Corporate Intelligence · Plain English · No Spin
S&P 500 · S&P 500 BA · NYSE
Boeing Co
cyclical mature-market
Revenue
$89B
↑ 34% vs prior year
Gross margin
4.8%
↑ from -3.0%
Net debt
$43B
↓ 8% vs prior year
Free cash flow
−$2B
↑ 87% vs prior year
1916 2025
1916 Boeing Founded
1928 Airplane & Transport Corp
1929 United Aircraft and Transport
1934 Split from Airlines
1960 Vertol Helicopter Purchase
1997 McDonnell Douglas Merger
Wikipedia history · XBRL financial data

Boeing makes money three ways. Its Commercial Airplanes division builds and sells jets — the 737, 767, 777, and 787 — to airlines around the world. Its Defense, Space & Security division builds military aircraft, missiles, satellites, and space systems, mostly for the U.S. government. Its Global Services division sells spare parts, repairs, training, and maintenance to both airlines and military customers. Each delivery of an airplane triggers a payment. Each service contract generates recurring fees. The three divisions together produced $89.5 billion in revenue in 2025. The diagram below traces where the money goes.

How Boeing Makes Money
flowchart TD A["Commercial Jets Built\n737, 777, 787"] --> C["Airline and Government\nCustomers Buy Jets"] B["Military Aircraft and\nSatellites Built"] --> C C -->|"$75.4B/yr products"| F["Total Revenue\n$89.5B"] C --> D["Installed Fleet\nWorldwide In Service"] D --> E["Ongoing Services\nParts, Repairs, Training"] E -->|"$14.1B/yr services"| F F --> G["Reinvest in Design\nand Production"] G --> A G --> B

Five years of financial data tell a story of a company that has been through serious damage and is trying to climb back. Revenue fell from $66.3 billion in 2021 to a low of $66.5 billion in 2024 — almost no growth over four years — before jumping sharply to $89.5 billion in 2025. But revenue alone does not tell the full story. The real picture is in the cash and the losses underneath.

Boeing Annual Revenue (2021–2025)
2021
$62.3B
2022
$66.6B
2023
$77.8B
2024
$66.5B
2025
$89.5B
Revenue in billions of USD. The sharp drop in 2024 reflects the 737-9 door plug accident, a 53-day machinists' strike, and lower deliveries. The 2025 surge reflects delivery recovery and the acquisition of Spirit AeroSystems.

In 2021, Boeing burned through $4.4 billion more cash than it generated — it was spending far more than it was taking in. By 2023 it had turned that around, generating $4.4 billion in free cash flow. Then 2024 hit hard. A door plug blew out of a 737-9 mid-flight in January 2024. The FAA launched an investigation and forced Boeing to slow production. A 53-day strike by 30,000 machinists halted almost all commercial aircraft assembly. Boeing burned $14.3 billion in cash that year — its worst cash performance in the five-year window. The net loss for 2024 reached $11.8 billion.

-$14.3B
Free cash flow in 2024 — Boeing's worst in the five-year period, driven by the 737-9 accident, production slowdowns, and the IAM machinists' strike

In 2025, revenue bounced back strongly — partly because deliveries recovered, and partly because Boeing completed two big transactions. It sold its Digital Aviation Solutions business for $10.55 billion in cash. It also acquired Spirit AeroSystems, the supplier that makes fuselages for the 737, 767, 777, and 787, by exchanging roughly $4.7 billion in Boeing shares. These moves reshaped the balance sheet and the revenue line at the same time. But even with $89.5 billion in revenue, free cash flow was still negative at $1.9 billion, and net debt rose to $43.2 billion.

What is gross margin?
Gross margin is the percentage of revenue left after paying the direct costs of making the product — materials, labor, and manufacturing. A positive gross margin means Boeing earns more from each airplane than it costs to build. A negative gross margin means it is losing money on every delivery before even paying for offices, engineers, or interest on its debt.

The gross margin numbers show how deep the production problems ran. In 2023, gross margin was nearly 10% — Boeing was covering its direct costs and then some. In 2024, gross margin turned negative, dropping to roughly minus 3%. Boeing was spending more to build and deliver airplanes than customers were paying for them. In 2025, gross margin recovered to around 5%, but that is still well below the 2023 level. The Commercial Airplanes division lost $7.1 billion from operations in 2025 — a division that is supposed to be the heart of the business.

