• Boeing reported adjusted EPS of -$0.76, missing estimates of -$0.30, while revenue of $24.56B topped expectations of $24.25B.
  • Free cash flow turned positive at $631M, signaling improving liquidity despite ongoing program costs.
  • The company's backlog remains robust at $715B, supported by production rate increases and certification progress for key models.

Mixed Quarter for Boeing

Boeing's second-quarter results delivered a mixed picture. While revenue came in ahead of forecasts at $24.56 billion, adjusted earnings per share of -$0.76 fell short of the -$0.30 estimate, reflecting persistent cost pressures. Notably, free cash flow swung to positive $631 million, a significant improvement from prior periods of cash burn. The company's backlog stood at $715 billion, underscoring strong demand.

Production Ramps and Certification Timelines

Boeing is advancing its production plans. The 737 program is transitioning toward a rate of 47 aircraft per month. Certification for the 737-7 and 737-10 is expected in 2026, with first deliveries slated for 2027. The 777X remains on track for its first delivery in 2027. These timelines highlight the company's focus on a multi-year recovery.

Air Force One Loss Weighs on Results

The quarter included a $280 million loss on the Air Force One replacement program, adding to near-term profitability challenges. Despite this, positive free cash flow suggests improving operational efficiency. "We're focused on driving stability across our programs," a company spokesperson said. Boeing declined to comment further.

Outlook and Analyst Views

Analysts see the results as a step in the right direction for cash flow, but caution that earnings volatility may persist as Boeing navigates program costs and ramp-up investments. The strong backlog provides a solid foundation, with certification milestones for the 737-7/10 and 777X acting as key catalysts. The company's defense segment remains a drag due to fixed-price contracts, but commercial recovery is underway.

Correction: An earlier version of this article misstated the free cash flow figure. It is $631 million, not $631 million.