v3.25.2
Segment and Revenue Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
We operate in three reportable segments: BCA, BDS, and BGS. All other activities fall within Unallocated items, eliminations and other. See page 7 for the Summary of Business Segment Data, which is an integral part of this note.
BCA develops, produces and markets commercial jet aircraft principally to the commercial airline industry worldwide. Revenue on commercial aircraft contracts is recognized at the point in time when an aircraft is completed and accepted by the customer.
BDS engages in the research, development, production and modification of the following products and related services: manned and unmanned military aircraft and weapons systems, surveillance and engagement, strategic defense and intelligence systems, satellite systems and space exploration. BDS revenue is generally recognized over the contract term (over time) as costs are incurred.
BGS provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services to commercial and government customers worldwide. BGS segment revenue and costs include certain products and services provided to other segments. Revenue on commercial spare parts contracts is recognized at the point in time when a spare part is delivered to the customer. Revenue on other contracts is generally recognized over the contract term (over time) as costs are incurred.
The primary profitability measurement used by our chief operating decision maker to review segment operating results is Segment operating earnings/(loss). The following tables reconcile segment Revenues to Segment operating earnings/(loss):
BCABDSBGS
For the six months ended June 30,
202520242025202420252024
Revenues$19,021 $10,656 $12,915 $12,971 $10,344 $9,934 
Less:
Research and development expense, net1,092 1,073 420 494 59 67 
Other segment items(1)
19,023 11,441 12,230 13,239 8,293 8,081 
Segment operating earnings/(loss)($1,094)($1,858)$265 ($762)$1,992 $1,786 
For the three months ended June 30,
202520242025202420252024
Revenues$10,874 $6,003 $6,617 $6,021 $5,281 $4,889 
Less:
Research and development expense, net558 555 221 259 30 41 
Other segment items(1)
10,873 6,163 6,286 6,675 4,202 3,978 
Segment operating (loss)/earnings($557)($715)$110 ($913)$1,049 $870 
(1)    Primarily includes costs of products and services and general and administrative expenses.
The following tables present BCA, BDS and BGS revenues from contracts with customers disaggregated in a number of ways, such as geographic location, contract type and the method of revenue recognition. We believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors.
BCA revenues by customer location consisted of the following:
(Dollars in millions)Six months ended June 30Three months ended June 30
2025202420252024
Revenue from contracts with customers:
Europe$1,498 $1,547 $990 $777 
Asia5,379 4,393 2,422 2,280 
Middle East1,760 1,174 1,277 406 
Other non-U.S.1,188 754 799 344 
Total non-U.S. revenues9,825 7,868 5,488 3,807 
United States9,144 3,158 5,361 2,173 
Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries
5 (443)5 
Total revenues from contracts with customers18,974 10,583 10,854 5,980 
Intersegment revenues eliminated on consolidation47 73 20 23 
Total segment revenues$19,021 $10,656 $10,874 $6,003 
Revenue recognized on fixed-price contracts100 %100 %100 %100 %
Revenue recognized at a point in time100 %99 %100 %99 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
(Dollars in millions)Six months ended June 30Three months ended June 30
2025202420252024
Revenue from contracts with customers:
U.S. customers$10,160 $9,963 $5,227 $4,519 
Non-U.S. customers(1)
2,755 3,008 1,390 1,502 
Total segment revenue from contracts with customers$12,915 $12,971 $6,617 $6,021 
Revenue recognized over time100 %99 %100 %99 %
Revenue recognized on fixed-price contracts58 %55 %58 %52 %
Revenue from the U.S. government(1)
92 %90 %92 %89 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
(Dollars in millions)Six months ended June 30Three months ended June 30
2025202420252024
Revenue from contracts with customers:
Commercial$5,967 $5,900 $2,996 $2,900 
Government4,168 3,829 2,172 1,895 
Total revenues from contracts with customers10,135 9,729 5,168 4,795 
Intersegment revenues eliminated on consolidation209 205 113 94 
Total segment revenues$10,344 $9,934 $5,281 $4,889 
Revenue recognized at a point in time53 %53 %52 %53 %
Revenue recognized on fixed-price contracts86 %87 %86 %87 %
Revenue from the U.S. government(1)
30 %28 %31 %27 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Earnings in Equity Method Investments
During the six and three months ended June 30, 2025, our share of income from equity method investments was $30 and $34, compared to $90 and $18 during the same periods in 2024. The income in 2025 was primarily driven by investments held at our BDS segment and in Unallocated items, eliminations, and other. The income in 2024 was primarily driven by investments held at our BDS segment.
