Boeing’s defense unit reported $139 million in total losses on three key fixed-price development programs in the last quarter of 2023. The losses were on the KC-46A Pegasus refueling tanker, the T-7A Red Hawk jet trainer, and the MQ-25 Stingray refueling drone. The company declined to disclose the specific losses for each program.
In 2023, Boeing’s defense unit racked up nearly $1.6 billion in charges on its five major fixed-price programs. The highest charge of $482 million was incurred on the next pair of Air Force One presidential aircraft under the VC-25B program. The KC-46A had the next-highest charges at $309 million, followed by charges on the Commercial Crew, T-7A, and MQ-25 Stingray programs.
Boeing’s defense business lost $1.8 billion in 2023, an improvement from the $3.5 billion in losses from 2022. The company expects its defense sector to improve as its fixed-price programs mature and operate under tighter discipline.
