MRO & Manufacturing
Boeing Q4 2025 Profit Boosted by Asset Sale Amid Operational Challenges
Boeing reports Q4 2025 profit from Digital Aviation Solutions sale; Spirit AeroSystems acquisition completed, but core operations show ongoing losses.
Boeing has released its financial-results for the fourth quarter and full year of 2025, reporting a headline profit largely attributed to the strategic sale of its Digital Aviation Solutions business. According to the company’s official press release, revenue for the quarter surged to $23.9 billion, a 57% increase compared to the same period in 2024. However, beneath the headline figures, the aerospace giant continues to grapple with operational challenges and costs associated with stabilizing its production lines.
The fourth quarter marked a significant turning point for Boeing’s corporate structure. The company finalized its acquisitions of Spirit AeroSystems in December 2025, a move designed to consolidate manufacturing quality and safety. Simultaneously, Boeing completed the divestiture of its Digital Aviation Solutions unit, generating cash used to offset the debt incurred from the Spirit acquisition. While these moves reshaped the balance sheet, core operational metrics indicate that the manufacturers is still in a recovery phase.
CEO Kelly Ortberg emphasized the company’s focus on the future, stating in the release that while progress is evident, the priority remains on stabilizing operations and fully integrating Spirit AeroSystems to restore Boeing’s reputation for quality.
Boeing’s reported GAAP earnings per share (EPS) for the fourth quarter stood at $10.23, a stark contrast to the loss of $5.46 per share reported in Q4 2024. However, the company disclosed that this figure includes a substantial one-time gain of $11.83 per share from the sale of the Digital Aviation Solutions business. When excluding this divestiture, the core result reflects an operational loss.
According to financial data released by the company:
For the full year of 2025, Boeing reported total revenue of $89.5 billion, a 34% increase year-over-year, and delivered 600 commercial-aircraft, the highest annual total since 2018.
While the headline profit of $10.23 per share appears robust, it masks the underlying reality of Boeing’s manufacturing economics. Without the $11.83 per share gain from selling off assets, the company would have posted a core loss of approximately $1.91 per share. This suggests that the cost of building and delivering jets remains higher than the revenue they generate, driven by supply chain inefficiencies and the heavy costs of reintegrating Spirit AeroSystems. The “beat” on revenue confirms strong demand, but the operational losses highlight that profitability from core manufacturing is still a work in progress.
The fourth quarter of 2025 was defined by two major transactions that have fundamentally altered Boeing’s operational footprint.
In December, Boeing completed the acquisition of Spirit AeroSystems, bringing the manufacturing of key aerostructures, such as fuselages, back in-house. The deal had an enterprise value of approximately $8.3 billion, including net debt. The strategic goal, as outlined by Boeing management, is to improve safety protocols and production stability by directly controlling the quality of airframe components. The company noted that this acquisition negatively impacted Commercial Airplanes segment margins by approximately 1.5 percentage points in the quarter. To finance the reintegration of its supply chain, Boeing sold its Digital Aviation Solutions business, which includes Jeppesen and ForeFlight, to private equity firm Thoma Bravo. The transaction generated approximately $10.6 billion in cash proceeds. Boeing stated that these funds were immediately deployed to repay debt associated with the Spirit AeroSystems purchase, effectively keeping the company’s leverage neutral regarding the acquisition.
The Commercial Airplanes division delivered 160 aircraft in the fourth quarter, contributing to revenue of $11.4 billion, more than double the $4.8 billion recorded in Q4 2024. Despite the revenue jump, the segment reported a negative operating margin of -5.6%. While this is a significant improvement from the -43.9% margin seen a year ago, it underscores the continued high costs of production.
Production rates for key programs have increased:
The company also reported a record total backlog valued at $682 billion, comprising over 6,100 commercial aircraft.
The Defense, Space & Security segment reported revenue of $7.4 billion, a 37% increase year-over-year. However, the unit posted an operating loss of $507 million (a -6.8% margin). The results were weighed down by $0.6 billion in losses on the KC-46A Tanker program, which continues to face supply chain costs and production support challenges.
Despite the reported profit, market reaction was tepid. Boeing stock fell approximately 1.5% to 2.5% in pre-market trading following the release. Analysts have characterized the report as a “trust test,” noting that while the revenue growth confirms strong market demand, the wider-than-expected operational losses indicate that factory inefficiencies persist.
Looking ahead to 2026, Boeing reaffirmed its guidance for free cash flow between $1 billion and $3 billion for the full year. Management cautioned that the company expects to burn cash in the first half of 2026 due to seasonal factors and the integration of Spirit AeroSystems, with positive cash flow generation expected to return in the second half of the year.
