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Boeing (BA) is moving higher today after being awarded a $8.57 bln Air Force contract for the F-15 Israel Program, along with a separate $4.2 bln modification supporting E-4B logistics services, reinforcing defense as an area of strength. 

• The $8.57 bln contract covers the design, integration, instrumentation, test, production, and delivery of 25 new F-15IA aircraft for the Israeli Air Force, with an option for an additional 25, and runs through 2035, providing long-term program visibility.
• The $4.2 bln modification relates to BA's E-4B contractor logistics support follow-on work, including programmed depot maintenance, base supply management, program/field support, systems lab support, obsolescence studies, and engine support, with work expected to be complete by FY27.
• The awards add to the broader defense demand tailwind management highlighted on its Q3 call, noting "exceptional demand" supported by the global threat environment. BA's Defense, Space & Security (BDS) segment reported revenue of $6.90 bln, up 25% yr/yr, while backlog increased to a record $76 bln (about 20% international).
• Looking ahead, BA has been pointing to improving deliveries and cash generation. Free cash flow turned positive in Q3 for the first time since 2023, and at a Dec. 2 conference, CFO Jay Malave said BA expects 737 and 787 deliveries to be up and guided to low-single-digit free cash flow growth in FY26.

Briefing.com Analyst Insight

Today's move highlights what these awards reinforce: BA's defense business continues to benefit from a supportive demand backdrop and remains a key player in U.S. defense exports, with the F-15IA win underscoring continued international demand for advanced fighter capabilities, consistent with management's view that demand is being supported by the current global threat environment. Defense is therefore a relative bright spot and steady contract flow helps bolster the broader recovery narrative as BA works through commercial execution and longer-cycle program risks (including the 777X overhang). Ultimately, the more durable catalyst is follow-through, turning backlog into deliveries while keeping free cash flow trending more consistently positive in 2026 and beyond.