Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 97

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 97
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 through the U.S. government.

30

BGS revenues consisted of the following:(Dollars in millions)Nine months ended September 30Three months ended September 302025202420252024Revenue from contracts with customers:Commercial$9,055 $8,782 $3,088 $2,882 Government6,337 5,764 2,169 1,935 Total revenues from contracts with customers15,392 14,546 5,257 4,817 Intersegment revenues eliminated on consolidation322 289 113 84 Total segment revenues$15,714 $14,835 $5,370 $4,901 Revenue recognized at a point in time53 %53 %53 %53 %Revenue recognized on fixed-price contracts86 %87 %85 %86 %Revenue from the U.S. government(1)30 %29 %30 %29 %(1)Includes revenues earned from foreign military sales through the U.S. government.Earnings in Equity Method InvestmentsDuring the nine and three months ended September 30, 2025, our share of income/(loss) from equity method investments was $47 and $17, compared to $87 and ($3) during the same periods in 2024. The income/(loss) on equity method investments in 2025 and 2024 was primarily driven by investments held at our BDS segment and in Unallocated items, eliminations, and other.BacklogOur total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model.Our backlog at September 30, 2025 was $635,688. We expect approximately 17% to be converted to revenue through 2026 and approximately 61% through 2029, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. 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.Unallocated Items, Eliminations and OtherUnallocated items, eliminations and other include common internal services that support Boeing’s global business operations and