BOEING COBA
BOEING CO Segments Disclosure
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 59 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.
Our chief operating decision maker is currently our President and Chief Executive Officer (CEO). The primary profitability measurement used by the CEO to review segment operating results is Segment operating (loss)/earnings. The CEO uses Segment operating (loss)/earnings to allocate resources (including employees, financial and capital resources) for each segment predominantly in the annual planning process. Segment operating (loss)/earnings is used to monitor segment results compared to prior period, forecasted results, and the annual plan.
The following table reconciles segment Revenues to Segment operating (loss)/earnings:
| BCA | BDS | BGS | |||||||||||||||
For the year ended December 31, 2023 | |||||||||||||||||
| Revenues | $33,901 | $24,933 | $19,127 | ||||||||||||||
| Less: | |||||||||||||||||
| Research and development expense, net | 2,036 | 919 | 107 | ||||||||||||||
Other segment items(1) | 33,500 | 25,778 | 15,691 | ||||||||||||||
| Segment operating (loss)/earnings | ($1,635) | ($1,764) | $3,329 | ||||||||||||||
For the year ended December 31, 2024 | |||||||||||||||||
| Revenues | $22,861 | $23,918 | $19,954 | ||||||||||||||
| Less: | |||||||||||||||||
| Research and development expense, net | 2,386 | 917 | 132 | ||||||||||||||
Other segment items(1) | 28,444 | 28,414 | 16,204 | ||||||||||||||
| Segment operating (loss)/earnings | ($7,969) | ($5,413) | $3,618 | ||||||||||||||
For the year ended December 31, 2025 | |||||||||||||||||
| Revenues | $41,494 | $27,234 | $20,923 | ||||||||||||||
| Less: | |||||||||||||||||
| Research and development expense, net | 2,202 | 877 | 125 | ||||||||||||||
Gain on Digital Aviation Solutions Divestiture(2) | (9,566) | ||||||||||||||||
Other segment items(1) | 46,371 | 26,485 | 16,890 | ||||||||||||||
| Segment operating (loss)/earnings | ($7,079) | ($128) | $13,474 | ||||||||||||||
(1) Primarily includes costs of products and services and general and administrative expenses.
(2) See Note 3 for additional discussion.
While our principal operations are in the United States, Canada and Australia, some key suppliers and subcontractors are located in Europe and Japan. Revenues, including foreign military sales, are reported by customer location and consisted of the following:
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Asia | $16,466 | $11,994 | $10,013 | ||||||||||||||
| Europe | 11,419 | 8,734 | 10,520 | ||||||||||||||
| Middle East | 7,023 | 4,635 | 6,594 | ||||||||||||||
| Oceania | 1,587 | 1,565 | 1,655 | ||||||||||||||
| Canada | 1,781 | 1,472 | 1,256 | ||||||||||||||
| Africa | 1,625 | 1,143 | 825 | ||||||||||||||
| Latin America, Caribbean and other | 1,479 | 1,246 | 1,524 | ||||||||||||||
| Total non-U.S. revenues | 41,380 | 30,789 | 32,387 | ||||||||||||||
| United States | 48,083 | 36,171 | 45,380 | ||||||||||||||
Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries | (443) | 27 | |||||||||||||||
| Total revenues | $89,463 | $66,517 | $77,794 | ||||||||||||||
Revenues from the U.S. government (including FMS), primarily recorded at BDS and BGS, represented 35%, 42% and 37% of consolidated revenues for 2025, 2024 and 2023, respectively. Approximately 4% and 3% of operating assets were located outside the United States as of December 31, 2025 and 2024.
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:
Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Revenue from contracts with customers: | |||||||||||||||||
| Asia | $11,733 | $8,060 | $6,328 | ||||||||||||||
| Europe | 6,536 | 3,956 | 6,172 | ||||||||||||||
| Middle East | 4,202 | 2,012 | 4,311 | ||||||||||||||
| Other non-U.S. | 2,504 | 1,815 | 2,431 | ||||||||||||||
| Total non-U.S. revenues | 24,975 | 15,843 | 19,242 | ||||||||||||||
| United States | 16,357 | 7,326 | 14,501 | ||||||||||||||
Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries | (443) | 27 | |||||||||||||||
| Total revenues from contracts with customers | 41,332 | 22,726 | 33,770 | ||||||||||||||
| Intersegment revenues, eliminated on consolidation | 162 | 135 | 131 | ||||||||||||||
| Total segment revenues | $41,494 | $22,861 | $33,901 | ||||||||||||||
| Revenue recognized on fixed-price contracts | 100 | % | 100 | % | 100 | % | |||||||||||
| Revenue recognized at a point in time | 100 | % | 99 | % | 99 | % | |||||||||||
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Revenue from contracts with customers: | |||||||||||||||||
| U.S. customers | $21,070 | $18,589 | $20,051 | ||||||||||||||
Non-U.S. customers(1) | 6,164 | 5,329 | 4,882 | ||||||||||||||
| Total segment revenue from contracts with customers | $27,234 | $23,918 | $24,933 | ||||||||||||||
| Revenue recognized over time | 99 | % | 99 | % | 99 | % | |||||||||||
| Revenue recognized on fixed-price contracts | 58 | % | 54 | % | 58 | % | |||||||||||
Revenue from the U.S. government(1) | 91 | % | 91 | % | 91 | % | |||||||||||
(1)Includes revenues earned from FMS.
