Boeing Defense and Space CEO Ted Colbert (center) takes questions on July 21 in London.
LONDON—Boeing’s defense arm expects strong growth in Europe as the ongoing war in Ukraine and worries over geopolitical dynamics drive nations on the continent to ratchet up military spending.
Specifically, the company expects the European portion of its business to jump from 30% of its total portfolio to 40%, says Ted Colbert, president of Boeing Defense and Space, who spoke to reporters ahead of the Farnborough Airshow.
NATO is committing to increasing spending on defense products and services, which correlates to what the company can offer, Colbert argued July 21.
“We have a portfolio and strategy that informs the way they will operate going forward, fielding credible capabilities that demonstrate deterrence and being able to fight in this kind of fight,” Colbert say.
Speaking to reporters, Colbert did not highlight specific programs that will be part of this growth. However, the war in Ukraine has highlighted the need for air defense systems and increasing munitions stocks. Boeing is courting international sales of its F-15EX fighter, while its Vertical Lift portfolio has seen new orders of the CH-47 Chinook and AH-64 Apache.
These sales can help offset extensive losses the company has been taking on firm, fixed-price development programs. Responding to a question about the stability of Boeing overall, Colbert said those development programs will soon shift to low-rate initial production and full-rate production to stabilize. They will also eventually have more derivatives for export.
“I’m convinced that we are on the path to—I hope—financial stability,” he said. “From a core stability perspective, we’ve got a business model that works and will continue to work.”
Boeing Defense and Space has an overall backlog of about $60 billion across its programs, he said.
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