), the camera-based system used by boom operators to refuel receiver aircraft. The current system has faced criticism for image distortion under specific lighting conditions. The solution, known as RVS 2.0, involves a complete overhaul of the camera and display technology. However, the implementation of this upgrade has faced repeated delays. As of late 2025, the fielding of RVS 2.0 has slipped to the summer of 2027, nearly three years behind the original schedule. Until this system is fully operational, the Air Force continues to categorize these vision system issues as Category 1 deficiencies.

Despite these challenges, the Air Force views the KC-46A as a necessary “bridge” to the future. With the Next-Generation Air-Refueling System (NGAS), a stealthy tanker designed for contested environments, not expected until the mid-2030s, the KC-46A must fill the capability gap. The retirement of the KC-10 Extender fleet in late 2024 has placed additional pressure on the KC-46A to perform immediately. Consequently, the service is analyzing the potential for purchasing additional KC-46As beyond the originally planned 179 units to ensure sufficient tanker capacity over the next decade.

Conclusion

The awarding of the $2.47 billion Lot 12 contract serves as a reaffirmation of the KC-46A Pegasus’s central role in U.S. defense strategy. By securing production through 2029, the Air Force is mitigating the risks associated with an aging tanker fleet while allowing time for necessary technical upgrades like RVS 2.0 to come online. The continued investment suggests that, despite financial losses and technical delays, the operational value of the airframe outweighs its developmental growing pains.

Looking ahead, the focus will likely shift to the successful integration of the RVS 2.0 upgrade and the stabilization of the supply chain. As the fleet grows toward the contracted 183 units and international partners begin operating the type more extensively, the KC-46A will become the ubiquitous face of aerial refueling. Its performance in ongoing deployments and its ability to bridge the gap to next-generation stealth tankers will define its legacy in the coming decade.

FAQ

What is the value of the Lot 12 contract awarded to Boeing?
The Lot 12 contract awarded on November 25, 2025, is valued at $2.47 billion.

How many KC-46A tankers are included in this contract?
This contract covers the production of 15 additional KC-46A Pegasus tankers.

When is the production for this lot expected to be completed?
The estimated completion date for the work associated with this contract is June 30, 2029.

What is the status of the Remote Vision System (RVS) upgrade?
The rollout of the upgraded RVS 2.0 system has been delayed and is currently expected to be fielded in the summer of 2027.

Sources

• Boeing Media Room