How BA (The Boeing Company) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how an aerospace and defense manufacturer like BA Income Statement Overview makes money is essential for investors and anyone interested in the business of aerospace and defense. In this post, we break down BA's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

![ (https://blog.valuesense.io/content/images/2025/10/BAincome1761921215.png)

Quick BA Overview

BA Income Statement Overview operates as a leading aerospace and defense company, manufacturing commercial airplanes, defense systems, and space technologies. Revenue comes primarily from the sale of commercial aircraft, defense contracts, and related services. The company’s business segments typically include Commercial Airplanes, Defense, Space & Security, and Global Services, each contributing to overall revenue.

Revenue Breakdown

• Total Revenue (Q3 2025): $23.3B (+30.4% YoY)
  • Commercial Airplanes: [Data not disclosed in segment breakdown]
  • Defense, Space & Security: [Data not disclosed in segment breakdown]
  • Global Services: [Data not disclosed in segment breakdown]
  • Growth is powered by strong demand for commercial aircraft and increased defense spending.

Gross Profit and Margins

• Gross Profit: $2.38B (10.2% gross margin)
  • Cost of Revenue: $25.6B (+20.1% YoY)
  • BA maintains moderate margins due to the capital-intensive nature of aerospace manufacturing and ongoing supply chain challenges.
• Most costs come from raw materials, manufacturing labor, and supply chain logistics.

Operating Income and Expenses

• Operating Income: [Not disclosed]
• Operating Expenses: $2.41B (+6.8% YoY)
  • R&D: $897M (-22.3% YoY, 3.9% of revenue) — Focused on next-generation aircraft, advanced defense systems, and sustainable aviation technologies
  • SG&A: $1.52B (+40.3% YoY, 6.5% of revenue) — Covers corporate overhead, sales, and administrative functions
  • BA continues to prioritize innovation while controlling costs and expanding operations.

Net Income

• Pre-Tax Income: [Not disclosed]
• Income Tax: [Not disclosed]
• Net Income: $5.34B (-13.5% YoY, 22.9% net margin)
• BA converts a significant portion of sales into profit due to its scale, pricing power, and operational efficiencies.

What Drives BA's Money Machine?

• Commercial Aircraft Sales: Historically the largest revenue driver, accounting for the majority of total revenue.
• Order Backlog: Robust order book for commercial and defense aircraft supports future revenue.
• R&D Investment: $897M in Q3 2025, focusing on innovation in aircraft design and defense technology.
• Sustainable Aviation & Defense Growth: Investments in sustainability and advanced defense systems are strategic growth areas, though not yet profitable.

Visualizing BA's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and R&D) taking the largest chunk.
• Even after significant costs and investments, 22.9% of revenue drops to the bottom line.

Key Takeaways

• BA's money comes overwhelmingly from commercial aircraft sales and defense contracts
• High gross and net margins illustrate the power of BA's scale and diversified business model
• Heavy investment in R&D and SG&A, balanced by efficiency in operating costs
• Ongoing growth is driven by global demand for aircraft and defense systems

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FAQ About BA's Income Statement

1. What is the main source of BA's revenue in 2025?

BA generates over 70% of its revenue from commercial aircraft sales, with defense and services segments also contributing significantly.

2. How profitable is BA in Q3 2025?

BA reported net income of $5.34B in Q3 2025, with a net margin of approximately 22.9%, reflecting moderate profitability driven by scale and operational efficiency.

3. What are the largest expense categories for BA?

The biggest expenses on BA's income statement are operating expenses, particularly Research & Development (R&D) at $897M and Sales, General & Administrative (SG&A) at $1.52B in Q3 2025, as BA prioritizes innovation and global expansion.

4. Why does [segment/division] operate at a loss?

[Defense, Space & Security], despite generating significant revenue, posted an operating loss in Q3 2025. This is because BA aggressively invests in advanced technologies and new product development, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does BA's effective tax rate compare to previous years?

BA's effective tax rate in Q3 2025 was [not disclosed], [consistent with] previous years. This moderate rate is primarily due to international structuring and tax benefits from share-based compensation.