The Boeing Company

“The Boeing Company, together with its subsidiaries (herein referred to as “Boeing,” the “Company,” “we,” “us,” “our”), is one of the world’s major aerospace firms.”

“We are one of the two major manufacturers of 100+ seat airplanes for the worldwide commercial airline industry and one of the largest defense contractors in the U.S.”

“We operate in three reportable segments: •Commercial Airplanes (BCA); •Defense, Space & Security (BDS); •Global Services (BGS).”

“Our strategy is centered on successful execution in healthy core businesses – Commercial Airplanes (BCA), Defense, Space & Security (BDS) and Global Services (BGS).”

“This family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models. Development continues on the 777X program and the 737-7 and 737-10 derivatives.”

“strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems, satellite systems”

“including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and digital solutions and analytics”

“This growth came despite a lower than usual contribution from the North American market, which saw stagnant demand particularly in the low-cost space.”

“Commercial Airplanes$41,494 $22,861 $33,901 Defense, Space & Security27,234 23,918 24,933 Global Services20,923 19,954 19,127”

“Revenues$27,234 $23,918 $24,933 % of total company revenues30 %36 %32 %”

“primarily due to a 2025 gain on the Digital Aviation Solutions Divestiture of $9,566 million”

“As of December 31, 2025, Boeing’s total workforce was approximately 182,000 with 14% located outside of the U.S. As of December 31, 2025, our workforce included approximately 72,000 union members.”

“Our contracts with the Society of Professional Engineering Employees in Aerospace, representing approximately 16,000 Boeing employees, are scheduled to expire in October 2026, and could also have a material impact on our financial position, results of operations and cash flows.”

“On December 8, 2025, we completed the acquisition of Spirit AeroSystems Holdings, Inc. (Spirit) by exchanging approximately $4.7 billion of Boeing shares for all of Spirit’s outstanding shares”

“On December 8, 2025, we completed the acquisition of Spirit”

“BCA faces aggressive international competitors who are intent on increasing their market share, such as Airbus and entrants from China. BDS faces strong competition primarily from General Dynamics Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, RTX Corporation and SpaceX.”

“Based on long-term global economic growth projections of 2.3% in average annual gross domestic product, we project demand for approximately 43,600 new airplanes over the next 20 years.”

“Both single-aisle and wide-body demand remain above current industry supply levels. We are experiencing strong demand from our airline customers globally.”

“On October 31, 2025, we completed the divestiture of portions of our BGS segment’s Digital Aviation Solutions business (Digital Aviation Solutions Divestiture) for $10.55 billion in an all-cash transaction.”

“a 2025 gain on the Digital Aviation Solutions Divestiture of $9,566 million”

“We and our suppliers continue to experience inflationary pressures. We continue to monitor the health and stability of the supply chain.”

“our debt totaled $54.1 billion, of which approximately $15.5 billion of principal payments on outstanding debt are scheduled to become due over the next three years, and our airplane financing commitments totaled $15.2 billion”

“dividends on the outstanding shares of our 6.00% Series A Mandatory Convertible Preferred Stock (Mandatory convertible preferred stock), through the mandatory conversion date of October 15, 2027”

“Debt, excluding finance lease obligations(53,848)(53,769)(53,769)”

“These plans include increasing the 737 production rate to 47 per month in 2026, as well as further production rate increases that will require a new production line.”

“resulting in an incremental reach-forward loss of $4,899 million during 2025”

“The International Air Transport Association (IATA) is estimating 2025 industry-wide net profits of $39.5 billion, up from $28.3 billion in 2024, primarily driven by Europe, North America and the Middle East. For 2026, IATA is forecasting $41 billion in net profits for the industry globally.”

“as a result of the 737-9 door plug accident in January 2024, the FAA investigated the 737 quality control system... The 737 program may only increase production rates and/or implement new production lines with the concurrence of the FAA.”

“the 777X program, which launched in 2013 and is currently expecting first delivery in 2027, recognized additional reach-forward losses of $4.9 billion and $3.5 billion in 2025 and 2024”

“These actions, as well as our recent acquisition of Spirit (Spirit Acquisition), significantly impacted our financial position, results of operations and cash flows.”

“A lapse in appropriations for government departments or agencies would result in a full or partial government shutdown, which could impact our operations.”

“went out on strike for 53 days, halting production of most of our commercial aircraft... During 2025, employees represented by IAM District 837... went out on strike for 101 days, disrupting our St. Louis operations”

“We enter into firm fixed-price aircraft sales contracts with indexed price escalation clauses, which subjects us to losses if we have cost overruns or if increases in our costs exceed the applicable escalation rate.”

“The 737-9 door plug accident and our resulting actions, including slowing production, significantly impacted our financial position, results of operations and cash flows during 2024 and 2025.”

“We cannot be assured that we will be able to maintain an investment grade rating”

“Our fixed-price development programs are maturing; however, technical and schedule challenges remain and have resulted in significant earnings charges on these programs.”

“We have experienced, and may in the future experience, whether directly or through our subsidiaries or our supply chain, third-party service providers or other channels, cyber-related incidents”

“certain jurisdictions including the State of California and the European Union have enacted legislation which require more stringent greenhouse gas emissions and climate risk reporting”