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Breaking News | Boeing Posts Wider Q2 Loss on Air Force One Charges, Shares Rise on Cash Flow Beat
2 min read
Suhaib
Boeing's wider-than-expected loss masks operational progress: positive free cash flow for the first time in years, 14% jump in deliveries, and a record $715B backlog. Production ramp and certification timeline remain intact despite fresh MAX seat inspection orders.
Key Numbers
What happened
Boeing reported Q2 adjusted loss of $0.76 per share, missing the consensus estimate of -$0.29, primarily driven by a $280 million charge on the VC-25B Air Force One program for additional engineering and certification costs. Revenue climbed 8% year-over-year to $24.6 billion, ahead of the $23.95B estimate, on higher aircraft deliveries.
The company delivered 171 commercial aircraft during the quarter, up 14% from 150 a year earlier, as 737 MAX production transitioned toward a rate of 47 aircraft per month. Operating cash flow surged to $1.4 billion, and free cash flow turned positive at $0.6 billion, well above analyst projections of -$0.31B. Order backlog expanded to a record $715 billion, including over 6,200 commercial airplanes.
Certification flight testing for the 737-7 and 737-10 models was completed during the quarter, with both programs remaining on track for 2026 certification and first deliveries in 2027. However, the FAA issued a preliminary directive requiring seat inspections on more than 450 US 737 MAX jets due to potential faulty installation that could affect emergency evacuations.
Commercial Airplanes revenue rose 8% to $11.8B but posted a negative operating margin of 2.7%. Defense, Space & Security revenue increased 13% to $7.5B with a -0.2% margin. Global Services delivered an 18.1% operating margin on $5.3B in revenue. Boeing maintained full-year free cash flow guidance of $1B to $3B.
What to watch
737-7 certification approval expected in 2026 with first deliveries in 2027; any delays would cascade through backlog conversion
FAA seat inspection directive scope and remediation timeline - material disruption to delivery schedules would erode cash flow guidance
Air Force One delivery dates now mid-2028 and mid-2029 (vs. original 2024 target); further slippage risks additional charges
737 MAX production ramp toward 52 aircraft per month via North Line - execution critical to hitting free cash flow guidance of $1B–$3B for full year
Also Worth Watching
GE Aerospace supplies engines for Boeing's 737 MAX and 777X programs. Rising Boeing deliveries flow directly to GE's installed base and aftermarket revenue, while any MAX production disruptions from the seat inspection directive would compress near-term engine shipments. GE also faces exposure if 777X certification delays extend further, though the Q2 ramp in 737 output is a bullish read-through for engine volume in H2. GE (General Electric $361.61 (+2.2%) - )
Company Overview
Boeing designs, manufactures, and services commercial jetliners and defense systems globally. The company generates revenue through aircraft sales, defense contracts, and aftermarket services across three divisions: Commercial Airplanes, Defense Space & Security, and Global Services.
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BA
Boeing Co
NYSE
•
Industrials
$211.50
USD
+$1.98
(+0.95%)
At close: Jul 27, 2026, 4:00 PM EDT
Market Cap:
$168.79B
Volume:
6.6M
52w High:
$254.35
P/E Ratio (TTM):
74.42
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