Boeing Company

What Boeing does

Boeing is a global aerospace company organized into three reportable segments:
- Commercial Airplanes (BCA): develops, produces and markets commercial jet aircraft for airlines worldwide.
- Defense, Space & Security (BDS): conducts research, development, production and modification of military aircraft, weapons systems, space systems and related services.
- Global Services (BGS): provides life-cycle services for commercial and defense customers, including training, fleet services, maintenance, modifications, spare parts and digital solutions.
Intellectual property: maintains a large portfolio of patents and licenses, including licenses with the U.S. government, and licenses IP to and from third parties.
Customers and markets: serves airlines, U.S. and international government customers, and other defense and commercial customers worldwide.
Recent activity: closed the Spirit acquisition in December 2025 and continues divestitures and strategic partnerships.

Product focus: broad family of commercial jetliners (737, 767, 777, 787) and development of derivatives such as 777X, 737-7 and 737-10.
Production and certification: works with the FAA and other national aviation authorities; certification timing and production rates affect delivery schedules and program profitability.
Customer geography: non-U.S. customers accounted for 46% of total revenues in 2025; 60% of BCA revenue came from non-U.S. customer contracts in 2025.
Key risks: production health, supplier coordination, certification delays, cost overruns and potential customer remedies from delivery delays.

Product focus: defense aircraft, missiles and weapons systems, space systems (including satellites and launches), cyber and information solutions, and related services.
Revenue mix: approximately 60% of BDS revenues come from fixed-price contracts and about 40% from cost-type contracts.
Government dependence: a substantial share of revenue comes from U.S. government contracts (around 35% of total revenues in 2025).
Key risks: budgeting and procurement cycles, fixed-price program losses, development and production challenges, and potential penalties or contract terminations.
Program example: in 2024, BDS recorded about $5.0 billion of additional losses on five major fixed-price development programs (including KC-46A, T-7A, Commercial Crew, VC-25B and MQ-25).

Focus: life-cycle services across Boeing platforms, including training, logistics, maintenance, upgrades and digital/analytic solutions.
Revenue and profitability are tied to services performed across Boeing platforms and programs, including post-delivery support and upgrades.

Total workforce: approximately 182,000 employees as of December 31, 2025.
Global footprint: about 14% of employees located outside the United States.
Union representation: roughly 72,000 union members (about 40% of the workforce) with 32 independent U.S. agreements across nine unions; 18 employee representative bodies internationally.
Labor events: IAM District 751 strike in 2024 (53 days) and IAM District 837 strike in 2025 (101 days).
Training and development: employees completed about 5.8 million hours of learning in 2025; roughly 12,000 employees used tuition assistance for degrees or certificates.

Debt and financing:
- Total debt: approximately $54.1 billion.
- Near-term obligations: about $15.5 billion due over the next three years.
- Aircraft financing commitments: about $15.2 billion.
Equity and potential dilution:
- 6.00% Series A Mandatory Convertible Preferred Stock: dividends accrue at 6.0% of the $1,000 liquidation preference per share, with up to $345 million of cash per year in dividends through the conversion date (October 15, 2027). The preferred stock converts automatically on or about October 15, 2027 into between 5.8280 and 6.9940 shares of common stock per preferred share, subject to anti-dilution adjustments.
- Spirit Exchangeable Notes: $230 million outstanding, exchangeable into Boeing common stock; exchange could result in issuance of common stock.
Revenue composition:
- U.S. government contracts represented about 35% of revenues in 2025.
- Non-U.S. customers accounted for about 46% of total revenues in 2025.
- BCA: 60% of revenue from non-U.S. customer contracts in 2025.
Recent integration: the Spirit acquisition closed in December 2025; integration presents potential synergies and integration risks.

Exposure to defense and commercial cycle fluctuations, supply chain and labor disruptions, regulatory and environmental compliance costs, and potential cost overruns on fixed-price contracts.
Environmental and climate-related regulatory developments may affect costs and reporting.
Cybersecurity, IT infrastructure and data security are ongoing operational risks.

Intellectual property and licensing: government licenses may affect how certain inventions are used for government purposes.
Backlog and delivery risk: long production horizons and customer delivery commitments create sensitivity to macroeconomic conditions, customer financial health and regulatory approvals.

Boeing operates three core segments—Commercial Airplanes, Defense, Space & Security, and Global Services—covering commercial aircraft, defense and space systems, and life-cycle services.
The company generates a substantial portion of revenue from non-U.S. customers and from U.S. government contracts, with a mix of fixed-price and cost-type contracts in defense.
Boeing employs roughly 182,000 people, has notable union representation and experienced major labor actions in recent years.
The company carries substantial debt, has near-term obligations and aircraft financing commitments, and is integrating the Spirit acquisition while pursuing production-rate increases and cost-reduction efforts.