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They won the T-7A and it remains to be seen whether they can execute on budget and not have to take charges like they did on the KC-46. Same on the MQ-25. While T-7 was a big win, the MQ-25 is not really that large of a program. They were obviously expected to win the SH Block III effort because no other OEM could upgrade the Rhino given its a Boeing product. As I said, once you peal away the legacy programs the new stuff is either extremely low risk or when there is risk, they end up taking a whole lot of charges and go billions over budget. Who knows what is out there in the unclassified domain. They don't mention a lot of high end unclassified work in their conference call (like Lockheed does) but for all we know that could be going massively wrong as well.Yeah they took a lot of charges on the KC-46 and an extreme amount of risk on the T-7A (not sure about the MQ-25) to a point where they likely will end up taking some sort of short term financial hit in the long term interest of sustained production and sustainment. All this was well and good when the commercial business was booming and they had record commercial backlogs and the problem of not being able to build aircraft fast enough. Now, they are raising debt to finance some of the MAX related issues. Certainly interesting times lie ahead for them financially with NGAD/PCA, FA-XX, and a whole host of other high profile competitions ahead.
They won the T-7A and it remains to be seen whether they can execute on budget and not have to take charges like they did on the KC-46. Same on the MQ-25. While T-7 was a big win, the MQ-25 is not really that large of a program. They were obviously expected to win the SH Block III effort because no other OEM could upgrade the Rhino given its a Boeing product. As I said, once you peal away the legacy programs the new stuff is either extremely low risk or when there is risk, they end up taking a whole lot of charges and go billions over budget. Who knows what is out there in the unclassified domain. They don't mention a lot of high end unclassified work in their conference call (like Lockheed does) but for all we know that could be going massively wrong as well.
Yeah they took a lot of charges on the KC-46 and an extreme amount of risk on the T-7A (not sure about the MQ-25) to a point where they likely will end up taking some sort of short term financial hit in the long term interest of sustained production and sustainment. All this was well and good when the commercial business was booming and they had record commercial backlogs and the problem of not being able to build aircraft fast enough. Now, they are raising debt to finance some of the MAX related issues. Certainly interesting times lie ahead for them financially with NGAD/PCA, FA-XX, and a whole host of other high profile competitions ahead.
