A new report by consulting firm McAleese & Associates says Boeing’s (NYSE: GD) defense, space and security business recorded $6.6B in sales for the first quarter of 2029, reflecting a 2 percent rise from the prior year period.
Jim McAleese, founder and principal of McAleese & Associates and a 2019 Wash100 winner, wrote the BDS segment reported an operating margin of 12.8 percent and saw its operating profit climb 12 percent in Q1 2019.
“Watch BDS sector for any continued turbulence on either USAF KC-46 ‘RVS’ redesign or potential future cost-growth on emerging $3.9B firm-fixed-price Presidential Aircraft Recapitalization,” McAleese said.
Boeing said Wednesday the increase in the BDS segment’s first-quarter revenue was primarily driven by higher volume across weapons, satellites and surveillance aircraft. BDS booked $12B in Q1 orders and saw its backlog rise to $67B.
McAleese noted that Boeing’s global services business realized a 17 percent increase in Q1 2019 sales driven by the company’s acquisition of Florida-based aviation parts and services provider KLX in 2018. The business also posted a 1 percent growth in profit and an operating margin of 14.1 percent in the previous quarter.