Boeing reported a larger-than-expected loss for the second quarter, with the aircraft manufacturer's long-delayed Air Force One program significantly impacting results. The company posted an adjusted loss of 76 cents per share, far exceeding Wall Street's expected loss of 30 cents per share, while revenue reached $24.56 billion against expectations of $24.25 billion. Boeing took a $280 million loss on the program to deliver two 747s that will serve as the next generation Air Force One aircraft, citing ramped-up investment for the planes with first delivery still expected in 2028. The loss occurred as Boeing increased commercial aircraft production, with the top U.S. exporter raising 737 Max output to 47 planes per month.
Boeing Reports $280 Million Air Force One Program Loss
Boeing took a $280 million loss on the Air Force One program in the second quarter as the company ramped up investment for the two 747 aircraft. The company stated it still expects the first delivery in 2028. The program to deliver the next generation Air Force One aircraft to the U.S. government has faced long delays.
Revenue Beats Expectations at $24.56 Billion
The aircraft manufacturer increased revenue 8 percent in the second quarter to $24.56 billion from a year earlier, surpassing analyst expectations of $24.25 billion. Gains came across Boeing's businesses, including increased deliveries of commercial aircraft. Boeing reported a net loss of $428 million, or 67 cents a share, compared with a net loss of $612 million, or 92 cents a share, in the second quarter a year ago.
Commercial Aircraft Deliveries Rise 14 Percent to 171 Planes
Boeing's commercial aircraft deliveries in the second quarter rose 14 percent from a year earlier to 171 planes from 150 planes. The company has been ramping up production of its best-selling 737 Max airplanes to 47 a month, with further increases planned.
Free Cash Flow Reaches $631 Million
Free cash flow of $631 million came in well above the $177 million cash burn analysts expected. This compares to a $200 million cash burn in the second quarter a year ago.
CEO Kelly Ortberg Addresses Staff on Performance
"While we're making progress on our development programs, you're never done until you're done," CEO Kelly Ortberg said in a note to staff. Ortberg added: "While two quarters don't make a year, if we work together and stay focused on safety, quality and on-time performance --- we'll improve our competitiveness and set ourselves up for a big second half."
Boeing Targets 737 Max 7 Certification
Upcoming milestones include the certification of other delayed aircraft programs. First will likely be the Boeing 737 Max 7, the smallest aircraft in the family of planes. Boeing executives scheduled a call with analysts at 10:30 a.m. ET, where they will face questions about certification of the 737 Max 10 and the 777X, Boeing's new wide-body aircraft.
FAQ
What loss did Boeing report for the second quarter?
Boeing reported an adjusted loss of 76 cents per share for the second quarter, significantly exceeding Wall Street's expected loss of 30 cents per share. The company's net loss was $428 million, or 67 cents a share.
Why did Boeing's Air Force One program impact quarterly results?
Boeing took a $280 million loss on the Air Force One program in the second quarter as the company ramped up investment for the two 747 aircraft that will serve as the next generation Air Force One. The company stated it still expects the first delivery in 2028.
How many commercial aircraft did Boeing deliver in the second quarter?
Boeing delivered 171 commercial aircraft in the second quarter, representing a 14 percent increase from 150 planes delivered in the second quarter a year earlier. The company has been ramping up production of its 737 Max airplanes to 47 per month.
