McAleese & Associates: Boeing’s Defense Business Reports 13% Rise in 2018 Sales

Jim McAleese

A new report by consulting firm McAleese & Associates says Boeing’s (NYSE: GD) defense, space and security business posted $23.2B in 2018 sales, reflecting a 13 percent increase from the previous year.

The BDS segment saw its 2018 backlog rise 30 percent to $57B driven by its “buy-in” strategy associated with the U.S. Air Force’s UH-1N replacement and T-X trainer programs and the U.S. Navy’s MQ-25 project.

Jim McAleese, founder and principal at McAleese & Associates and a 2019 Wash100 winner, wrote in the report that the Chicago-based defense contractor recorded an 8 percent increase in 2018 revenue to $101B and a cash flow of $15.3B, up 15 percent from the 2017 figure.

Boeing’s global services sector saw its 2018 sales jump 17 percent to $17B and operating profit rise 12 percent to $2.5B because of 14.8 percent operating margin.

The company spent 3.2 percent of its 2018 sales on research-and-development efforts, including the BDS segment’s $788M in R&D expenses.

Boeing CEO Dennis Muilenburg said Wednesday during the earnings call that the company now openly targets the 2020 downselection for the Air Force’s $63B Ground Based Strategic Deterrent program, according to the report.

You may also be interested in...

Leidos to Buy Gibbs & Cox for $380M in Maritime Market Expansion Push; Roger Krone Quoted

Leidos (NYSE: LDOS) has agreed to acquire engineering and design firm Gibbs & Cox in …

Peter Cannito: Redwire Eyes Space Infrastructure Expansion With DSS Acquisition

Redwire, an aerospace company backed by AE Industrial Partners, has bought satellite solar array developer …