The Boeing Company
Boeing is a U.S.-based aerospace company organized around three businesses: commercial jetliners, defense and space systems, and global services. Its commercial aircraft unit designs and sells the 737, 767, 777 and 787 families, while its defense unit builds military aircraft, weapons, satellites and space systems for government customers. The services unit supports aircraft and fleets across their life cycle with maintenance, training, logistics, engineering and upgrades. Boeing’s business is shaped by long development cycles, heavy regulation, large backlog commitments and close exposure to airline, government and supply-chain conditions.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueDesign, production and sale of commercial jetliners for passenger and cargo airlines worldwide.
Military aircraft, weapons, missile defense, satellites, space and intelligence systems for government customers.
Aftermarket and lifecycle support including maintenance, training, logistics, engineering and upgrades.
Corporate eliminations and other items not assigned to operating segments.
Products
Reported · share of revenue- Products84.2 %
- Services15.8 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Boeing sells primarily to commercial airlines, leasing companies and cargo operators that need new aircraft and long-term support services. A large share of Commercial Airplanes backlog is with non-U.S. airlines, so international carriers are central to the business. In defense and space, the main customers are the U.S. government, allied governments and related agencies that buy aircraft, missile systems, satellites and support services. Global Services serves both commercial and government fleets, with demand driven by aircraft utilization, fleet age, maintenance needs and operators’ desire to outsource parts of the value chain.
Buy 737, 767, 777 and 787 aircraft to expand fleets, replace older planes and support passenger and cargo demand.
Buy military aircraft, weapons, satellites, intelligence systems and support services for national security missions.
Buy maintenance, engineering, training, logistics and modifications to keep aircraft in service longer and improve efficiency.
Buy aircraft or services to support freight demand and fleet flexibility, often with long delivery horizons.
Buy across both commercial and defense portfolios, reflecting Boeing’s dependence on global markets.
Strategy
Boeing’s strategy centers on restoring stable production, improving quality and certification execution, and converting its large backlog into deliveries and cash flow. In commercial aircraft, the company is focused on ramping output, resolving certification delays on the 777X, 737-7 and 737-10, and competing on safety, efficiency and value. In defense, Boeing is trying to stabilize fixed-price development programs while benefiting from sustained demand for national security capabilities in the U.S. and abroad. In services, the priority is to grow share by leveraging the installed base of aircraft and the need for maintenance, logistics, training and upgrades over the life of the fleet.
Higher and more reliable output is necessary to convert backlog, reduce delivery delays and restore customer confidence.
These programs are central to future commercial competitiveness and backlog conversion, but delays can defer revenue and trigger charges.
Aftermarket services provide recurring demand and help offset the cyclicality of aircraft sales.
Fixed-price development programs have created charges, so execution discipline is needed to protect earnings and cash flow.
Geography
Boeing is headquartered in the United States, but its commercial business is heavily international: management states that about 85% of Commercial Airplanes backlog, in dollar terms, is with non-U.S. airlines. The company also notes that non-U.S. customers, including foreign military sales, accounted for about 46% of total revenues in 2024 and about 70% of Commercial Airplanes revenue from customer contracts. U.S. government demand is especially important in defense and services, while non-U.S. markets are critical for commercial aircraft deliveries and future backlog conversion. This geographic mix creates exposure to tariffs, export controls, sanctions, currency movements, trade policy and foreign regulatory approvals.
Risks
Boeing faces substantial execution risk because its commercial aircraft programs depend on certification, production stability and customer confidence, and delays or quality issues can quickly affect deliveries and backlog. The company is also exposed to cyclical airline demand, since airline profitability, financing conditions, fuel prices, geopolitics and macroeconomic shocks can cause customers to defer or cancel orders. Defense and space programs carry fixed-price development risk, where technical problems, schedule slippage and estimate changes can produce large charges. In addition, Boeing’s global footprint creates exposure to tariffs, export controls, sanctions, currency swings and foreign regulatory actions, while cyber incidents and supply-chain disruptions could interrupt operations or compromise sensitive data.
- Commercial aircraft certification and delivery delaysImpact: HighLikelihood: High
The 777X, 737-7 and 737-10 have experienced significant certification delays, which can postpone revenue recognition and weaken customer confidence.
Exposure: Commercial Airplanes backlog and deliveries
- Airline demand cyclicalityImpact: HighLikelihood: High
Commercial aircraft orders depend on airline traffic, profitability, financing access and macro conditions, so downturns can reduce orders or cause cancellations.
Exposure: Commercial Airplanes and related services
- Fixed-price development program lossesImpact: HighLikelihood: High
Defense and space programs can require large estimate revisions when technical or schedule assumptions change, creating earnings charges.
Exposure - Global trade and geopolitical exposureImpact: MediumLikelihood: High
A large share of revenue and backlog comes from non-U.S. customers, making Boeing sensitive to tariffs, sanctions, export controls and foreign policy changes.
Exposure: International commercial and defense sales
- Cybersecurity and supply-chain disruptionImpact: MediumLikelihood: High
A breach or supplier failure could interrupt operations, compromise sensitive data or delay production and support services.
Exposure: Enterprise-wide operations and customer data
Accounting
Judgemental itemsChanges in cost-to-complete assumptions can materially change current-period revenue and profit recognition.
Impact: Can swing operating income and margins quarter to quarter.
Estimated accounting quantities and production costs determine margins on undelivered units, especially for 777X and 737 derivatives.
Impact: Can create large earnings charges if assumptions worsen.
Orders may be excluded from backlog if customer commitment, contingencies or collectability are uncertain.
Impact: Affects reported backlog size and future revenue visibility.
When estimated costs exceed revenues, Boeing must record losses immediately rather than over the life of the contract.
Impact: Can materially depress earnings in defense and space.
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Last updated: 24/09/2026