The Boeing Company (BA)

Business

From the annual report on Form 10-K for the fiscal year ended December 31, 2025, accession 0001628280-26-004357.

Boeing designs, builds and supports commercial jetliners, military aircraft, satellites, missile defense, and human space flight and launch systems. It is one of two manufacturers of 100-plus-seat airplanes for the worldwide commercial airline industry and one of the largest defense contractors in the United States. The company reports in three segments, Commercial Airplanes (BCA), Defense, Space & Security (BDS) and Global Services (BGS), which generated revenues of $41.5 billion, $27.2 billion and $20.9 billion respectively in 2025 against total company revenues of $89.5 billion. Non-U.S. customers, including Foreign Military Sales routed through the U.S. government, accounted for 46% of total 2025 revenues and 60% of Commercial Airplanes revenue from customer contracts; 35% of revenues were earned under U.S. government contracts.

Commercial Airplanes develops, produces and markets commercial jet aircraft principally to the airline industry worldwide. The in-production family comprises the 737 narrow-body and the 767, 777 and 787 wide-bodies, with development continuing on the 777X program and the 737-7 and 737-10 derivatives. Revenue is recognized at a point in time, when an aircraft is completed and accepted by the customer, and the segment accounts for cost of sales under program accounting rather than per unit. Approximately 85% of BCA's backlog in dollar terms is with non-U.S. airlines.

Defense, Space & Security researches, develops, produces and modifies manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility, fighter and trainer aircraft, rotorcraft and tilt-rotor aircraft, and commercial derivative aircraft such as anti-submarine and tanker aircraft. It also supplies strategic defense and intelligence systems, including strategic missile and defense systems; command, control, communications, computers, intelligence, surveillance and reconnaissance; cyber and information solutions; government and commercial satellites; and space exploration. Revenue is generally recognized over the contract term as costs are incurred. BDS and the BGS defense business each generated roughly 60% of their 2025 revenues from fixed-price contracts and roughly 40% from cost-type arrangements. At December 31, 2025, 26% of BDS backlog was attributable to non-U.S. customers.

Global Services sustains aerospace platforms and systems for commercial and defense customers worldwide: supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems, technical and maintenance documentation, and digital solutions and analytics. Commercial spare parts revenue is recognized when a part is delivered; other contracts are generally recognized over the contract term. The U.S. government is the single largest individual served market for the government services business.

Backlog. At December 31, 2025 total backlog by segment stood at $567,290 million (BCA), $84,786 million (BDS) and $29,720 million (BGS). BCA backlog rose from $435,175 million a year earlier on new orders in excess of deliveries; aircraft order cancellations in 2025 totaled $11,094 million, primarily 777X, 737 and 787 aircraft, and net ASC 606 adjustments totaled $17,759 million, primarily 777X and 787 aircraft.

Competition. BCA faces aggressive international competitors intent on increasing share, notably Airbus and entrants from China. BDS competes primarily with General Dynamics, Lockheed Martin, Northrop Grumman, RTX and SpaceX, with non-U.S. firms such as BAE Systems and Airbus Group building U.S. presence. The commercial and defense services markets draw many of the same competitors plus others, and the company expects all three markets to remain highly competitive.

Regulation. The business is heavily regulated. U.S. commercial aircraft products must comply with FAA rules governing production and quality systems, airworthiness and installation approvals, repair procedures and continuing operational safety; new models and derivatives require FAA certification before entry into service. Following the January 2024 737-9 door plug accident, the FAA investigated the 737 quality control system, including Spirit AeroSystems, and increased oversight, the 737 program may only increase production rates or implement new production lines with FAA concurrence. The U.S. government and other governments may terminate contracts at convenience or for default.

Supply and inputs. The most important raw materials are aluminum, titanium and composites (including carbon and boron). Alternative sources generally exist but qualifying them could take a year or more, and many major components and product equipment items are procured or subcontracted on a sole-source basis. No material portion of the business is considered seasonal.

Workforce. Total workforce was approximately 182,000 at December 31, 2025, with 14% outside the U.S. Roughly 72,000 employees, about 40% of the workforce, were union represented under 32 independent agreements with nine U.S. unions plus 18 international employee representative bodies. Principal agreements include IAM District 751 (Washington, expiring September 2028), IAM District 837 (Missouri, July 2030), IAM District 70 (Kansas, June 2027) and four SPEEA agreements, two of which expire in October 2026.

Boeing was originally incorporated in Washington in 1916 and reincorporated in Delaware in 1934. Its principal executive offices are in Arlington, Virginia.

Risk factors

From the annual report on Form 10-K for the fiscal year ended December 31, 2025, accession 0001628280-26-004357.

Dependence on commercial airlines. Demand for commercial aircraft is driven by long-term passenger and cargo traffic, itself a function of economic growth and political stability, and is further influenced by airline profitability, financing availability, trade policy, geopolitics, fuel prices, inflation and reputational factors. The industry is cyclical. Because backlog consists of aircraft scheduled for delivery over several years, macroeconomic or customer shocks can affect deliveries over a long period. Revenues are concentrated among a limited number of commercial airlines, and no assurance exists that customers will exercise options or fulfill existing commitments. Firm fixed-price aircraft contracts carry indexed escalation clauses whose actual outcomes are outside the company's control and can materially move BCA revenues and margins.

