Boeing’s Space Segment Holds Steady as Company Takes Overall Revenue Hit

Boeing’s headquarters. Photo: Boeing

Boeing’s Defense, Space & Security segment is helping to stabilize the company as it is significantly impacted by COVID-19 and the 737 MAX grounding, President and CEO Dave Calhoun said Wednesday as Third Quarter (Q3) 2020 results were released. 

Boeing’s Defense, Space & Security reported $6.8 billion in revenue, down 2% from $7 billion in Q3 2019. Boeing attributed this decrease to derivative aircraft award timing, partially offset by higher fighter volume. The company also highlighted a contract extension for the International Space Station (ISS) for NASA during the quarter. Backlog for the segment was $62 billion, with 30% representing orders from customers outside the U.S.

Overall, Boeing reported $14 billion in revenue, a 29% revenue drop in Q3 compared to Q3 2019. The company said that it expects more voluntary and involuntary workforce reductions. Calhoun commented that despite near-term headwinds, he is confident in Boeing’s long future. 

“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” Calhoun said. “Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic.”