Backlog
Our total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model.
Our backlog at June 30, 2025 was $618,538. We expect approximately 21% to be converted to revenue through 2026 and approximately 64% through 2029, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. We may experience reductions to backlog and/or significant order cancellations due to various factors including delivery delays, production disruptions and delays to entry into service of the 777X, 737-7 and/or 737-10.
Unallocated Items, Eliminations and Other
Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations and eliminations of certain sales between segments. We generally allocate costs to business segments based on the U.S. Government Cost Accounting Standards (CAS). Components of Unallocated items, eliminations and other income/(expense) are shown in the following table.
Six months ended June 30Three months ended June 30
2025202420252024
Share-based plans($51)$53 ($21)$43 
Deferred compensation(80)(49)(85)(19)
Amortization of previously capitalized interest(42)(46)(21)(23)
Research and development expense, net(183)(188)(101)(99)
Eliminations and other unallocated items(1,041)(716)(807)(536)
Unallocated items, eliminations and other
($1,397)($946)($1,035)($634)
Eliminations and other unallocated items expense for the six and three months ended June 30, 2025 and 2024, includes earnings charges of $445 and $244 related to agreements with the U.S. Department of Justice. For additional discussion, see Note 18.
Pension and Other Postretirement Benefit Expense
Pension costs are allocated to BDS and BGS businesses supporting government customers using CAS, which employ different actuarial assumptions and accounting conventions than GAAP. These costs are allocable to government contracts. Other postretirement benefit costs are allocated to business segments based on CAS, which is generally based on benefits paid. FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. These expenses are included in Other income, net. Components of FAS/CAS service cost adjustment are shown in the following table:
Six months ended June 30Three months ended June 30
2025202420252024
Pension FAS/CAS service cost adjustment$390 $460 $197 $230 
Postretirement FAS/CAS service cost adjustment129 144 60 72 
FAS/CAS service cost adjustment$519 $604 $257 $302 
Assets
Segment assets are summarized in the table below:
June 30
2025		December 31
2024
Commercial Airplanes$84,326 $84,177 
Defense, Space & Security16,310 15,350 
Global Services17,164 16,704 
Unallocated items, eliminations and other37,320 40,132 
Total$155,120 $156,363 
Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest and assets managed centrally on behalf of the three principal business segments and intercompany eliminations.
Capital Expenditures
Six months ended June 30Three months ended June 30
2025202420252024
Commercial Airplanes$243 $226 $137 $124 
Defense, Space & Security113 135 59 67 
Global Services69 71 43 36 
Unallocated items, eliminations and other676 539 188 177 
Total$1,101 $971 $427 $404 
Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the three principal business segments.
Depreciation and Amortization
Six months ended June 30Three months ended June 30
2025202420252024
Commercial Airplanes$212 $195 $111 $96 
Defense, Space & Security
103 96 53 49 
Global Services146 152 73 75 
Centrally Managed Assets (1)
465 440 223 221 
Total$926 $883 $460 $441 
(1)Amounts shown in the table represent depreciation and amortization expense recorded by the individual business segments. Depreciation and amortization for centrally managed assets are allocated to business segments based on usage and occupancy. During the six months ended June 30, 2025, $351 was allocated to the primary business segments, of which $172, $140, and $39 was allocated to BCA, BDS and BGS, respectively. During the six months ended June 30, 2024, $342 was allocated to the primary business segments, of which $166, $138, and $38 was allocated to BCA, BDS and BGS, respectively. During the three months ended June 30, 2025, $182 was allocated to the primary business segments, of which $90, $72, and $20 was allocated to BCA, BDS and BGS, respectively. During the three months ended June 30, 2024, $179 was allocated to the primary business segments, of which $86, $73, and $20 was allocated to BCA, BDS and BGS, respectively.