Production system health, certification and rate increases. The commercial aircraft business is extremely complex, and the ability to deliver on time, satisfy regulators and achieve program profitability is subject to significant risk. New programs and derivatives such as the 777X, 737-7 and 737-10 take years and have already seen significant delays; the 777X, launched in 2013 and expecting first delivery in 2027, recognized additional reach-forward losses of $4.9 billion in 2025 and $3.5 billion in 2024 on production challenges, certification and delivery delays, and higher estimated labor and supplier costs. Customers hold contractual remedies including compensation for late deliveries and rights to reject or terminate. Planned rate increases, the 737 to 47 per month in 2026 plus further increases requiring a new production line, and further 787 increases, may be delayed or not occur if production health indicators do not support them or FAA concurrence is not obtained.

U.S. government spending and appropriations. A substantial portion of revenue comes from the U.S. government, chiefly the Department of War and NASA. Defense spending levels are difficult to predict, appropriations timeliness is a recurrent risk, and a lapse causing a full or partial shutdown could delay payments, impair performance on existing contracts, delay certification of new aircraft and reduce future orders. Future investment priority changes or budget cuts could reduce, cancel or delay existing contracts or programs.

Suppliers, raw materials and labor. The company depends on subcontractors and suppliers for raw materials, integrated components, sub-assemblies and services. Many suppliers face inflationary pressure, resource constraints and disruption from production quality issues, global supply chain constraints and labor instability; some are in financial difficulty. Single-source dependence exists in some instances. Work stoppages have already done material damage: IAM District 751 struck for 53 days in 2024, halting production of most commercial aircraft and certain BDS products, and IAM District 837 struck for 101 days in 2025, disrupting St. Louis operations and the F/A-18, F-15, T-7A, MQ-25 and Weapons programs. Both strikes occurred despite tentative agreements recommended by union leadership. Two SPEEA contracts expire in October 2026.

Fixed-price and cost-type contracts. Fixed-price contracts expose the company to reach-forward losses when estimated costs exceed estimated price, in 2024 BDS recorded $5.0 billion of additional losses on its five most significant fixed-price development programs (KC-46A Tanker, T-7A Red Hawk, Commercial Crew, VC-25B Presidential Aircraft and MQ-25). Estimating cost and time on fixed-price development and follow-on production is inherently uncertain given highly complex designs and extended performance periods. Cost-type programs, Ground-based Midcourse Defense, Proprietary and Space Launch System among them, carry risk of reduced award or incentive fees, lower profit rates or cancellation. Satellite contracts include in-orbit incentive payments at risk for up to 15 years after acceptance.

Contract and program accounting estimates. Program accounting requires estimates of the accounting quantity, the period over which units can be produced, and expected sales prices, production costs, tooling, non-recurring costs and routine warranty costs for the whole program. Materially different revenues and profits could be recorded under different assumptions, and changes may adversely affect future periods.

Non-U.S. sales, tariffs and trade. Risks include changes in regulatory requirements and executive actions, trade-environment deterioration, export controls, tariffs, duties, embargoes and sanctions, currency fluctuations, and financing availability for non-U.S. customers. Tariffs and retaliatory action could raise product costs, lower demand, delay deliveries and cause order terminations. China is a significant market; in the second quarter of 2025 certain Chinese customers paused accepting deliveries during tariff negotiations, and although deliveries resumed, inability to deliver to or win orders from China could reduce deliveries and market share.

Acquisitions, divestitures and integration. Realizing anticipated benefits depends on integration, portfolio performance and retained management. The Spirit Acquisition closed in December 2025, and integration difficulties may prevent realization of anticipated synergies and safety and quality improvements. In connection with that acquisition the company must provide services to buyers of divested Spirit businesses, including Airbus.

Technology and cybersecurity. A decentralized global technology infrastructure of millions of systems creates interoperability, cost, monitoring and compliance exposure. Cyber threats come from nation-state actors and criminal enterprises and evolve rapidly, including through advanced automation and artificial intelligence. The company has experienced cyber-related incidents directly and through subsidiaries, supply chain and third-party service providers, and gives no guarantee that a future incident would not materially affect strategy, results or financial condition.

Legal, environmental and climate. Litigation and government inquiries are unpredictable and an adverse decision could be material. Environmental liabilities may arise from current or past manufacturing operations, acquired companies' operations, or indemnification agreements, and new or more stringently enforced requirements could add costs. Climate-related regulation, including California and European Union greenhouse gas and climate risk reporting requirements, and increasingly stringent aircraft performance standards could raise costs or limit the ability to market certain products.

Financing and liquidity. Debt totaled $54.1 billion at December 31, 2025, of which approximately $15.5 billion of principal payments come due over the following three years, and airplane financing commitments totaled $15.2 billion. Up to $345 million of cash per year is expected for dividends on the 6.00% Series A Mandatory Convertible Preferred Stock through the mandatory conversion date of October 15, 2027. The company has experienced credit rating downgrades in the past and cannot assure that investment grade ratings will be maintained. Pension and other postretirement obligations are material to earnings, shareholders' equity and cash flow, and depend heavily on discount rates and actual asset returns. Insurance may be inadequate for the unique liabilities arising from aircraft technologies, space systems, satellites, missile systems, weapons and related products.

Dilution and preferred stock. Each outstanding share of Mandatory convertible preferred stock automatically converts on or about October 15, 2027 into between 5.8280 and 6.9940 shares of common stock. The company may also issue common stock on exchange of the $230 million of 3.250% Exchangeable Notes maturing November 1, 2028 assumed in the Spirit Acquisition. Common stock ranks junior to the preferred as to dividends and liquidation, and no common dividends may be declared unless accumulated preferred dividends have been paid or set aside.

Management's discussion and analysis, fiscal year 2025

From the annual report on Form 10-K for the fiscal year ended December 31, 2025, accession 0001628280-26-004357.

