Company: BA
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047023
Chunk: 26

Company: BOEING CO
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 3
Chunk 26
---
B, and commercial and military satellites. A number of our ongoing fixed-price development programs have reach-forward losses. New programs could also have risk for reach-forward loss upon contract award and during the period of contract performance. Many development programs have highly complex designs. As technical or quality issues arise during development, we may experience schedule delays and cost impacts, which could increase our estimated cost to perform the work or reduce our estimated price, either of which could result in a material charge or otherwise adversely affect our financial condition. These programs are ongoing, and while we believe the cost and fee estimates incorporated in the financial statements are appropriate, the technical complexity of these programs creates financial risk as additional completion costs may become necessary or scheduled delivery dates could be extended, which could trigger termination provisions or other financially significant exposure. Risk remains that we may be required to record additional reach-forward losses in future periods.

Approximately 3,200 International Association of Machinists and Aerospace Workers District 837 (IAM 837) represented employees at our St. Louis area sites have been on strike since August 4, 2025. This is disrupting our St. Louis operations. Programs impacted include F/A-18, F-15, T-7A, MQ-25 and Weapons. If we are unable to successfully negotiate a new contract with IAM 837 and the strike continues for a prolonged period, our financial position, results of operations and cash flows could be materially impacted.

49

Global Services

Results of Operations

(Dollars in millions)Nine months ended September 30Three months ended September 302025202420252024Revenues$15,714 $14,835 $5,370 $4,901 Earnings from operations$2,930 $2,620 $938 $834 Operating margins18.6%17.7%17.5%17.0%

Revenues

BGS revenues for the nine months ended September 30, 2025 increased by $879 million compared with the same period in 2024, primarily due to higher government and commercial services revenue. The net unfavorable impact of cumulative contract catch-up adjustments for the nine months ended September 30, 2025 was $93 million lower than the prior year comparable period.

BGS revenues for the three months ended September 30, 2025 increased by $469 million compared with the same period in 2024, primarily due to higher commercial and government services revenue. The net favorable impact of cumulative contract catch-up adjustments for the