BOEING CO 10-Q

Item 1. Financial Statements The Boeing Company and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (Dollars in millions, except per share data) Three months ended March 31 2025 2024 Sales of products $ 16,147 $ 13,268 Sales of services 3,349 3,301 Total revenues 19,496 16,569 Cost of products ( 14,379 ) ( 12,064 ) Cost of services ( 2,700 ) ( 2,629 ) Total costs and expenses ( 17,079 ) ( 14,693 ) 2,417 1,876 Income from operating investments, net 3 67 General and administrative expense ( 1,112 ) ( 1,161 ) Research and development expense, net ( 844 ) ( 868 ) Loss on dispositions, net ( 3 ) Earnings/(loss) from operations 461 ( 86 ) Other income, net 323 277 Interest and debt expense ( 708 ) ( 569 ) Earnings/(loss) before income taxes 76 ( 378 ) Income tax (expense)/benefit ( 107 ) 23 Net loss ( 31 ) ( 355 ) Less: net earnings/(loss) attributable to noncontrolling interest 6 ( 12 ) Net loss attributable to Boeing shareholders ( 37 ) ( 343 ) Less: Mandatory convertible preferred stock dividends accumulated during the period 86 Net loss attributable to Boeing common shareholders ($ 123 ) ($ 343 ) Basic loss per share ($ 0.16 ) ($ 0.56 ) Diluted loss per share ($ 0.16 ) ($ 0.56 ) See Notes to the Condensed Consolidated Financial Statements. 1 Table of Contents The Boeing Company and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Dollars in millions) Three months ended March 31 2025 2024 Net loss ($ 31 ) ($ 355 ) Other comprehensive income/(loss), net of tax: Currency translation adjustments 46 ( 35 ) Derivative instruments: Unrealized gains/(losses) arising during period, net of tax of ($ 20 ) and $ 19 68 ( 65 ) Reclassification adjustment for losses included in net loss, net of tax of ($ 5 ) and ($ 2 ) 18 7 Total unrealized gain/(loss) on derivative instruments, net of tax 86 ( 58 ) Defined benefit pension plans and other postretirement benefits: Net actuarial loss arising during the period, net of tax of $ 0 and $ 17 ( 19 ) Amortization of actuarial losses included in net periodic benefit cost, net of tax of $ 3 and ($ 12 ) 43 11 Amortization of prior service credits included in net periodic benefit cost, net of tax of ($ 1 ) and $ 12 ( 20 ) ( 11 ) Pension and postretirement cost related to our equity method investments, net of tax of $ 0 and ($ 3 ) 5 Total defined benefit pension plans and other postretirement benefits, net of tax 23 ( 14 ) Other comprehensive income/(loss), net of tax 155 ( 107 ) Comprehensive income/(loss) 124 ( 462 ) Less: Comprehensive income/(loss) related to noncontrolling interest 6 ( 12 ) Comprehensive income/(loss) attributable to Boeing Shareholders $ 118 ($ 450 ) See Notes to the Condensed Consolidated Financial Statements. 2 Table of Contents The Boeing Company and Subsidiaries Condensed Consolidated Statements of Financial Position (Unaudited) (Dollars in millions, except per share data) March 31 2025 December 31 2024 Assets Cash and cash equivalents $ 10,142 $ 13,801 Short-term and other investments 13,532 12,481 Accounts receivable, net 3,204 2,631 Unbilled receivables, net 9,031 8,363 Current portion of financing receivables, net 202 207 Inventories 89,077 87,550 Other current assets, net 2,474 2,965 Total current assets 127,662 127,998 Financing receivables and operating lease equipment, net 308 314 Property, plant and equipment, net of accumulated depreciation of $ 23,193 and $ 22,925 11,459 11,412 Goodwill 8,091 8,084 Acquired intangible assets, net 1,904 1,957 Deferred income taxes 137 185 Investments 1,001 999 Other assets, net of accumulated amortization of $ 1,160 and $ 1,085 5,932 5,414 Total assets $ 156,494 $ 156,363 Liabilities and equity Accounts payable $ 11,034 $ 11,364 Accrued liabilities 23,576 24,103 Advances and progress billings 61,114 60,333 Short-term debt and current portion of long-term debt 7,930 1,278 Total current liabilities 103,654 97,078 Deferred income taxes 162 122 Accrued retiree health care 2,146 2,176 Accrued pension plan liability, net 5,909 5,997 Other long-term liabilities 2,260 2,318 Long-term debt 45,688 52,586 Total liabilities 159,819 160,277 Shareholders’ equity: Mandatory convertible preferred stock, 6.00 % Series A, par value $ 1.00 – 20,000,000 shares authorized; 5,750,000 shares issued; aggregate liquidation preference $ 5,750 6 6 Common stock, par value $ 5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares issued 5,061 5,061 Additional paid-in capital 19,008 18,964 Treasury stock, at cost – 258,889,678 and 263,044,840 shares ( 31,879 ) ( 32,386 ) Retained earnings 15,239 15,362 Accumulated other comprehensive loss ( 10,760 ) ( 10,915 ) Total shareholders’ deficit ( 3,325 ) ( 3,908 ) Noncontrolling interests ( 6 ) Total equity ( 3,325 ) ( 3,914 ) Total liabilities and equity $ 156,494 $ 156,363 See Notes to the Condensed Consolidated Financial Statements. 3 Table of Contents The Boeing Company and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in millions) Three months ended March 31 2025 2024 Cash flows – operating activities: Net loss ($ 31 ) ($ 355 ) Adjustments to reconcile net loss to net cash used by operating activities: Non-cash items – Share-based plans expense 135 119 Treasury shares issued for 401(k) contribution 418 606 Depreciation and amortization 466 442 Investment/asset impairment charges, net 7 21 Loss on dispositions, net 3 Other charges and credits, net 99 10 Changes in assets and liabilities – Accounts receivable ( 570 ) ( 328 ) Unbilled receivables ( 671 ) ( 1,357 ) Advances and progress billings 781 2,718 Inventories ( 1,521 ) ( 3,778 ) Other current assets ( 29 ) ( 249 ) Accounts payable ( 95 ) ( 264 ) Accrued liabilities ( 386 ) ( 666 ) Income taxes receivable, payable and deferred 26 ( 59 ) Other long-term liabilities ( 151 ) ( 83 ) Pension and other postretirement plans ( 150 ) ( 261 ) Financing receivables and operating lease equipment, net 12 79 Other 41 43 Net cash used by operating activities ( 1,616 ) ( 3,362 ) Cash flows – investing activities: Payments to acquire property, plant and equipment ( 674 ) ( 567 ) Proceeds from disposals of property, plant and equipment 3 11 Contributions to investments ( 8,797 ) ( 243 ) Proceeds from investments 7,750 2,907 Other 1 ( 34 ) Net cash (used)/provided by investing activities ( 1,717 ) 2,074 Cash flows – financing activities: New borrowings 29 27 Debt repayments ( 295 ) ( 4,442 ) Employee taxes on certain share-based payment arrangements ( 14 ) ( 65 ) Dividends paid on mandatory convertible preferred stock ( 72 ) Other 14 18 Net cash used by financing activities ( 338 ) ( 4,462 ) Effect of exchange rate changes on cash and cash equivalents 12 ( 28 ) Net decrease in cash & cash equivalents, including restricted ( 3,659 ) ( 5,778 ) Cash & cash equivalents, including restricted, at beginning of year 13,822 12,713 Cash & cash equivalents, including restricted, at end of period 10,163 6,935 Less restricted cash & cash equivalents, included in Investments 21 21 Cash and cash equivalents at end of period $ 10,142 $ 6,914 See Notes to the Condensed Consolidated Financial Statements. 4 Table of Contents The Boeing Company and Subsidiaries Condensed Consolidated Statements of Equity For the three months ended March 31, 2025 and 2024 (Unaudited) Boeing shareholders (Dollars in millions) Mandatory convertible preferred stock Common stock Additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive loss Non- controlling interests Total Balance at January 1, 2024 $ 5,061 $ 10,309 ($ 49,549 ) $ 27,251 ($ 10,305 ) $ 5 ($ 17,228 ) Net loss ( 343 ) ( 12 ) ( 355 ) Other comprehensive loss, net of tax of $ 31 ( 107 ) ( 107 ) Share-based compensation 119 119 Treasury shares issued for other share-based plans, net ( 116 ) 65 ( 51 ) Treasury shares issued for 401(k) contribution 227 379 606 Balance at March 31, 2024 $ 5,061 $ 10,539 ($ 49,105 ) $ 26,908 ($ 10,412 ) ($ 7 ) ($ 17,016 ) Balance at January 1, 2025 $ 6 $ 5,061 $ 18,964 ($ 32,386 ) $ 15,362 ($ 10,915 ) ($ 6 ) ($ 3,914 ) Net (loss)/earnings ( 37 ) 6 ( 31 ) Other comprehensive income, net of tax of ($ 23 ) 155 155 Share-based compensation 135 135 Treasury shares issued for other share-based plans, net ( 214 ) 212 ( 2 ) Treasury shares issued for 401(k) contribution 123 295 418 Cash dividends declared on Mandatory convertible preferred stock ( 86 ) ( 86 ) Balance at March 31, 2025 $ 6 $ 5,061 $ 19,008 ($ 31,879 ) $ 15,239 ($ 10,760 ) ($ 3,325 ) See Notes to the Condensed Consolidated Financial Statements. 5 Table of Contents The Boeing Company and Subsidiaries Notes to Condensed Consolidated Financial Statements Summary of Business Segment Data (Unaudited) (Dollars in millions) Three months ended March 31 2025 2024 Revenues: Commercial Airplanes $ 8,147 $ 4,653 Defense, Space & Security 6,298 6,950 Global Services 5,063 5,045 Unallocated items, eliminations and other ( 12 ) ( 79 ) Total revenues $ 19,496 $ 16,569 Earnings/(loss) from operations: Commercial Airplanes ($ 537 ) ($ 1,143 ) Defense, Space & Security 155 151 Global Services 943 916 Segment operating earnings/(loss) 561 ( 76 ) Unallocated items, eliminations and other ( 362 ) ( 312 ) FAS/CAS service cost adjustment 262 302 Earnings/(loss) from operations 461 ( 86 ) Other income, net 323 277 Interest and debt expense ( 708 ) ( 569 ) Earnings/(loss) before income taxes 76 ( 378 ) Income tax (expense)/benefit ( 107 ) 23 Net loss ( 31 ) ( 355 ) Less: net earnings/(loss) attributable to noncontrolling interest 6 ( 12 ) Net loss attributable to Boeing shareholders ( 37 ) ( 343 ) Less: Mandatory convertible preferred stock dividends accumulated during the period 86 Net loss attributable to Boeing common shareholders ($ 123 ) ($ 343 ) This information is an integral part of the Notes to the Condensed Consolidated Financial Statements. See Note 18 for further segment results. 