{"id":72266,"date":"2026-01-27T21:56:57","date_gmt":"2026-01-27T21:56:57","guid":{"rendered":"https:\/\/staging.sightlinemg.com\/defensenews\/uncategorized\/2026\/01\/27\/boeing-reports-565m-loss-on-kc-46-as-firm-looks-forward-to-repricing\/"},"modified":"2026-08-08T01:32:09","modified_gmt":"2026-08-08T01:32:09","slug":"boeing-reports-565m-loss-on-kc-46-as-firm-looks-forward-to-repricing","status":"publish","type":"post","link":"https:\/\/staging.sightlinemg.com\/defensenews\/air\/2026\/01\/27\/boeing-reports-565m-loss-on-kc-46-as-firm-looks-forward-to-repricing\/","title":{"rendered":"Boeing reports $565M loss on KC-46 as firm looks forward to repricing"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Boeing on Tuesday reported a $565 million loss on its <a href=\"https:\/\/www.defensenews.com\/industry\/2024\/01\/09\/cautionary-tale-how-boeing-won-a-us-air-force-program-and-lost-7b\/\" target=\"_blank\" rel=\"\" title=\"https:\/\/www.defensenews.com\/industry\/2024\/01\/09\/cautionary-tale-how-boeing-won-a-us-air-force-program-and-lost-7b\/\">KC-46 Pegasus refueling tanker<\/a> in the fourth quarter of 2025, the latest for a program that has recorded billions in losses over the years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In an earnings call with investors, Boeing chief executive Kelly Ortberg acknowledged the loss is \u201cdisappointing,\u201d but said the company is seeing encouraging signs in the aircraft\u2019s operational performance that bode well for the program\u2019s future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf sustained, [that strong performance] should enable us to meet our customer delivery commitment and set us well for the next tanker order beyond the current program of record,\u201d Ortberg said. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chief financial officer Jay Malave pointed to the Air Force\u2019s recent order of 15 more KC-46s as a positive development that contributed to Boeing Defense Space and Security\u2019s $15 billion in orders during the quarter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing said the KC-46 charges were driven by higher supply chain costs and production support expenses at its facility in Everett, Washington.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ortberg said most of the KC-46\u2019s loss was due to higher costs on the 767 air frame that provides the basis for the tanker, so that charge does not reflect on other Boeing defense programs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But some of those added production support costs will eventually help the company, Malave said. Boeing is pushing for higher quality levels and engineering support at its Everett factory, where KC-46s are made, and saw the amount of work that needed to be redone drop by 20% in the latter half of 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhile these investments are starting to evidence progress, we need to sustain them for longer than previously planned, to promote stability,\u201d Malave said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ortberg said that with the Pentagon keeping a close watch on how well defense contractors meet their delivery deadlines, Boeing has to keep investing resources to keep its standards and productivity high. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe took that decision \u2014 albeit, a big gulp \u2014 to have to take a charge here on the tanker program,\u201d Ortberg said. \u201cI think it will pay off in dividends with us, in terms of allowing us to make sure we meet the 19 [expected KC-46] deliveries next year.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This will be particularly important in the future, he said, since the Air Force has decided to buy more KC-46s on a sole-source basis until a future next-generation tanker arrives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ortberg said Boeing will have a clearer picture on what the follow-on batch of KC-46s will cost later this fall. And given the massive losses \u2014 more than $8 billion \u2014 Boeing has taken on the program so far, Ortberg said, the company plans to be \u201claser-focused on making sure we understand the cost base of that airplane.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis has been a bad contract for the last decade,\u201d Ortberg said. \u201cAs we enter into a new opportunity where we get to reprice, we want to make sure that we \u2026 ensure it\u2019s a fair contract and we can make money.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boeing has lost billions of dollars on the KC-46 program, including a new $565 million charge at the end of 2025.<\/p>\n","protected":false},"author":7,"featured_media":119131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":7,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,160,12,36],"tags":[],"coauthors":[3412],"class_list":["post-72266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-daily-news-roundup","category-industry","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"P2LLMEQXOVAF7FVWRNJV7UFKBI","arc_canonical_url":"\/air\/2026\/01\/27\/boeing-reports-565m-loss-on-kc-46-as-firm-looks-forward-to-repricing\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Boeing reports $565M loss on KC-46 as firm looks forward to repricing - Defense News<\/title>\n<meta name=\"description\" content=\"Boeing has lost billions of dollars on the KC-46 program, including a new $565 million charge at the end of 2025.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/staging.sightlinemg.com\/defensenews\/air\/2026\/01\/27\/boeing-reports-565m-loss-on-kc-46-as-firm-looks-forward-to-repricing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Boeing reports $565M loss on KC-46 as firm looks forward to repricing\" \/>\n<meta property=\"og:description\" content=\"Boeing has lost billions of dollars on the KC-46 program, including a new $565 million charge at the end of 2025.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/staging.sightlinemg.com\/defensenews\/air\/2026\/01\/27\/boeing-reports-565m-loss-on-kc-46-as-firm-looks-forward-to-repricing\/\" \/>\n<meta property=\"og:site_name\" content=\"Defense News\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-27T21:56:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-08T01:32:09+00:00\" \/>\n<meta name=\"author\" content=\"Stephen Losey\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Stephen Losey\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": 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