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By the Leeham News Team

July 24, 2023, © Leeham News: The Boeing Co’s 2Q2023 earnings call is Wednesday and the company continues to push uphill in its path for full financial recovery.

Last week, we examined Boeing’s challenges this Boeing Commercial Airplanes (BCA). This week we look at Boeing’s Defense unit, Boeing Defense, Space and Security (BDS). BDS is often overshadowed by BCA’s issues. But BDS has a recent track record of negative margins and negative cash flows.

Fixed priced contracts Boeing won proved to be underbid. BDS has taken a stream of big write-offs that don’t seem to have an end in sight.

This is an excerpt from the 2018 Boeing Company (BA) financial statements (edited for brevity):