Boeing's Q2 Defense Revenue Hike Driven by KC-46, P-8 Programs; David Calhoun Quoted

Boeing’s (NYSE: BA) defense, space and security business reported $6.87 billion in sales during the second quarter of 2021, reflecting a 4 percent increase from the prior-year period.

The company said Wednesday the BDS segment’s revenue jump for the quarter was driven by a higher volume on KC-46A tanker and P-8A Poseidon maritime patrol aircraft programs.

The defense business saw its Q2 2021 operating margin rise to 13.9 percent and reported $958 million in earnings from operations with a backlog of $59 billion.

Boeing also mentioned key milestones in the quarter, such as completing the first unmanned aerial refueling of a F/A-18 Super Hornet fighter jet using MQ-25 and stacking the first core stage of NASA’s Space Launch System rocket with other Artemis I elements.

The company also booked orders, including an award for 14 H-47 extended-range Chinook helicopters in support of the U.K. air force and an agreement with Germany’s defense ministry for five P-8A Poseidon aircraft.

David Calhoun, president and CEO of Boeing, said the president’s proposed budget for fiscal year 2022 included strategic investments in the company’s products and services from across the portfolios of BDS and the company’s global services segment.

“The budget proposal demonstrates confidence in the capabilities of Boeing’s F-15Ex and Apache, as well as key commercial derivative programs, such as the KC-46 Tanker, and space programs, like the Space Launch System, SLS, among other platforms,” he said during the company’s earnings call Wednesday.

“Overall, the global defense market remains strong, and we continue to see solid global demand for our major programs,” Calhoun added.

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