BOEING CO

Segment Results of Operations and Financial Condition

Commercial Airplanes

BCA revenues increased by $1,559 million for the nine months ended September 30, 2026, compared with the same period in 2025 primarily due to higher deliveries on 737 program, and favorable pricing on 787 program, partially offset by lower deliveries on 777 program. BCA revenues decreased by $374 million for the three months ended September 30, 2026, compared with the same period in 2025 primarily due to less favorable delivery mix.

Commercial airplane deliveries, including intercompany deliveries, were as follows:

• Intercompany deliveries identified by parentheses.

Loss From Operations

BCA loss from operations was $1,582 million for the nine months ended September 30, 2026, compared with $6,447 million in the same period in 2025 primarily reflecting a $4,899 million reach-forward loss on the 777X program in 2025 partially offset by lower margins driven by higher production costs. BCA loss from operations was $697 million for the three months ended September 30, 2026, compared with $5,353 million in the same period in 2025 primarily reflecting the reach-forward loss on the 777X program in 2025, partially offset by lower margins driven by our decision in the third quarter of 2026 to delay planned 737 and 787 production rate increases and higher estimated supply chain costs.

Backlog

Our total backlog represents the estimated transaction prices on unsatisfied and partially satisfied performance obligations to our customers where we believe it is probable that we will collect the consideration due and where no contingencies remain before we and the customer are required to perform. Backlog does not include prospective orders where customer-controlled contingencies remain, such as the customer receiving approval from its board of directors, shareholders or government or completing financing arrangements. All such contingencies must be satisfied or have expired prior to recording a new firm order even if satisfying such conditions is highly probable. Backlog excludes options and customer financing orders as well as orders where customers have the unilateral right to terminate. A number of our customers may have contractual remedies, including rights to reject individual airplane deliveries if the actual delivery date is significantly later than the contractual delivery date. We address customer claims and requests for other contractual relief as they arise. The value of orders in backlog is adjusted as changes to price and schedule are agreed to with customers and is reported in accordance with the requirements of Accounting Standards Codification (ASC) 606.

BCA total backlog increased from $567,290 million as of December 31, 2025, to $611,833 million at September 30, 2026, reflecting new orders in excess of deliveries. Aircraft order cancellations during the nine months ended September 30, 2026, totaled $3,164 million and primarily relate to 737 and 787 aircraft. Net ASC 606 adjustments decreased backlog by $1,886 million during the nine months ended September 30, 2026, primarily related to 777X aircraft partially offset by 737 aircraft. ASC 606 adjustments include consideration of aircraft orders where a customer-controlled contingency may exist, as well as an assessment of whether the customer is committed to perform, impacts of geopolitical events or related sanctions, or whether it is probable that the customer will pay the full amount of consideration when it is due. 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.

Accounting Quantity

The following table provides details of the accounting quantities and firm orders by program. Cumulative firm orders represent the cumulative number of commercial jet aircraft deliveries plus undelivered firm orders. Firm orders include certain military derivative aircraft that are not included in program accounting quantities. All revenues and costs associated with military derivative aircraft production are reported in the BDS segment.

† Customer financing aircraft orders are identified in parentheses.

*Approximate undelivered orders by minor model for September 30, 2026 and December 31, 2025: 737-7 (6%, 6%), 737-8 (58%, 60%), 737-9 (3%, 5%) and 737-10 (33%, 29%).

Program Highlights

737 Program We increased the accounting quantity by 400 units during the nine months ended September 30, 2026, due to the program's normal progress of obtaining additional orders and delivering airplanes. The accounting quantity was unchanged during the three months ended September 30, 2026. During the second quarter of 2026, the 737 program began to transition from a production rate of 42 to 47 per month with the concurrence of the Federal Aviation Administration (FAA). We continue to work toward stabilizing production at 47 per month and now expect to stabilize in 2027. Consistent with our focus on safety and quality, after demonstrating stability at rate 47 for a period of time, we plan to increase to rate 52. We began low-rate production on a new 737 production line in July 2026. The new production line must be production-certified by the FAA prior to first delivery.

