Boeing Co. (NYSE:BA) reported a larger-than-expected adjusted loss for the second quarter, although revenue exceeded market forecasts as aircraft deliveries increased and the aerospace manufacturer generated positive cash flow.
Shares rose around 1.2% following the results.
Revenue Tops Expectations as Deliveries Increase
Boeing posted an adjusted loss of $0.76 per share for the second quarter, falling short of the analyst consensus estimate of a loss of $0.29 per share.
Revenue increased 8% year over year to $24.6 billion, ahead of the expected $23.95 billion.
The company delivered 171 commercial aircraft during the quarter, compared with 150 aircraft in the same period a year earlier.
Operating cash flow reached $1.4 billion, while free cash flow totalled $0.6 billion.
Boeing’s order backlog expanded to a record $715 billion, including more than 6,200 commercial aircraft.
“I’m very pleased with the progress our team is making as we execute our plan. Our operations are more stable and key certification programs remain on plan,” said Kelly Ortberg, Boeing president and chief executive officer.
Commercial Aircraft Business Continues Production Ramp-Up
Revenue from the Commercial Airplanes division rose 8% to $11.8 billion.
Despite the increase in sales, the segment remained loss-making, reporting an operating margin of negative 2.7%.
During the quarter, Boeing began transitioning the 737 production programme to a manufacturing rate of 47 aircraft per month.
The company also completed certification flight testing for both the 737-7 and 737-10 models. Certification for both aircraft remains on track for 2026, with first deliveries expected in 2027.
Defence Business Faces Programme Charges
Revenue from the Defence, Space & Security division increased 13% to $7.5 billion.
However, the business reported an operating margin of negative 0.2%, reflecting $280 million of programme losses related to the VC-25B aircraft.
Meanwhile, Boeing’s Global Services division generated revenue of $5.3 billion and delivered an operating margin of 18.1%, continuing to provide one of the company’s strongest sources of profitability.
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