Boeing reported a net profit because of a one-time gain of roughly $11.83 per share from selling its Digital Aviation Solutions business. This sale generated enough cash to cover the operational losses from building airplanes and the costs associated with the Spirit AeroSystems acquisition.
The acquisition was finalized in December 2025. Boeing now owns Spirit AeroSystems, allowing it to bring fuselage manufacturing in-house to better control quality and safety. As of the fourth quarter of 2025, Boeing is producing 42 737 MAX airplanes per month and is transitioning to 8 787 Dreamliners per month.
Boeing Reports Q4 2025 Profit Driven by Asset Sale; Core Operations Face Continued Pressure
Financial Overview: A Complex Picture
AirPro News Analysis
Strategic Restructuring
Acquisition of Spirit AeroSystems
Divestiture of Digital Aviation Solutions
Operational Updates
Commercial Airplanes
Defense, Space & Security
Market Reaction and 2026 Outlook
FAQ
Why did Boeing report a profit if they lost money on operations?
What is the status of the Spirit AeroSystems acquisition?
How many planes is Boeing building per month?
Sources
Photo Credit: Boeing
MRO & Manufacturing
Pilatus Aircraft Opens New Manufacturing Facility in Florida
Pilatus Aircraft launches a $200M manufacturing hub in Sarasota, Florida, expanding U.S. operations with sustainable, hurricane-resistant facilities.
This article is based on an official press release from Pilatus Aircraft Ltd.
Swiss aerospace manufacturer Pilatus Aircraft Ltd has officially broken ground on a new flagship facility at the Sarasota Bradenton International Airport (KSRQ) in Florida. The ceremony, held in late January 2026, marks a pivotal shift in the company’s strategy, transitioning its U.S. operations from sales and service, to full-scale manufacturing. According to the company, the new site is designed to become a “center of excellence” serving North-America and South America.
The expansion represents a significant financial commitment to the region. Pilatus has outlined a phased development plan on the 17-acre site, beginning with a sales and service center and evolving into a final assembly line for its popular PC-12 and PC-24 aircraft. Company officials stated that the move is intended to streamline logistics and place production closer to their largest customer base.
According to details released by Pilatus and the Sarasota Bradenton International Airport, the project involves a substantial capital investment and a long-term construction timeline. The initial phase, focused on a Sales and Service Center, is valued at approximately $50 million. Upon the completion of all phases, including the manufacturing plant, the total projected investment is estimated at $200 million.
The facility will be constructed in two primary stages:
In terms of employment, Pilatus projects the creation of approximately 50 initial jobs in sales, service, and design. As manufacturing operations ramp up, the company expects the workforce to grow to over 300 employees, including mechanics, engineers, and technicians.
Historically, Pilatus has concentrated its production capabilities at its headquarters in Stans, Switzerland. This new Florida facility represents a strategic diversification of its supply chain. By establishing a final assembly line in the United States, Pilatus aims to mitigate risks associated with currency fluctuations and transatlantic shipping logistics.
Markus Bucher, CEO of Pilatus Aircraft Ltd, emphasized the importance of the U.S. market in the company’s official statement:
“This flagship facility will be our fifth location in the USA, and will set new standards for quality, expertise, and technology in the southeastern United States. In America, we will build airplanes for Americans. We are establishing Sarasota as a major production site, serving our customers right where they are.”
This development coincides with the consolidation of the manufacturer’s American operations. Effective January 1, 2026, the company integrated its various U.S. entities into a single organization, Pilatus Aircraft USA Ltd. The Sarasota facility will serve as the headquarters for this unified entity. The decision by Pilatus to establish final assembly lines in Florida mirrors a broader trend among European aerospace manufacturers seeking to “onshore” production in their most lucrative markets. Similar to Airbus‘s establishment of assembly lines in Mobile, Alabama, Pilatus is moving to insulate itself from supply chain volatility while embedding itself deeply into the local economy. By marketing “American-built” aircraft, Pilatus likely aims to strengthen its appeal to U.S. corporate and private operators who prioritize domestic sourcing, while simultaneously reducing the lead times and costs associated with ferrying aircraft from Switzerland.
The new facility is being designed with strict environmental and safety standards. Pilatus has announced that the site is designed to achieve LEED Gold certification. Key sustainability features include rooftop solar panels to reduce dependency on the local power grid and the utilization of well water for irrigation to minimize impact on public utilities.
Given the location in Florida, resilience against severe weather is a core component of the design. The buildings are engineered to withstand hurricane-force winds with a safety margin exceeding code requirements by 15%. Additionally, the facility will feature raised floors to mitigate flood risks.
Rick Piccolo, President and CEO of Sarasota Bradenton International Airport, highlighted the regional impact of the agreement:
“This agreement marks a significant milestone in the economic development not only of the airport but also the region.”