The shape of the year. Revenues rose to $89,463 million in 2025 from $66,517 million in 2024 and $77,794 million in 2023. Earnings from operations of $4,281 million reversed a $10,707 million operating loss in 2024, an improvement of $14,988 million, and net earnings attributable to Boeing shareholders of $2,235 million compared with a loss of $11,817 million; diluted earnings per share were $2.48 against a loss of $18.36. The swing was not primarily operational: $9,672 million of gains on dispositions, of which $9,566 million was the gain on the Digital Aviation Solutions Divestiture, sat inside it. By segment, the improvement came from BGS ($9,856 million, driven by that gain), BDS ($5,285 million, driven by lower net unfavorable cumulative contract catch-up adjustments) and BCA ($890 million), partly offset by a $984 million larger loss on Unallocated items, eliminations and other. Core operating earnings, which exclude the FAS/CAS service cost adjustment, increased by $15,047 million.

Two structural transactions closed in the fourth quarter. On October 31, 2025 the company completed the divestiture of portions of the BGS segment's Digital Aviation Solutions business for $10.55 billion in an all-cash transaction. On December 8, 2025 it completed the acquisition of Spirit AeroSystems Holdings, Inc. by exchanging approximately $4.7 billion of Boeing shares for all of Spirit's outstanding shares, paying off certain Spirit debt and other obligations and assuming the remainder. The acquisition covers all of Spirit's Boeing-related commercial operations, fuselages for the 737, P-8 and KC-46 Tanker programs and major structures for the 767, 777 and 787, plus Spirit's defense and aftermarket businesses and portions of its Belfast, Ireland operations. Spirit employs approximately 15,000 people.

Commercial Airplanes. Revenues increased $18,633 million on higher deliveries across all programs and the absence of $443 million of 737-9 customer considerations tied to the January 2024 grounding. Loss from operations narrowed to $7,079 million from $7,969 million, as higher deliveries, lower abnormal production costs and lower research and development were partly offset by combined reach-forward losses of $5,283 million on the 777X and 767 programs and lower program margins. The 737 rate recovered from below 38 per month at the start of 2025 to 42 per month in the fourth quarter after the FAA and Boeing jointly agreed in October 2025 that the key performance indicators and rate readiness process supported the increase; the program planned to move from 42 to 47 in 2026 with FAA concurrence and to add a production line. Certification of the 737-7 and 737-10 remained expected in 2026 with approximately 35 aircraft of those models in inventory at year end. On the 777X, first delivery of the 777-9 was pushed to 2027 during the third quarter of 2025; the resulting slower rate plans, higher production and change-incorporation costs and customer and supply chain impacts, partly offset by a 100-unit accounting quantity increase, produced an incremental reach-forward loss of $4,899 million in 2025. A potential engine durability issue identified during recent 777X inspections remained under investigation with the supplier. The 767 recorded a $384 million reach-forward loss in 2025 ($580 million in 2024) and production of the commercial program is expected to complete by 2027. The 787 rate went from five to seven per month during 2025 and began moving to eight in the fourth quarter.

Defense, Space & Security. Revenues increased $3,316 million on $1,864 million lower net unfavorable cumulative contract catch-up adjustments and higher volume. Loss from operations narrowed sharply to $128 million from $5,413 million, as losses on the five major fixed-price development programs fell to $802 million, primarily KC-46A Tanker at $714 million, from $5,013 million in 2024, with additional improvement from weapons, P-8, satellites and fighters.

Global Services. Revenues increased $969 million on higher government and commercial services revenue. Earnings from operations increased $9,856 million, almost entirely the $9,566 million divestiture gain.

Unallocated items and other earnings. Eliminations and other unallocated items expense rose $663 million on higher unallocated general and administrative expense; general and administrative expense for 2025 and 2024 includes earnings charges of $445 million and $244 million related to agreements with the U.S. Department of Justice. Non-operating pension income within Other income, net fell to $176 million from $476 million on lower expected return on plan assets. Interest and debt expense rose $46 million on higher average rates.

Cash flow and capital. Net cash provided by operating activities was $1.1 billion in 2025 against $12.1 billion used in 2024, a $13.1 billion swing driven by higher commercial airplane deliveries, lower customer considerations and working capital improvements, favorable changes in Inventories ($10.9 billion) and Accounts payable ($1.5 billion) against unfavorable Advances and progress billings ($4.8 billion). Investing activities provided $0.5 billion, helped by $10.5 billion higher proceeds from dispositions, against $1.2 billion of cash paid for the Spirit Acquisition net of cash acquired; capital expenditures were $2.9 billion and were expected to grow in 2026. Financing used $3.8 billion, driven by $3.5 billion of net repayments. Debt totaled $54.1 billion at year end, $8.5 billion of it short-term and expected to be paid from available cash. The company held $10.9 billion of cash, $18.5 billion of short-term investments and $10.0 billion of unused revolving credit capacity. The common dividend has been suspended since 2020. Pension plans were $4.3 billion underfunded on a GAAP basis and more than 90% funded on an ERISA basis, with no significant 2026 contributions expected. Investment grade ratings were held at all three agencies, each of which moved the outlook to stable from negative during 2025 (Fitch BBB- in June, S&P BBB- in October, Moody's Baa3 in December).

Business environment. Global air traffic expanded near historical trend rates in 2025, with international demand outpacing domestic and North America contributing less than usual; both single-aisle and wide-body demand remain above industry supply. IATA estimated 2025 industry-wide net profits of $39.5 billion, up from $28.3 billion in 2024, and forecast $41 billion for 2026. The Commercial Market Outlook projects a 3.1% global fleet growth rate over 20 years and demand for approximately 43,600 new airplanes. Tariffs and trade were a live variable through the year: bilateral agreements recognizing tariff-free trade in civil aircraft were reached with the United Kingdom, Japan, South Korea, Malaysia and the European Union, while reciprocal tariffs applied to countries without agreements and the U.S.-China pause was extended to November 10, 2026.

