Boeing Reports Q2 Revenue Increase in Space Segment, but Decrease Overall
The Boeing Company reported a Second Quarter (Q2) revenue increase to $6.6 billion in its Defense, Space, and Security segment. This is approximately an 8 percent revenue increase, compared to a Q2 2018 revenue reported at $6.6 billion. This was primarily driven by higher volume across derivative aircraft, satellites, and weapons. Q2 operating margin increased to 14.7 percent primarily due to a gain on sale of property and lower cost growth on the KC-46 Tanker program compared to Q2 2018.
During the quarter, Defense, Space, and Security received contracts for MH-47G Block II Chinook for the U.S. Army Special Operations, F/A-18 service life modification for the U.S. Navy, Joint Direct Attack Munition for the U.S. Air Force, and Wideband Global Satellite (WGS) Communication for the U.S. Air Force. Significant milestones achieved during the quarter included completion of the first T-X Trainer flight test on contract with the U.S. Air Force and the final parachute test for the Commercial Crew spacecraft.
Company-wide revenues were reported to be $15.8 billion, a decrease of approximately 35 percent compares to Q2 2019. According to the release, this is reflecting the previously announced 737 MAX charge (which reduced revenue by $5.6 billion and earnings by $8.74 per share) as well as lower 737 deliveries partially offset by higher defense and services volume.