Boeing defense business narrows losses as company battles MAX crisis

Boeing defense business narrows losses as company battles MAX crisis
Boeing defense business narrows losses as company battles MAX crisis

The aerospace giant chose to forego overall financial guidance for 2024 as it struggles with safety concerns in its commercial business.

Air Force One replacement tops $2B in charges as Boeing logs new losses

Air Force One replacement tops $2B in charges as Boeing logs new losses
Air Force One replacement tops $2B in charges as Boeing logs new losses

“These are disappointing results in the quarter and year to date. This performance is below our expectations and we acknowledge that we aren’t as far along in this recovery as we expected to be at this stage,” said Chief Financial Officer Brian West.

Boeing CFO signals fresh losses in Q3 for contractor’s defense sector

Boeing CFO signals fresh losses in Q3 for contractor’s defense sector
Boeing CFO signals fresh losses in Q3 for contractor’s defense sector

Boeing Chief Financial Officer Brian West previously warned that it could take several years until the company’s struggling defense sector turns a profit.

Sentinel ICBM faces year delay, Air Force One and F-15EX also at risk: GAO

Sentinel ICBM faces year delay, Air Force One and F-15EX also at risk: GAO
Sentinel ICBM faces year delay, Air Force One and F-15EX also at risk: GAO

A new watchdog report warns of a year-long delay for America’s next ICBM, as well as potential schedule slips for F-15EX, KC-46A and the Air Force One replacement.

Boeing hit with fresh $245 million KC-46A charge, erasing defense sector’s Q1 profits

Boeing hit with fresh $245 million KC-46A charge, erasing defense sector’s Q1 profits
Boeing hit with fresh $245 million KC-46A charge, erasing defense sector’s Q1 profits

The troubled tanker’s charges are now up to over $7 billion as Boeing wrestles to get its fixed-price development contracts on track.

Under shadow of financial losses, Boeing makes sweeping changes to defense biz

Under shadow of financial losses, Boeing makes sweeping changes to defense biz
Under shadow of financial losses, Boeing makes sweeping changes to defense biz

The changes, including halving business divisions, come as Boeing’s defense sector finds itself at a crossroads, with new leadership contending with systemic financial issues tied to its large number of fixed-price contracts with the US government.

Boeing defense racks up $2.8B in costs this quarter, with losses from KC-46 and new Air Force One

Boeing defense racks up $2.8B in costs this quarter, with losses from KC-46 and new Air Force One
Boeing defense racks up $2.8B in costs this quarter, with losses from KC-46 and new Air Force One

“We’re not embarrassed by [the cost overruns]; they are what they are. And we intend to deliver against these contracts and satisfy our customers,” said Boeing CEO Dave Calhoun.

Boeing defense programs hit with $400M in cost overruns

Boeing defense programs hit with $400M in cost overruns
Boeing defense programs hit with $400M in cost overruns

Despite this quarter’s losses, Boeing CEO Dave Calhoun said he was “more bullish” on the prospect of international sales now than he had been when he first became CEO in 2020, specifically for the KC-46 tanker and MQ-25.

New Air Force One will officially deliver 2-3 years late

New Air Force One will officially deliver 2-3 years late
New Air Force One will officially deliver 2-3 years late

So far, Boeing has lost $1.1 billion dollars on its original $3.9 billion fixed-price development contract for the VC-25B.

New Boeing Defense CEO signals ‘different approach’ in future fixed-price contracts

New Boeing Defense CEO signals ‘different approach’ in future fixed-price contracts
New Boeing Defense CEO signals ‘different approach’ in future fixed-price contracts

“We have learned a ton of lessons, especially around contracting,” said Boeing Defense CEO Ted Cobert. “We’re working together to make sure that anything we do going forward will heighten the probability of getting things done in a timely manner.”

Boeing is pushing the Air Force for more money for Air Force One

Boeing is pushing the Air Force for more money for Air Force One
Boeing is pushing the Air Force for more money for Air Force One

“You get this dynamic, where [companies] become very focused on, ‘We need to finish, we’re going to finish what’s in the contract, anything that appears to us to be in any way, shape, or form not 100% required explicitly in the contract is an extra bill,'” Air Force acquisition executive Andrew Hunter said.

GAO finds delays in major weapons programs, broad cybersecurity worries

GAO finds delays in major weapons programs, broad cybersecurity worries
GAO finds delays in major weapons programs, broad cybersecurity worries

GAO found delays in more than half of the programs it studied. Also, 4-pound birds are a problem.

New Air Force One could face ‘quite a significant’ 3-year delay

New Air Force One could face ‘quite a significant’ 3-year delay
New Air Force One could face ‘quite a significant’ 3-year delay

The major driver of the delay is the bankruptcy of GDC Technics, Boeing’s original subcontractor for the VC-25B’s interiors, and the hiring of a new interior supplier, said Andrew Hunter, the Air Force’s assistant secretary for acquisition, technology and logistics.

Boeing adds $1B in new charges for Air Force One replacement, T-7 Red Hawk programs

Boeing adds $1B in new charges for Air Force One replacement, T-7 Red Hawk programs
Boeing adds $1B in new charges for Air Force One replacement, T-7 Red Hawk programs

“Air Force One, I’m just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken,” Boeing CEO Dave Calhoun said. “But we are where we are, and we’re going to deliver great airplanes. And we’re going to recognize the costs associated with it.”