Critical estimates. Net cumulative catch-up adjustments across all long-term contracts decreased 2025 earnings from operations by $1,377 million, against increases to loss from operations of $6,562 million in 2024 and $2,943 million in 2023, primarily on the KC-46A Tanker, VC-25B, T-7A Red Hawk, MQ-25 and Commercial Crew programs. A 1% change in combined gross margins on profitable long-term contracts would have moved 2025 pre-tax income by approximately $320 million; a 1% change in combined commercial airplane program gross margin percentages would have moved operating earnings by approximately $390 million. Deferred income tax assets were $21,065 million against deferred tax liabilities of $11,420 million, with a valuation allowance of $9,754 million that increased by $1,917 million in 2025, including $1,833 million recorded in acquisition accounting against acquired Spirit deferred tax assets. Because of the recent history of losses, future projected earnings could not be included in the realizability analysis.

Litigation. On May 29, 2025 Boeing entered a non-prosecution agreement with the U.S. Department of Justice resolving the Department's determination that Boeing had not fulfilled its obligations under the January 2021 deferred prosecution agreement relating to the October 2018 Lion Air flight 610 and March 2019 Ethiopian Airlines flight 302 accidents. The agreement requires a $244 million fine (accrued in 2024) and $445 million of additional compensation for family members (accrued in the second quarter of 2025), both held in escrow pending final court approval of the Department's motion to dismiss the criminal information.

Current quarter, second quarter and first half of 2026

From the quarterly report on Form 10-Q for the period ended June 30, 2026, accession 0001628280-26-050038, and the second-quarter results release furnished on Form 8-K dated July 28, 2026, accession 0001628280-26-049929.

Results. Second-quarter revenues were $24,560 million, up 8% from $22,749 million, on 171 commercial deliveries against 150 a year earlier. Earnings from operations were $156 million against a $176 million loss, a 1.4-point margin improvement to 0.6%. Net loss attributable to Boeing shareholders was $444 million against $611 million; after $86 million of mandatory convertible preferred stock dividends accumulated in each period, the loss attributable to common shareholders was $530 million against $697 million, and diluted loss per share was $0.67 against $0.92. Core operating earnings, a non-GAAP measure excluding the FAS/CAS service cost adjustment, were $1 million against a $433 million loss, and core loss per share was $0.76 against $1.24. For the first half, revenues were $46,777 million, up 11%; earnings from operations were $604 million against $285 million; net loss attributable to shareholders was $448 million against $648 million, or $620 million against $820 million after $172 million of accumulated preferred dividends in each period; and diluted loss per share was $0.79 against $1.09.

The quarter's operating improvement came mainly from a $405 million smaller loss on Unallocated items, eliminations and other, reflecting the absence of the $445 million Department of Justice charge taken in the second quarter of 2025, and a $235 million smaller loss at BCA, partly offset by $125 million lower BDS earnings and a $102 million unfavorable move in the FAS/CAS service cost adjustment. Other income, net fell $246 million in the quarter on higher non-operating pension expense, while interest and debt expense fell $110 million on lower debt balances. Cost of sales as a percentage of revenues rose in both the quarter and half on lower margins at BGS and BDS.

Commercial Airplanes had quarterly revenues of $11,751 million, up 8% on higher 737 deliveries partly offset by lower 777 deliveries, and narrowed its loss from operations to $322 million from $557 million on higher revenues and a smaller 767 reach-forward loss, partly offset by higher research and development spending. Half-year revenues were $20,954 million and the loss was $885 million against $1,094 million. The 737 program began transitioning from 42 to 47 per month with FAA concurrence during the first half, increased its accounting quantity by 400 units, and began low-rate production on a new 737 production line in July 2026, a line that must be production-certified by the FAA before first delivery. Certification of the 737-7 and 737-10 remains expected in 2026, including final certification of the engine anti-ice solution, with approximately 40 such aircraft in inventory at June 30, 2026. On the 777X, approval to begin the fourth phase of certification flight testing was received in the first half and approval on the final phases is expected in the second half of 2026; work continues with the supplier and the FAA on the engine durability issue identified in 2025, and first delivery of the 777-9 remains expected in 2027, with the 777-8 Freighter roughly two years later and the 777-8 passenger aircraft not before 2030. The 767 recorded a $40 million reach-forward loss in the first half against $191 million a year earlier. The 787 accounting quantity rose 100 units in the first quarter; the factory briefly slowed in April 2026 on supply chain shortages, recovered in May and has stabilized at eight per month. BCA backlog rose to $596,724 million at June 30, 2026 from $567,290 million, with first-half cancellations of $2,777 million and net ASC 606 adjustments of $2,089 million. The company booked 246 net orders in the quarter, including from Korean Air, Delta Air Lines and SMBC Capital.

Defense, Space & Security had quarterly revenues of $7,483 million, up 13% on proprietary and weapons programs, higher KC-46 volume and the acquired Spirit defense business, but swung to a $15 million loss from operations against $110 million of earnings, on $186 million higher net unfavorable cumulative catch-up adjustments and higher general and administrative expense. The driver was a $280 million reach-forward loss on the VC-25B Presidential Aircraft program, taken for higher estimated costs to complete structural and wiring installation and satisfy airworthiness certification requirements; finalization of contract terms to reset the schedule and adjust requirements is expected in the third quarter of 2026, and first delivery is anticipated in 2028. Half-year revenues were $15,082 million with earnings of $218 million against $265 million. In the quarter MQ-25 completed its first flight and the U.S. Navy approved Milestone C, with a low-rate initial production contract expected later in 2026; the U.S. Air Force approved Milestone C on T-7A Red Hawk and authorized a first low-rate lot of 14 aircraft. BDS backlog was $85,322 million, 27% from customers outside the U.S. On Commercial Crew, the company now expects an uncrewed mission no earlier than the fourth quarter of 2026, having previously expected an uncrewed mission followed by a crewed mission during 2026; discussions with NASA on timing and requirements for follow-on missions are ongoing and their outcome is uncertain.

