The Boeing Company (BA): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of where The Boeing Company (BA) stands right now, and honestly, the BCG Matrix is the perfect tool to map their recovery and risk profile as of late 2025. We see the 737 MAX acting as a Star, with production stabilizing near 38 per month, while the Global Services unit anchors the firm with a 17.5% operating margin. But the story isn't all good news; the 777X program's massive $4.9 billion charge and delivery delay to 2027 clearly flags a major Question Mark. Dive in below to see the full breakdown of which assets are funding this turnaround and which ones demand immediate strategic action.

Background of The Boeing Company (BA)

You're looking at The Boeing Company (BA) right before the end of 2025, and honestly, the story is one of slow, hard-fought stabilization after a few rough years. The Boeing Company remains one of the world's two giants in aerospace, focused on commercial jets, defense systems, and aftermarket support. Their financial health is still heavily tied to getting production rates up and resolving lingering regulatory hurdles, especially for their newest jets.

Let's look at the latest numbers we have, primarily from the third quarter of 2025. The total company revenue for Q3 2025 hit $23.3 billion, which is a solid 30% jump from the same period last year. More importantly, the company finally posted positive free cash flow of $238 million for that quarter, the first positive result since late 2023, showing they're starting to convert that massive order book into actual cash. The total company backlog remains huge, sitting at $636 billion at the end of Q3.

The business is split into three main areas, and their performance tells a different tale for each. First, Commercial Airplanes is the engine that needs the most tuning. In Q2 2025, this segment brought in $10.9 billion in revenue, a huge 81% increase year-over-year, largely because they delivered 150 aircraft in that quarter. Still, the operating margin was negative at (5.1)%, showing profitability is still a challenge even with higher volume. The 737 production rate stabilized at 38 per month in Q2, with plans to push for 42 per month later in the year, but the highly anticipated 737 MAX 10 variant is still awaiting FAA certification, now pushed into 2026.

Next up is Defense, Space & Security (BDS), which acts as a stabilizing force. For Q3 2025, BDS revenue was $6.9 billion, marking a 25% increase from the prior year, and they managed to achieve a slim operating margin of 1.7%. This segment benefits from strong demand in national security, evidenced by a Q3 backlog of $76 billion. They're making progress on key programs like the KC-46 tanker, delivering the 100th tanker across all customers by the end of Q3.

Finally, Global Services (BGS) is the most consistently profitable part of The Boeing Company. In Q3 2025, BGS revenue was $5.4 billion, showing a 10% year-over-year gain, and they delivered the highest operating margin of all segments at 17.5%. This recurring revenue stream from maintenance, parts, and training helps cushion the volatility you see in the commercial jet side of the business. It's definitely the reliable performer you want to see when the main product line is still working through quality and certification issues.

The Boeing Company (BA) - BCG Matrix: Stars

You're looking at the core growth engines for The Boeing Company, the assets that dominate their respective markets but demand heavy capital expenditure to maintain that lead. These are the Stars, and for The Boeing Company as of 2025, the focus is squarely on the narrow-body and the long-range wide-body segments.

The 737 MAX family represents the primary Star. It holds a high market share, estimated at around 40% in the high-growth narrow-body segment, even while competing fiercely against the Airbus A320neo family. This segment is growing because airlines are replacing aging fleets and LCCs (Low-Cost Carriers) are expanding short-haul routes globally. The challenge here is execution and volume.

The production ramp-up is the key metric for this Star. The rate stabilized at 38 per month, which was the FAA-imposed cap following the 2024 incident. However, a major strategic move occurred in October 2025 when the FAA granted permission to increase this rate to 42 per month. This increase is vital for converting the massive order book into revenue and positive cash flow. The overall commercial airplane backlog remains strong, standing at over 5,900 airplanes as of the end of the third quarter of 2025.

Here's a snapshot of the 737 MAX program's current momentum:

• Production rate stabilized at 38 per month as of mid-2025.
• FAA approved rate increase to 42 per month in October 2025.
• Total commercial backlog contributes over 5,900 airplanes.
• Order momentum was robust, with 307 gross orders booked for the 737 MAX family from January to May 2025.