6 Table of Contents The Boeing Company and Subsidiaries Notes to the Condensed Consolidated Financial Statements (Dollars in millions, except per share amounts or as otherwise stated) (Unaudited) Note 1 – Basis of Presentation The condensed consolidated interim financial statements included in this report have been prepared by management of The Boeing Company (herein referred to as “Boeing”, the “Company”, “we”, “us”, or “our”). In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. The results of operations for the period ended March 31, 2025, are not necessarily indicative of the operating results for the full year. The interim financial statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in our 2024 Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Goodwill Our Military Aircraft reporting unit within our Defense, Space & Security (BDS) segment had goodwill of $ 1,295 and a negative carrying value at March 31, 2025. Long-term Contracts Substantially all contracts at our BDS segment and certain contracts at our Global Services (BGS) segment are long-term contracts with the U.S. government and other customers that generally extend over several years. Changes in estimated revenues, cost of sales, and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes, in the current period, the cumulative effect of the changes on current and prior periods based on a long-term contract’s percentage-of-completion. When the current estimates of total revenues and costs at completion for a long-term contract indicate a loss, a provision for the entire reach-forward loss on the long-term contract is recognized. The table below reflects the impact of net cumulative catch-up adjustments for changes in estimated revenues and costs at completion across all long-term contracts, including the impact to Earnings/(loss) from operations from changes in estimated losses on unexercised options. (In millions - except per share amounts) Three months ended March 31 2025 2024 Decrease to Revenue ($ 140 ) ($ 218 ) Increase to Loss from operations ($ 151 ) ($ 366 ) Increase to Diluted loss per share ($ 0.22 ) ($ 0.56 ) Note 2 – Spirit Acquisition On June 30, 2024, we entered into an Agreement and Plan of Merger (the Merger Agreement) pursuant to which we have agreed to acquire Spirit AeroSystems Holdings, Inc. (Spirit) in an all-stock transaction at an equity value of approximately $ 4,700 , or $ 37.25 per share of Spirit Class A Common Stock. The transaction will include the assumption of Spirit's net debt at closing. 7 Table of Contents Each share of Spirit common stock will be exchanged for a number of shares of Boeing common stock equal to an exchange ratio between 0.18 and 0.25 , calculated as $ 37.25 divided by the volume weighted average share price of Boeing shares over the 15 -trading-day period ending on the second trading day prior to the closing (subject to a floor of $ 149.00 per share and a ceiling of $ 206.94 per share). Spirit stockholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $ 149.00 , and 0.18 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or above $ 206.94 per share. Boeing's acquisition of Spirit will include substantially all Boeing-related commercial operations, as well as certain other operations. Spirit has also entered into a binding term sheet with Airbus SE (Airbus) setting forth the terms upon which Airbus will, assuming the parties enter into definitive agreements and receive all required regulatory approvals, acquire certain commercial work packages that Spirit performs for Airbus concurrently with the closing of the Boeing-Spirit merger. In addition, Spirit is selling certain of its other operations. The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including certain regulatory approvals. On January 31, 2025, Spirit's stockholders approved the Merger Agreement and the related transactions. The Merger Agreement contains certain termination rights, including that either Boeing or Spirit may terminate the Merger Agreement if, subject to certain limitations, the transaction has not been consummated by March 31, 2025 (subject to three automatic three-month extensions if on each such date or the last day of each extension period, as applicable , all of the closing conditions except those relating to regulatory approvals have been satisfied or waived) (the Outside Date). The first automatic extension is now in effect. Accordingly, the Outside Date is currently June 30, 2025. If either party breaches or fails to perform any of its representations, warranties or covenants under the Merger Agreement such that the related conditions to the other party's obligation to consummate the Merger would not be satisfied, and such breach or failure is not curable by the Outside Date or, if curable by the Outside Date, has not been cured within 30 days following notice thereof, such other party may terminate the Merger Agreement. The Merger Agreement also provides that we will be required to pay Spirit a termination fee of $ 300 if the Merger Agreement is terminated by Spirit or Boeing under certain specified circumstances as a result of the parties' failure to obtain the required regulatory approvals by the Outside Date or in the event that any law or order related to the required regulatory approvals or any applicable antitrust law or foreign investment law prohibits the consummation of the Merger. During 2023 and 2024, Boeing reached agreements to provide Spirit up to $ 1,067 to support its liquidity, rate readiness, and 787 tooling and capital expenditures, of which $ 166 has yet to be drawn. At March 31, 2025 and December 31, 2024, Other current assets included $ 24 and $ 539 and Other assets included $ 784 and $ 299 . At March 31, 2025 and December 31, 2024, advance payments to Spirit of $ 162 and $ 165 were included in Inventories and are scheduled to be recovered as the related shipsets are received by Boeing from Spirit. On January 22, 2025, Boeing and Spirit reached an agreement to reschedule repayment dates for $ 515 to 2026. This includes changing repayment of $ 425 originally due in 2024 to 2026. In the event that the Merger Agreement is terminated in accordance with its terms, the then outstanding balances will become due and payable in full on April 1, 2026. 8 Table of Contents Note 3 – Earnings Per Share Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings. Basic earnings per share is calculated by taking net earnings attributable to Boeing shareholders, less Mandatory convertible preferred stock dividends accumulated during the period and earnings available to participating securities, divided by the basic weighted average common shares outstanding. Diluted earnings per share is calculated by taking net earnings attributable to Boeing shareholders, less Mandatory convertible preferred stock dividends accumulated during the period and earnings available to participating securities, divided by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding is calculated using the treasury stock method for share-based compensation awards and the if-converted method for Mandatory convertible preferred stock. The elements used in the computation of Basic and Diluted loss per share were as follows: (In millions - except per share amounts) Three months ended March 31 2025 2024 Net loss attributable to Boeing shareholders ($ 37 ) ($ 343 ) Less: Mandatory convertible preferred stock dividends accumulated during the period 86 Less: earnings available to participating securities Net loss available to common shareholders ($ 123 ) ($ 343 ) Basic Basic weighted average shares outstanding 753.6 613.2 Less: participating securities (1) 0.2 0.3 Basic weighted average common shares outstanding 753.4 612.9 Diluted Diluted weighted average shares outstanding 753.6 613.2 Less: participating securities (1) 0.2 0.3 Diluted weighted average common shares outstanding 753.4 612.9 Net loss per share: Basic ($ 0.16 ) ($ 0.56 ) Diluted ( 0.16 ) ( 0.56 ) (1) Participating securities include certain instruments in our deferred compensation plan. The following table represents potential common shares that were not included in the computation of Diluted loss per share because the effect was antidilutive based on their strike price or the performance condition was not met. (Shares in millions) Three months ended March 31 2025 2024 Performance restricted stock units 0.6 0.5 Restricted stock units 0.5 Stock options 0.9 0.8 9 Table of Contents In addition, potential common shares of 37.1 million and 3.1 million for the three months ended