Global Services had quarterly revenues of $5,344 million, up 1%, with earnings from operations of $968 million down $81 million and margin of 18.1% against 19.9%. The decline reflects the absence of $78 million of earnings from the divested Digital Aviation Solutions business and ongoing disruption in one of the distribution businesses from a transition to a new enterprise resource planning system in late 2025. Half-year revenues were $10,714 million with earnings of $1,939 million. BGS backlog rose to $32,840 million from $29,720 million.

Cash and balance sheet. Operating cash flow was $1,364 million in the quarter against $227 million, and free cash flow, a non-GAAP measure net of $733 million of capital additions, was $631 million against negative $200 million. For the first half, operating cash flow was $1,185 million against $1,389 million used, and free cash flow was negative $823 million against negative $2,490 million; first-half capital expenditures were $2.0 billion against $1.1 billion, with 2026 still expected to exceed 2025. Investing provided $3.6 billion in the half on $5.6 billion of net proceeds from investments. Financing used $8.5 billion on $7.8 billion higher net repayments. Total debt fell to $45.9 billion at June 30, 2026 from $54.1 billion at December 31, 2025, with $4.6 billion classified as short-term. Cash was $7,239 million and short-term and other investments $12,783 million, with $10.0 billion of revolving credit capacity undrawn. Total company backlog reached a record $715 billion, including over 6,200 commercial airplanes. Inventories were $88,388 million and advances and progress billings $64,059 million against total equity of $6,115 million. In June 2026 Fitch revised its BBB- outlook to positive from stable; S&P rates BBB- stable and Moody's Baa3 stable.

Other developments in the period. The Spirit purchase price allocation remains preliminary, with total consideration of $8,389 million and provisional goodwill of $10,278 million assigned to BCA; accrued liabilities include $1,520 million for the fair value of off-market customer contracts. In the first quarter of 2026 United Launch Alliance's Vulcan rocket experienced a launch anomaly that paused further Vulcan launches pending root cause analysis and corrective action; in May 2026 Boeing and Lockheed Martin each agreed to guarantee $500 million of certain ULA credit facilities maturing July 30, 2027, and both expect to provide additional financial support. Environmental remediation liabilities rose to $971 million and product warranty liabilities to $3,273 million. Financing commitments totaled $16,836 million, of which $11,698 million relate to customers believed to have less than investment-grade credit. On March 31, 2026 the U.S. Court of Appeals for the Fifth Circuit denied a petition by representatives of certain family members to overturn approval of the Department of Justice's motion to dismiss; those representatives had until late August 2026 to decide whether to pursue a further appeal. Following a February 20, 2026 Supreme Court ruling on tariffs imposed under the International Emergency Economic Powers Act, U.S. Customs and Border Protection defined processes for claiming refunds of tariffs previously paid, and tariffs did not have a material impact on results in the first half of 2026. Two SPEEA contracts expire October 6, 2026 and negotiations toward new agreements were underway, targeted for the third quarter of 2026.

Subsequent events

Boeing's quarterly report for the period ended June 30, 2026 contains no subsequent-events note. The following post-period developments are drawn from the current reports on Form 8-K filed after that quarterly report.

Credit facilities refinanced and extended (Form 8-K dated August 24, 2026, accession 0001628280-26-059427). On August 24, 2026 Boeing entered a $3.0 billion, 364-day revolving credit agreement terminating August 23, 2027, replacing the previous $3.0 billion, 364-day facility scheduled to terminate the same day. On the same date the two five-year agreements were each extended by 365 days: the 2024 agreement, at $4.0 billion of commitments, now terminates May 15, 2030, and the 2023 agreement, at $3.0 billion, now terminates August 24, 2029. The two five-year agreements were also amended to add a covenant requiring Boeing to maintain liquidity of at least $5.0 billion, matching the covenant carried in the 364-day facility. Total committed revolving capacity is unchanged at $10.0 billion, the amount the company reported as undrawn at June 30, 2026.

Principal accounting officer transition (Form 8-K dated August 19, 2026, accession 0001628280-26-058481). On August 19, 2026 the Board appointed Ryan L. Shedd as Senior Vice President and Controller, and principal accounting officer, effective the first business day after Boeing files its Form 10-K for the year ending December 31, 2026. He succeeds Michael J. Cleary, Senior Vice President and Controller since March 2023, who plans to retire in 2027.

Filings that contain financial statements

Boeing is a domestic filer, so its audited and interim statements live in the Form 10-K and Form 10-Q. In addition, each quarterly earnings press release furnished as Exhibit 99.1 to a Form 8-K carries a full set of unaudited statements, Consolidated Statements of Operations, Consolidated Statements of Financial Position, Consolidated Statements of Cash Flows, segment data, deliveries and backlog, and a non-GAAP reconciliation. Anyone tracing a figure to a source filing can use these:

• Accession 0001628280-26-049929 (Form 8-K filed July 28, 2026), second quarter 2026 and the six months ended June 30, 2026, with the June 30, 2026 balance sheet compared to December 31, 2025. Note that the cash flow statement in this release is presented for the six months only; the three-month figures for the quarter (operating cash flow of $1,364 million, free cash flow of $631 million) appear in the release's summary cash flow table rather than in the statement itself.
• Accession 0001628280-26-026391 (Form 8-K filed April 22, 2026), first quarter 2026, three months ended March 31, 2026, including a three-month cash flow statement.
• Accession 0001628280-26-003518 (Form 8-K filed January 27, 2026), fourth quarter and full year 2025, with the December 31, 2025 balance sheet and a twelve-month cash flow statement. These are the pre-10-K furnished figures for 2025.
• Accession 0001628280-25-046915 (Form 8-K filed October 29, 2025), third quarter 2025 and the nine months ended September 30, 2025.
• Accession 0000012927-25-000058 (Form 8-K filed July 29, 2025), second quarter 2025 and the six months ended June 30, 2025.