-$8.0B
BCA operating loss 2024
-$7.1B
BCA operating loss 2025
Commercial Airplanes lost money in both years. Higher deliveries in 2025 narrowed the loss, but $5.3 billion in reach-forward losses on the 777X and 767 programs kept the division deep in the red.

The division that actually made money in 2025 was Global Services, which recorded $13.5 billion in operating earnings. But a large portion of that came from the one-time sale of the Digital Aviation Solutions business — not from recurring services revenue. Strip that out and the underlying profit picture looks much thinner.

2024
crisis
The door plug accident and its aftermath
On January 5, 2024, a mid-exit door plug detached from a 737-9 during flight. The FAA investigated Boeing's quality control systems, imposed production restrictions, and required FAA sign-off before any production rate increases. Boeing slowed its 737 line, halted planned rate increases, and absorbed billions in costs from lower deliveries. The company entered 2025 rebuilding from below 38 aircraft per month on the 737 line.

Now consider the risks documented in Boeing's own filings. They are specific and serious. The 777X, Boeing's next-generation wide-body jet, has accumulated $4.9 billion in losses in 2025 alone. It is still in certification flight testing — the third phase only began in November 2025. First delivery has been delayed again. The 737-7 and 737-10 variants are also still awaiting FAA certification, expected in 2026. Until those certifications arrive, Boeing cannot deliver those aircraft and cannot book the revenue they represent.

$682B
Total order backlog at December 31, 2025 — representing future contracted revenue if Boeing can build and deliver the planes

The backlog of $682 billion sounds reassuring — it means airlines want Boeing's planes. But backlog is only valuable if Boeing can actually deliver. The 737 line was running at 42 aircraft per month at the end of 2025, with plans to reach 47 in 2026 — but only with FAA approval. Any further quality incident, strike, or supply chain breakdown could push that back. About 40% of Boeing's workforce — 72,000 people — are covered by union contracts. The machinists' contract in Washington state does not expire until September 2028, but the engineers' contracts at SPEEA come up in October 2026.

What are fixed-price contracts?
A fixed-price contract means Boeing agrees to deliver a product for a set price — no matter what it actually costs to build. If costs rise due to inflation, supplier problems, or technical delays, Boeing absorbs the loss. About 60% of the Defense division's revenue comes from these contracts, which is why cost overruns there can cause sudden, large losses.

The Defense division recorded $5.0 billion in additional losses in 2024 on fixed-price development programs — programs like the T-7A Red Hawk trainer, the KC-46A Tanker, and the MQ-25 drone. In 2025, a 101-day strike at St. Louis disrupted the F/A-18, F-15, T-7A, and MQ-25 programs. The division is stabilizing but still losing money from operations. Meanwhile, about 35% of total Boeing revenue comes from U.S. government contracts — meaning federal budget decisions, government shutdowns, and congressional delays directly affect Boeing's cash flow. A partial government shutdown was already underway at the start of 2026.

China represents roughly 60% of commercial aircraft revenue from non-U.S. customers. During 2025, certain Chinese customers temporarily paused accepting delivery of Boeing aircraft amid tariff negotiations between the U.S. and China. A bilateral pause on reciprocal tariffs runs until November 2026 — after which the situation could change again.

Net debt stood at $43.2 billion at the end of 2025. Boeing paid $2.8 billion in interest expense that year. With free cash flow still negative, the company is not yet generating enough cash to pay down that debt — it is borrowing to survive while it tries to rebuild its production machine. The path back to financial health runs entirely through the ability to build and deliver more airplanes, at higher margins, without another production crisis or labor stoppage.

