Defense Business Margins Turn Red Amid Higher Production Costs
Boeing has announced a $565 million loss on the KC-46 tanker program in the last quarter of 2025, resulting in negative operating margins for its defense business. The loss is attributed to higher production support and supply chain costs, with executives emphasizing that the issue is specific to the KC-46 and not reflective of broader problems in the defense business. Boeing delivered 14 tankers in 2025 and plans to deliver 19 in 2026, with the company working to improve production quality and reduce rework levels. The news was reported by Breaking Defense.