Boeing Is Handing 3 Businesses to Archer Aviation and Closing a $131 Billion F-15 Order. Here’s Which Stock Gets the Better Deal.

Boeing (NYSE:BA) is selling three aerospace businesses to Archer Aviation (NYSE:ACHR), giving the electric aircraft developer an established defense operation generating more than $200 million in annual revenue. Meanwhile, Boeing has secured a U.S. military contract with a maximum value of $131.23 billion to support its F-15 fighter jet program.

Both developments could significantly improve the companies' long-term prospects. But they represent very different opportunities. Archer is gaining revenue, technology, and a stronger foothold in defense. Boeing is strengthening an already substantial military business while simplifying its operations.

And while both deals look promising, one stock offers a more compelling opportunity. Let’s find out which one.

Archer is getting three established aerospace businesses

In August, Boeing agreed to sell Archer three subsidiaries: Wisk Aero, Insitu, and SkyGrid. Each brings something different.

Wisk develops autonomous electric aircraft capable of taking off and landing vertically, similar to helicopters. Its technology could eventually help Archer develop air taxis that operate without pilots. SkyGrid develops software for managing air traffic, including coordinating autonomous aircraft and drones.

But Insitu is arguably the most valuable addition. That company manufactures military drones used for intelligence gathering, surveillance, and reconnaissance. Unlike Archer's emerging air taxi business, Insitu already generates revenue and operates profitably.

Image source: Getty Images.

According to Boeing, Insitu produces more than $200 million in annual revenue and operates across 35 countries. That's a substantial addition for Archer, which generated just $5.1 million in revenue during Q3 2026. The acquisition could also help Archer expand its defense business beyond the electric air taxis that originally attracted investors.

Archer is already developing autonomous aircraft with defense technology company Anduril. Its Halo and Thunder platforms are intended for commercial and military applications, respectively. Adding Insitu's manufacturing experience, customer relationships, and established drone business could accelerate those efforts.

Boeing isn't giving these businesses away

Boeing isn't receiving cash for the three subsidiaries. Instead, it will receive newly issued Archer shares equal to approximately 19.75% of Archer's pre-transaction Class A share count, plus warrants that could allow it to acquire additional shares. Boeing will also retain access to Wisk's autonomous flight technology through a collaboration agreement.

Essentially, Boeing is exchanging direct ownership of three businesses for a substantial investment in Archer. That gives Boeing exposure to autonomous aviation without having to fund the subsidiaries' development on its own.

For Archer, however, the deal comes with dilution. Still, Archer is getting something it desperately needs: an established, revenue-producing operation.

Boeing's $131 billion contract comes with a catch

In August, Boeing received a contract covering production, upgrades, maintenance, and support for the F-15 fighter jet. The agreement carries a maximum value of $131.23 billion and could support work extending into the next decade.

To be sure, Boeing hasn't received a guaranteed $131 billion order. The agreement is an indefinite-delivery, indefinite-quantity contract. It allows the government to place orders over time. Actual revenue will depend on how much work the government orders and funds.

That said, the contract strengthens Boeing's position in military aviation. And make no mistake: Boeing's defense business is already showing improvement.

Q3 defense revenue increased 15% to approximately $7.9 billion, while operating earnings reached $492 million. The company also reported a record $745 billion total backlog across its businesses. Those numbers provide a much stronger financial foundation than Archer currently has.

Boeing's financial recovery is gaining traction

Boeing reported Q3 revenue of $24.2 billion, up 4% from the previous year. Operating cash flow reached approximately $1.5 billion, while free cash flow totaled $464 million. But Boeing isn't completely out of the woods. Its commercial airplane division still recorded a $697 million operating loss during the quarter. That's not trivial.

The company also carried approximately $45.9 billion in debt against $20.7 billion in cash and marketable securities. Indeed, improving aircraft production and profitability will remain essential to Boeing's recovery.

Which aerospace stock is the better buy?

I'd give Archer the edge if you're willing to accept substantial risk. The Boeing acquisition could transform Archer from a largely pre-commercial air taxi developer into a diversified aerospace and defense company with meaningful existing revenue.

Of course, its Q3 net loss of $274.6 million shows how expensive development remains. Certification delays, continued cash consumption, and shareholder dilution could still weigh heavily on the stock. Boeing offers a different proposition.

Its enormous backlog, improving cash flow, and established military programs make it the more financially mature business. But its size also means the Archer transaction is unlikely to dramatically change its overall earnings trajectory.

Boeing is definitely the more established choice, particularly for those who want exposure to aerospace and defense without depending on the successful commercialization of electric air taxis. Archer has more to prove. But the three Boeing businesses could give it a considerably stronger starting point.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.