March 31, 2025 and 2024 were excluded from the computation of Diluted loss per share, because the effect would have been antidilutive as a result of incurring a net loss in those periods. Note 4 – Income Taxes Our effective tax rates were 140.8 % and 6.1 % for the three months ended March 31, 2025 and 2024. The effective tax rate for the three months ended March 31, 2025, primarily reflects an increase in the domestic income tax valuation allowance treated as a discrete expense. As of December 31, 2024, we had recorded valuation allowances of $ 7,837 primarily for certain domestic deferred tax assets, and certain domestic net operating losses, tax credits and interest carryforwards. To measure the valuation allowance, the Company estimated in what year each of its deferred tax assets and liabilities would reverse using systematic and logical methods to estimate the reversal patterns. The valuation allowance results from not having sufficient income from deferred tax liability reversals in the appropriate future periods to support the realization of deferred tax assets. Federal income tax audits have been settled for all years prior to 2021. We expect the next cycle to cover the 2021-2023 tax years; however, the Internal Revenue Service has not confirmed a start date. We are also subject to examination in major state and international jurisdictions for the 2010-2023 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. Note 5 – Allowances for Losses on Financial Assets The changes in allowances for expected credit losses for the three months ended March 31, 2025 and 2024, consisted of the following: Accounts receivable Unbilled receivables Other current assets Financing receivables Other assets Total Balance at January 1, 2024 ($ 89 ) ($ 19 ) ($ 50 ) ($ 51 ) ($ 122 ) ($ 331 ) Changes in estimates ( 16 ) ( 1 ) ( 1 ) 15 ( 10 ) ( 13 ) Write-offs 2 9 11 Recoveries 1 1 Balance at March 31, 2024 ($ 102 ) ($ 20 ) ($ 42 ) ($ 36 ) ($ 132 ) ($ 332 ) Balance at January 1, 2025 ($ 92 ) ($ 38 ) ($ 47 ) ($ 7 ) ($ 199 ) ($ 383 ) Changes in estimates 1 ( 3 ) 1 3 ( 38 ) ( 36 ) Write-offs 3 3 Recoveries 1 1 Balance at March 31, 2025 ($ 87 ) ($ 41 ) ($ 46 ) ($ 4 ) ($ 237 ) ($ 415 ) 10 Table of Contents Note 6 – Inventories Inventories consisted of the following: March 31 2025 December 31 2024 Commercial aircraft programs $ 76,402 $ 75,192 Long-term contracts in progress 652 752 Capitalized precontract costs (1) 1,196 1,176 Commercial spare parts, used aircraft, general stock materials and other 10,827 10,430 Total $ 89,077 $ 87,550 (1) Capitalized precontract costs at March 31, 2025 and December 31, 2024, included amounts related to Commercial Crew, T-7A Red Hawk Production Options and KC-46A Tanker. See Note 10. Commercial Aircraft Programs At March 31, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 737 program: deferred production costs of $ 10,748 and $ 9,679 and unamortized tooling and other non-recurring costs of $ 891 and $ 909 . At March 31, 2025, $ 11,587 of 737 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 52 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. At March 31, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 777X program: $ 4,145 and $ 3,476 of work in process (including deferred production costs of $ 360 and $ 0 ) and $ 4,209 and $ 4,122 of unamortized tooling and other non-recurring costs. At March 31, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 787 program: deferred production costs of $ 13,452 and $ 13,178 , supplier advances of $ 1,550 and $ 1,379 , and unamortized tooling and other non-recurring costs of $ 1,361 and $ 1,370 . At March 31, 2025, $ 11,902 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 2,911 are expected to be recovered from units included in the program accounting quantity that represent expected future orders. We expensed abnormal production costs of $ 30 and $ 80 during the three months ended March 31, 2025 and 2024. Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $ 5,953 and $ 5,837 at March 31, 2025 and December 31, 2024. Note 7 – Contracts with Customers Unbilled receivables increased from $ 8,363 at December 31, 2024, to $ 9,031 at March 31, 2025, primarily driven by revenue recognized in excess of billings at BDS. Advances and progress billings increased from $ 60,333 at December 31, 2024, to $ 61,114 at March 31, 2025, primarily driven by advances on orders received at Commercial Airplanes (BCA) and BGS, partially offset by revenue recognized at BDS. Revenues recognized during the three months ended March 31, 2025 and 2024, from amounts recorded as Advances and progress billings at the beginning of each year were $ 5,488 and $ 4,181 . 11 Table of Contents Note 8 – Financing Receivables and Operating Lease Equipment Financing receivables and operating lease equipment, net consisted of the following: March 31 2025 December 31 2024 Financing receivables: Investment in sales-type leases $ 195 $ 203 Notes 82 85 Total financing receivables 277 288 Less allowance for losses on receivables 4 7 Financing receivables, net 273 281 Operating lease equipment, at cost, less accumulated depreciation of $ 49 and $ 46 237 240 Total $ 510 $ 521 Our financing arrangements range in terms from 1 to 7 years, and include $ 191 of Investment in sales-type leases, net of allowances, that will be repaid in one year or less. Financing arrangements may include options to extend or terminate. Certain leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price. At March 31, 2025 and December 31, 2024, $ 4 and $ 7 were determined to be uncollectible financing receivables and placed on non-accrual status. The allowance for losses on financing receivables decreased primarily due to cash collections during the three months ended March 31, 2025. The components of investment in sales-type leases consisted of the following: March 31 2025 December 31 2024 Gross lease payments receivable $ 216 $ 229 Unearned income ( 21 ) ( 26 ) Net lease payments receivable 195 203 Unguaranteed residual assets Total $ 195 $ 203 Financing interest income recorded for the three months ended March 31, 2025 and 2024, was $ 2 and $ 2 . Our financing receivable balances at March 31, 2025 by internal credit rating category and year of origination consisted of the following: Rating categories 2023 2022 2021 Prior Total BBB $ 31 $ 27 $ 121 $ 13 $ 192 B 82 82 CCC 3 3 Total carrying value of financing receivables $ 31 $ 27 $ 124 $ 95 $ 277 At March 31, 2025, our allowance for losses related to receivables with ratings of CCC, B and BBB. We applied default rates that averaged 100.0 %, 0.0 % and 0.1 %, respectively, to the exposure associated with those receivables. 12 Table of Contents The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models: March 31 2025 December 31 2024 717 Aircraft (Accounted for as sales-type leases) $ 192 $ 196 777 Aircraft (Accounted for as operating leases) 179 183 747-8 Aircraft (Primarily accounted for as notes) 86 92 737 Aircraft (Primarily accounted for as operating leases) 47 47 Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024, included $ 5 and $ 10 of interest income from sales-type leases and $ 12 and $ 18 from operating lease payments. Variable lease payments for sales-type leases recognized in interest income for the three months ended March 31, 2025 and 2024, were insignificant. Variable lease payments on operating leases for the three and three months ended March 31, 2025 and 2024, were insignificant. Profit at the commencement of sales-type leases for the three months ended March 31, 2025 and 2024, was insignificant. Note 9 – Investments Our investments, which are recorded in Short-term and other investments or Investments, consisted of the following: March 31 2025 December 31 2024 Time deposits (1) $ 13,009 $ 11,960 Equity method investments (2) 950 948 Available-for-sale debt investments (1) 518 517 Equity and other investments 35 34 Restricted cash & cash equivalents (1)(3) 21 21 Total $ 14,533 $ 13,480 (1) Primarily included in Short-term and other investments on our Condensed Consolidated Statements of Financial Position. (2) Dividends received were $ 2 and $ 20 during the three months ended March 31, 2025 and 2024. (3) Reflects amounts restricted in support of our workers’ compensation programs and insurance premiums. Contributions to investments and Proceeds from investments on our Condensed Consolidated Statements of Cash Flows primarily relate to time deposits and available-for-sale debt investments. Cash used for the purchase of time deposits during the three months ended March 31, 2025 and 2024, was $ 8,635 and $ 90 . Cash proceeds from the maturities of time deposits during the three months ended March 31, 2025 and 2024, were $ 7,585 a nd $ 2,740 . Allowance for losses on available-for-sale debt investments are assessed quarterly. These instruments are considered investment grade, and we have not recognized an allowance for credit losses as of March 31, 2025. Fair value of available-for-sale debt investments approximates amortized cost. 13 Table of Contents Note 10 – Liabilities, Commitments and Contingencies 737 MAX Customer Concessions and Other Considerations During the first quarter of 2024, we recorded an earnings charge of $ 443 , net of insurance recoveries, in connection with estimated considerations to customers for disruption related to the January 2024 737-9 door plug accident and 737-9 grounding. This charge is reflected in the financial statements as a reduction to Sales of products. The following table summarizes changes in the 737 MAX customer concessions and other considerations liability during the three months ended March 31, 2025 and 2024. 