Boeing (NYSE:BA) reported second-quarter revenue of $24.6 billion, up 8% from a year earlier, as higher commercial airplane deliveries and increased defense volume lifted results across its three business segments. The company posted a core loss per share of $0.76, an improvement from the prior year, and generated $631 million of positive free cash flow.
President and Chief Executive Officer Kelly Ortberg said the company’s production and delivery levels have reached their strongest point since 2018 as Boeing continues to emphasize safety and quality. The Federal Aviation Administration earlier this month authorized Boeing to resume issuing airworthiness certificates for all 737 MAX and 787 aircraft, a responsibility Ortberg said the company takes “very seriously.”
Commercial deliveries reach highest level since 2018
Boeing Commercial Airplanes delivered 171 aircraft during the quarter, its highest quarterly delivery total since 2018. Segment revenue rose 8% to $11.8 billion, while the operating margin improved to negative 2.7%. Boeing said the result included about 150 basis points of favorable adjustments; excluding those items, profitability improved in line with management’s expectations.
The company delivered 129 737 aircraft and remains on track to deliver 500 aircraft this year. Boeing is ramping 737 production to 47 aircraft per month and expects factory rollouts to reach that level during the summer. It also began low-rate MAX production on a new Everett, Washington, line, which is intended to support the next planned rate increase to 52 aircraft per month.
Ortberg said Boeing currently does not see supply-chain constraints preventing the move to 52 monthly 737s, though conditions could become more demanding as production rises toward 57 and potentially 63 aircraft per month. He identified wing production as an area requiring continued improvement at higher rates.
On the 787 program, Boeing delivered 25 airplanes during the quarter, including 13 in June, and maintained its full-year delivery target of 90 to 100 aircraft. Production has stabilized at eight airplanes per month after the company temporarily slowed production systems for several days in April to give parts of its supply chain time to recover.
Boeing said it is working with GE on a recovery in 787 engine deliveries, which will be important to the timing of a production increase to 10 aircraft per month. Ortberg also said seat-certification work will continue to affect 787 deliveries through the remainder of the year, although it is not limiting the company’s ability to roll out airplanes.
Certification programs remain on schedule
Ortberg said testing on the 737-7 has been completed and Boeing expects to receive an amended type certificate from the FAA “very soon.” The company recently completed the final test flight for the 737-10 and expects its certification to follow the -7. Boeing expects both variants to begin deliveries in 2027.
For the 777-9, Boeing maintained its expectation for first delivery in 2027. The FAA approved the next phase of certification flight testing, known as TIA 4B, in June. Boeing has completed more than 55% of certification flight testing and expects to begin ETOPS testing later this year.
Boeing’s commercial-aircraft backlog stood at $597 billion at quarter-end and included more than 6,200 airplanes. Ortberg said the company sees strong market conditions, citing an outlook for nearly 44,000 new aircraft over the next 20 years.
Defense charge weighs on segment profitability
Boeing Defense, Space & Security revenue increased 13% to $7.5 billion, driven by higher volume in classified programs, missiles and weapons, and the KC-46A tanker program. The unit delivered 35 aircraft and booked $7 billion in orders, ending the quarter with an $85 billion backlog.
The segment reported a negative 2.2% operating margin, reflecting a $280 million charge on the VC-25B presidential aircraft program. Boeing said it added resources to support the aircraft’s build and test schedule and aligned with the U.S. Air Force to shift from an FAA certification basis to a military certification basis. Ortberg said Boeing remains committed to delivering the aircraft in 2028.
Excluding the VC-25B adjustment, BDS operating margin was 3.5%. Chief Financial Officer Jay Malave said the company expects margins to improve sequentially over the rest of the decade as fixed-price development programs are completed, program pricing improves and the company executes on its backlog. Boeing continues to target high single-digit BDS operating margins by the end of the decade.
The company also achieved Milestone C approval for its T-7 trainer and MQ-25 aerial-refueling programs, allowing both to enter low-rate initial production. Ortberg said Boeing sees KC-46A as a lower-risk program going forward, while work remains with NASA to align the schedule for future Starliner launches.
Cash flow outlook maintained as debt declines
Boeing Global Services revenue rose 1% to $5.3 billion, though revenue increased 8% excluding the impact of the 2025 Digital Aviation Solutions divestiture. Segment operating margin was 18.1%, with both commercial and government businesses posting double-digit margins.
Cash and marketable securities ended the quarter at $20 billion, while debt fell by $1.3 billion during the quarter and $8.2 billion year to date to $45.9 billion. Boeing also had $10 billion of undrawn credit facilities.
Malave reaffirmed Boeing’s full-year free-cash-flow outlook of $1 billion to $3 billion. He said first-half cash flow benefited from favorable receipt timing, while a planned $700 million Department of Justice payment is expected in the third quarter. Boeing expects third-quarter free cash flow to remain positive, in the low hundreds of millions of dollars.
Management said future free-cash-flow growth is expected to be driven primarily by higher commercial deliveries, improving BDS performance and continued growth in services. Boeing continues to view $10 billion in free cash flow as attainable as it executes on its backlog.
About Boeing (NYSE:BA)
Boeing Company (NYSE: BA) is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing’s principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
