Boeing Wins $2.7B Apache Helicopter Support Contract Through 2030

This article summarizes reporting by Reuters.

Boeing Secures $2.7 Billion Apache Support Contract to Close 2025

The U.S. military has officially awarded The Boeing Company a significant contract valued at approximately $2.7 billion to provide post-production support for the AH-64 Apache helicopter fleet. According to reporting by Reuters and official announcements from the Pentagon released on Friday, December 31, 2025, this agreement ensures the continued operational readiness of the Army’s primary attack helicopter through the end of the decade.

This award marks a strong finish to a volatile year for Boeing’s defense sector, solidifying the Apache program as a reliable revenue generator amidst broader challenges in the aerospace industry. The contract, issued by the U.S. Army Contracting Command at Redstone Arsenal, Alabama, underscores the critical nature of sustainment services in modern defense strategy.

Contract Specifics and Scope of Work

The Department of Defense identified the award as a firm-fixed-price contract with a total value of $2,728,234,918. Designated under contract number W58RGZ-26-D-0013, the agreement covers a five-year period with an estimated completion date of December 31, 2030.

According to the Pentagon’s announcement, the work will be performed primarily at Boeing’s facility in Mesa, Arizona. As the sole manufacturer of the Apache, Boeing was the only bidder solicited for this specific support requirement.

“The U.S. military has awarded Boeing a $2.7 billion contract for post-production support services related to Apache helicopters…”

, Reuters

Defining Post-Production Support

While the production of new airframes often grabs headlines, post-production support services (PPSS) are vital for maintaining fleet lethality. Based on standard defense contracting definitions and the specific requirements of the Apache program, this contract likely encompasses:

• Logistics and Supply Chain Management: Ensuring the flow of spare parts to active units.
• Engineering Support: Troubleshooting complex mechanical or software issues that arise in the field.
• Depot-Level Maintenance: Performing heavy repairs and overhauls beyond the capabilities of field units.
• Software Sustainment: Updating avionics and mission systems to keep pace with evolving threats.

Strategic Context for Boeing Defense

This $2.7 billion award is the latest in a string of victories for Boeing’s Defense, Space & Security (BDS) division in the fourth quarter of 2025. It follows a November award of $4.7 billion for new AH-64E production and a massive $8.6 billion contract announced earlier in December for F-15IA fighter jets destined for Israel.

Despite these wins, 2025 was a challenging year financially for the defense giant. Industry reports from late 2025 indicated that the BDS division faced nearly $5 billion in losses, largely driven by cost overruns on fixed-price development programs such as the KC-46 tanker and the T-7A trainer. In contrast, the Apache support contract represents a lower-risk, steady margin opportunity.

AirPro News Analysis

We view this contract as a critical stabilizer for Boeing’s balance sheet as it enters 2026. Unlike the developmental programs that have plagued the company with unpredictable cost overruns, sustainment contracts for mature platforms like the Apache generally offer predictable, “safe” revenue.

The shift toward securing long-term service agreements highlights the “long tail” of defense economics: the initial sale of an aircraft is merely the entry point, while decades of support services often generate the bulk of the program’s lifetime profit. By locking in support through 2030, Boeing secures a financial anchor that helps offset risks taken elsewhere in its portfolio.

Frequently Asked Questions

What is the total value of the contract?
The contract is valued at approximately $2.73 billion.

Where will the work be performed?
The primary place of performance is Boeing’s facility in Mesa, Arizona.

When does the contract expire?
Work is estimated to be completed by December 31, 2030.

Was this a competitive bid?
No. The solicitation was issued via the internet with only one bid received, as Boeing is the sole manufacturer and primary support provider for the Apache helicopter.

Sources

• Reuters