Boeing’s defense, space and security, or BDS, business reported $6.9 billion in fiscal 2025 third-quarter revenue, up 25 percent from the prior-year period, and an operating margin of 1.7 percent.
In its earnings report published Wednesday, Boeing said the BDS segment ended the third quarter with a backlog of $76 billion, with 20 percent of orders coming from international customers.
CEO Kelly Ortberg on Boeing’s Defense Programs, Contract Wins
At the company’s quarterly earnings call Wednesday, Boeing President and CEO Kelly Ortberg said the company demonstrated stability in its estimates at completion during the quarter. He added that Boeing continues to collaborate with its suppliers and customers, and has been able to adjust contract baselines to better manage execution risks and generate win-win outcomes for the company and its customers.
“We still have work to get these programs through the development phase, and as I’ve said before, you’re never done until you’re done,” Ortberg said. “But we clearly are making progress.”
The chief executive also highlighted several key milestones for BDS during the quarter, including the delivery of the 100th KC-46 tanker across the company’s combined U.S. Air Force and global customer base.
He added that Boeing secured significant contract awards, including a $2.8 billion contract from the U.S. Space Force for the Evolved Strategic Satellite Communications program, which he said reinforces the company’s position in national security space.
“More recently, we signed multi-year contracts valued at $2.7 billion to produce additional PAC-3 seekers, leveraging the advanced investments we’ve made to ramp up quickly and meet the demand,” Ortberg noted.
Ortberg also addressed operational challenges in Saint Louis, where the IAM-represented workforce remains on strike. He noted that the company is executing its contingency plan to maintain production and support customers during the work stoppage.
“We are building JDAMs without our workforce at about the same production rate as before the work stoppage, and the team is progressing on our MQ-25 and T-7A development programs,” the Boeing official said. “We’ll continue to manage through this with a focus on supporting our customers.”
Boeing’s Q3 2025 Financial Results
Boeing reported Q3 revenue of $23.3 billion, up 30 percent from the same period the previous year, and closed the quarter with a total backlog of $636 billion.
The commercial airplanes business posted $11.1 billion in Q3 revenue, up 49 percent from the year-ago quarter. Boeing attributed the growth to 160 aircraft deliveries and the stabilization of the 737 production rate at 38 per month, with plans to increase to 42 per month following agreement with the Federal Aviation Administration. Net orders during the quarter added to the company’s robust commercial backlog.
Boeing’s global services segment, or BGS, recorded $5.4 billion in Q3 revenue, up 10 percent year-over-year, with an operating margin of 17.5 percent, reflecting favorable commercial volume and mix.
“BGS had another strong quarter delivering exceptional performance for our company as they support our defense and commercial customers,” Ortberg told analysts. “The U.S. Navy awarded Boeing contracts totaling more than $400 million for the repair of the F-18 landing gear and outer wing panels.”
