Boeing Adds $147 Million Charge To MQ-25 Losses
A new financial charge on the MQ-25 program in Boeing’s second-quarter results raises the company’s total losses on the uncrewed aerial tanker to 54% of the value of the engineering and manufacturing development contract.
Boeing reported a $147 million charge on the MQ-25 program in the second-quarter earnings release on July 27, citing “higher costs to meet certain technical requirements.”
The charge was the first to hit the program since Boeing disclosed a $291 million forward loss a month after contract award in September 2018.
The total charges now add up to $438 million. The amount indicates Boeing’s forward losses on MQ-25 development represent more than half the value of the $805 million contract award. In 2020, the Navy exercised options that raised the total value of the contract to $890 million.
The Navy expects the MQ-25 Stingray to achieve initial operational capability in fiscal 2026.