# HRL sale gain accounts for about half of Boeing's quarterly defense profit Boeing's defense margin reaches 6.2% in the third quarter. Excluding only the HRL sale gain leaves a 3.0% margin, above the year-earlier reported result. Published 2026-10-27 by TGOs. Canonical: https://tgos.io/news/2026/10/27/hrl-sale-gain-accounts-for-about-half-of-boeings/ Boeing's Defense, Space & Security segment earned $492 million from operations in the third quarter of 2026.[1] That included a $252 million gain on the HRL Laboratories sale, accounting for about half of the segment's operating earnings.[1] Boeing attributed the segment's 6.2% operating margin primarily to the sale gain and improved operational performance.[1] Removing the gain leaves $240 million in operating earnings and a margin of about 3.0%, by our calculation, with no other adjustments.[1] The segment's reported margin was 1.7% a year earlier.[1] Segment revenue rose 15% to $7.9 billion, which Boeing attributed to higher volume.[1] Defense backlog reached $101 billion.[1] It rose 18.5% from year-end 2025 by our calculation.[1] The U.S. Navy selected the segment for a contract to design, build and deliver the F/A-XX next-generation fighter.[1] That order is not in backlog pending completion of the source selection and evaluation review process.[1] Boeing also received a seven-year contract award to expand PAC-3 Seeker production.[1] ## Why it matters Boeing's defense margin exceeds the prior-year reported result even after removing the HRL gain, but that single adjustment does not establish a recurring earnings rate.[1] ## Sources 1. Boeing Reports Third Quarter Results, Exhibit 99.1 to Form 8-K, Oct. 27, 2026