Boeing has secured new defense orders from the US Military to the tune of over $7 billion. This includes $4.69 billion for Apache helicopters for the US Army, and a $2.47 billion Lot 12 contract for 15 more KC-46 Pegasus tankers to join the US Air Force.
The new orders will ensure both programs benefit from production stability and continued supply chain requirements to sustain long-term production of two of Boeing’s most important military programs.
$4.6 Billion Order For New-Build Apache AH-64E
As per the US Department of Defense, the US planemaker has been awarded two contracts worth over $7 billion. The bulk of this will be spent on new Apache AH-64E attack helicopters, the most modern Apache variant, to be procured alongside Longbow crew trainers, as well as components, spares, and accessories, on a $4.69 billion firm-fixed-price contract. The helicopters will be built at Boeing’s facility in Mesa, Arizona, with an estimated completion date of May 2032.
Almost half of the contract will be covered by Foreign Military Sales (FMS) to Poland, Egypt, and Kuwait in 2010, with funds of almost $2.3 billion obligated for the contract. The Apache attack helicopter entered service with the US Army almost four decades ago, with Boeing stating that there are around 1,280 currently in service around the globe.
Boeing says the AH-64E will remain in production until at least 2028, but is likely to remain in service with the US and its allies until the 2060s or beyond, with its modular architecture capable of being continuously upgraded. The AH-64E is the most modern configuration of the Apache, featuring multiple enhancements to its sensors, weapons and software to ensure the aircraft is capable of handling modern warfare demands.
$2.47 Billion For 15 Additional KC-46 Pegasus Tankers
The Pentagon also revealed a Lot 12 production contract for the US Air Force for 15 more KC-46A Pegasus aircraft. These tankers will be built in Seattle, with all work slated for completion by June 2029. While Congress has currently imposed a cap of 183 KC-46 acquisitions, the Air Force looks set to expand its KC-46 fleet to up to 263 aircraft, with the tanker being procured in greater numbers than initially expected amid the lack of a successor.
It has been exploring a Next Generation Aerial Refueler (NGAS) to replace its aging tanker fleet, focusing on a stealth tanker with autonomous capabilities. However, this program has fallen out of favor and could be officially canceled, with the KC-46 seen as a more than capable stand-in for US refueling capabilities.
According to Boeing, this means there are now 183 KC-46 Pegasus aircraft on contract or in service globally. A total of 108 KC-46s are in service, of which 98 are under the US Air Force, along with six operating with the Japan Air Self-Defense Force (JASDF) and four with Israel. The US fleet of KC-46s has now accumulated over 150,000 flight hours since Boeing delivered the first tanker in 2019.
The Pegasus is hitting turbulence.
Keeping Production Going
The Apache and KC-46 Pegasus programs will both get a significant boost from these orders, which will help sustain production and supply chain stability. As explained by Jake Kwasnik, vice president and KC-46 program manager,
“Getting on contract helps ensure production stability, including our long-lead supply chain, to continue delivering the unmatched capability of the KC-46A.”
Boeing’s defense division — called Boeing Defense, Space and Security (BDS) — is one of the major defense contractors for the US government. According to Defense News, the company ranked as the fifth-largest US defense company in 2024, bringing in defense revenues of over $31 billion.
Boeing as a whole is on track to deliver its highest number of aircraft since 2018. However, the company continues to suffer financially from prolonged 777X delays, recently taking a $4.9 billion charge after pushing back the widebody’s first deliveries to early 2027.