Founded in 1939, Pilatus remains the only Swiss company to develop, produce, and sell aircraft globally. The company is best known for the PC-12, the world’s best-selling single-engine turboprop, and the PC-24, a “Super Versatile Jet” capable of operating from short, unpaved runways. Prior to this expansion, Pilatus maintained a U.S. footprint primarily through its facility in Broomfield, Colorado, employing roughly 400 people across the country.
Pilatus Aircraft Breaks Ground on Major U.S. Manufacturing Hub in Florida
Investment and Facility Specifications
Strategic Shift: “In America, for Americans”
AirPro News Analysis
Sustainability and Resilience
Background on Pilatus Aircraft
Sources
Photo Credit: Pilatus Aircraft
MRO & Manufacturing
Connecticut Guard’s 1109th AVCRAD Supports Army Aviation Sustainment
The 1109th AVCRAD in Groton, CT provides sustainment-level maintenance for 325 helicopters, extending service life and saving costs.
This article is based on an official press release from the Connecticut National Guard.
In Groton, Connecticut, the 1109th Aviation Classification and Repair Depot (AVCRAD) continues to serve as a vital logistical artery for the U.S. Army’s rotary-wing fleet. According to an official release from the Connecticut National Guard, the facility, co-located with the 1109th Theater Aviation Support Maintenance Group (TASMG), provides specialized “sustainment-level” maintenance that extends far beyond standard field repairs.
As one of only four such National Guard facilities in the United States, the 1109th AVCRAD is responsible for supporting Army National Guard aviation assets across 14 Northeastern states and the District of Columbia. This regional responsibility encompasses approximately 325 helicopters stationed at 24 different facilities, ensuring that the fleet remains operational for both domestic disaster response and overseas deployment.
To understand the significance of the Groton facility, it is necessary to distinguish between the two primary tiers of Army aviation maintenance: field level and sustainment level. While field units perform “on-system” repairs, such as replacing starters or fixing leaks to return aircraft to flight status quickly, the AVCRAD is tasked with “off-system” heavy lifting.
According to the National Guard, the 1109th AVCRAD is capable of stripping a helicopter down to the frame and rebuilding it to factory standards. This process involves complex tasks including:
The facility services the Army’s core rotary platforms, including the UH-60 Black Hawk, CH-47 Chinook, and AH-64 Apache. By performing these deep-level refurbishments, the depot ensures older airframes can continue to fly safely, bridging the gap between current operations and future fleet modernization.
The financial implications of the AVCRAD’s operations are substantial. Rather than purchasing new aircraft, which can cost tens of millions of dollars, the Department of Defense relies on depots like the 1109th to extend the service life of existing assets.
In a statement regarding the facility’s impact, 1st Sgt. Jarod Meekhoff, a Quality Control Inspector at the unit, highlighted the cost-efficiency of their mission:
“Refurbishing an aircraft saves the Department of Defense and, in turn, the U.S. taxpayer millions of dollars every year.”
1st Sgt. Jarod Meekhoff, Connecticut National Guard
A notable example of this capability cited in reports involves the reconstruction of two CH-47 Chinook helicopters. These aircraft had been classified as “battle-damaged” following hard landings in Iraq and were grounded. Instead of scrapping the airframes, the AVCRAD team rebuilt them to factory specifications, saving the military the cost of procuring new heavy-lift helicopters, which can exceed $30 million per unit.
Beyond mechanical repairs, the 1109th AVCRAD has been recognized for modernizing maintenance processes. The facility implemented the aviation industry’s first non-chromium-6-based coating and painting system. Hexavalent chromium is a known carcinogen traditionally used in aerospace anti-corrosion coatings. By eliminating this hazardous material, the Groton facility has improved safety conditions for its workforce while reducing its environmental-impact.
The strategic placement of the 1109th AVCRAD in the Northeast offers a dual advantage. Domestically, it ensures that governors in the region have access to operational rotary-wing assets for emergency response, such as during hurricanes or floods, without relying solely on active-duty logistics chains that may be overextended.
Furthermore, the facility’s certifications, including ISO 9001:2015 and AS 9110, position it to handle specialized contracts typically reserved for major defense contractors. As the U.S. Army looks toward Future Vertical Lift (FVL) platforms later in the decade, the technical expertise cultivated at depots like the 1109th will likely be essential for integrating new technologies while sustaining the enduring fleet of Black Hawks and Apaches.
What is the difference between the 1109th AVCRAD and the TASMG? How many AVCRADs are there in the United States? Does the facility only employ soldiers?
