Boeing’s Defence, Space & Security division reported higher revenue and a return to operating profit in the third quarter of fiscal 2025 (Q3 FY25), driven by increased volume and stabilising operations.
The division’s revenue for the quarter reached $6.90bn, representing a 25% growth from $5.54bn in the same period a year ago.
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Earnings from operations for this business unit was $114m in Q3 FY25, against operating loss of $2.38bn in Q3 FY24. The operating margin for the reported quarter was 1.7%.
Defence, Space & Security’s research and development expense in the quarter fell to $198m from $234m in the prior-year quarter.
Deliveries in the quarter totalled 32, compared with 34 in the same period last year.
Backlog at Defence, Space & Security grew to $76bn, with 20% of orders coming from customers outside the US.
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By GlobalDataDuring the quarter, the division won a contract from the US Space Force to boost strategic satellite communication capabilities.
It also forged a partnership with the Royal Australian Air Force to demonstrate autonomous operational capabilities of the MQ-28 Ghost Bat.
“Our defence business is well-positioned in the current geopolitical environment, and our service business continues to deliver in a robust aftermarket. Across all of our market segments, we continue to see strong demand, which is reflected in our growing backlog,” Boeing president and CEO Kelly Ortberg said during the earnings call.
In the first three quarters of the fiscal, the Defence, Space & Security reported revenue of $19.82bn, up 7% from $18.51bn in the same period last year.
Year-to-date operating margin was 1.9% and earnings from operations for the period were $379m, compared with a loss of $3.15bn in the prior-year period.
The division made a total of 94 deliveries in year to date, up from 76 in the prior-year period.
Research and development expense for Defence, Space & Security in the first three quarters was $618m, down from $728m a year earlier.
Recently, the US Army placed orders for nine additional CH-47F Block II Chinook helicopters from Boeing under two contract awards, Lot 4 and Lot 5, with a combined value of $461m.
The US Air Force also awarded the company a contract for eight additional MH-139A Grey Wolf helicopters, a deal worth more than $173m.
