Total backlog reached $618,538 million as of June 30, 2025, a significant increase from $521,336 million at December 31, 2024. This $97.2 billion increase was primarily driven by an $87,022 million increase in the Commercial Airplanes (BCA) backlog due to new orders.

The acquisition of Spirit AeroSystems Holdings, Inc. is expected to close in 2025, following stockholder approval on January 31, 2025. This all-stock transaction, valued at approximately $4,700 million, aims to integrate a key supplier and is subject to regulatory approvals and the sale of Spirit's Airbus work packages.

On April 22, 2025, Boeing announced an agreement to sell portions of its Digital Aviation Solutions business for $10.55 billion. This strategic divestiture, expected to close in 2025, will result in a gain and reclassifies $1,451 million in assets and $504 million in liabilities as held for sale.

Management submitted a comprehensive safety and quality plan to the FAA in Q2 2024 and is continuing implementation in 2025. This includes slowing production rates, investing in workforce training, simplifying processes, and enhancing safety culture to address issues identified after the January 2024 737-9 door plug accident.

BDS earnings from operations significantly improved to $265 million for the six months ended June 30, 2025, compared to a loss of $762 million in the same period of 2024. This $1,027 million increase was primarily due to lower net unfavorable cumulative contract catch-up adjustments of $1,352 million.

Following the end of the IAM 751 work stoppage in December 2024, production for all programs resumed and gradually ramped up during the first half of 2025. The 737 program's production rate increased to 38 per month, and the 787 program began increasing its rate to seven per month during Q2 2025.

The FAA continues its investigation into Boeing's 737 quality control system and will not approve production rate increases beyond 38 per month until required quality and safety standards are met. This ongoing oversight poses a risk to planned production ramp-ups and delivery schedules.

Several fixed-price development programs, including MQ-25, KC-46A Tanker, T-7A Red Hawk, and Commercial Crew, continue to carry risk of additional reach-forward losses. While BDS earnings improved due to lower catch-up adjustments, the inherent complexity and potential for cost overruns remain a significant financial exposure.

The global trade landscape remains volatile with new tariffs and trade restrictions, and the U.S.-China trade relationship is challenged. China paused accepting 737 deliveries in April 2025 (resuming in June), highlighting the risk that trade tensions could adversely affect future deliveries and market share in a significant commercial aircraft market.

Commercial Airplanes deliveries for the six months ended June 30, 2025, totaled 280 units, a significant increase from 175 units in the same period of 2024. This growth, particularly in the 737 program (209 units vs 137), demonstrates an improving ability to meet demand despite ongoing production adjustments.

Certification for the 737-7 and 737-10 models is now expected in 2026, and first delivery of the 777-9 is anticipated in 2026, with the 777-8 Freighter in 2028 and passenger variant not before 2030. These delays could impact market competitiveness and allow rivals to gain ground in key segments.

The liability for 737 MAX customer concessions and other considerations decreased to $506 million at June 30, 2025, from $935 million at the beginning of 2024. This reduction reflects lower payments made and the absence of new significant charges related to the 737-9 door plug accident, indicating a stabilization of related financial impacts.

Cost of sales as a percentage of total revenues decreased to 88.5% for the six months ended June 30, 2025, from 90.7% in the same period of 2024. This 2.2 percentage point improvement was primarily due to lower charges on BDS fixed-price development programs and the absence of 737-9 customer considerations.

Expensed abnormal production costs related to commercial aircraft programs decreased to $30 million for the six months ended June 30, 2025, a substantial reduction from $157 million in the prior year period. This indicates progress in stabilizing production processes and reducing inefficiencies.

The company continues to experience inflationary pressures, supply chain disruptions, and labor instability, which have reduced overall productivity. Management is actively monitoring the health and stability of the supply chain, but these factors still pose a risk to operational performance and financial results.

Research and development expense, net, remained largely unchanged at $1,754 million for the six months ended June 30, 2025, compared to $1,822 million in the same period of 2024. While a slight decrease, it indicates a consistent level of investment in core programs despite the divestiture of Digital Aviation Solutions.

The company continues to advance programs like the MQ-25, T-7A Red Hawk, and Commercial Crew, with milestones such as initiating final assembly for MQ-25 and obtaining FAA approval for additional 777X flight testing phases. However, certification delays for 737-7/10 and 777X models persist, pushing deliveries further out.

The agreement to sell portions of the Digital Aviation Solutions business, including Jeppesen and ForeFlight, for $10.55 billion, suggests a strategic decision to divest non-core technology assets. This move could allow for greater focus on core aerospace innovation while monetizing certain digital capabilities.

Net cash used by operating activities dramatically improved to $1,389 million for the six months ended June 30, 2025, compared to $7,285 million used in the same period of 2024. This $5.9 billion improvement was driven by higher commercial airplane deliveries, lower customer considerations, and working capital improvements.

Payments to acquire property, plant and equipment increased to $1,101 million for the six months ended June 30, 2025, up from $971 million in the prior year period. The company expects capital expenditures in 2025 to be higher than in 2024, signaling continued investment in production capabilities.

Total debt balance decreased to $53.3 billion as of June 30, 2025, from $53.9 billion at December 31, 2024. Net cash used by financing activities was $0.7 billion, a significant shift from $5.5 billion provided in the prior year, primarily due to net debt repayments of $0.6 billion compared to net borrowings of $5.6 billion in 2024.

Under the terms of a non-prosecution agreement with the U.S. Department of Justice, Boeing will invest at least $455 million in compliance, quality, and safety programs over a three-year period. Additionally, $445 million in compensation for 737 MAX accident victims' families has been accrued and expensed in Q2 2025, demonstrating a commitment to addressing past issues.

The company reported an environmental remediation liability of $848 million as of June 30, 2025. While this is an existing liability, the disclosure notes that costs could exceed recorded amounts due to regulatory changes or new contamination, indicating ongoing environmental responsibility and potential future financial impact.

Members of The International Association of Machinists and Aerospace Workers District 837 rejected a contract offer and authorized a work stoppage as early as August 4, 2025. This potential labor disruption could adversely impact operations, particularly in the BDS and BGS Government businesses, highlighting a significant social governance challenge.

The global trade landscape remains highly volatile, with new tariffs and trade restrictions being implemented or adjusted by various countries. While the U.S. and China reduced reciprocal tariffs until August 12, 2025, the ongoing U.S.-China trade relationship challenges, including export restrictions and supply chain constraints, continue to be a watch item.

After pausing deliveries in April 2025, China resumed accepting deliveries of Boeing aircraft in June 2025. This resumption is a positive sign for a significant commercial aircraft market, though uncertainty remains regarding the long-term impact of trade tensions on future deliveries.

The Full-Year Continuing Appropriations and Extensions Act, 2025, largely continues federal funding at FY24 levels through September 30, 2025, with an additional $156 billion appropriated for national defense priorities in July 2025. This provides a stable funding environment for the Defense, Space & Security segment, which derives 92% of its revenue from the U.S. government.