Boeing announced that the U.S. Air Force has awarded the company a $2.47 billion contract for 15 additional KC‑46A Pegasus aerial refueling tankers, bringing the total number of KC‑46A aircraft on contract or in service worldwide to 183. The deal, signed on November 25, 2025, expands the existing fleet and provides a substantial new revenue stream for Boeing’s Defense, Space & Security (BDS) segment.
The contract reinforces Boeing’s production stability and supports the long‑lead supply chain at the Everett, Washington facility. In the third quarter of fiscal 2025, BDS generated $6.9 billion in revenue, a 25% year‑over‑year increase, and an operating margin of 1.7%. The backlog for the segment reached $76 billion by the end of that quarter, underscoring the continued demand for the KC‑46A platform and the company’s ability to convert orders into cash flow.
The KC‑46A program has matured since its first flight in 2015 and has become a key component of the Air Force’s plan to replace aging KC‑135 Stratotankers. The fleet has accumulated more than 150,000 flight hours, and the aircraft is being upgraded with enhanced communications, data connectivity, and situational‑awareness capabilities. International interest remains strong, with Japan and Israel already on board or in advanced negotiations for additional units.
Jake Kwasnik, Boeing’s vice president and KC‑46 program manager, said the new contract “helps ensure production stability, including our long‑lead supply chain, to continue delivering the unmatched capability of the KC‑46A.” The quote highlights the strategic importance of the contract for maintaining a steady production cadence and for sustaining the supply chain that supports the broader defense portfolio.
The award signals the Air Force’s confidence in the KC‑46A’s capabilities and its commitment to modernizing the aerial refueling fleet. It also positions Boeing to capitalize on future opportunities, such as the anticipated Tanker Production Extension program, while mitigating headwinds from past challenges like foreign‑object debris and structural cracks that temporarily halted deliveries in early 2025. The contract therefore strengthens Boeing’s competitive position in the U.S. military aviation market and supports the company’s long‑term growth strategy in defense and space.
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