Boeing Defense, Space, and Security Q3 Revenue Increases to $5.7 Billion
Boeing Defense, Space, and Security third-quarter revenue increased to $5.7 billion. According to the release, this was driven by increased volume across government satellites, KC-46 Tanker, F/A-18 and weapons. Third-quarter operating margin was 4.3 percent, primarily reflecting $691 million of charges related to planned investments in the T-X and MQ-25 programs, and $64 million related to cost growth on the KC-46 Tanker program.
During the quarter, Defense, Space, and Security won key franchise program awards including the T-X Trainer and MH-139 helicopter for the U.S. Air Force, the MQ-25 unmanned aircraft for the U.S. Navy, and the fourth KC-46 Tanker production lot. Significant milestones during the quarter included first flights of the Apache and Chinook for the Indian Air Force and receipt of Supplemental Type Certification for the KC-46 Tanker program, signifying completion of Federal Aviation Administration (FAA) certification. Boeing also acquired of Millennium Space Systems, to provide customers with small-satellite technologies and solutions.
Backlog at Defense, Space, and Security was $58 billion, of which 31 percent represents orders from customers outside the United States. Defense, Space, and Security revenue guidance increased to between $22.5 and $23.0 billion from between $22.0 and $23.0 billion, driven by higher volume and margin guidance, and is adjusted to greater than 6.5 percent from between 10 percent and 10.5% primarily to account for the investments in the business.