BA · Earnings call · 2026Q3T · Full report

Operating Income and Margins

BOEING CO · 2026-10-27 · Importance 26 · Surprise 24 · In source text

Consolidated operating margin improved to 1.5%, while core EPS improved to a loss of $0.34 on higher segment earnings and lower corporate expenses. BCA's operating margin was negative 6.5%, materially improved from the prior year’s 777X charge impact, but pressured by lower booking rates after production adjustments and higher estimated supply-chain costs. BDS operating margin was 6.2%, including a $252 million gain on the HRL Laboratories sale; management reiterated a path to high-single-digit margins by the end of the decade. BGS operating margin was 18.3%, up year over year on favorable volume and mix, and both commercial and government businesses delivered double-digit margins.

Key facts

Boeing expects to make significant BCA margin improvement in the back half of the following year and reach about breakeven in early 2028.
Boeing expects the 737's margin profile to improve but not reach 2018 levels by percentage or absolute amount; by 2029, the 787 is expected to exceed its 2018 margin level on both bases.

Impact estimates

metric	direction	stage	expected	basis
margin	positive	probable	—	Boeing expects to make significant BCA margin improvement in the back half of the following year and reach about breakeven in early 2028.