BABoeing

Approximately 58,000 72,000 employees, which constitute 34% or 40% of our total workforce, were union represented as of December 31, 2024 2025, under collective bargaining agreements with varying durations and expiration dates. As of December 31, 2024, 2025, we had 9 32 independent agreements with nine different unions in the U.S. U.S., and we had agreements with 27 independent agreements and 18 employee representative bodies internationally, and we internationally. We cannot predict how stable our union relationships will be or whether we will be able to meet the unions’ requirements. On September 12, During 2024, our contract with IAM employees represented by International Association of Machinists and Aerospace Workers (IAM) District 751, which represents over 30,000 Boeing manufacturing employees primarily located in Washington state, expired and 96% went out on strike for 53 days, halting production of IAM 751 members voted to initiate a strike. On November 4, 2024, members of IAM 751 voted to ratify a new contract, thereby ending the strike. As a result of the strike, production most of our commercial aircraft, other than the 787 production in Charleston, aircraft and certain of our Defense, Space & Security products halted, products, and materially adversely impacting our business and financial position. Net cash used During 2025, employees represented by operating activities IAM District 837, which represents approximately 3,200 employees at our St. Louis area sites, went out on strike for 101 days, disrupting our St. Louis operations and impacting programs including F/A-18, F-15, T-7A, MQ-25 and Weapons. Both the year ended December 31, 2024, was $12.1 billion and we expect further negative operating cash flows to continue in future quarters as we work to ramp up production and deliveries. The new contract with IAM District 751 and pay enhancements for certain non-union the IAM District 837 strikes occurred despite having in each case reached a tentative agreement with union leadership on the terms of the proposed contract and union leadership having recommended its members vote to ratify the proposed contract. If we are unable to successfully negotiate successor agreements with our unions that our employees is adversely impacting our financial position, results of operations and cash flows. We may experience additional work stoppages in the future, which could adversely affect our business. will ratify

787 Program The accounting quantity for During 2024, the 787 program increased by 100 units during the year ended December 31, 2024, due to the program's normal progress of obtaining additional orders and delivering airplanes. During 2024, we production rate was slowed production to below 5 five per month due to supply chain constraints as well as other production issues. While we continue to be impacted by while addressing performance challenges and supply chain constraints, constraints. In 2025, while continuing to monitor supply chain health and factory performance, we are working increased the production rate from five to increase seven per month. We began increasing the production rates. Delays associated with business class seats adversely impacted 2024 deliveries rate to eight per month during the fourth quarter of 2025 and will continue to impact deliveries in 2025. As of work toward stabilizing production. In February 2025, we completed the remaining rework on aircraft produced prior to 2023. At December 31, 2024, 2025, we had approximately 25 five of those aircraft in inventory that were produced prior to 2023 and required rework. We expect to complete the rework and deliver the majority of these aircraft them in 2025. The inspections and rework costs on inventoried aircraft are accounted for as abnormal production costs, and we expensed $256 million during the year ended December 31, 2024. 2026.

Various We are subject, from time to time, to various legal proceedings, proceedings and claims and investigations related to our business that cover a wide range of matters, including those related to products, contracts, labor and employment, securities securities, antitrust and trade regulations, intellectual property, and other matters are pending against us. matters. In addition, we are subject to various government inquiries and investigations from which civil, criminal or administrative proceedings could result or have resulted in the past. Such proceedings involve or could involve claims by the government U.S. or foreign governments for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under U.S. government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, have certain of its production certificates suspended or revoked, or lose its export privileges, based on the results of investigations. We believe, based upon current information, that the outcome of any currently pending legal proceeding, claim, or government dispute, inquiry or investigation will not have a material effect on our financial position, results of operations or cash flows.

The Consolidated Financial Statements included in this report have been prepared by management of The Boeing Company (herein referred to as “Boeing,” the “Company,” “we,” “us” or “our”). These statements include the accounts of all majority-owned subsidiaries and variable interest entities that are required to be consolidated. All significant intercompany accounts and transactions have been eliminated. As described in Note 23, 24, we operate in three reportable segments: Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). We added a new financial statement line item to the Consolidated Statements of Cash Flows for cash invested in Supplier notes receivable and reclassified the corresponding amounts in the prior period financial statements to conform to the current period presentation.