Boeing tops expectations, stock rises on higher deliveries and revenue beat

Boeing (NYSE:BA) posted a narrower-than-expected loss in the second quarter and delivered revenue growth in another sign of progress in its operational turnaround. Shares rose 2.7% in premarket trading Tuesday after the aerospace giant beat Wall Street estimates on both adjusted earnings and revenue.

The company reported a loss of $1.24 a share, improving on analyst expectations for a loss of $1.31. Revenue surged 35% year over year to $22.75 billion, topping forecasts of $21.72 billion, driven by a sharp increase in commercial aircraft deliveries.

“Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,” Chief Executive Kelly Ortberg said in a statement.

Key operational metrics

• Commercial aircraft deliveries rose 63% from the same period last year to 150 units.
• The 737 program ramped up to 38 aircraft a month, with a goal of reaching 42 this year.
• The 787 Dreamliner production rate increased to seven a month.
• Boeing (NYSE:BA) booked 455 net new aircraft orders, helping grow the commercial airplane backlog to $522 billion, part of a record $619 billion total company backlog.

Despite the improvements, Boeing (BA) posted a GAAP net loss of $612 million, or $0.92 a share, narrower than the $1.44 billion loss in the prior-year quarter. Free cash flow was negative at $200 million, although operating cash flow turned positive at $227 million, marking an improvement from the $3.9 billion outflow a year ago.

Segment highlights

• Commercial Airplanes revenue soared 81% to $10.87 billion. Operating losses narrowed to $557 million from $715 million a year ago.
• Defense, Space & Security revenue rose 10% to $6.6 billion, generating $110 million in operating profit versus a $913 million loss in Q2 2024.
• Global Services posted 8% revenue growth to $5.3 billion, with a 19.9% operating margin, its highest of all segments.

Liquidity and debt

Boeing (BA) ended the quarter with $23 billion in cash and marketable securities, down slightly from $23.7 billion in Q1, because of debt repayments and cash usage. Total debt stood at $53.3 billion, with no draws on its $10 billion credit facility.

Looking ahead

While management didn’t issue formal guidance for the remainder of the year, Ortberg said a focus on stabilizing operations, regaining regulatory trust and executing on a substantial backlog across both commercial and defense segments.