Boeing is exploring a sale of its space division, which manages key NASA programs, as part of a strategy to improve its financial outlook under new CEO Kelly Ortberg. According to The Wall Street Journal, Boeing’s space-focused business, which includes the Starliner space taxi and support for the International Space Station (ISS), could be offloaded as the company struggles with mounting losses.
The decision reportedly reflects Ortberg’s emphasis on refocusing Boeing around core commercial and defense operations. Ortberg, who took over in August, told investors last week that Boeing would “do less and do it better.” The division in question, part of Boeing’s Defense, Space & Security segment, reported a $2.4 billion operating loss in the third quarter, largely due to setbacks with Starliner, which faced technical failures and cost overruns. Starliner’s most recent issues left two astronauts stranded on the ISS, requiring a SpaceX mission to return them to Earth.
While Boeing’s NASA ties date back to the Apollo program, the company has increasingly faced stiff competition from SpaceX. SpaceX’s Crew Dragon, developed under NASA’s Commercial Crew Program, has taken on a larger share of NASA’s crewed missions amid Boeing’s struggles.
Meanwhile, Boeing is expected to retain control over NASA’s Space Launch System, which supports deep-space missions and completed its first launch in 2022 after delays and budget challenges. Boeing has not confirmed these reports but stated it does not comment on market speculation.
The company’s financial issues are compounded by ongoing production problems, including a strike at its commercial aircraft facilities and the recent failure of a Boeing-made Intelsat satellite. Boeing’s stock rose temporarily following reports of the potential sale, signaling investor interest in strategic restructuring.
Potential buyers of Boeing’s NASA-related assets may include Blue Origin, Jeff Bezos’s aerospace firm, which previously held informal talks with Boeing about taking over some space programs. Analysts note that a sale could provide Boeing with an infusion of capital and help stabilize its balance sheet, which has been impacted by multiple crises, including Boeing 737 MAX litigation and costly project delays.
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