Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 118

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 118
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 in revenue was partially offset by the absence of a favorable MQ-25 contract modification that was awarded during the first quarter of 2024.

BDS revenues for the three months ended September 30, 2025, increased by $1,366 million compared with the same period in 2024. The increase reflects $830 million lower net unfavorable cumulative contract catch-up adjustments. The increase also reflects higher volume of $525 million primarily on E-7, KC-46A, and weapons programs.

Earnings/(Loss) From Operations

BDS earnings from operations for the nine months ended September 30, 2025, was $379 million, compared with a loss from operations of $3,146 million in the same period in 2024. The year-over-year improvement in earnings is primarily due to lower net unfavorable cumulative catch-up adjustments of $3,714 million compared to the prior year comparable period. During the nine months ended September 

48

30, 2024, losses incurred on the five major fixed-price development programs totaled $3,302 million. Losses on the five major development programs were not significant in 2025. In addition, the year over year earnings improvement reflects higher earnings from other programs including fighters, P-8, satellites and weapons.

BDS earnings from operations was $114 million for the three months ended September 30, 2025, compared with loss from operations of $2,384 million in the same period in 2024. The year over year improvement in earnings reflects a decrease in net unfavorable cumulative contract catch-up adjustments which were $2,362 million lower than the comparable period in the prior year. Higher volume also contributed to the comparative earnings increase. During the third quarter of 2024, losses incurred on the five major fixed-price development programs totaled $2,036 million. In addition, earnings in 2024 were adversely impacted by lower earnings on several programs including fighters, P-8 and E-7, reflecting production and engineering inefficiencies.

See further discussion of fixed-price contracts in Note 11 to our Condensed Consolidated Financial Statements.

BDS earnings/(loss) from operations includes our share of earnings from equity method investments of $30 million and $10 million for the nine and three months ended September 30, 2025, compared with $104 million and $9 million for the same periods in 2024.

Backlog

BDS backlog was $76,084 million at September 30, 2025 compared with $64,023 million