Boeing Q4 Revenue Up 56.8% as 777X Seal Issue and 787 Defect Emerge

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Boeing reported Q4 FY2025 revenue up 56.8% YoY and backlog exceeding 6,100 aircraft valued at $700 billion, driven by record deliveries. Concurrently, Boeing and GE found a potential durability issue on its 777X engine seal and Air India grounded one 787 Dreamliner over a fuel control switch defect.

1. Boeing and GE Identify Engine Seal Durability Concern

Boeing and General Electric have flagged a potential durability issue involving a seal on the GE9X engine that powers Boeing’s new 777X wide-body aircraft, according to people familiar with the matter. The issue was discovered during routine life-cycle testing of the high-pressure compressor section, where engineers noted accelerated wear patterns on a labyrinth seal designed to maintain core airflow integrity. Boeing and GE have launched a joint task force to assess root causes and projected service intervals; preliminary estimates suggest that if unmitigated, the seal degradation could necessitate earlier-than-planned shop visits, potentially affecting up to 100 aircraft currently in various stages of flight test and pre-delivery. Both companies emphasize that no in-service safety incidents have occurred and that certification programs remain on schedule pending verification of revised maintenance protocols.

2. Air India Grounds Dreamliner Over Fuel Control Switch Defect

Air India has temporarily grounded one of its 33 Boeing 787 Dreamliner jets after a flight crew reported a possible defect with the aircraft’s fuel control switch upon arrival in Bengaluru from London. The fuel control switches, which regulate fuel flow for engine start and in-flight manual restarts, were implicated in last December’s Dharmasthali crash in Gujarat that claimed 260 lives when dual switch activation starved both engines of fuel. Following the pilot’s report, Air India notified India’s Directorate General of Civil Aviation and Boeing, then conducted fleet-wide inspections of all 787 fuel control mechanisms, confirming no further anomalies to date. Boeing has dispatched technical representatives to support the airline’s investigators, and no return-to-service date has yet been announced for the grounded airframe.

3. Strong Q4 and FY2025 Results Signal Growth

Boeing reported a 56.8% year-over-year revenue increase for its fourth quarter and full fiscal year 2025, driven by record commercial aircraft deliveries and ramping production rates across the 737, 777 and 787 programs. Total deliveries exceeded 900 jets in FY2025, marking the highest annual count since 2019, and the company’s backlog surpassed 6,100 aircraft, representing approximately $700 billion in future revenue. Operating cash flow improved by $5.2 billion year-over-year, reflecting higher free-cash-flow generation and disciplined working-capital management. Management reiterated guidance for accelerating production rates over the next two years, forecasting narrow-body output of up to 50 frames per month by late 2026 and continued margin expansion backed by supply-chain stabilization and increased aftermarket services penetration.

Sources

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