Results and operating trajectory

July 28, 2026, Second quarter 2026 results (accession 0001628280-26-049929). Revenue of $24,560 million, up 8% year over year on 171 commercial deliveries. GAAP loss from operations turned positive at $156 million against a $176 million loss a year earlier; net loss attributable to shareholders narrowed to $444 million from $611 million, and diluted loss per share to ($0.67) from ($0.92). Operating cash flow was $1,364 million and free cash flow $631 million, both sharply improved. Total backlog reached a record $715 billion, including over 6,200 commercial airplanes. Defense, Space & Security recorded $280 million of losses on the VC-25B program, tied to additional production and certification resources, with first delivery still anticipated in 2028. The 737 program began transitioning to a 47-per-month rate and activated low-rate initial production on the 737 North Line in July; certification flight testing was completed on both the 737-7 and 737-10, with certification anticipated in 2026 and first delivery in 2027. The 777X program received FAA approval for Type Inspection Authorization 4B, with first delivery still anticipated in 2027. Cash and marketable securities were $20.0 billion against consolidated debt of $45.9 billion.

April 22, 2026, First quarter 2026 results (accession 0001628280-26-026391). Revenue of $22,217 million on 143 deliveries, earnings from operations of $448 million and a net loss attributable to shareholders of $4 million. Operating cash flow was negative $179 million and free cash flow negative $1,454 million, reflecting $1,275 million of capital spending. Cash and marketable securities fell to $20.9 billion from $29.4 billion and consolidated debt to $47.2 billion from $54.1 billion, reflecting $6,950 million of debt repayments in the quarter.

January 27, 2026, Fourth quarter and full year 2025 results (accession 0001628280-26-003518). Fourth quarter revenue of $23,948 million and full year revenue of $89,463 million, with 600 commercial deliveries, the highest annual total since 2018. Full year GAAP earnings from operations were $4,281 million and net earnings attributable to shareholders $2,235 million ($2.48 diluted), swinging from a $10,707 million operating loss in 2024. The result was dominated by a $9.6 billion gain on the Digital Aviation Solutions sale, which the company said increased fourth quarter earnings per share by $11.83. Full year operating cash flow was $1,065 million and free cash flow negative $1,877 million. Backlog closed the year at a record $682 billion.

October 29, 2025, Third quarter 2025 results (accession 0001628280-25-046915). Revenue of $23,270 million on 160 deliveries, but a $4,781 million operating loss driven by a $4.9 billion pre-tax charge on the 777X program after the company pushed its assessment of 777-9 certification out to a 2027 first delivery. Net loss attributable to shareholders was $5,337 million, or ($7.14) per diluted share. The company also disclosed that it had jointly agreed with the FAA in October to raise 737 production to 42 per month from a stabilized 38.

July 29, 2025, Second quarter 2025 results (accession 0000012927-25-000058). Revenue of $22,749 million on 150 deliveries, an operating loss of $176 million and a net loss attributable to shareholders of $611 million, or ($0.92) per diluted share. The 737 program reached 38 per month in the quarter.

Portfolio transactions

December 8, 2025, Spirit AeroSystems acquisition completed (accession 0001628280-25-055825). Boeing announced it had completed its acquisition of Spirit AeroSystems Holdings, Inc., closing a transaction pursuant to the June 30, 2024 merger agreement. The acquisition brought in Spirit's Boeing-related commercial operations, 737 fuselages and major structures for the 767, 777 and 787, along with Spirit's aftermarket business, which becomes Boeing's largest in-house spare parts source and expands its maintenance, repair and overhaul footprint. Spirit's defense programs were established as Spirit Defense, a non-integrated subsidiary of Boeing Defense, Space & Security with independent governance. Portions of the Belfast, Northern Ireland operations were also acquired and operate as Short Brothers, a Boeing Company. Approximately 15,000 employees across Wichita, Dallas, Tulsa, Prestwick and Belfast joined Boeing.

The financial terms of the closing are not in the 8-K; they appear in the periodic reports. The Form 10-Q for the quarter ended June 30, 2026 (accession 0001628280-26-050038) states total consideration of $8,389 million, comprising $4,704 million of Boeing common stock exchanged for Spirit stock, $2,589 million settling loans and advances to Spirit, $948 million of debt repaid on Spirit's behalf, $109 million of premium on assumed Spirit exchangeable notes and $39 million for exchanged share-based awards. The preliminary purchase price allocation carries provisional goodwill of $10,278 million assigned to Commercial Airplanes, $3,279 million of assumed long-term debt, and $1,520 million of accrued liabilities for the fair value of off-market customer contracts. The allocation remains preliminary and will be finalized no later than December 2026.

April 22, 2025, Digital Aviation Solutions sale signed (accession 0001193125-25-093515). Boeing entered a Membership Interest Purchase Agreement to sell portions of its Digital Aviation Solutions business, the Jeppesen, ForeFlight, AerData and OzRunways assets, to Thoma Bravo for $10.55 billion in cash, subject to customary purchase price adjustments. The buyer owed a $844.0 million termination fee in specified circumstances. Boeing framed the sale as part of a strategy to focus on core businesses, supplement the balance sheet and prioritize its investment grade credit rating, and said it would retain core digital capabilities covering fleet maintenance, diagnostics and repair.

