Boeing Space JV Cuts 2025 Launch Rate by 40%

Core Viewpoint - Boeing's stock is facing challenges in 2025 due to delays in the certification of its joint venture ULA's new Vulcan Centaur rocket, which is critical for revenue generation [1][11]. Group 1: ULA's Launch Plans - ULA, a joint venture between Boeing and Lockheed Martin, planned to launch its Vulcan Centaur rocket 20 times in 2025, aiming for approximately $100 million per launch [2]. - Half of these launches were intended for commercial customers, while the other half were for U.S. government missions, including national security [3]. - ULA needs certification from the U.S. Space Force for the Vulcan rocket to proceed with its planned launch cadence [3][4]. Group 2: Certification Delays - ULA successfully launched the Vulcan rocket for the first time in January 2024, but a subsequent launch in October faced issues with one of its solid rocket boosters [5][6]. - The Federal Aviation Administration initially deemed the anomaly not serious, but later reconsidered the need for an investigation [6][7]. - ULA's CEO expressed optimism about receiving certification soon, but as of late March, no decision had been made [7][9]. Group 3: Financial Implications - ULA has reduced its 2025 launch target from 20 to 12, with only half of these being Vulcan launches, leading to a projected 40$800 million less revenue for ULA, translating to a potential $39 million profit loss for both Lockheed Martin and Boeing [11]. - Boeing, already facing significant losses, may find this revenue shortfall impactful despite it being relatively small compared to its overall financial situation [12]. Group 4: Future Concerns - There are concerns regarding the potential for further delays in certification, which could lead to ULA losing future launch contracts to competitors like SpaceX [13][14]. - ULA's CEO has downplayed these concerns, but any negative developments could further reduce ULA's launch opportunities and revenue, impacting Boeing's profits [14].