Boeing Secures $241M US Navy Deal

Boeing secured a $241.3 million sole-source contract from the U.S. Navy on 4 September. The agreement covers repairs to flight-control surfaces for F/A-18E/F Super Hornets and EA-18G Growlers. Work on the program will extend through September 2032. This follows a separate $109 million sole-source Navy order awarded on 10 August for 76 F/A-18 outer-wing panels, which runs through October 2031. In addition, the U.S. recently approved a potential $5 billion sale of JDAM-ER weapons to Saudi Arabia, naming Boeing as the principal contractor.

The defense wins arrive as Boeing works to restore margins in its military operations. In the second quarter, Defense, Space & Security revenue rose 13% year over year to approximately $7.5 billion. However, the unit recorded a $15 million operating loss, compared to a $110 million profit in the prior-year period. That performance included $280 million in losses on the VC-25B program due to extra investments in production and certification resources.

Across the entire company, total second-quarter revenue rose 8% to around $24.6 billion, aided by 171 commercial aircraft deliveries. Commercial Airplanes revenue gained 8% to $11.8 billion, while its operating loss narrowed from $557 million to $322 million.

Institutional positioning showed mixed sentiment during the second quarter. The number of hedge funds holding Boeing shares fell from 99 in the first quarter to 90. Pentwater Capital Management cut its stake by 13% to about 6.2 million shares, after raising it by 7% in the first quarter and 165% in the fourth quarter. Fisher Asset Management increased its holding by 4%, and Viking Global raised its position by 3%. As of 14 August, short interest stood just below 15 million shares, representing 1.90% of the public float and a 3.06% decrease from the previous report, with 2.9 days to cover.