Boeing Adds $147 Million Charge To MQ-25 Losses

Boeing MQ-25
Credit: Boeing

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.

Steve Trimble

Steve covers military aviation, missiles and space for the Aviation Week Network, based in Washington DC.


It looks like the US Government is happy to permit Boeing to underbid programs, as long as its on Boeing's nickle.
Underbidding and undelivering as promised, one may wonder why DoD and some Federal Agencies accept this way.
I will not further elaborate…..
Does Boeing realize that their product is actually rubbish and will only win through serious underbidding? And does this process diminish America's defense capabilities by delivering substandard products which may never do what they were supposed to do?