Fourth Quarter 2025
- Acquired Spirit AeroSystems in December underscoring commitment to safety, quality, and production stability
- Revenue increased to $23.9 billion primarily reflecting 160 commercial deliveries
- Earnings reflects $9.6 billion gain on sale associated with closing the Digital Aviation Solutions transaction
- Operating cash flow of $1.3 billion and free cash flow (non-GAAP)* of $0.4 billion
Full Year 2025
- Revenue of $89.5 billion and 600 commercial deliveries reflect the highest annual totals since 2018
- Total company backlog grew to a record $682 billion, including over 6,100 commercial airplanes
| Table 1. Summary Financial Results | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions, except per share data) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||||
| Revenues | $23,948 | $15,242 | 57 % | $89,463 | $66,517 | 34 % | ||||||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||||
| Earnings/(loss) from operations | $8,777 | ($3,770) | NM | $4,281 | ($10,707) | NM | ||||||||||||||||||||||||||||||||
| Operating margins | 36.7 | % | (24.7) | % | NM | 4.8 | % | (16.1) | % | NM | ||||||||||||||||||||||||||||
| Net earnings/(loss) | $8,220 | ($3,861) | NM | $2,238 | ($11,829) | NM | ||||||||||||||||||||||||||||||||
| Diluted earnings/(loss) per share | $10.23 | ($5.46) | NM | $2.48 | ($18.36) | NM | ||||||||||||||||||||||||||||||||
| Operating cash flow | $1,331 | ($3,450) | NM | $1,065 | ($12,080) | NM | ||||||||||||||||||||||||||||||||
| Non-GAAP* | ||||||||||||||||||||||||||||||||||||||
| Core operating earnings/(loss) | $8,519 | ($4,042) | NM | $3,236 | ($11,811) | NM | ||||||||||||||||||||||||||||||||
| Core operating margins | 35.6 | % | (26.5) | % | NM | 3.6 | % | (17.8) | % | NM | ||||||||||||||||||||||||||||
| Core earnings/(loss) per share | $9.92 | ($5.90) | NM | $1.19 | ($20.38) | NM | ||||||||||||||||||||||||||||||||
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
The Boeing Company [NYSE: BA] recorded fourth quarter revenue of $23.9 billion, reflecting improved operational performance and higher commercial delivery volume. GAAP earnings per share of $10.23 and core earnings per share (non-GAAP)* of $9.92 primarily reflect a $9.6 billion gain on sale associated with closing the Digital Aviation Solutions transaction, which increased earnings per share by $11.83. The company reported operating cash flow of $1.3 billion and free cash flow (non-GAAP)* of $0.4 billion. Total company backlog grew to a record $682 billion primarily reflecting 1,173 Commercial Airplanes net orders in the year, with all three segments at record levels.
“We made significant progress on our recovery in 2025 and have set the foundation to keep our momentum going in the year ahead,” said Kelly Ortberg, Boeing president and chief executive officer. “We completed the acquisition of Spirit AeroSystems and the sale of portions of the Digital Aviation Solutions business and remain focused on promoting stable operations, completing our development programs, rebuilding trust with our stakeholders, and fully restoring Boeing to the iconic company we all know it can be.”
| Table 2. Cash Flow | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||
| (Millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
| Operating cash flow | $1,331 | ($3,450) | $1,065 | ($12,080) | ||||||||||||||||||||||||||
| Less additions to property, plant & equipment | ($956) | ($648) | ($2,942) | ($2,230) | ||||||||||||||||||||||||||
| Free cash flow* | $375 | ($4,098) | ($1,877) | ($14,310) | ||||||||||||||||||||||||||
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
Operating cash flow was $1.3 billion in the quarter reflecting higher commercial deliveries, as well as working capital timing. Additions to property, plant and equipment primarily reflects higher investments in Charleston and Saint Louis sites.
| Table 3. Cash, Marketable Securities and Debt Balances | Quarter End | |||||||||||||
| (Billions) | 4Q 2025 | 3Q 2025 | ||||||||||||
| Cash and investments in marketable securities1 | $29.4 | $23.0 | ||||||||||||
| Consolidated debt | $54.1 | $53.4 | ||||||||||||
| 1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.” |
Cash and investments in marketable securities totaled $29.4 billion, compared to $23.0 billion at the beginning of the quarter, primarily driven by $10.6 billion in proceeds associated with closing the Digital Aviation Solutions transaction and free cash flow generated in the quarter, partially offset by debt repayment associated with the acquisition of Spirit AeroSystems. Debt was $54.1 billion, up from $53.4 billion at the beginning of the quarter, primarily reflecting the acquisition of Spirit AeroSystems. The company maintains access to credit facilities of $10.0 billion, which remain undrawn.