2025 2024 Beginning balance – January 1 $ 641 $ 1,327 Reductions for payments made ( 38 ) ( 553 ) Reductions for concessions and other in-kind considerations ( 35 ) Changes in estimates 510 Ending balance – March 31 $ 568 $ 1,284 At March 31, 2025, $ 92 of the liability balance remains subject to negotiations with customers. The contracted amount includes $ 109 expected to be paid in cash primarily in 2025, while the remaining amounts are primarily expected to be liquidated by lower customer delivery payments. Environmental The following table summarizes changes in environmental remediation liabilities during the three months ended March 31, 2025 and 2024. 2025 2024 Beginning balance – January 1 $ 834 $ 844 Reductions for payments made, net of recoveries ( 13 ) ( 14 ) Changes in estimates 34 7 Ending balance – March 31 $ 855 $ 837 The liabilities recorded represent our best estimate or the low end of a range of reasonably possible costs expected to be incurred to remediate sites, including operation and maintenance over periods of up to 30 years. It is reasonably possible that we may incur costs that exceed these recorded amounts because of regulatory agency orders and directives, changes in laws and/or regulations, higher than expected costs and/or the discovery of new or additional contamination. As part of our estimating process, we develop a range of reasonably possible alternate scenarios that includes the high end of a range of reasonably possible cost estimates for all remediation sites for which we have sufficient information based on our experience and existing laws and regulations. There are some potential remediation obligations where the costs of remediation cannot be reasonably estimated. At March 31, 2025 and December 31, 2024, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $ 996 and $ 1,002 . 14 Table of Contents Product Warranties The following table summarizes changes in product warranty liabilities recorded during the three months ended March 31, 2025 and 2024. 2025 2024 Beginning balance – January 1 $ 2,133 $ 2,448 Additions for current year deliveries 34 22 Reductions for payments made ( 84 ) ( 75 ) Changes in estimates 240 Ending balance – March 31 $ 2,323 $ 2,395 Commercial Aircraft Trade-In Commitments In conjunction with signing definitive agreements for the sale of new aircraft, we have entered into trade-in commitments with certain customers that give them the right to trade in used aircraft at a specified price. The probability that trade-in commitments will be exercised is determined by using both quantitative information from valuation sources and qualitative information from other sources. The probability of exercise is assessed quarterly, or as events trigger a change, and takes into consideration the current economic and airline industry environments. Trade-in commitments, which can be terminated by mutual consent with the customer, may be exercised only during the period specified in the agreement, and require advance notice by the customer. Trade-in commitment agreements at March 31, 2025, have expiration dates from 2025 through 2032. At March 31, 2025, and December 31, 2024, total contractual trade-in commitments were $ 1,512 and $ 1,393 . As of March 31, 2025 and December 31, 2024, we estimated it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $ 71 and $ 275 and the fair value of the related trade-in aircraft was $ 67 and $ 270 . Financing Commitments Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, and refinancing of delivered aircraft, totaled $ 17,157 and $ 17,124 as of March 31, 2025 and December 31, 2024. The estimated earliest potential funding dates for these commitments as of March 31, 2025 are as follows: Total April through December 2025 $ 2,727 2026 2,223 2027 4,690 2028 2,944 2029 1,779 Thereafter 2,794 Total $ 17,157 As of March 31, 2025, $ 13,832 of these financing commitments relate to customers we believe have less than investment-grade credit. We have concluded that no reserve for future potential losses is required for these financing commitments based upon the terms, such as collateralization and interest rates, under which funding would be provided. Other Financial Commitments We have financial commitments to make additional capital contributions totaling $ 277 to certain joint ventures over the next eight years . 15 Table of Contents Standby Letters of Credit and Surety Bonds We have entered into standby letters of credit and surety bonds with financial institutions primarily relating to the guarantee of our future performance on certain contracts and security agreements. Contingent liabilities on outstanding letters of credit agreements and surety bonds aggregated approximately $ 3,036 and $ 2,991 as of March 31, 2025 and December 31, 2024. Supply Chain Financing Programs The Company has supply chain financing programs in place under which participating suppliers may elect to obtain payment from an intermediary. The Company confirms the validity of invoices from participating suppliers and agrees to pay the intermediary an amount based on invoice totals. The majority of amounts payable under these programs are due within 30 to 90 days but may extend up to 12 months. At March 31, 2025 and December 31, 2024, Accounts payable included $ 2,107 and $ 2,703 payable to suppliers who have elected to participate in these programs. We do not believe that future changes in the availability of supply chain financing would have a significant impact on our liquidity. Recoverable Costs on Government Contracts Our final incurred costs for each year are subject to audit and review for allowability by the U.S. government, which can result in payment demands related to costs they believe should be disallowed. We work with the U.S. government to assess the merits of claims and where appropriate reserve for amounts disputed. If we are unable to satisfactorily resolve disputed costs, we could be required to record an earnings charge and/or provide refunds to the U.S. government. In March 2025, the U.S. Air Force (USAF) announced that Boeing has been awarded a contract to design, build and deliver the F-47, its next-generation fighter aircraft. We are making certain capital expenditures that have risk for impairment pending completion of the source selection and evaluation review process for the next-generation fighter aircraft. Total capital investment was approximately $ 500 at March 31, 2025. Fixed-Price Contracts Long-term contracts that are contracted on a fixed-price basis could result in losses in future periods. Certain of the fixed-price contracts are for the development of new products, services and related technologies. Estimating the cost and time for us and our suppliers to complete these contracts is inherently uncertain due to operational and technical complexities. This uncertainty requires us to make significant judgments and assumptions about future operational and technical performance, and the outcome of customer and/or supplier contractual negotiations. The risk that actual performance, technical or contractual outcomes could be different than those previously assumed creates financial risk that could trigger additional material earnings charges, termination provisions, order cancellations, or other financially significant exposure. VC-25B Presidential Aircraft The Company’s firm fixed-price contract for the Engineering and Manufacturing Development (EMD) effort on the USAF's VC-25B Presidential Aircraft, commonly known as Air Force One, is a $ 4 billion program to develop and modify two 747-8 commercial aircraft. During 2024, we increased the reach-forward loss on the contract by $ 379 . We are continuing to work with the customer to reset the schedule as they adjust requirements. Risk remains that we may record additional losses in future periods. KC-46A Tanker In 2011, we were awarded a contract from the USAF to design, develop, manufacture, and deliver four next-generation aerial refueling tankers as well as priced options for 13 annual production lots totaling 179 aircraft. Since 2016, the USAF has authorized 11 low rate initial production (LRIP) lots for a total of 154 aircraft. The EMD contract and authorized LRIP lots total approximately $ 29 billion as of March 31, 2025. The KC-46A Tanker is a derivative of the 767 commercial airplane program with the majority of the manufacturing costs being incurred in the 767 factory and the remaining costs being incurred in the military finishing and delivery centers. During 2024, we increased the reach-forward loss on the KC-46A 16 Table of Contents Tanker program by $ 2,002 . As of March 31, 2025, we had approximately $ 107 of