Boeing Defense, Space & Security Revenue Drops $1.7B in the First Quarter
The Defense, Space & Security segment of The Boeing Company took a hit in the first quarter of 2022, reporting a 24% dip in revenue compared to the same quarter in 2021.
Defense, Space & Security revenue was $5.5 billion in the first quarter, compared to $7.2 billion in the first quarter of 2021. Boeing said this was driven by lower volume and charges on fixed-price development programs for military aircraft including the VC-25B and T-7A Red Hawk. The VC-25B program recorded a $660 million charge and the T-7A Red Hawk program recorded $367 million in charges.
Backlog for the segment stands at $60 billion, with 33% representing orders from customers outside the U.S.
Overall, Boeing reported first-quarter revenue of $14 billion, an 8% dip compared to the same time period in 2021. The company saw lower defense volume in addition to charges on fixed-price defense development programs, partially offset by commercial services volume. The company also reported a $212 million in pre-tax charges caused by impacts due to the war in Ukraine. Commercial airplane deliveries were up to 95, compared to 77 in the first quarter of last year.
CEO and President Dave Calhoun said the first quarter of 2022 “brought new challenges for our world, industry and business.”
“Despite the pressures on our defense and commercial development programs, we remain on track to generate positive cash flow for 2022, and we’re focused on our performance as we work through certification requirements and mature several key programs to production,” he commented. “Leading with safety and quality, we’re taking the right actions to drive stability throughout our operations, deliver on our commitments to customers and position Boeing for a sustainable future.”
Correction: A previous version of this story misstated revenue for Defense, Space & Security. The story and headline have been updated.