Rendering of a spacecraft resembling Evolved Strategic Satellite Communications (ESS) satellite. Photo: Boeing

Revenue in Boeing’s Defense, Space & Security (BDS) business grew by 10% year-over-year in the second quarter of 2025, alongside improvements in operating margin and gains in backlog. 

BDS revenue in Q2 was $6.6 billion. The segment posted $110 million in earnings from operations, compared to a loss of $913 million in the same time last year. 

Operating margin was 1.7% during the quarter, compared to -15.2% in the same time last year. CFO Brian West told investors on Tuesday that BDS is continuing to work toward the goal of reaching high single-digit margins. 

West added that performance is stabilizing on 25% of the portfolio which includes satellite programs and fighter aircraft. 

BDS delivered two satellites during the quarter — two O3b mPOWER satellites, delivered to SES. The satellites launched on July 22.

Backlog at Defense, Space & Security grew to $74 billion, with BDS adding $12 billion to the backlog during Q2. Boeing reports that 22% of BDS backlog represents orders from customers outside of the U.S. 

Boeing also highlighted the $2.8 billion contract awarded by U.S. Space Force Space Systems Command (SSC) earlier this month to build the first two Evolved Strategic Satcom (ESS) satellites for space-based nuclear command and control and communication. 

“This contract is consistent with our strategy to ensure we enter into the appropriate contract type for the appropriate type of work. Furthermore, this award is a testament to our role as a leader in national security space, and we stand ready to support future programs like the Golden Dome,” CEO Kelly Ortberg told investors. 

Boeing released second quarter results on Tuesday. Overall, Boeing grew revenue 35% year-over-year, driven by commercial aircraft deliveries. Company-wide revenue was $22.7 billion in Q2. Net loss was $612 million.