Boeing Reports Wider-Than-Expected Q2 Loss
Boeing reported a larger-than-expected adjusted loss for the second quarter, although revenue came in above Wall Street forecasts.
Despite the earnings miss, Boeing shares rose approximately 2.7% at the market open following the announcement.
The aerospace company posted an adjusted loss of $0.76 per share, compared with analysts’ expectations for a loss of $0.29 per share.
Boeing Revenue Exceeds Analyst Estimates
Second-quarter revenue increased by 8% year over year to $24.6 billion.
The result exceeded the analyst consensus forecast of $23.95 billion, supported by stronger commercial aircraft deliveries and improved activity across several business divisions.
Boeing delivered 171 commercial aircraft during the quarter, up from 150 aircraft in the same period last year.
Cash Flow Returns to Positive Territory
Boeing generated $1.4 billion in operating cash flow during the quarter.
Free cash flow reached $600 million, marking an important improvement for the company as aircraft deliveries continued to recover.
Boeing’s total backlog also climbed to a record $715 billion. This included orders for more than 6,200 commercial airplanes.
Boeing CEO Highlights Operational Progress
Boeing President and CEO Kelly Ortberg said the company was making solid progress as it continued to execute its recovery plan.
He added that Boeing’s operations had become more stable and that important aircraft certification programmes remained on schedule.
Commercial Airplanes Revenue Rises
Revenue from Boeing’s Commercial Airplanes division increased by 8% to $11.8 billion.
However, the business continued to operate at a loss, reporting an operating margin of negative 2.7%.
During the quarter, Boeing began moving the 737 production programme toward a rate of 47 aircraft per month.
The company also completed certification flight testing for the 737-7 and 737-10 models.
Boeing expects both aircraft to receive certification in 2026, with initial deliveries planned for 2027.
Defense Business Records Further Losses
Revenue from Boeing’s Defense, Space & Security division rose by 13% to $7.5 billion.
However, the segment recorded an operating margin of negative 0.2%.
The results included approximately $280 million in losses linked to the VC-25B programme, which involves the development of new presidential aircraft.
Global Services Delivers Strong Margins
Boeing’s Global Services division generated revenue of $5.3 billion.
The unit reported an operating margin of 18.1%, making it one of Boeing’s most profitable business segments during the quarter.
Analysts Welcome Positive Free Cash Flow
Vertical Research Partners analysts said investors were likely to respond positively to Boeing’s return to positive free cash flow.
Although the latest defense-related charge was viewed as disappointing, analysts said rising commercial aircraft deliveries could support stronger cash generation during the second half of the year and into 2027.
The firm also noted that improvements within Boeing Commercial Airplanes offered further evidence that conditions across the aerospace supply chain were recovering.
A healthier supply chain could help Boeing increase aircraft production and improve future financial performance.
