Boeing CEO Kelly Ortberg.
Boeing is closely monitoring its flight hour-dependent services business for any sign that the Iran crisis is hitting commercial aftermarket demand.
“That’ll be the first indicator of any impact in our aftermarket,” Boeing CEO Kelly Ortberg told analysts last week after being asked about the impact of Middle East tensions.
“I’m not too worried about it right now,” Ortberg said. “Obviously, the big question is how long does the war last? And I can’t answer that. We’ll just have to watch it and manage as things happen.”
Ortberg also noted that any hit to commercial services might be mitigated by growth in defense work.
For now, Boeing Global Services (BGS) continues to perform strongly, posting $5.4 billion in revenue in the first quarter—up from $5.1 billion in the first three months of 2025.
Operating margin declined slightly, although at 18.1% it remains easily the most profitable part of Boeing’s business, with Commercial Airplanes unprofitable in the quarter and Defense posting a margin of 3.1%.
New business in the three months through March 31 included Boeing’s largest-ever landing gear exchange contract, covering 75 aircraft across Singapore Airlines’ Boeing 737 MAX and 787 fleets.
Aviation Week reported recently on Boeing’s “volume play” in the landing gear aftermarket, where it is poised to pick up more market share. The airframer said its landing gear exchange (LGE) backlog includes about 480 aircraft from 34 airlines. Boeing recently completed its 100th 787-8 LGE delivery.
BGS’ total backlog, meanwhile, had reached a record $33 billion by March 31, 2026.
“They’re [BGS] performing exceptionally well through any environment and continue to drive growth,” Boeing CFO Jesus Malave noted.
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