BA

The Boeing Company stock research

Jun 30, 2025

FY2025 Q2

The Boeing (BA) Gross Margin — Quarter Ended Jun 30, 2025

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was stable relative to the prior quarter but significantly higher than a year ago, while cost of revenue also increased, resulting in a gross margin that weakened from the prior quarter but improved from the year-ago period.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was stable relative to the prior quarter but significantly higher than a year ago, while cost of revenue also increased, resulting in a gross margin that weakened from the prior quarter but improved from the year-ago period.

  • The strongest observable margin driver was the change in gross profit relative to revenue. Sequentially, gross profit held steady as revenue rose, causing margin compression; year-over-year, gross profit grew more than revenue, boosting the margin.
  • Compared to the immediately preceding quarter, gross margin was lower, driven by a higher proportion of cost of revenue to revenue. Compared to the same quarter one year earlier, gross margin was higher, as gross profit increased more than revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

10.7%

Gross profit

$2.4B

Revenue

$22.7B

Cost of revenue

$20.3B

Quarter-over-quarter change

-1.7 pts

Year-over-year change

+3.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$17.8B-$3.5B$21.3B-19.7%
Dec 31, 2024$15.2B-$1.6B$16.8B-10.4%
Mar 31, 2025$19.5B$2.4B$17.1B12.4%
Jun 30, 2025$22.7B$2.4B$20.3B10.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

-1.7 pts

Year-over-year change

Jun 30, 2024

+3.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver was the change in gross profit relative to revenue. Sequentially, gross profit held steady as revenue rose, causing margin compression; year-over-year, gross profit grew more than revenue, boosting the margin.

Compared to the immediately preceding quarter, gross margin was lower, driven by a higher proportion of cost of revenue to revenue. Compared to the same quarter one year earlier, gross margin was higher, as gross profit increased more than revenue.

Monitor the relationship between cost of revenue and revenue trends in upcoming quarters.