Boeing Surprises With $34 Billion In Defense Contract Wins

Oct. 08, 2024 5:25 AM ETThe Boeing Company (BA) StockLMT
(9min)

Summary

  • Boeing's defense contract value surged to $34 billion, nearly doubling year-over-year, driven by aircraft and bomb programs despite challenges in other areas.
  • Excluding indefinite delivery/indefinite quantity contracts, BA's contract value still increased by 40% year-over-year, highlighting strong demand for profitable legacy programs.
  • Boeing's defense segment faces profitability issues due to fixed-price contracts on next-generation programs, resulting in significant losses and margin fluctuations.
  • The Company needs to align engineering with monetary gains and avoid fixed-priced development contracts to improve profitability and leverage its strong backlog.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Closeup of the Blue Angels FA-18 Super Hornet at the Dayton Air Show 2022 in Dayton, Ohio, USA

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The financial year for the Department of Defense ended on the 30th of September. That provides a good moment to see how much contract value has been secured by the primary defense contractors. In a previous report, I

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This article was written by

Dhierin Bechai profile picture
17.21K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

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