Company: BA
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000012927-25-000062
Chunk: 5

Company: BOEING CO
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 5
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37,393 $30,330 $7,063 $20,314 $15,637 $4,677 Cost of sales as a % of Revenues88.5 %90.7 %(2.2)%89.3 %92.7 %(3.4)%

Cost of sales for the six months ended June 30, 2025, increased by $7,063 million, or 23%, compared with the same period in 2024, primarily due to higher revenues at BCA. Cost of sales as a percentage of Revenues decreased during the six months ended June 30, 2025, compared with the same period in 2024, primarily due to lower charges on BDS fixed-price development programs and the absence of 737-9 customer considerations at BCA, partially offset by lower program margins at BCA.

41

Cost of sales for the three months ended June 30, 2025, increased by $4,677 million, or 30%, compared with the same period in 2024, primarily due to higher revenues at BCA. Cost of sales as a percentage of Revenues decreased during the three months ended June 30, 2025, compared with the same period in 2024 primarily due to lower charges on BDS fixed-price development programs, partially offset by lower program margins at BCA.

Research and Development

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

(Dollars in millions)Six months ended June 30Three months ended June 302025202420252024Commercial Airplanes$1,092 $1,073 $558 $555 Defense, Space & Security420 494 221 259 Global Services59 67 30 41 Other183 188 101 99 Total$1,754 $1,822 $910 $954 

Research and development expense decreased by $68 million and $44 million during the six and three months ended June 30, 2025, compared to the same periods in 2024. The decrease in expense was primarily due to lower spending at BDS.

Backlog

(Dollars in millions)June 302025December 312024Commercial Airplanes$522,197 $435,175 Defense, Space & Security73,957 64,023 Global Services21,939 21,403 Unallocated items, eliminations and other445 735