Connecticut Guard’s 1109th AVCRAD: A Critical Hub for Army Aviation Sustainment
Defining Sustainment-Level Maintenance
Economic Impact and Strategic Value
Innovation in Environmental Safety
AirPro News Analysis
Frequently Asked Questions
The AVCRAD refers to the physical depot and facility capabilities, while the TASMG (Theater Aviation Support Maintenance Group) refers to the personnel. While the facility is static in Groton, the TASMG soldiers are deployable and can form “Task Force AVCRAD” to provide theater-level maintenance in combat zones.
There are only four National Guard AVCRAD facilities nationwide. They are located in Connecticut, Mississippi, Missouri, and California.
No. The workforce at the 1109th is a mix of uniformed National Guard soldiers and highly skilled civilian contractors, many of whom are trained as certified airframe and powerplant mechanics.
Sources
Photo Credit: Timothy Kloster
MRO & Manufacturing
Mecadaq Group Acquires Echeverria and Lopez to Expand Aerospace Capabilities
Mecadaq Group acquires Echeverria and Lopez in France to diversify aerospace supply chain services and target €150M revenue by 2030.
This article is based on an official press release from Mecadaq Group.
Mecadaq Group, a specialist in high-precision aerospace manufacturing with operations in France and the United States, has announced the acquisitions of two strategic companies: Echeverria and Lopez. The announcement, made on January 21, 2026, marks the first major expansion for the group since the investment firm CAPZA became its majority shareholder in July 2025.
According to the company’s statement, these acquisitions are part of an aggressive “buy-and-build” strategy designed to consolidate the fragmented aerospace supply chain. By integrating these new entities, Mecadaq aims to diversify its capabilities beyond airframe manufacturing into interiors and engine maintenance. The group has set a financial target to achieve over €150 million in annual revenue by 2030.
The two acquired companies bring distinct specializations that broaden Mecadaq’s service portfolio and strengthen its local footprint in southwest France.
Located in Hendaye, France, Echeverria specializes in the precision machining and assembly of complex components for aircraft seats and cabins. This acquisition opens a new vertical for Mecadaq in the “Interiors” market. The company notes that Echeverria is a key supplier for Airbus Atlantic, providing structures for pilot seats and cabin frameworks.
The second acquisition, Lopez, is based in Tarnos, France, near Mecadaq’s headquarters. Lopez focuses on Maintenance, Repair, and Overhaul (MRO) services for helicopter engines. Their capabilities include grinding, lapping, hydraulic testing, and compliance restoration for critical parts. According to Mecadaq, this move establishes a dedicated division for engine maintenance and reinforces the group’s relationship with Safran Helicopter Engines, a long-standing partner of Lopez.
This expansion is fueled by Mecadaq’s new financial structure following the entry of CAPZA as the majority shareholder in mid-2025. The investment firm’s Flex Equity strategy replaced the previous backer, Activa Capital. Additionally, Mecadaq President Julien Dubecq and his management team have reinvested in the transaction, signaling a long-term commitment to the group’s growth.
“The aerospace supply chain remains highly fragmented. Mecadaq’s strategy is to act as a consolidator, acquiring smaller, specialized firms to increase ‘share of wallet’ with major OEMs.”
, Summary of Mecadaq Group Strategy
The group’s ambition is to triple its size relative to its 2018-2020 baseline. To reach the €150 million revenue target by 2030, Mecadaq plans to pursue a mix of organic growth and further acquisitions across Europe and the United States.
The acquisition of Echeverria and Lopez highlights a critical trend in the aerospace sector: the consolidation of Tier 2 and Tier 3 suppliers. As major OEMs like Airbus and Boeing ramp up production rates, smaller suppliers often face pressure to scale operations and maintain financial resilience. By absorbing specialized firms, mid-sized groups like Mecadaq can offer a more robust, multi-service value proposition,ranging from manufacturing to maintenance,thereby securing their positions as critical partners in the global supply chain.
Headquartered in Tarnos, France, Mecadaq Group employs approximately 350 people (prior to these recent acquisitions). The company specializes in high-precision machining, including turning, milling, and gear shaping, for the aerospace and defense sectors.
Mecadaq operates a transatlantic model to serve major industrial hubs:
The company’s client roster includes major industry players such as Airbus, Boeing, Dassault Aviation, Safran, Thales, and Spirit AeroSystems. Mecadaq produces parts for key commercial programs like the A320, B737, A350, and B787, as well as the Rafale defense program.
Mecadaq Group Acquires Echeverria and Lopez to Accelerate Aerospace Supply Chain Consolidation
Strategic Acquisitions: Echeverria and Lopez
Echeverria: Expanding into Interiors
Lopez: Establishing an MRO Division
Financial Backing and Long-Term Strategy
AirPro News Analysis
Company Profile and Global Footprint
Sources
Photo Credit: Mecadaq Group
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