The second product firmly in the Star quadrant is the 787 Dreamliner. This aircraft is leading the widebody competition in terms of new orders for 2025, demonstrating strong market acceptance due to its efficiency. As of early November 2025, The Boeing Company had booked 320 orders for the Dreamliner family in 2025, a figure that, according to company statements, saw it outsell the combined orders of the Airbus A350 and A330 programs for the year.

The 787 production rate is also on an upward trajectory, though from a lower base than the MAX. Production has successfully ramped up to 7 per month by the end of 2025, up from five per month at the start of the year. The stated target is to lift output to 10 per month by 2027, supported by a $1 billion expansion at the Charleston facility. This investment is necessary because the current backlog for the 787 is so large that production slots are sold out until around 2030.

You can see the comparative order performance for the widebody segment:

The key for The Boeing Company is to sustain this high-growth market share by successfully executing these production increases without compromising quality. If they can maintain this success as the market growth rate inevitably slows, both the 737 MAX and 787 are positioned to transition into Cash Cows.

Finance: draft 13-week cash view by Friday.

The Boeing Company (BA) - BCG Matrix: Cash Cows

The Global Services (BGS) division of The Boeing Company represents a classic Cash Cow. This unit generates stable, recurring revenue streams derived from parts supply, maintenance services, and training offerings for the existing global fleet. This business model is inherently less susceptible to the cyclical nature of new aircraft orders, providing a necessary financial ballast.

You can see the segment's strong performance in the third quarter of 2025, which featured the highest operating margin across all The Boeing Company segments at 17.5%. This margin reflects favorable commercial volume and mix within the services portfolio. The unit's revenue performance further underscores its strength in a mature market environment.

The operational success in the third quarter included capturing an award from the U.S. Navy for F/A-18 aircraft landing gear repair and announcing a strategic collaboration with Korean Air for predictive maintenance analytics. These activities help maintain the segment's market leadership position.

The predictable cash flow from Global Services is crucial, especially when the Commercial Airplanes segment faces volatility. Here are some key financial anchors provided by the segment and the corporation in Q3 2025:

• Global Services Q3 2025 Revenue: $5,370 million.
• Total Company Operating Cash Flow (Q3 2025): $1.1 billion.
• Total Company Free Cash Flow (non-GAAP, Q3 2025): $0.2 billion.
• Total Company Backlog (End of Q3 2025): $636 billion.

This consistent cash generation is what The Boeing Company uses to cover corporate administrative costs, fund necessary research and development in other areas, and service its debt obligations. It's the unit that reliably funds the riskier Question Marks, so maintaining its productivity is paramount.

The Boeing Company (BA) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Legacy Defense Platforms, such as the F/A-18 and F-15, fall into this category as mature fighter jet programs nearing the end of their production life cycles. This represents a low-growth market with high competition for final contracts and is subject to operational risks like the prolonged strike at the St. Louis plants. The F/A-18E/F Super Hornet production line is scheduled to cease manufacture by the end of 2025 after the final US Navy jets are delivered. Production could extend to 2027 only if an international customer places new orders. The company is redirecting resources, representing over a $1 billion investment in new facilities in St. Louis, to focus on future platforms like the T-7A Red Hawk and F-15EX Eagle IIs.

The Defense, Space & Security segment, which houses these platforms, reported third-quarter fiscal 2025 revenue of $6.90 billion, an increase of 25% year-over-year, but the operating margin was thin at 1.7%. Year-to-date revenue through Q3 2025 was $19.82 billion, showing 7% growth, with a year-to-date operating margin of 1.9%. The total segment backlog remains substantial at $76 billion.

Key statistical data points for these legacy defense programs include:

• Total F/A-18s delivered (including first-generation) is over 2,000.
• The final eight F/A-18s added by Congress for fiscal 2023 budget roll off the line in 2025.
• The F-15EX Eagle II production is being ramped up in St. Louis.
• The company is continuing development of advanced capabilities and upgrades for the global F/A-18 Super Hornet and EA-18G Growler fleet through the mid-2030s.