capitalized precontract costs and $ 183 of potential termination liabilities to suppliers related to future production lots. Risk remains that we may record additional losses in future periods. MQ-25 In the third quarter of 2018, we were awarded the MQ-25 EMD contract by the U.S. Navy. The contract is a fixed-price contract that now includes development and delivery of seven aircraft and test articles at a contract price of $ 890 . In connection with winning the competition, we recognized a reach-forward loss of $ 291 in the third quarter of 2018. In the first quarter of 2024, we were awarded a cost-type contract modification totaling $ 657 for two additional test aircraft plus other scope increases. During 2024, we increased the reach-forward loss by $ 339 . We expect the initial EMD units to complete production in 2025 and begin flight testing. During the first quarter of 2025, we initiated final assembly operations at our new facility at Mid-America St. Louis Airport in Mascoutah, Illinois. Risk remains that we may record additional losses in future periods. T-7A Red Hawk EMD Contract & Production Options In 2018, we were awarded the T-7A Red Hawk program. The EMD portion of the contract is a $ 860 fixed-price contract and includes five aircraft and seven simulators. The production portion of the contract includes production lots for 346 T-7A Red Hawk aircraft and related services that we believe are probable of being exercised. The five EMD aircraft were delivered as of December 31, 2024, and the flight testing is ongoing. In January 2025, the USAF announced an updated acquisition approach for the T-7A Red Hawk that allows the Company to provide a production-ready configuration to the customer prior to low-rate initial production, which better supports the operational needs of the customer and reduces future production risk. During 2024, we increased the reach-forward loss on the T-7A Red Hawk program by $ 1,770 . At March 31, 2025, we had approximately $ 361 of capitalized precontract costs and $ 783 of potential termination liabilities to suppliers related to certain long-lead items for the first 4 production lots. Risk remains that we may record additional losses in future periods. Commercial Crew The National Aeronautics and Space Administration has contracted us to design and build the CST-100 Starliner spacecraft to transport crews to the International Space Station (ISS). During 2024, we increased the reach-forward loss by $ 523 . We are continuing to work toward crew certification and resolve the propulsion system anomalies. At March 31, 2025, we had approximately $ 401 of capitalized precontract costs and $ 147 of potential termination liabilities to suppliers related to unauthorized future missions. Risk remains that we may record additional losses in future periods. Note 11 – Arrangements with Off-Balance Sheet Risk We enter into arrangements with off-balance sheet risk in the normal course of business, primarily in the form of guarantees. The following table provides quantitative data regarding our third-party guarantees. The maximum potential payments represent a “worst-case scenario” and do not necessarily reflect amounts that we expect to pay. The carrying amount of liabilities represents the amount included in Accrued liabilities. Maximum Potential Payments Estimated Proceeds from Collateral/Recourse Carrying Amount of Liabilities March 31 2025 December 31 2024 March 31 2025 December 31 2024 March 31 2025 December 31 2024 Contingent repurchase commitments $ 249 $ 295 $ 249 $ 295 Credit guarantees 15 15 $ 14 $ 14 Contingent Repurchase Commitments In conjunction with signing a definitive agreement for the sale of commercial aircraft, we have entered into contingent repurchase commitments with certain customers wherein we agree to repurchase the sold aircraft at a specified price, generally 10 to 15 years after 17 Table of Contents delivery. Our repurchase of the aircraft is contingent upon entering into a mutually acceptable agreement for the sale of additional new aircraft in the future. The commercial aircraft repurchase price specified in contingent repurchase commitments is generally lower than the expected fair value at the specified repurchase date. Estimated proceeds from collateral/recourse in the table above represent the lower of the contracted repurchase price or the expected fair value of each aircraft at the specified repurchase date. If a future sale agreement is reached and a customer elects to exercise its right under a contingent repurchase commitment, the contingent repurchase commitment becomes a trade-in commitment. Our historical experience is that contingent repurchase commitments infrequently become trade-in commitments. Credit Guarantees We have issued credit guarantees where we are obligated to make payments to a guaranteed party in the event that the original lessee or debtor does not make payments or perform certain specified services. Generally, these guarantees have been extended on behalf of guaranteed parties with less than investment-grade credit. Current outstanding credit guarantees expire through 2036. Other Indemnifications In conjunction with our sales of Electron Dynamic Devices, Inc. and Rocketdyne Propulsion and Power businesses and our BCA facilities in Wichita, Kansas and Tulsa and McAlester, Oklahoma, we agreed to indemnify, for an indefinite period, the buyers for costs relating to pre-closing environmental conditions and certain other items. We are unable to assess the potential number of future claims that may be asserted under these indemnifications, nor the amounts thereof (if any). As a result, we cannot estimate the maximum potential amount of future payments under these indemnities. To the extent that claims have been made under these indemnities and/or are probable and reasonably estimable, liabilities associated with these indemnities are included in the environmental liability disclosure in Note 10. Note 12 – Postretirement Plans The components of net periodic benefit cost/(income) for the three months ended March 31 were as follows: Pension Postretirement 2025 2024 2025 2024 Service cost $ 1 $ 2 $ 13 $ 12 Interest cost 669 659 34 31 Expected return on plan assets ( 769 ) ( 829 ) ( 3 ) ( 2 ) Amortization of prior service credits ( 19 ) ( 20 ) ( 3 ) Recognized net actuarial loss/(gain) 76 67 ( 36 ) ( 44 ) Net periodic benefit (income)/cost ($ 42 ) ($ 121 ) $ 8 ($ 6 ) Net periodic benefit cost included in Earnings/(loss) from operations $ 1 $ 2 $ 13 $ 11 Net periodic benefit income included in Other income, net ( 43 ) ( 123 ) ( 5 ) ( 18 ) Net periodic benefit income included in Earnings/(loss) before income taxes ($ 42 ) ($ 121 ) $ 8 ($ 7 ) 18 Table of Contents Note 13 – Share-Based Compensation and Other Compensation Arrangements Stock Options On February 19, 2025, we granted 366,869 premium-priced stock options to our executive officers as part of our long-term incentive program. These stock options have an exercise price equal to 120.0 % of the fair market value of our stock on the date of grant. The stock options are scheduled to vest and become exercisable three years after the grant date and expire ten years after the grant date. If an executive terminates employment because of retirement, layoff, disability, or death, the executive (or beneficiary) may receive some or all of their stock options depending on certain age and service conditions. The fair value of the stock options granted was $ 79.53 per unit and was estimated using a Monte-Carlo simulation model using the following assumptions: expected life 7.0 years, expected volatility 39.0 %, risk free interest rate 4.5 % and no expected dividend yield. Restricted Stock Units On February 19, 2025, we granted 2,244,444 restricted stock units (RSU) to our executives as part of our long-term incentive program. The RSUs granted under this program have a grant date fair value of $ 184.53 per unit and will generally vest in three approximately equal installments on the first, second, and third anniversaries of the grant date. These RSUs will settle in common stock (on a one-for-one basis). If an executive terminates employment because of retirement, layoff, disability, or death, the executive (or beneficiary) may receive some or all of their stock units depending on certain age and service conditions. In all other cases, the RSUs will not vest and all rights to the stock units will terminate. Note 14 – Shareholders' Equity Mandatory Convertible Preferred Stock On October 31, 2024, we issued 115,000,000 depositary shares, representing 5,750,000 shares of our 6.00 % Series A Mandatory Convertible Preferred Stock (Mandatory convertible preferred stock). The Mandatory convertible preferred stock has a $ 1,000.00 per share liquidation preference and $ 1.00 per share par value. As a result of the transaction, we received cash proceeds of $ 5,651 , net of underwriting fees and other issuance costs. Dividends are cumulative at an annual rate of 6.00 % on the liquidation preference of $ 1,000.00 per share of Mandatory convertible preferred stock and may be paid in cash, shares of our common stock or a combination of cash and