Boeing Defense, Space, and Security Revenues Remain Stable in Q1
Boeing reported its Q1 results, in which its Defense, Space, and Security segment saw revenue increase to $6.6 billion, a 2 percent increase compared to the same period last year. According to the release, this is primarily driven by higher volume across satellites, weapons, and surveillance aircraft partially offset by lower C-17 volume. First-quarter operating margin increased to 12.8 percent reflecting a gain on sale of property partially offset by unfavorable mix.
During the quarter, Defense, Space, and Security was awarded a multi-year contract for 78 F/A-18 Super Hornets for the U.S. Navy as well as contracts for five Extra Large Unmanned Undersea Vehicles for the U.S. Navy, 5 E-7 AEW&C aircraft for the U.K. Royal Air Force, and 19 P-8 Poseidon aircraft for the U.S. Navy, Royal Norwegian Air Force, and U.K. Royal Air Force. Key milestones achieved during the quarter included completion of the first Ground-based Midcourse Defense test with two interceptors, successful environmental testing of the Commercial Crew spacecraft, and the first flight of the SB>1 DEFIANT helicopter. Defense, Space, and Security also delivered the first 7 KC-46 Tankers to the U.S. Air Force.
Defense, Space, and Security booked orders valued at $12 billion during the quarter and backlog grew to $67 billion, of which 31 percent represents orders from customers outside the U.S.