BOEING CO

The Boeing Company is a global aerospace and defense manufacturer that designs, builds and sells commercial aircraft, military platforms, spacecraft and related systems. It also generates recurring revenue from aftermarket support, spare parts, maintenance, training and government contracts. The firm’s business model combines large, long‑term aircraft sales with defense and services businesses that provide steadier, higher‑margin aftermarket cash flows.^[1]

Business Segments

• Commercial Airplanes — designs, produces and sells passenger and freighter jetliners; largest single revenue contributor (~44% of consolidated revenue).^[2]
• Defense, Space & Security — military aircraft, satellites, missiles and government systems sold under long‑term contracts (~32% of consolidated revenue).^[2]
• Global Services — aftermarket parts, maintenance, training, modifications and fleet support, providing recurring revenue and lifecycle services (~25% of consolidated revenue).^[2]

Competitive Position

• Scale and market footprint — operates at global scale across commercial, defense and space markets; competes head‑to‑head with a small number of large OEMs, underpinning strong customer relationships and bargaining power.^[3]
• Deep aftermarket and service network — a large installed base of aircraft creates high switching costs and steady spare‑parts and services demand, supporting long‑term revenue visibility.^[3]

Investment Considerations

• Opportunity: secular air‑travel and defense demand — global fleet growth and sustained defense procurement create multiyear demand for new aircraft and aftermarket services.^[2]
• Risk: program execution and fixed‑price contracts — large development programs and fixed‑price contracts expose the company to cost overruns and reach‑forward losses if production or supply chains underperform.^[2]
• Risk: regulatory, safety and reputational exposure — certification, safety reviews and regulatory oversight can materially affect deliveries, customer confidence and contract timing.^[2]
• Opportunity/Risk: services and aftermarket margin stability — the services business can provide steadier, higher‑margin cash flow, but its performance depends on fleet health, parts availability and long‑term airline economics.^[2]