Boeing Defense, Space & Security (BDS) segment of Boeing. $24B FY2024 BDS revenue (parent BA total $66.5B). Producer of F-15EX, KC-46, P-8 Poseidon, AH-64 Apache, CH-47 Chinook, Starliner. Won NGAD/F-47 contract Mar 2025 (estimated $20-30B EMD). BDS profitability impacted by fixed-price contract losses (KC-46, Starliner, T-7A).
Key Milestones
William Boeing founds Pacific Aero Products in Seattle Jul 15 1916 (renamed Boeing Airplane Co 1917). Builds Model C trainers for Navy WWI; B-17 Flying Fortress (1935), B-29 Superfortress (1942) define Allied bombing campaigns.
B-52 Stratofortress enters USAF service; long-range strategic bomber serves continuously through 2050+ planned retirement — most enduring military aircraft platform ever.
Boeing acquires Rockwell aerospace/defense for $3.2B (B-1B Lancer, X-31, Space Shuttle); then McDonnell Douglas Aug 1997 in $13.3B mega-merger forming world's largest aerospace company.
Boeing Defense, Space & Security (BDS) division formed Sep 2002 from Integrated Defense Systems consolidation; combines St. Louis (legacy MDD F/A-18, F-15, AV-8B), Philadelphia rotorcraft, Huntsville space.
Wins KC-46 Pegasus tanker contract from USAF over EADS A330MRTT in $35B fixed-price program; ultimately $7B+ in Boeing-absorbed losses through 2025.
Wins T-7A Red Hawk advanced trainer EMD contract; fixed-price aggressive bid against LMT/Leonardo team
Wins MQ-25 Stingray carrier UAV refueling tanker contract; first operational carrier-based UAV
KC-46 Pegasus first delivery to USAF; 3-year delay vs original schedule due to Remote Vision System defects
Wins F-15EX contract from USAF for ~$22B over program life; 144 aircraft to replace F-15C/D
737 MAX worldwide grounding Mar 13 2019 after second crash (Ethiopian 302); Boeing's commercial reputation crisis cascades into defense executive bandwidth and supplier strain.
F-15EX first flight at St. Louis; Eagle II offers AESA radar + 12 AAM stations for non-stealth roles
Records $1.5B+ Q4 charge on KC-46, Starliner, T-7A, MQ-25 fixed-price programs; cumulative losses surpass $7B
Starliner CFT (Crewed Flight Test) further delayed; uncrewed OFT-2 reaches ISS but program runs $1.5B+ over fixed-price
P-8 Poseidon export wins: Canada $5.9B for 16 aircraft, Germany 8 aircraft; Rolls-Royce CMC engine partnership
Alaska Airlines 737 MAX 9 door plug blowout Jan 5 2024; FAA caps MAX production at 38/mo, intensifies commercial-side cash drain that constrains BDS investment.
Boeing Starliner CFT successful crew launch but reentry done uncrewed after thruster anomalies; NASA selects SpaceX Crew Dragon for return; Starliner future uncertain.
T-7A Red Hawk Milestone C decision delayed; production gates pushed into 2025-2026 due to escape system + flight envelope issues.
President Trump announces F-47 NGAD award to Boeing Mar 21 2025; defeats Lockheed Martin for 6th-gen air dominance program — estimated $20B+ EMD with 100+ aircraft of record.
F-15EX deliveries to ANG accelerate; Indonesia signs F-15IDN MoU for 24 aircraft worth ~$13.9B
Boeing CEO Kelly Ortberg announces BDS turnaround targets: KC-46 production stable, T-7A Milestone C achieved, $20B+ in fixed-price losses absorbed.
F-47 NGAD prototype rollout at St. Louis; first flight planned 2027-2028. CCA wingmen integration with Anduril YFQ-44 Fury and General Atomics YFQ-42.