Who Owns Boeing Defense, Space & Security?

Boeing Defense, Space & Security was formally established as a division in 1997 following Boeing's $13.3 billion merger with McDonnell Douglas. That merger combined Boeing's existing defense operations with McDonnell Douglas's military aircraft portfolio, including the F-15 Eagle, the F/A-18 Hornet, and the AH-64 Apache helicopter. The merger made Boeing the largest aerospace company in the United States and the second-largest defense contractor behind Lockheed Martin.

The division's roots extend further back than 1997, however. McDonnell Douglas itself was the product of a 1967 merger between McDonnell Aircraft and Douglas Aircraft. Douglas had built military aircraft since the 1920s, including the SBD Dauntless dive bomber of World War II. McDonnell produced the F-4 Phantom II, one of the most produced supersonic military aircraft in history. Boeing's own defense work dates to World War II, when it built the B-17 Flying Fortress and B-29 Superfortress bombers.

After the 1997 merger, Boeing consolidated its defense operations under the newly formed segment. In the 2000s, the division expanded its portfolio through acquisitions and new program wins. Boeing acquired Insitu in 2010, adding the ScanEagle unmanned aerial system. The division developed the P-8 Poseidon maritime patrol aircraft based on the 737 airframe and won the KC-46 Pegasus tanker contract in 2011 to replace the aging KC-135 fleet.

The 2010s brought both growth and setbacks. The division won international F-15 orders from Saudi Arabia, Qatar, and South Korea. It delivered the first KC-46 tankers to the U.S. Air Force in 2019, though the program incurred significant cost overruns. On the space side, Boeing built the core stage of NASA's Space Launch System rocket and was selected alongside SpaceX for the Commercial Crew program with its CST-100 Starliner spacecraft.

The Starliner program encountered repeated delays. Its first uncrewed test flight in December 2019 failed to reach the International Space Station. A second uncrewed test in May 2022 succeeded, and a crewed test flight finally launched in June 2024. That mission encountered thruster failures, and NASA opted to return the crew on a SpaceX vehicle while Boeing flew Starliner back uncrewed in September 2024.

In 2025, the division posted $27.2 billion in revenue, up 14% from 2024. Its annual operating loss narrowed to $128 million, a sharp improvement from the $5.4 billion loss reported in 2024. In Q4 2025, Boeing secured a contract for 15 KC-46A tankers and an order for 96 AH-64E Apache helicopters. The division also delivered the first operational T-7A Red Hawk trainer to the U.S. Air Force.

In 2026, the division continued to see revenue growth. Q1 2026 revenue reached $7.6 billion with a 3.1% operating margin. Q2 2026 revenue rose 13% to $7.5 billion, though the quarter included $280 million in additional losses on the VC-25B Air Force One program. The division's backlog stood at $85 billion as of June 30, 2026, with 27% representing orders from customers outside the United States. Key Q2 2026 milestones included the first flight and Milestone C approval for the MQ-25A Stingray unmanned tanker and the start of low-rate initial production for the T-7A Red Hawk.