October 31, 2025, Digital Aviation Solutions sale closed. The closing itself was not the subject of a separate 8-K. The Form 10-K for 2025 (accession 0001628280-26-004357) records that Boeing closed the sale on October 31, 2025 for proceeds of $10,550 million, producing a gain of $9,566 million recorded in Gain on dispositions, net. The transaction reduced Global Services margins in subsequent periods: the company cited the divestiture as a drag on that segment's operating margin in both the first and second quarters of 2026.

Capital structure and liquidity

August 24, 2026, Credit facilities renewed and extended (accession 0001628280-26-059427). Boeing entered a new $3.0 billion, 364-day revolving credit agreement with Citibank and JPMorgan as joint lead arrangers, replacing the prior $3.0 billion 364-day facility that was set to terminate the same day. The new facility terminates August 23, 2027, with rights to term out borrowings and to request a 364-day extension. On the same date Boeing amended and extended both of its five-year facilities by an additional 365 days: the $4.0 billion 2024 agreement now terminates May 15, 2030 and the $3.0 billion 2023 agreement now terminates August 24, 2029. The new 364-day agreement carries the same terms as the facility it replaces, including a covenant requiring Boeing to maintain at least $5.0 billion of liquidity and a restriction on consolidated debt above 60% of total capital. The amendments to the two five-year agreements added that $5.0 billion liquidity covenant to those facilities for the first time, leaving them otherwise subject to the same material terms previously disclosed. Commitment fees on the new 364-day facility run 0.125%–0.300% and SOFR borrowings price at Term SOFR plus 1.250%–1.700%, in each case depending on Boeing's credit rating. Across the recent earnings releases Boeing has reported $10.0 billion of credit facilities that remain undrawn.

August 25, 2025, Prior 364-day facility (accession 0000012927-25-000064). The predecessor $3.0 billion, 364-day revolving credit agreement was entered on this date, replacing a $3.0 billion three-year facility and carrying the same pricing grid and the $5.0 billion liquidity covenant.

Legal and regulatory

May 29, 2025, Non-Prosecution Agreement with the Department of Justice (accession 0000012927-25-000041). Boeing entered a Non-Prosecution Agreement resolving, subject to court proceedings, the Department's determination that Boeing had not fulfilled its obligations under the January 6, 2021 Deferred Prosecution Agreement. The agreement carries a $487.2 million overall criminal monetary penalty, of which $243.6 million was paid in 2021 and the remaining $243.6 million had already been expensed in 2024. Boeing additionally agreed to pay $444.5 million in further compensation to the heirs and beneficiaries of those who died in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents, to invest $455.0 million in compliance, safety and quality programs over the term, and to retain an independent compliance consultant. The term runs two years from the date the consultant is retained. The Department agreed not to further criminally prosecute Boeing for the conduct described, provided Boeing performs its obligations.

Management and board

August 19, 2026, Controller succession (accession 0001628280-26-058481). The board appointed Ryan L. Shedd, 41, as Senior Vice President and Controller and principal accounting officer, effective the first business day after Boeing files its Form 10-K for the year ending December 31, 2026. Shedd joins in September 2026 as Senior Vice President, Finance, and comes from Ernst & Young LLP, where he had been an Assurance Partner since July 2021. He succeeds Michael J. Cleary, who has been Controller since March 2023 and plans to retire in 2027 after more than two decades of service.

June 29, 2025, New Chief Financial Officer (accession 0000012927-25-000050). The board elected Jesus (Jay) Malave, 56, as Executive Vice President and Chief Financial Officer effective August 15, 2025, succeeding Brian J. West, who moved to Special Advisor to the Chief Executive Officer. Malave was CFO of Lockheed Martin from January 2022 to April 2025 and before that CFO of L3Harris Technologies. His package includes a $1,050,000 base salary, a $1,500,000 cash award and $9.5 million of equity to offset forfeited Lockheed awards, and a further $7,000,000 cash award tied to vested Lockheed shares he forfeited under a non-competition settlement. Boeing agreed to pay Lockheed $2,000,000 for a release of claims, and Malave accepted restrictions on his involvement in Defense, Space & Security and in matters where Lockheed is a competitor or counterparty, running variously through 2025, April 2026 and April 2027.

December 1, 2025, Board addition (accession 0001628280-25-055122). The board elected Bradley D. Tilden, 64, former chairman, president and CEO of Alaska Air Group, as a director effective December 3, 2025, serving on the Aerospace Safety and Finance committees. He became the twelfth board member and the tenth new director added since 2019.

Shareholder meetings

April 17, 2026, 2026 Annual Meeting (accession 0001628280-26-025684). All twelve director nominees were elected, with Robert A. Bradway drawing the largest opposition at 51.7 million votes against. Say-on-pay passed with 484.1 million for and 55.6 million against. Deloitte & Touche LLP was ratified as independent auditor for 2026. A shareholder proposal for a board committee on disability access was defeated decisively; a proposal for action by written consent drew notable support at 214.2 million for against 325.3 million opposed.

April 24, 2025, 2025 Annual Meeting (accession 0000012927-25-000034). All eleven director nominees were elected, say-on-pay passed, Deloitte & Touche LLP was ratified for 2025, and shareholder proposals on diversity-related risk reporting and a civil rights audit were both defeated.

