The Boeing Company (BA) recorded third-quarter revenue of $24.2 billion, up 4% from $23.3 billion a year earlier, and swung to a GAAP operating profit of $354 million from a $4.78 billion loss in the year-ago quarter. Operating margin was 1.5%.

The aerospace manufacturer said the revenue increase primarily reflected higher defense and services volume and less favorable commercial delivery mix. GAAP diluted loss was $0.26 a share, versus a $7.14 loss a year earlier. Core operating earnings were a $204 million loss, and core loss was $0.34 a share.

That year-ago comparison is the quarter’s defining turn: a large operating loss became a modest profit, and the per-share loss narrowed sharply. Sequentially, revenue was $24.6 billion in the second quarter, when GAAP operating earnings were $156 million and core operating earnings were a $1 million profit. Core operating earnings reversed to a $204 million loss in the third quarter.

Commercial Airplanes remained the drag. Segment revenue was $10.7 billion on 161 deliveries, versus 160 a year earlier. The operating loss was $697 million, and the operating margin was (6.5)%. The company said the result primarily reflected less favorable delivery mix, higher projected costs associated with future production-rate adjustments and higher estimated supply-chain costs. A year earlier, the segment posted a $5.35 billion operating loss and a (48.3)% margin, which the company said was impacted by a charge on the 777X program.

Deliveries were 161, including 124 of the 737, 10 of the 767, 5 of the 777 and 22 of the 787. The 737 program continued toward stabilized production of 47 per month. The 737-7 received amended type certification from the FAA, and the 737-10 received certification in October. The 787 remained at 8 per month. The 777X continued 777-9 certification flight testing and remained on track for first delivery in 2027. Commercial Airplanes booked 300 net orders, including from Turkish Airlines, Ethiopian Airlines and Lufthansa. Commercial backlog included over 6,300 airplanes valued at a record $612 billion.

Defense, Space & Security revenue was $7.9 billion, up 15% from $6.9 billion a year earlier, on higher volume. Operating earnings were $492 million, and the operating margin was 6.2%. The company said the margin primarily reflected a $252 million gain on the HRL Laboratories sale and improved operational performance. The segment was selected by the U.S. Navy to design, build and deliver the F/A-XX next-generation fighter; that order is not included in backlog pending completion of source selection. It also received a seven-year award to expand PAC-3 Seeker production. Defense backlog grew to a record $101 billion, with 23% from customers outside the United States.

Global Services revenue was $5.6 billion, up 4% from $5.4 billion a year earlier, on higher volume. Operating earnings were $1.02 billion, and the operating margin was 18.3%. The company said the margin reflected favorable volume and mix. The segment captured an award from the U.S. Army to provide maintenance services for the AH-64 Apache fleet and ended the quarter with backlog of $33 billion.

Total company backlog grew to a record $745 billion at quarter end, including over 6,300 commercial airplanes. Operating cash flow was $1.5 billion, up 33% from $1.12 billion a year earlier. Free cash flow was $0.5 billion. The company said operating cash flow reflected working-capital timing partially offset by Department of Justice settlement payments of approximately $0.7 billion. Additions to property, plant and equipment were $1.03 billion, primarily reflecting higher investments in Charleston and St. Louis. Cash and investments in marketable securities totaled $20.7 billion at quarter end, compared with $20.0 billion at the beginning of the quarter. Consolidated debt was $45.9 billion. Credit facilities of $10.0 billion remained undrawn.

President and chief executive officer Kelly Ortberg said recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy’s sixth-generation fighter, were important steps as the company continued building on its progress. He said Boeing remained focused on safety and quality as it redoubled efforts on Lean and disciplined execution to deliver on commitments.