Boeing’s Q2 Loss Widens on Costly Air Force One Program, Revenue Climbs

Boeing (BA) has reported a wider-than-expected net loss for the second quarter, with escalating costs associated with the long-delayed Air Force One program significantly impacting the aerospace giant's financial results. The company announced a substantial $280 million loss attributed to the program responsible for developing two new 747 aircraft for the U.S. presidential fleet.

Despite the setback on the Air Force One project, Boeing managed to increase its second-quarter revenue by 8% year-over-year, reaching $24.56 billion. This revenue growth was driven by gains across its various business segments, notably an 8% increase in commercial aircraft deliveries, which rose to 171 planes from 150 in the same period last year. The company is actively ramping up production of its popular 737 Max aircraft, aiming for 47 jets per month with further increases planned.

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Boeing CEO Kelly Ortberg on Q2 results: We are seeing the uncertainty in our company narrow

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Boeing's adjusted loss per share came in at 76 cents, missing analyst expectations of a 30-cent loss. However, the company surprised positively on free cash flow, reporting $631 million compared to an expected cash burn of $177 million. This marks a significant improvement from the $200 million cash burn reported in the second quarter of the previous year.

CEO Kelly Ortberg acknowledged the challenges, stating, "While we're making progress on our development programs, you're never done until you're done." He emphasized the importance of delivering the Air Force One aircraft on time, noting that the program has moved past the design phase and that additional resources are being allocated to ensure timely completion, with the first delivery still projected for 2028. Executives are expected to face further questions on upcoming earnings calls regarding the certification of other delayed aircraft, including the 737 Max 10 and the 777X.