Older Commercial Aircraft Variants, specifically the passenger versions of the 747 and 767, have minimal new passenger orders, cementing their Dog status. The 747 program is essentially complete, with the focus shifted entirely to the 767 Freighter variant. Boeing delivered only 1 747 in 2023 and zero in 2024, indicating the end of that production line. The 767 program is also nearing its end, with passenger production having already ceased.

The winding down of the 767 program is quantified by its remaining order book and planned production cuts. As of October 2025, a total of 1,430 767 orders have been received, with 1,345 delivered. As of June 30, 2025, 28 unfilled orders remained for the 767-300F variant, with the program scheduled to conclude in 2027. The planned production rate for the 767 was set to decrease to 2 per month in July 2025.

Here's a look at the wind-down schedule for these specific airframes:

Commercial deliveries for the 767 in the first half of 2025 totaled 14 units, with four delivered in September alone. These remaining deliveries are almost exclusively for the freighter or military tanker variants, not the legacy passenger models that are the true Dogs in this context. Expensive turn-around plans usually do not help, and the definitive end dates for production confirm the strategic decision to minimize investment in these low-growth, legacy products.

The Boeing Company (BA) - BCG Matrix: Question Marks

You're looking at the business units that are burning cash now but hold the key to future market dominance-the Question Marks. These are areas where The Boeing Company has high growth prospects but currently holds a low market share, demanding significant investment to move them into the Star quadrant.

777X Program

The 777X program, specifically the 777-9 variant, represents a massive bet on the high-growth large widebody market, but it's currently consuming substantial capital due to execution risk. The latest assessment of the certification timeline resulted in a significant financial hit in the third quarter of 2025.

The company incurred a massive pre-tax earnings charge of $4.9 billion in Q3 2025 directly attributable to the 777X certification delays. This single charge eroded earnings by $6.45 per share for that quarter. The cumulative charges related to the 777X program now stand at approximately $15 billion. This program was originally slated for delivery in 2020, and the latest setback pushes the first delivery date out to 2027, a seven-year delay from the initial target. The Commercial Airplanes division, which houses this program, posted revenues of $11.1 billion in Q3 2025, showing that while revenue is moving, the high-cost development is a major drag.

Here are the key financial markers for this high-risk, high-reward asset:

• First delivery target pushed to 2027.
• Q3 2025 pre-tax charge of $4.9 billion.
• Cumulative program charges near $15 billion.
• The Q3 2025 charge alone impacted EPS by $6.45.

Developmental Defense Programs

The portfolio of developmental defense programs, including the MQ-25 Stingray and the T-7A Red Hawk, fits the Question Mark profile perfectly: high future growth potential tied to defense spending, but currently mired in low-rate initial production or testing phases, which means they are consuming Research and Development cash without delivering significant returns yet.

The financial impact from these fixed-price development contracts has been material. For instance, the MQ-25 Stingray program added a loss of $217 million in a recent reporting period. This loss is part of a larger total of over $3.3 billion in financial losses incurred across major fixed-price development programs, which includes the T-7A Red Hawk and KC-46A Tanker programs. The T-7A Red Hawk specifically saw $367 million in charges noted in Q1 2022, underscoring the historical cost overruns in this segment.

The future funding and production ramp-up for the MQ-25 illustrate the investment required. The Navy requested $898.0 million for Fiscal Year 2025 for the MQ-25 program, partly to begin Low-Rate Initial Production (LRIP) units. Furthermore, the Navy's FY2026 request seeks $1.04 billion to fund the procurement of three MQ-25 aircraft, marking the first year of LRIP, assuming Congressional approval.

You can see the scale of the investment and cost challenges in the table below:

These defense assets require heavy cash consumption now, hoping to secure future high-growth government contracts, but the current cost overruns are a clear drain on near-term returns. Finance: draft 13-week cash view by Friday.