BGS revenues consisted of the following:
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Revenue from contracts with customers: | |||||||||||||||||
| Commercial | $12,015 | $11,736 | $11,020 | ||||||||||||||
| Government | 8,508 | 7,832 | 7,751 | ||||||||||||||
| Total revenues from contracts with customers | 20,523 | 19,568 | 18,771 | ||||||||||||||
| Intersegment revenues eliminated on consolidation | 400 | 386 | 356 | ||||||||||||||
| Total segment revenues | $20,923 | $19,954 | $19,127 | ||||||||||||||
| Revenue recognized at a point in time | 53 | % | 53 | % | 51 | % | |||||||||||
| Revenue recognized on fixed-price contracts | 86 | % | 86 | % | 87 | % | |||||||||||
Revenue from the U.S. government(1) | 31 | % | 29 | % | 30 | % | |||||||||||
(1)Includes revenues earned from FMS.
Earnings in Equity Method Investments
During the years ended December 31, 2025, 2024 and 2023, our share of income from equity method investments was $33, $104, and $70, respectively. In 2025, 2024 and 2023, earnings from equity method investments were 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 December 31, 2025 was $682,207. We expect approximately 13% to be converted to revenue through 2026 and approximately 55% 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 (expense)/income are shown in the following table.
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Share-based plans | ($49) | $171 | $62 | ||||||||||||||
| Deferred compensation | (182) | (114) | (188) | ||||||||||||||
| Amortization of previously capitalized interest | (92) | (93) | (95) | ||||||||||||||
| Research and development expense, net | (411) | (377) | (315) | ||||||||||||||
| Eliminations and other unallocated items | (2,297) | (1,634) | (1,223) | ||||||||||||||
| Unallocated items, eliminations and other | ($3,031) | ($2,047) | ($1,759) | ||||||||||||||
Eliminations and other unallocated items expense during the years ended December 31, 2025 and 2024 included earnings charges of $445 and $244 related to agreements with the U.S. Department of Justice. For additional discussion, see Note 23 to our Consolidated Financial Statements.
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:
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Pension FAS/CAS service cost adjustment | $784 | $811 | $799 | ||||||||||||||
| Postretirement FAS/CAS service cost adjustment | 261 | 293 | 257 | ||||||||||||||
| FAS/CAS service cost adjustment | $1,045 | $1,104 | $1,056 | ||||||||||||||
Assets
Segment assets are summarized in the table below.
| December 31, | 2025 | 2024 | |||||||||
| Commercial Airplanes | $91,837 | $84,177 | |||||||||
| Defense, Space & Security | 16,723 | 15,350 | |||||||||
| Global Services | 16,026 | 16,704 | |||||||||
| Unallocated items, eliminations and other | 43,649 | 40,132 | |||||||||
| Total | $168,235 | $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
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Commercial Airplanes | $626 | $508 | $420 | ||||||||||||||
| Defense, Space & Security | 373 | 296 | 192 | ||||||||||||||
| Global Services | 187 | 212 | 127 | ||||||||||||||
| Unallocated items, eliminations and other | 1,756 | 1,214 | 788 | ||||||||||||||
| Total | $2,942 | $2,230 | $1,527 | ||||||||||||||
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
| Years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Commercial Airplanes | $455 | $400 | $464 | ||||||||||||||
| Defense, Space & Security | 221 | 209 | 219 | ||||||||||||||
| Global Services | 296 | 304 | 320 | ||||||||||||||
Centrally Managed Assets (1) | 981 | 923 | 858 | ||||||||||||||
| Total | $1,953 | $1,836 | $1,861 | ||||||||||||||
(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. In 2025, $747 was allocated to the primary business segments, of which $361, $300 and $86 was allocated to BCA, BDS and BGS, respectively. In 2024, $705 was allocated the primary business segments, of which $339, $289 and $77 was allocated to BCA, BDS and BGS, respectively. In 2023, $650 was allocated to the primary business segments, of which $311, $264 and $75 was allocated to BCA, BDS and BGS, respectively.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 30, 2026 | Showing above |
| 2024 | Feb 3, 2025 | |
| 2023 | Jan 31, 2024 | |
| 2022 | Jan 27, 2023 | |
| 2019 | Jan 31, 2020 | |
| 2018 | Feb 8, 2019 | |
| 2017 | Feb 12, 2018 | |
| 2016 | Feb 8, 2017 | |
| 2015 | Feb 10, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.