Items not reflected in the filings

Boeing does not issue formal revenue or earnings guidance in its earnings releases, so no guidance raise or cut appears in any of these filings. The company instead frames its outlook through program milestones, 737 rate transitions, 737-7 and 737-10 certification in 2026 with first delivery in 2027, 777-9 first delivery in 2027, and VC-25B first delivery in 2028, each of which is restated or revised quarter to quarter.

No 8-K in this window reports a common stock dividend, a share repurchase authorization, a stock split, or a new equity offering. Boeing continues to pay dividends on its 6.00% Series A mandatory convertible preferred stock ($172 million in the first half of 2026) but pays no common dividend.

About this file

BA annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

BA quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

BA year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

BA trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

Adjustments

Notes

• Every figure here is taken from the face of the financial statements in Boeing's Form 10-K for fiscal 2025 (accession 0001628280-26-004357, filed January 30, 2026) and its Form 10-Q for the quarter ended June 30, 2026 (accession 0001628280-26-050038, filed July 28, 2026), with the two exceptions noted below. Both filings state dollars in millions; every amount in this file is in actual dollars.
• Boeing prints its cost and expense lines in parentheses, as deductions from revenue. They are carried here as positive amounts, so that total revenues less total cost of revenue equals gross profit and operating cash flow less capital expenditures equals free cash flow. A negative income tax expense therefore means a tax benefit, which is what fiscal 2024 reports.
• "Total cost of revenue" is the filing's "Total costs and expenses" line - cost of products plus cost of services. "Gross profit" is the subtotal the statement prints immediately beneath it, total revenues less total costs and expenses; Boeing gives that line no caption of its own. It is struck before general and administrative expense and research and development expense, which are deducted below it to reach earnings from operations.
• Earnings per share is struck on net earnings/(loss) attributable to Boeing common shareholders - that is, after the dividends accumulated on the 6.00% Series A mandatory convertible preferred stock issued in October 2024. Consolidated net earnings/(loss), the portion attributable to noncontrolling interests, and the portion attributable to Boeing shareholders before the preferred dividend are all carried separately.
• The 10-K's statements of operations and cash flows present three years (2025, 2024 and 2023); its statement of financial position presents two (December 31, 2025 and 2024). Fiscal 2023 therefore carries an income statement, a cash flow statement and segment results but no balance sheet and no backlog - the filing does not print those columns.
• The 10-Q presents cash flows for the six months ended June 30 only. The discrete three-month operating cash flow and capital expenditures shown for the second quarters of 2026 and 2025 are from Table 2 of Boeing's second-quarter 2026 earnings release, Exhibit 99.1 to the Form 8-K filed July 28, 2026 (accession 0001628280-26-049929); each quarter records that accession under "cash_flow_source_accession". Every other second-quarter figure comes from the 10-Q. The release's six-month cash flow columns are identical to the 10-Q's.
• Commercial airplane deliveries are from Table 4 of that same earnings release exhibit, for the second quarter and the first half of each year. The 10-K does not print a full-year delivery total on the face of its statements, so no annual delivery count is reported here.
• Six-month figures are held in "year_to_date", with the prior-year six months nested beneath it, and never in "quarterly", so a cumulative figure is not read as a quarter. The quarter ended June 30, 2025 carries no balance sheet: the 10-Q's statement of financial position shows June 30, 2026 and December 31, 2025 only.
• "trailing_twelve_months" is derived rather than filed: fiscal 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025. Only additive income statement, cash flow and segment lines are carried there. Weighted-average share counts and per-share amounts are not additive across periods, so no trailing-twelve-month earnings per share is reported.
• "Total debt" is the sum of the balance sheet's short-term debt and current portion of long-term debt and its long-term debt. The 10-Q's liquidity discussion states the same total: $45.9 billion at June 30, 2026, down from $54.1 billion at December 31, 2025.
• Backlog is a point-in-time total reported at each balance sheet date - $715,261 million at June 30, 2026, $682,207 million at December 31, 2025 and $521,336 million at December 31, 2024 - and is carried alongside the balance sheet rather than as a flow.
• Fiscal 2025 earnings from operations of $4,281 million include a net gain on dispositions of $9,672 million, which the 10-K attributes principally to the Digital Aviation Solutions divestiture and reports within the Global Services segment, and $5,283 million of reach-forward losses on the 777X and 767 programs (fiscal 2024 carried $4,079 million of such losses).
• Boeing paid no common stock dividends in any period covered here. The only dividends in the cash flow statements are the $331 million paid on the mandatory convertible preferred stock in fiscal 2025 and $172 million in the first half of 2026 ($158 million in the first half of 2025).
• No adjustments were needed: Boeing reports in U.S. dollars, is not an American Depositary Receipt issuer, and has had no stock split in the periods covered, so per-share amounts are as the filings print them.

Uncertainties

• The three-month cash flow figures for the second quarters of 2026 and 2025 ($1,364 million and $227 million of operating cash flow, $733 million and $427 million of capital expenditures) are not repeated anywhere in the 10-Q, which presents cash flows for the six months only. They are taken from the earnings release exhibit, whose six-month columns match the 10-Q exactly, but they have not been confirmed against an audited or reviewed cash flow statement for the three months.
• The line reported here as gross profit is an uncaptioned subtotal on Boeing's income statement. It is not labelled "gross profit" by the company, and because general and administrative and research and development expense sit below it, it is not directly comparable to the gross profit line of a manufacturer that deducts those costs above the subtotal.
• The trailing-twelve-month view is computed, not filed. It blends fiscal 2025, which contains the $9,672 million disposition gain, with two quarters that contain no comparable item, so it is not a clean run rate.
• Fiscal 2023 has no balance sheet, no total debt and no backlog in this record, because the fiscal 2025 10-K does not present those columns for that year.

Company details

Fiscal period

Source filings