shares of our common stock. Dividends that are declared will be payable on January 15, April 15, July 15 and October 15 to holders of record on the January 1, April 1, July 1, and October 1 immediately preceding the relevant dividend payment date. On January 15, 2025, dividends of $ 72 , representing $ 12.50 per share, were paid in cash to holders of record as of January 1, 2025. In February 2025, dividends of $ 86 were declared to holders of record as of April 1, 2025, representing $ 15.00 per share, and were paid in cash on April 15, 2025. The following table illustrates the conversion rate per share of Mandatory convertible preferred stock, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock: Applicable Market Value of Common Stock Conversion Rate per Share of Mandatory Convertible Preferred Stock Greater than $ 171.5854 5.8280 shares of common stock Equal to or less than $ 171.5854 but greater than or equal to $ 142.9797 Between 5.8280 and 6.9940 shares of common stock, determined by dividing $ 1,000 by the applicable market value Less than $ 142.9797 6.9940 shares of common stock Unless earlier converted, each share of Mandatory convertible preferred stock will automatically convert on October 15, 2027, into between 5.8280 shares and 6.9940 shares of our common stock, depending on the applicable market value of the common stock and subject to certain anti-dilution adjustments 19 Table of Contents described in the certificate of designations related to our Mandatory convertible preferred stock (Certificate of Designations). The applicable market value of our common stock will be determined based on the average volume-weighted average price per share of the common stock over the 20 consecutive trading day period beginning on, and including, the 21 st scheduled trading day immediately prior to October 15, 2027. If a fundamental change, as defined in the Certificate of Designations, occurs on or prior to October 15, 2027, then holders of Mandatory convertible preferred stock will be entitled to convert all or any portion of their shares into shares of our common stock at the fundamental change conversion rate, as defined in the Certificate of Designations, for a specified period of time and also to receive an amount to compensate such holders for unpaid accumulated dividends and any remaining future scheduled dividend payments. Other than during a fundamental change conversion period, at any time prior to October 15, 2027, holders of Mandatory convertible preferred stock may elect to convert all or any portion of their shares at a conversion rate of 5.8280 shares of common stock per share of Mandatory convertible preferred stock, subject to certain anti-dilution and other adjustments as described in the Certificate of Designations. Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss (AOCI) by component for the three months ended March 31, 2025 and 2024, were as follows: Currency Translation Adjustments Unrealized Gains and Losses on Certain Investments Unrealized Gains and Losses on Derivative Instruments Defined Benefit Pension Plans & Other Postretirement Benefits Total (1) Balance at January 1, 2024 ($ 134 ) $ 2 $ 12 ($ 10,185 ) ($ 10,305 ) Other comprehensive loss before reclassifications ( 35 ) ( 65 ) ( 14 ) ( 114 ) Amounts reclassified from AOCI 7 (2) 7 Net current period Other comprehensive loss ( 35 ) ( 58 ) ( 14 ) ( 107 ) Balance at March 31, 2024 ($ 169 ) $ 2 ($ 46 ) ($ 10,199 ) ($ 10,412 ) Balance at January 1, 2025 ($ 178 ) $ 2 ($ 211 ) ($ 10,528 ) ($ 10,915 ) Other comprehensive income before reclassifications 46 68 114 Amounts reclassified from AOCI 18 23 (2) 41 Net current period Other comprehensive income 46 86 23 155 Balance at March 31, 2025 ($ 132 ) $ 2 ($ 125 ) ($ 10,505 ) ($ 10,760 ) (1) Net of tax. (2) Primarily relates to the amortization of prior service credits and actuarial losses included in net periodic benefit cost for the three months ended March 31, 2025 and 2024 totaling $ 23 and $ 0 (net of tax of $ 2 and $ 0 ). Note 15 – Derivative Financial Instruments Cash Flow Hedges Our cash flow hedges include foreign currency forward contracts, commodity swaps and commodity purchase contracts. We use foreign currency forward contracts to manage currency risk associated with certain expected sales and purchases through 2031. We use commodity derivatives, such as fixed-price purchase commitments and swaps to hedge against potentially unfavorable price changes for commodities used in production. Our commodity contracts hedge forecasted transactions through 2028. 20 Table of Contents Derivative Instruments Not Receiving Hedge Accounting Treatment We have entered into agreements to purchase and sell aluminum to address long-term strategic sourcing objectives and non-U.S. business requirements. These agreements are derivative instruments for accounting purposes. The quantities of aluminum in these agreements offset and are priced at prevailing market prices. We also hold certain foreign currency forward contracts and commodity swaps which do not qualify for hedge accounting treatment. Notional Amounts and Fair Values The notional amounts and fair values of derivative instruments in the Condensed Consolidated Statements of Financial Position were as follows: Notional amounts (1) Other assets Accrued liabilities March 31 2025 December 31 2024 March 31 2025 December 31 2024 March 31 2025 December 31 2024 Derivatives designated as hedging instruments: Foreign exchange contracts $ 5,123 $ 5,139 $ 51 $ 23 ($ 129 ) ($ 213 ) Commodity contracts 361 388 61 65 ( 12 ) ( 12 ) Derivatives not receiving hedge accounting treatment: Foreign exchange contracts 121 103 1 1 ( 12 ) ( 17 ) Commodity contracts 104 129 Total derivatives $ 5,709 $ 5,759 $ 113 $ 89 ($ 153 ) ($ 242 ) Netting arrangements ( 33 ) ( 24 ) 33 24 Net recorded balance $ 80 $ 65 ($ 120 ) ($ 218 ) (1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. Gains/(losses) associated with our hedging transactions and forward points recognized in Other comprehensive income/(loss) are presented in the following table: Three months ended March 31 2025 2024 Recognized in Other comprehensive income/(loss), net of taxes: Foreign exchange contracts $ 67 ($ 57 ) Commodity contracts 1 ( 8 ) (Losses)/gains associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table: Three months ended March 31 2025 2024 Foreign exchange contracts Costs and expenses ($ 4 ) ($ 7 ) General and administrative expense ( 10 ) ( 4 ) Commodity contracts Costs and expenses ($ 11 ) General and administrative expense 2 $ 2 21 Table of Contents Gains/(losses) related to undesignated derivatives on foreign exchange and commodity cash flow hedging transactions recognized in Other income, net were insignificant for the three months ended March 31, 2025 and 2024. Based on our portfolio of cash flow hedges, we expect to reclassify losses of $ 50 (pre-tax) out of AOCI into earnings during the next 12 months. We have derivative instruments with credit-risk-related contingent features. If we default on our five-year credit facilities, our derivative counterparties could require settlement for foreign exchange and certain commodity contracts with original maturities of at least five years . The fair value of those contracts in a net liability position at March 31, 2025 was $ 14 . For other particular commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings. At March 31, 2025, there was no collateral posted related to our derivatives. Note 16 – Fair Value Measurements The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. March 31, 2025 December 31, 2024 Total Level 1 Level 2 Total Level 1 Level 2 Assets Money market funds $ 5,182 $ 5,182 $ 6,475 $ 6,475 Available-for-sale debt investments: Commercial paper 163 $ 163 165 $ 165 Corporate notes 338 338 335 335 U.S. government agencies 17 17 17 17 Other equity investments 10 10 9 9 Derivatives 80 80 65 65 Total assets $ 5,790 $ 5,192 $ 598 $ 7,066 $ 6,484 $ 582 Liabilities Derivatives ($ 120 ) ($ 120 ) ($ 218 ) ($ 218 ) Total liabilities ($ 120 ) ($ 120 ) ($ 218 ) ($ 218 ) Money market funds, available-for-sale debt investments and equity securities are valued using a market approach based on the quoted market prices or broker/dealer quotes of identical or comparable instruments. Derivatives include foreign currency and commodity contracts. Our foreign currency forward contracts are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the present value of the commodity index prices less the contract rate multiplied by the notional amount. 