Company: BA
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000012927-25-000031
Chunk: 63

Company: BOEING CO
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 1
Chunk 63
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6 %88.7 %(1.1)%

Cost of sales for the three months ended March 31, 2025, increased by $2,386 million, or 16%, compared with the same period in 2024, primarily due to higher revenues at BCA, partially offset by lower volume and the absence of fixed-price development program charges at BDS. Cost of sales as a percentage of Revenues decreased during the three months ended March 31, 2025, compared with the same period in 2024, primarily due to the absence of 737-9 customer considerations at BCA and the absence of charges on BDS fixed-price development programs, partially offset by higher revenues at BCA.

Research and Development 

Research and development expense, net is summarized in the following table:

(Dollars in millions)Three months ended March 3120252024Commercial Airplanes$534 $518 Defense, Space & Security199 235 Global Services29 26 Other82 89 Total$844 $868 

Research and development expense was largely unchanged during the three months ended March 31, 2025, compared to the same period in 2024.

37

Backlog 

(Dollars in millions)March 312025December 312024Commercial Airplanes$460,447 $435,175 Defense, Space & Security61,567 64,023 Global Services22,036 21,403 Unallocated items, eliminations and other686 735 Total Backlog$544,736 $521,336 Contractual backlog$523,964 $498,802 Unobligated backlog20,772 22,534 Total Backlog$544,736 $521,336 

Contractual backlog of unfilled orders excludes purchase options, announced orders for which definitive contracts have not been executed, orders where customers have the unilateral right to terminate, and unobligated U.S. and non-U.S. government contract funding. The increase in contractual backlog during the three months ended March 31, 2025, was primarily due to an increase in BCA and BGS backlog that was partially offset by a decrease in BDS backlog. We may experience reductions to backlog and/or significant order cancellations due to various factors including delivery delays, production disruptions and delays to entry into service of the 777X, 737-7 and/or 737-10.

Unobligated backlog includes U.S.