In the third quarter of 2026, we achieved certification of the 737-7 and the engine anti-ice solution. In October 2026, we achieved certification of the 737-10. As of September 30, 2026, we had approximately 45 737-7 and 737-10 aircraft in inventory.

The delay in future production rate increases is adversely affecting our financial position, results of operations and cash flows. If we are unable to deliver aircraft and/or increase production rates consistent with our assumptions, our financial position, results of operations and cash flows will be further adversely affected.

See further discussion of the 737 MAX in Note 7 and Note 11 to our Condensed Consolidated Financial Statements.

767 Program The 767 assembly line includes the commercial program and a derivative to support the KC-46A Tanker program. We are targeting a production rate of approximately three aircraft per month. We expect to complete production of the 767 commercial program by 2027. This program recorded a reach-forward loss of $86 million during the nine months ended September 30, 2026, and $241 million in the same period in 2025, primarily driven by higher production costs.

See further discussion of the KC-46A Tanker program in Note 11 to our Condensed Consolidated Financial Statements.

777 and 777X Programs We increased the accounting quantity for the 777 program by 21 units during the three months ended September 30, 2026, after FAA approval was received to enable production and delivery of 777 Freighters beyond January 1, 2028. The 777 accounting quantity reflects the number of units we expect to produce and deliver by 2029.

In the third quarter of 2026, we began experiencing parts shortages from a key 777 supplier that has disrupted factory operations. We expect operations to continue to be disrupted through the first half of 2027. The factory disruption is resulting in abnormal production costs which are expensed as incurred and are expected to continue until 777 production returns to normal operations.

On the 777X program, we continue to work through certification flight testing and expect to receive approval on the final phases of flight testing by the end of 2026. We continue to work with the FAA and our supplier to incorporate and certify their solution related to the engine durability issue identified in 2025. We continue to expect first delivery of the 777-9 to occur in 2027. We continue to anticipate first delivery of the 777-8 Freighter to occur approximately two years after the first delivery of the 777-9. First delivery of the 777-8 passenger aircraft is not expected to occur before 2030. We are continuing to follow the lead of the FAA as we work through the certification process and the ultimate timing will be determined by the regulators.

The 777 and 777X programs have near break-even gross margins as of September 30, 2026. The level of profitability on these programs will be subject to several factors. These factors include supply chain shortages, production disruption due to labor and supply chain instability, customer considerations, delivery timing and negotiations, further production rate adjustments for these programs or other commercial aircraft programs, and any change in the accounting quantity. For the 777X program, these factors also include aircraft certification requirements and timing, resolution of the engine durability issue, flight test discoveries, design changes, and change incorporation on completed aircraft. One or more of these factors could result in higher than expected abnormal costs and/or additional reach-forward losses in future periods.

787 Program We increased the accounting quantity by 100 units during the three months ended March 31, 2026, due to the program's normal progress of obtaining additional orders and delivering airplanes. During the fourth quarter of 2025, we began increasing the production rate to eight per month. We continued to work toward stabilizing production during the first quarter of 2026. We briefly slowed the factory in April 2026 due to supply chain shortages. The factory recovered in May, and we have now stabilized at eight per month enabled by continued supply chain and factory recovery. During the third quarter of 2026, we decided to delay planned production rate increases with the next increase beyond eight per month now planned to begin in December 2026. Subsequent increases in production rates will be enabled by the completion of expansion projects underway in our Charleston facility and the ability of our supply chain to support higher rates. Delays in planned production rate increases are adversely affecting our financial position, results of operations and cash flows.

On December 8, 2025, we completed the acquisition of Spirit AeroSystems Holdings, Inc. (Spirit). See Note 2 to our Condensed Consolidated Financial Statements.