Segment Results
Commercial Airplanes
| Table 4. Commercial Airplanes | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||||
| Deliveries | 160 | 57 | 181 % | 600 | 348 | 72 % | ||||||||||||||||||||||||||||||||
| Revenues | $11,379 | $4,762 | 139 % | $41,494 | $22,861 | 82 % | ||||||||||||||||||||||||||||||||
| Loss from operations | ($632) | ($2,090) | NM | ($7,079) | ($7,969) | NM | ||||||||||||||||||||||||||||||||
| Operating margins | (5.6) | % | (43.9) | % | NM | (17.1) | % | (34.9) | % | NM | ||||||||||||||||||||||||||||
Commercial Airplanes fourth quarter revenue of $11.4 billion and operating margin of (5.6) percent primarily reflect higher deliveries and improved operational performance. Results also include impacts associated with the acquisition of Spirit AeroSystems.
During the quarter, the 737 program increased the production rate to 42 per month and received approval from the Federal Aviation Administration to begin the final phase of 737-10 certification flight testing. The 787 program began transitioning production to eight per month and remains focused on stabilizing at that rate. In the quarter, the 777X program began the Type Inspection Authorization 3 phase of 777-9 certification flight testing, and the company still anticipates first delivery in 2027.
Commercial Airplanes booked 336 net orders in the quarter, including 105 737-10 and 5 787-9 airplanes for Alaska Airlines and 65 777-9 airplanes for Emirates. Commercial Airplanes delivered 160 airplanes and backlog included over 6,100 airplanes valued at a record $567 billion.
Defense, Space & Security
| Table 5. Defense, Space & Security | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||||
| Revenues | $7,417 | $5,411 | 37 % | $27,234 | $23,918 | 14 % | ||||||||||||||||||||||||||||||||
| Loss from operations | ($507) | ($2,267) | NM | ($128) | ($5,413) | NM | ||||||||||||||||||||||||||||||||
| Operating margins | (6.8) | % | (41.9) | % | NM | (0.5) | % | (22.6) | % | NM | ||||||||||||||||||||||||||||
Defense, Space & Security fourth quarter revenue of $7.4 billion and operating margin of (6.8) percent reflect stabilizing operational performance and higher volume. Results also include $0.6 billion of losses on the KC-46A program primarily driven by higher estimated production support and supply chain costs.
During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, secured a contract from the U.S. Army for 96 AH-64E Apache helicopters, and delivered the first operational T-7A Red Hawk to the U.S. Air Force at Joint Base San Antonio-Randolph. Backlog at Defense, Space & Security grew to a record $85 billion, with 26 percent representing orders from customers outside the U.S.
Global Services
| Table 6. Global Services | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||||
| Revenues | $5,209 | $5,119 | 2 % | $20,923 | $19,954 | 5 % | ||||||||||||||||||||||||||||||||
| Earnings from operations | $10,544 | $998 | NM | $13,474 | $3,618 | NM | ||||||||||||||||||||||||||||||||
| Operating margins | 202.4 | % | 19.5 | % | NM | 64.4 | % | 18.1 | % | NM | ||||||||||||||||||||||||||||
Global Services fourth quarter revenue was $5.2 billion driven by higher government volume. Operating margin of 202.4 percent primarily reflects a $9.6 billion gain on sale associated with closing the Digital Aviation Solutions transaction.
Global Services secured record annual orders of $28 billion, including an award in the quarter for C-17 flight deck replacement from the U.S. Air Force, and ended the year with a record backlog of $30 billion.
Additional Financial Information
| Table 7. Additional Financial Information | Fourth Quarter | Full Year | ||||||||||||||||||||||||
| (Dollars in Millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Unallocated items, eliminations and other | ($57) | ($50) | ($188) | ($216) | ||||||||||||||||||||||
| Earnings/(loss) from operations | ||||||||||||||||||||||||||
| Unallocated items, eliminations and other | ($886) | ($683) | ($3,031) | ($2,047) | ||||||||||||||||||||||
| FAS/CAS service cost adjustment | $258 | $272 | $1,045 | $1,104 | ||||||||||||||||||||||
| Other income, net | $201 | $432 | $1,125 | $1,222 | ||||||||||||||||||||||
| Interest and debt expense | ($659) | ($755) | ($2,771) | ($2,725) | ||||||||||||||||||||||
| Effective tax rate | 1.2 | % | 5.7 | % | 15.1 | % | 3.1 | % | ||||||||||||||||||
Unallocated items, eliminations and other primarily reflects timing of allocations.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings/(Loss), Core Operating Margins and Core Earnings/(Loss) Per Share
Core operating earnings/(loss) is defined as GAAP Earnings/(loss) from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margins is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP Diluted earnings/(loss) per share excluding the net earnings/(loss) per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings/(loss), core operating margins and core earnings/(loss) per share for purposes of evaluating and forecasting underlying business performance. Management believes these core measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is provided on page 12 and 13.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for a reconciliation of free cash flow to the most directly comparable GAAP measure, operating cash flow.