22 Table of Contents Certain assets have been measured at fair value on a nonrecurring basis. The following table presents the nonrecurring losses recognized for the three months ended March 31 due to long-lived asset impairment and the fair value of the related assets as of the impairment date: 2025 2024 Fair Value Total Losses Fair Value Total Losses Investments ($ 5 ) ($ 4 ) Other assets $ 5 ( 2 ) ( 3 ) Property, plant and equipment $ 18 ( 9 ) Operating lease equipment 15 ( 5 ) Total $ 5 ($ 7 ) $ 33 ($ 21 ) Level 3 Investments and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. Level 2 Property, plant and equipment were valued based on a third-party valuation using a combination of income and market approaches and adjusted for as-is condition. These approaches are considered estimates of net operating income, capitalization rates, and/or comparable property sales. Level 3 operating lease equipment is derived by calculating a median collateral value from a consistent group of third-party aircraft value publications. The values provided by the third-party aircraft publications are derived from their knowledge of market trades and other market factors. Management reviews the publications quarterly to assess the continued appropriateness and consistency with market trends. Under certain circumstances, we adjust values based on the attributes and condition of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by third-party publications, or on the expected net sales price for the aircraft. Fair Value Disclosures The fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Condensed Consolidated Statements of Financial Position were as follows: March 31, 2025 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 Assets Notes receivable, net $ 881 $ 923 $ 910 $ 13 Liabilities Debt, excluding finance lease obligations ( 53,394 ) ( 51,758 ) ( 51,758 ) December 31, 2024 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 Assets Notes receivable, net $ 940 $ 953 $ 941 $ 12 Liabilities Debt, excluding finance lease obligations ( 53,625 ) ( 51,089 ) ( 51,089 ) The fair value of Notes receivable classified as Level 2 is estimated with discounted cash flow analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit quality. The fair value of Notes receivable classified as Level 3 is based on our best estimate using available counterparty financial data. The fair value of our debt that is traded in the secondary market is classified as Level 2 and is based on current market yields. For our debt that is not traded in the secondary market, the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer 23 Table of Contents quotes or discounted cash flows. With regard to other financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of our indemnifications and financing commitments because the amount and timing of those arrangements are uncertain. Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, commercial paper, money market funds, Accounts receivable, Unbilled receivables, Other current assets, Accounts payable and long-term payables. The carrying values of those items, as reflected in the Condensed Consolidated Statements of Financial Position, approximate their fair value at March 31, 2025 and December 31, 2024. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1). Note 17 – Legal Proceedings Various legal proceedings, claims and investigations related to products, contracts, employment, securities and other matters are pending against us. In addition, we are subject to various government inquiries and investigations from which civil, criminal or administrative proceedings could result or have resulted in the past. Such proceedings involve or could involve claims by the government for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under U.S. government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, have certain of its production certificates suspended or revoked, or lose its export privileges, based on the results of investigations. We believe, based upon current information, that the outcome of any currently pending legal proceeding, claim, or government dispute, inquiry or investigation will not have a material effect on our financial position, results of operations or cash flows. Multiple legal actions, investigations and inquiries were initiated concerning the October 29, 2018 accident of Lion Air Flight 610 and the March 10, 2019 accident of Ethiopian Airlines Flight 302. While many of these legal actions and investigations have been resolved, others are still pending, including a federal securities class action filed in federal district court in the Northern District of Illinois, and a number of civil lawsuits and claims brought by family members of those lost in the accidents. Furthermore, on January 7, 2021, we entered into a Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice (the Department) relating to the Department’s investigation into us regarding the evaluation of the 737 MAX by the Federal Aviation Administration (the Investigation). Among other obligations, the DPA included a three-year reporting period, which ended in January 2024. On May 14, 2024, the Department notified us of its determination that we did not fulfill our obligations under the DPA and that the Department would not move to dismiss the case. On July 24, 2024, we and the Department filed a proposed plea agreement with the U.S. District Court for the Northern District of Texas (the Court) to resolve the Investigation. Under the terms of the proposed agreement, Boeing agreed that it would plead guilty to the charge that was the basis for the DPA; pay an additional fine of $ 244 ; commit to invest at least $ 455 in compliance, quality and safety programs over a three-year period; and agree to the appointment of an independent compliance monitor for three years . On December 5, 2024, the Court rejected the proposed plea agreement, citing the proposed agreement’s provisions governing the monitor’s selection and supervision. In light of the Court’s ruling, Boeing and the Department continue to be engaged in discussions regarding potential resolution of this matter, which is now scheduled to go to trial on June 23, 2025. Multiple legal actions were initiated as a result of the January 5, 2024 737-9 door plug accident. We are also subject to multiple governmental and regulatory investigations and inquiries relating to the 737-9 door plug accident and our commercial airplanes business. We cannot reasonably estimate a range of loss, if any, not covered by available insurance and in excess of any accrued amounts that may result given the current status of pending lawsuits, investigations and inquiries arising from the 2018 and 2019 737 MAX accidents and the January 2024 737-9 door plug accident. 24 Table of Contents Note 18 – Segment and Revenue Information We operate in three reportable segments: BCA, BDS, and BGS. All other activities fall within Unallocated items, eliminations and other. See page 6 for the Summary of Business Segment Data, which is an integral part of this note. BCA develops, produces and markets commercial jet aircraft principally to the commercial airline industry worldwide. Revenue on commercial aircraft contracts is recognized at the point in time when an aircraft is completed and accepted by the customer. BDS engages in the research, development, production and modification of the following products and related services: manned and unmanned military aircraft and weapons systems, surveillance and engagement, strategic defense and intelligence systems, satellite systems and space exploration. BDS revenue is generally recognized over the contract term (over time) as costs are incurred. BGS provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services to commercial and government customers worldwide. BGS segment revenue and costs include certain products and services provided to other segments. Revenue on commercial spare parts contracts is recognized at the point in time when a spare part is delivered to the customer. Revenue on other contracts is generally recognized over the contract term (over time) as costs are incurred. The primary profitability measurement used by our chief operating decision maker to review segment operating results is Segment operating earnings/(loss). The following table reconciles segment Revenues to Segment operating earnings/(loss): BCA BDS BGS For the three months ended March 31, 2024 Revenues $ 4,653 $ 6,950 $ 5,045 Less: Research and development expense, net 518 235 26 Other segment items (1) 5,278 6,564 4,103 Segment operating earnings/(loss) ($ 1,143 ) $ 151 $ 916 For the three months ended March 31, 2025 Revenues $ 8,147 $ 6,298 $ 5,063 Less: Research and development expense, net 534 199 29 Other segment items (1) 8,150 5,944 4,091 Segment operating earnings/(loss) ($ 537 ) $ 155 $ 943 (1) Primarily includes costs of products and services and general and administrative expenses. The following tables present BCA, BDS and BGS revenues from contracts with customers disaggregated in a number of ways, such as geographic location, contract type and the method of revenue recognition. We believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors 25 Table of Contents BCA revenues by customer location consisted of the following: (Dollars in millions) Three months ended March 31 2025 2024 Revenue from contracts with customers: Europe $ 508 $ 770 Asia 2,957 2,113 Middle East 483 768 Other non-U.S. 389 410 Total non-U.S. revenues 4,337 4,061 United States 3,783 985 Estimated potential concessions and other considerations to 737 MAX customers, net of insurance recoveries ( 443 ) Total revenues from contracts with customers 8,120 4,603 Intersegment revenues eliminated on consolidation 27 50 Total segment revenues $ 8,147 $ 4,653 Revenue recognized on fixed-price contracts 100 % 100 % Revenue recognized at a point in time 100 % 99 % BDS revenues on contracts with customers, based on the customer's location, consisted of the following: (Dollars in millions) Three months ended March 31 2025 2024 Revenue from contracts with customers: U.S. customers $ 4,933 $ 5,444 Non-U.S. customers (1) 1,365 1,506 Total segment revenue from contracts with customers $ 6,298 $ 6,950 Revenue recognized over time 100 % 99 % Revenue recognized on fixed-price contracts 58 % 58 % Revenue from the U.S. government (1) 92 % 91 % (1) Includes revenues earned from foreign military sales through the U.S. government. 