The Bet
Boeing's Commercial Airplanes division can reach and hold higher production rates — pushing the 737 line past 47 per month, certifying the 777X, and certifying the 737-7 and 737-10 — without triggering another quality failure, labor stoppage, or FAA-imposed slowdown. If that ramp happens on schedule, the $682 billion backlog converts into cash, gross margins recover toward 2023 levels, and the debt load becomes manageable. If the ramp stalls again — through another safety incident, another strike, another 777X delay — the losses in Commercial Airplanes continue, net debt grows, and the financial recovery timeline stretches further out.
Open question
Boeing has a backlog larger than any single number in its five-year financial history. It also has a Commercial Airplanes division that has lost money from operations in each of the last three years, a 777X program still stuck in certification, $43.2 billion in net debt, union contracts expiring in 2026, and a China relationship that paused deliveries as recently as 2025. Can Boeing execute a clean, uninterrupted production ramp — something it has not managed since before the 737 MAX groundings — or will the next disruption, whether a quality problem, a labor dispute, a tariff escalation, or a 777X setback, reset the clock again?
Compiled · 10-K · FY2025
Sales of products
$75.4B
Sales of services
$14.1B
Sales of products is the largest revenue source at 84.2% of total.
XBRL · Revenue segments · FY2025
Gross Margin Trend (5-year)
2021 2025
Gross margin moved from 4.9% (2021) to 4.8% (2025).
Operating Cash Flow (5-year)
2021
−$3B
2022
$4B
2023
$6B
2024
−$12B
2025
$1B
Cash Conversion
0.48×
At 0.48×, the company is converting less than 85 cents of operating cash per dollar of net income — worth watching over time.
XBRL · 10-K Financial Statements · FY2025
FY2025
$43B
↑ 8% year over year
FY2024
$40B
Net debt was roughly stable year over year.
XBRL · Balance Sheet · 10-K · FY2025
Robert K. Ortberg
Chief Executive Officer
$24M
DEF 14A · Proxy Statement
2026-03-03
Buckley Mortimer J
Buy
$0.50M
2026-02-24
Amuluru Uma M
EVP and Chief HR Officer
Disc.
$0.35M
2026-02-17
Schmidt Ann M
SVP, Chief Com & Brand Officer
Disc.
$1.53M
2026-02-04
Amuluru Uma M
EVP and Chief HR Officer
Disc.
$0.64M
2026-02-05
McKenzie Howard E
Chief Engineer & EVP, ET&T
Disc.
$2.46M
2025-11-24
DEASY DANA S
CIDO, SVP IDT&S
Buy
$0.10M
2025-11-06
Amuluru Uma M
EVP and Chief HR Officer
Disc.
$0.27M
2025-08-19
Buckley Mortimer J
Buy
$0.50M
2025-08-08
Raymond David Christopher
EVP, Pres. & CEO, BGS
Disc.
$0.87M
2025-05-15
Nelson Brendan J.
SVP, President, Boeing Global
Disc.
$0.13M
3 purchases and 14 sales by insiders over the past two years.
Form 4 · SEC filings · Last 24 months
Newport Trust Company, LLC
5.3%
Vanguard Group
BlackRock
State Street
Fidelity (FMR LLC)
Geode Capital Management
T. Rowe Price
JPMorgan Asset Mgmt
Newport Trust Company, LLC is the largest institutional holder with 5.3% of shares outstanding.
13F filings
Production and Delivery
Boeing's 777X aircraft program has cost the company $4.9 billion in losses in 2025 alone due to production challenges, certification delays, and higher labor and supplier costs. The company is also planning major increases to production rates on several aircraft models, but these increases could be delayed or fail to happen if production systems aren't ready or if the FAA doesn't approve them.
Labor Disputes
About 40% of Boeing's workforce (72,000 employees) are represented by labor unions. In 2024, a 53-day strike by machinists in Washington state halted production of most commercial aircraft, and in 2025, a 101-day strike at St. Louis facilities disrupted defense programs. Future strikes could severely damage the company's ability to deliver products and meet customer commitments.
Fixed-Price Contracts
Boeing's defense business gets about 60% of revenue from fixed-price contracts where the company absorbs costs if expenses exceed estimates. In 2024, the defense division recorded $5.0 billion in additional losses on five major development programs, and cost overruns on these long-term contracts can significantly reduce profits.
U.S. Government Funding
About 35% of Boeing's revenue comes from U.S. government contracts. Changes in defense spending priorities, budget cuts, delays in congressional appropriations, or government shutdowns could reduce orders, delay payments, and harm the FAA's ability to certify new aircraft.
International Trade and Tariffs
About 46% of Boeing's total revenue and 60% of commercial aircraft revenue comes from non-U.S. customers, particularly China. Tariffs, trade restrictions, and geopolitical tensions—especially between the U.S. and China—have already caused some Chinese customers to pause deliveries and could significantly reduce sales and market share.
10-K Item 1A · Risk Factors
Cash vs earnings
AR growth
Inventory
Share dilution
Debt trend
One-time charges
Goodwill
Customer conc.
Nothing flagged.
10-K · XBRL · Computed signals