Boeing Lands $13.4B Air Force Contract Boost for Foreign Military Sales

Boeing (BA) delivered 51 jets in August, down 10.5% YoY, but YTD deliveries are the best since 2018. Q2 2026 revenue hit $24.5B (+8% YoY), with adjusted free cash flow turning positive at $631M. The backlog stands at $715B with 6,200+ orders. Despite a 5% YTD stock decline, long-term prospects appear promising.

James Purnell, now Prime Minister's chief of staff, hosted a dinner in June 2025 with Business Secretary Jonathan Reynolds and executives from defence firms, including Melrose Industries, Leonardo, Boeing, QinetiQ, and Rowden Technologies. The meeting was not declared until The Telegraph inquired, and the firms later secured £3 billion in government contracts, sparking accusations of cronyism. The government stated it was a routine meeting and the record has been corrected.

Boeing (BA) secured a $241.3M U.S. Navy contract for F/A-18 repairs, extending through 2032. Defense revenue rose 13% YoY to $7.5B in Q2, but the segment reported a $15M loss. Commercial aircraft deliveries supported total revenue growth of 8% to $24.6B. Investors await proof of defense profitability and commercial recovery.

Boeing offered a 10% wage increase to 16,000+ workers, including engineers and technicians, to prevent a strike. The union recommended members approve the deal, which also includes future raises and work policy revisions. The current contract expires Oct. 6, and a strike was previously authorized by 88% of members.

U.S. stock indices fell on Friday, with the S&P 500 down 2.64%, Nasdaq 100 down 4.77%, and Dow Jones down 1.35%, due to strong jobs data raising rate hike bets. Meta dropped on reports of a potential stock sale. TSLA fell 5% after postponing its Roadster demo. GME's CEO is pursuing eBay. META may raise equity for AI. BA will start 737 Max production. MSTR dropped with Bitcoin. GOOGL secured a cloud deal with SpaceX.

Boeing and the engineering union reached a tentative contract agreement, according to union officials. The deal could impact labor relations and operational efficiency, which are key factors for investors.