Boeing profits surge after tax settlement
Boeing's profits surged in Q3 after a favorable US tax settlement, and the company raised some key annual projections on Wednesday as its order book stayed robust.
The aerospace giant, which has benefited from a multi-year investment boom in global air travel, reported profits of $2.4 billion for the quarter ending September 30, a 30.6% jump from the same period of the prior year.Revenues rose 3.8% to $25.1 billion. Boeing lifted its full-year revenue forecast range by $1 billion to $98-100 billion.
Chief Executive Dennis Muilenburg pointed to 'strong underlying performance' as well as growth 'across our businesses ... throughout the year' as factors in boosting 2018 revenue and earnings forecasts.
Commercial airplane deliveries actually fell compared with a year earlier, but profit margins in the business surged on higher production of key planes.
The company booked 171 net orders, a decline from the second quarter, but well above the prior year's level.
Boeing's defense business turned in an operating loss due to $691 million in one-time costs connected to investment programmes. But the company scored major new defense contracts during the quarter.
Boeing also set aside $112 million in higher costs for the KC-46 transport aircraft, the latest over-runs on the programme. But those hits were partly offset by a $412 million benefit from a 2013-2014 tax settlement.
The results topped analyst expectations for earnings-per-share and revenues, and could alleviate worries that US industrial companies will all be big losers from the US-China trade conflict. Boeing has been seen as vulnerable on that front because of its substantial China business. The company's share price surged 4.1% to $364.50 in pre-market trading.
More from Defence Notes
-
![Rheinmetall sales up by almost a quarter on wave of German spending]()
Rheinmetall sales up by almost a quarter on wave of German spending
Germany’s Rheinmetall released its 1H 2025 results on 7 August, continuing the strong growth of recent years. A particular highlight of the result’s presentation was the Skyranger air defence system for which the company is predicting sales of about US$8.2 billion from the German Government before the end of the year.
-
![Defence companies continue to ride procurement wave]()
Defence companies continue to ride procurement wave
Vehicle and technology companies are reporting substantial growth compared to the first half of 2024. Italy’s Fincantieri saw revenues jump 24% for the first half of the year compared to 2024 and Thales up 6.8% for the same period. General Dynamics reported second quarter revenue growth of 8.9% for the second quarter compared to last year and MilDef reported organic order intake growth of 58%.
-
![Singapore plots a way forward with new technology and formation reform]()
Singapore plots a way forward with new technology and formation reform
Singapore spends about 3.5% of GDP on defence and the section’s budget sits on high on the proportion of national spending. The country is investing in uncrewed technology, medium- and long-range fires and new submarines and ships with the hunt also on for new maritime patrol aircraft.
-
![World Defense Show promises bigger and better event for 2026]()
World Defense Show promises bigger and better event for 2026
At this year's IDEF in Istanbul, Shephard spoke to World Defense Show (WDS) CEO Andrew Pearcey about his event's strategic role in Saudi Arabia, its themes and new features for 2026 and how it has grown since its launch in 2022.
