BOEING CO (BA) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that BOEING CO surfaced in its latest filing.

• The 777X program launched in 2013 and currently expects first delivery in 2027.2027
• The 777X program recognized additional reach-forward losses of $4.9 billion in 2025 primarily due to production challenges, certification and delivery delays, and higher estimated labor and supplier costs.2025
• The 777X program recognized additional reach-forward losses of $3.5 billion in 2024 primarily due to production challenges, certification and delivery delays, and higher estimated labor and supplier costs.2024
• Slowed 737 production rates and delayed planned production rate increases after the FAA-identified safety and quality issues following the 737-9 door plug accident in January 2024.January 2024
• Recent acquisition of Spirit (Spirit Acquisition) closed in December 2025 significantly impacted financial position, results of operations and cash flows.December 2025
• In 2024, IAM District 751, representing over 30,000 Boeing manufacturing employees primarily in Washington state, went on strike for 53 days, halting production of most commercial aircraft and certain Defense, Space & Security products.2024
• In 2025, IAM District 837, representing approximately 3,200 employees at St. Louis area sites, went on strike for 101 days, disrupting St. Louis operations and impacting programs including F/A-18, F-15, T-7A, MQ-25 and Weapons.2025
• Society of Professional Engineering Employees in Aerospace has two contracts expiring in October 2026, creating a near-term renegotiation risk.October 2026
• In Q2 2025, certain Chinese customers paused accepting deliveries in response to ongoing tariff negotiations between the U.S. and China, with subsequent resumption.Q2 2025
• During 2024, BDS recorded $5.0 billion of additional losses on its five most significant fixed-price development programs: KC-46A Tanker, T-7A Red Hawk, Commercial Crew, VC-25B Presidential Aircraft, and MQ-25.2024
• Debt totaling $54.1 billion as of December 31, 2025, with $15.5 billion in principal payments due over the next three years.December 31, 2025
• Airplane financing commitments totaling $15.2 billion as of December 31, 2025.December 31, 2025
• Up to $345 million in annual cash dividends on 6.00% Series A Mandatory Convertible Preferred Stock through October 15, 2027.October 15, 2027
• Mandatory convertible preferred stock automatically converts on or about October 15, 2027 into between 5.8280 and 6.9940 shares of common stock.October 15, 2027
• We may issue common stock upon exchange of $230 million of 3.250% Exchangeable Notes maturing November 1, 2028 (Spirit Exchangeable Notes) assumed in the Spirit Acquisition.November 1, 2028
• Liabilities arising from aircraft technologies, space systems, spacecraft, satellites, missile systems, weapons, cybersecurity, border security systems, anti-terrorism technologies and/or air traffic management systems may not be insurable on commercially reasonable terms.