26 Table of Contents BGS revenues consisted of the following: (Dollars in millions) Three months ended March 31 2025 2024 Revenue from contracts with customers: Commercial $ 2,971 $ 3,000 Government 1,996 1,934 Total revenues from contracts with customers 4,967 4,934 Intersegment revenues eliminated on consolidation 96 111 Total segment revenues $ 5,063 $ 5,045 Revenue recognized at a point in time 54 % 54 % Revenue recognized on fixed-price contracts 86 % 87 % Revenue from the U.S. government (1) 30 % 29 % (1) Includes revenues earned from foreign military sales through the U.S. government. Earnings in Equity Method Investments During the three months ended March 31, 2025 and 2024, our share of (loss)/income from equity method investments was ($ 4 ) and $ 72 . The loss in 2025 was primarily driven by investments held in Unallocated items, eliminations, and other. The income in 2024 was primarily driven by investments held at our BDS segment. Backlog Our total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model. Our backlog at March 31, 2025 was $ 544,736 . We expect approximately 24 % to be converted to revenue through 2026 and approximately 71 % through 2029, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. 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. Unallocated Items, Eliminations and Other Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations and eliminations of certain sales between segments. We generally allocate costs to business segments based on the U.S. Government Cost Accounting Standards (CAS). Components of Unallocated items, eliminations and other income/(expense) are shown in the following table. 27 Table of Contents Three months ended March 31 2025 2024 Share-based plans ($ 30 ) $ 10 Deferred compensation 5 ( 30 ) Amortization of previously capitalized interest ( 21 ) ( 23 ) Research and development expense, net ( 82 ) ( 89 ) Eliminations and other unallocated items ( 234 ) ( 180 ) Unallocated items, eliminations and other ($ 362 ) ($ 312 ) Pension and Other Postretirement Benefit Expense Pension costs are allocated to BDS and BGS businesses supporting government customers using CAS, which employ different actuarial assumptions and accounting conventions than GAAP. These costs are allocable to government contracts. Other postretirement benefit costs are allocated to business segments based on CAS, which is generally based on benefits paid. FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. These expenses are included in Other income, net. Components of FAS/CAS service cost adjustment are shown in the following table: Three months ended March 31 2025 2024 Pension FAS/CAS service cost adjustment $ 193 $ 230 Postretirement FAS/CAS service cost adjustment 69 72 FAS/CAS service cost adjustment $ 262 $ 302 Assets Segment assets are summarized in the table below: March 31 2025 December 31 2024 Commercial Airplanes $ 85,509 $ 84,177 Defense, Space & Security 16,210 15,350 Global Services 17,167 16,704 Unallocated items, eliminations and other 37,608 40,132 Total $ 156,494 $ 156,363 Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest and assets managed centrally on behalf of the three principal business segments and intercompany eliminations. 28 Table of Contents Capital Expenditures Three months ended March 31 2025 2024 Commercial Airplanes $ 106 $ 102 Defense, Space & Security 54 68 Global Services 26 35 Unallocated items, eliminations and other 488 362 Total $ 674 $ 567 Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the three principal business segments. Depreciation and Amortization Three months ended March 31 2025 2024 Commercial Airplanes $ 101 $ 99 Defense, Space & Security 50 47 Global Services 73 77 Centrally Managed Assets (1) 242 219 Total $ 466 $ 442 (1) Amounts shown in the table represent depreciation and amortization expense recorded by the individual business segments. Depreciation and amortization for centrally managed assets are allocated to business segments based on usage and occupancy. During the three months ended March 31, 2025, $ 169 was allocated to the primary business segments, of which $ 82 , $ 68 , and $ 19 was allocated to BCA, BDS and BGS, respectively. During the three months ended March 31, 2024, $ 163 was allocated to the primary business segments, of which $ 80 , $ 65 , and $ 18 was allocated to BCA, BDS and BGS, respectively. Note 19 – Subsequent Events On April 22, 2025, we announced that we entered into an agreement with Thoma Bravo to sell portions of our BGS segment’s Digital Aviation Solutions business for $ 10.55 billion. The sale will include Jeppesen, ForeFlight, AerData and OzRunways assets. We will continue to provide commercial and defense airplane and fleet maintenance, diagnostics, and repair services. This transaction will enable us to strengthen our capital structure and focus on our core operations. We expect the transaction to close later in 2025 and result in a gain at closing. The transaction is subject to regulatory approval and customary closing conditions. 29 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of The Boeing Company Arlington, Virginia Results of Review of Interim Financial Information We have reviewed the accompanying condensed consolidated statement of financial position of The Boeing Company and subsidiaries (the “Company”) as of March 31, 2025, the related condensed consolidated statements of operations, comprehensive income, equity, and cash flows for the three-month periods ended March 31, 2025 and 2024, and the related notes (collectively referred to as the "condensed consolidated interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying condensed consolidated interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Company as of December 31, 2024, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for the year then ended (not presented herein); and in our report dated February 3, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived. Basis for Review Results This condensed consolidated interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ Deloitte & Touche LLP Seattle, Washington April 23, 2025 30 Table of Contents FORWARD-LOOKING STATEMENTS This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, industry projections and outlooks, plans, objectives and goals, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the U.S. government, as well as significant delays in U.S. government appropriations; (5) our dependence on our subcontractors and suppliers, as well as the availability of highly skilled labor and raw materials; (6) work stoppages or other labor disruptions; (7) competition within our markets; (8) our non-U.S. operations and sales to non-U.S. customers, including tariffs, trade restrictions and government actions; (9) changes in accounting estimates; (10) our pending acquisition of Spirit AeroSystems Holdings, Inc. (Spirit), including the satisfaction of closing conditions in the expected timeframe or at all; (11) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures, including anticipated synergies and quality improvements related to our pending acquisition of Spirit; (12) our dependence on U.S. government contracts; (13) our reliance on fixed-price contracts; (14) our reliance on cost-type contracts; (15) contracts that include in-orbit incentive payments; (16) management of a complex, global IT infrastructure; 31 Table of Contents (17) compromised or unauthorized access to our, our customers’ and/or our suppliers' information and systems; (18) potential business disruptions, including threats to physical security or our information technology systems, extreme weather (including effects of climate change) or other acts of nature, and pandemics or other public health crises; (19) potential adverse developments in new or pending litigation and/or government inquiries or investigations; (20) potential environmental liabilities; (21) effects of climate change and legal, regulatory or market responses to such change; (22) credit rating agency actions and our ability to effectively manage our liquidity; (23) substantial pension and other postretirement benefit obligations; (24) the adequacy of our insurance coverage; (25) customer and aircraft concentration in our customer financing portfolio; (26) the dilutive effect of future issuances of our common stock; and (27) the preferential treatment of our 6.00% mandatory convertible preferred stock. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. 32 Table of Contents