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Segment and Revenue Information
 9 Months Ended
Sep. 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 loss. The following tables reconcile segment Revenues to Segment operating loss:
BCABDSBGS
For the nine months ended September 30,
202520242025202420252024
Revenues$30,115 $18,099 $19,817 $18,507 $15,714 $14,835 
Less:
Research and development expense, net1,657 1,852 618 728 91 103 
Other segment items(1)
34,905 22,126 18,820 20,925 12,693 12,112 
Segment operating (loss)/earnings
($6,447)($5,879)$379 ($3,146)$2,930 $2,620 
For the three months ended September 30,
202520242025202420252024
Revenues$11,094 $7,443 $6,902 $5,536 $5,370 $4,901 
Less:
Research and development expense, net565 779 198 234 32 36 
Other segment items(1)
15,882 10,685 6,590 7,686 4,400 4,031 
Segment operating (loss)/earnings($5,353)($4,021)$114 ($2,384)$938 $834 
(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)Nine months ended September 30Three months ended September 30
2025202420252024
Revenue from contracts with customers:
Europe$3,789 $3,046 $2,291 $1,499 
Asia8,888 7,028 3,509 2,635 
Middle East3,026 1,618 1,266 444 
Other non-U.S.1,969 1,245 781 491 
Total non-U.S. revenues17,672 12,937 7,847 5,069 
United States12,326 5,512 3,182 2,354 
Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries
5 (443) 
Total revenues from contracts with customers30,003 18,006 11,029 7,423 
Intersegment revenues eliminated on consolidation112 93 65 20 
Total segment revenues$30,115 $18,099 $11,094 $7,443 
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)Nine months ended September 30Three months ended September 30
2025202420252024
Revenue from contracts with customers:
U.S. customers$15,485 $14,324 $5,325 $4,361 
Non-U.S. customers(1)
4,332 4,183 1,577 1,175 
Total segment revenue from contracts with customers$19,817 $18,507 $6,902 $5,536 
Revenue recognized over time100 %99 %99 %99 %
Revenue recognized on fixed-price contracts57 %53 %56 %49 %
Revenue from the U.S. government(1)
91 %91 %91 %92 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
BGS revenues consisted of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2025202420252024
Revenue from contracts with customers:
Commercial$9,055 $8,782 $3,088 $2,882 
Government6,337 5,764 2,169 1,935 
Total revenues from contracts with customers15,392 14,546 5,257 4,817 
Intersegment revenues eliminated on consolidation322 289 113 84 
Total segment revenues$15,714 $14,835 $5,370 $4,901 
Revenue recognized at a point in time53 %53 %53 %53 %
Revenue recognized on fixed-price contracts86 %87 %85 %86 %
Revenue from the U.S. government(1)
30 %29 %30 %29 %
(1)Includes revenues earned from foreign military sales through the U.S. government.
Earnings in Equity Method Investments
During the nine and three months ended September 30, 2025, our share of income/(loss) from equity method investments was $47 and $17, compared to $87 and ($3) during the same periods in 2024. The income/(loss) on equity method investments in 2025 and 2024 was primarily driven by investments held at our BDS segment and in Unallocated items, eliminations, and other.
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 September 30, 2025 was $635,688. We expect approximately 17% to be converted to revenue through 2026 and approximately 61% 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.
Nine months ended September 30Three months ended September 30
2025202420252024
Share-based plans($40)$118 $11 $65 
Deferred compensation(150)(100)(70)(51)
Amortization of previously capitalized interest(64)(70)(22)(24)
Research and development expense, net(285)(293)(102)(105)
Eliminations and other unallocated items(1,606)(1,019)(565)(303)
Unallocated items, eliminations and other
($2,145)($1,364)($748)($418)
Eliminations and other unallocated items expense for the nine months ended September 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 19.
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:
Nine months ended September 30Three months ended September 30
2025202420252024
Pension FAS/CAS service cost adjustment$588 $608 $198 $148 
Postretirement FAS/CAS service cost adjustment199 224 70 80 
FAS/CAS service cost adjustment$787 $832 $268 $228 
Assets
Segment assets are summarized in the table below:
September 30
2025		December 31
2024
Commercial Airplanes$78,678 $84,177 
Defense, Space & Security16,371 15,350 
Global Services17,338 16,704 
Unallocated items, eliminations and other37,636 40,132 
Total$150,023 $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
Nine months ended September 30Three months ended September 30
2025202420252024
Commercial Airplanes$409 $357 $166 $131 
Defense, Space & Security206 195 93 60 
Global Services122 111 53 40 
Unallocated items, eliminations and other1,249 919 573 380 
Total$1,986 $1,582 $885 $611 
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
Nine months ended September 30Three months ended September 30
2025202420252024
Commercial Airplanes$323 $283 $111 $88 
Defense, Space & Security
159 153 56 57 
Global Services225 227 79 75 
Centrally Managed Assets (1)
710 664 245 224 
Total$1,417 $1,327 $491 $444 
(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 nine months ended September 30, 2025, $524 was allocated to the primary business segments, of which $252, $212, and $60 was allocated to BCA, BDS and BGS, respectively. During the nine months ended September 30, 2024, $460 was allocated to the primary business segments, of which $225, $182, and $53 was allocated to BCA, BDS and BGS, respectively. During the three months ended September 30, 2025, $173 was allocated to the primary business segments, of which $80, $72, and $21 was allocated to BCA, BDS and BGS, respectively. During the three months ended September 30, 2024, $118 was allocated to the primary business segments, of which $59, $44, and $15 was allocated to BCA, BDS and BGS, respectively.