McAleese & Associates: Boeing's Defense Segment Posted $7B in Q3 Sales

A new McAleese & Associates report says Boeing™s (NYSE: BA) defense, space and security business recorded $7B in sales during the second quarter of 2019, reflecting a 2 percent increase from the prior-year period.

Jim McAleese, founder and principal of McAleese & Associates and a 2019 Wash100 winner, wrote the BDS business saw its profit rise 406 percent to $755M with an operating margin of 10.7 percent driven by a range of deliveries during the quarter.

Those deliveries include the AH-64 and CH-47 helicopters for the U.S. Army, KC-46 tanker planes for the U.S. Air Force and P-8 military aircraft for the U.S. Navy.

Boeing said Wednesday its defense business posted a backlog of $62B, of which 30 percent accounts for orders from international clients.

The company mentioned several Q3 milestones, including the completion of the initial flight test of the MQ-25 unmanned aerial refueling aircraft; the 100th flight test of the T-7A Red Hawk jet trainer; and final assembly of the Space Launch System™s core-stage structure.

Boeing™s global services sector saw its Q2 sales jump 14 percent to $4.7B, driven by higher volume in government services and acquisition of KLX, which now operates as Boeing Distribution Services. The segment™s profit climbed 23 percent to $673M with a Q3 operating margin of 14.4 percent.

In the third quarter, the global services segment also secured contracts from the Air Force for KC-46A tanker lot 5 services, A-10 Thunderbolt II re-winging support and F-15 training to Qatar.

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