Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 39

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 39
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 contracts at our Global Services (BGS) segment are long-term contracts with the U.S. government and other customers that generally extend over several years. Cost of sales for commercial spare parts is recorded at average cost.

The following table summarizes cost of sales:

(Dollars in millions)Nine months ended September 30Three months ended September 3020252024Change20252024ChangeCost of sales$63,038 $51,677 $11,361 $25,645 $21,347 $4,298 Cost of sales as a % of Revenues96.2%100.8 %(4.6)%110.2 %119.7 %(9.5)%

Cost of sales for the nine months ended September 30, 2025, increased by $11,361 million, or 22%, compared with the same period in 2024, primarily due to higher revenues and an increase in reach-forward losses at BCA, partially offset by lower charges on BDS fixed-price development programs. Cost of sales as a percentage of Revenues decreased during the nine months ended September 30, 2025, 

40

compared with the same period in 2024 primarily due to lower charges on BDS fixed-price development programs, partially offset by higher reach-forward losses at BCA.

Cost of sales for the three months ended September 30, 2025, increased by $4,298 million, or 20%, compared with the same period in 2024, primarily due to higher revenues and an increase in reach-forward losses at BCA, partially offset by lower charges on BDS fixed-price development programs. Cost of sales as a percentage of Revenues decreased during the three months ended September 30, 2025, compared with the same period in 2024 primarily due to lower charges on BDS fixed-price development programs, partially offset by higher reach-forward losses at BCA.

Research and Development

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

(Dollars in millions)Nine months ended September 30Three months ended September 302025202420252024Commercial Airplanes$1,657 $1,852 $565 $779 Defense, Space & Security618 728 198 234 Global Services91 103 32 36 Other285 293 102 105 Total$2,651 $2,976 $897 $1,154 

Research and development expense decreased by $