The ViaSat-3 F2 satellite before shipment to Cape Canaveral. Photo: Boeing

Boeing posted a double-digit revenue increase in its Defense, Space & Security segment in the third quarter of 2025, with a large gain in operating margin as well. 

In the company’s Q3 results announced Wednesday, BDS reported a 25% year-over-year revenue increase to $6.9 billion.

BDS delivered two commercial satellites in the quarter that ended on Sept. 30 —the Satelit Nusantara Lima (SNL) communications satellite to PT Pasifik Satelit Nusantara (PSN) in August, and the second ViaSat-3 satellite to Viasat in September. 

The segment’s operating margin of 1.7% was a significant year-over-year increase, which Boeing attributed to better operating performance in Q3. Last year the segment had a -43% operating margin. 

In Wednesday’s investor call, Boeing CEO Kelly Ortberg highlighted the $2.8 billion award during Q3 for the U.S. Space Force’s Evolved Strategic Satcom program as “solidifying our position as a leader in the national security space.” 

Ortberg also said the BDS segment demonstrated stability on EAC charges in the third quarter and in many cases has revised contract baselines to lower execution risk. 

Boeing added $2 billion to the BDS backlog during the quarter to reach $76 billion, with 20% representing orders from customers outside the U.S.

Overall, Boeing reported $23.3 billion in revenue in Q3, a 30% increase from the same time last year, due to improved operational performance and higher commercial delivery volume.