MRO Memo: Services Lead Boeing Profitability

Boeing’s aftermarket sales ticked up in the fourth quarter of 2025 as the OEM ended the year with a record backlog of $30 billion for Boeing Global Services.

Boeing Global Services (BGS) encompasses both commercial and defense services, with both registering double-digit profit margins in the three months to Dec. 31.

After stripping out the sale of its Digital Aviation Solutions business, BGS’ adjusted operating margin for the quarter was 18.6% on adjusted revenue of $5.1 billion, up 6% from the prior-year period.

That made it the only profitable arm of Boeing’s operations in the final quarter, with Commercial Airplanes and Defense, Space and Security recording negative operating margins of 5.6% and 6.8%, respectively.

“It seems like everybody else is making money on planes—the guys doing seats, faucets, engines, aftermarket parts, [and] nowadays, even airlines, but it just seems like building airplanes isn't that profitable. Can that change?” asked one analyst on the earnings call.

“I really can't change the structure of the aftermarket and OE construct. It is what it is,” responded Boeing CEO Kelly Ortberg. He added: “I think this is a big part of the discussion, and our strategy going forward for next airplane is, where is the value? Where is the value chain? What do we do? What do we partner to do? And how do we assure that we're participating? There's a lot of value in this commercial aerospace market. You're right. We should participate in that value.”

Lessor Avolon recently noted in a 2026 outlook that “equity value is accruing to services-oriented business models with locked-in customer bases.”

This is particularly true of engine manufacturers, which have led the way among aerospace OEMs in tying sales to maintenance contracts. Through 2025, Rolls-Royce’s share price doubled, GE Aerospace’s climbed 83%, and RTX and Safran (which have more diversified businesses) rose 54% and 43%, respectively.

Accordingly, Boeing will hope to see plenty more announcements like last week’s deal with Air India for BGS to provide its Component Services Program across the airline's entire Boeing 787 fleet.

Editor’s note: Be sure to listen to Executive Editor Lee Ann Shay’s conversation with Boeing Global Services President and CEO Chris Raymond in the latest MRO Podcast.