Boeing reported a $428 million net loss for the second quarter on Tuesday after recording a further $280 million charge on the delayed Air Force One replacement program. The US aircraft manufacturer nevertheless produced $631 million in free cash flow, reversing a $200 million outflow a year earlier, and its shares rose 4.9% in midday trading, Reuters reported.
Quarterly revenue increased 8% from a year earlier to $24.6 billion as Boeing delivered more commercial aircraft. Its adjusted core loss was 76 cents a share, narrower than $1.24 a year earlier but worse than the 30-cent loss analysts surveyed by LSEG had expected. The company recorded a GAAP loss of 67 cents a share.
The latest presidential-aircraft charge reflected additional engineering, production and certification resources for two modified 747-8 jets, according to Boeing and Reuters. Boeing continues to expect the first aircraft in 2028. The fixed-price contract, signed in 2018 for $3.9 billion, is four years behind schedule and has exceeded its budget by more than $1 billion.
Operational measures offered a stronger picture. Boeing delivered 171 commercial aircraft, 14% more than a year earlier and its highest quarterly total since 2018. It is moving monthly 737 MAX output from 42 to 47 aircraft, aims for 52 early next year and then 57, although chief executive Kelly Ortberg said suppliers must improve before the final increase.
The company ended the quarter with a record $715 billion backlog, including more than 6,200 commercial aircraft. It maintained a forecast of $1 billion to $3 billion in full-year free cash flow, which Reuters said would be Boeing's first positive annual result since 2023. Consolidated debt fell to $45.9 billion from $47.2 billion during the quarter, while cash and marketable securities declined to $20 billion.
Boeing still faces execution risks as it tries to restore its finances and reputation. GE Aerospace engine deliveries remain the main constraint on raising 787 output to 10 aircraft a month, while higher production is essential for debt reduction and future aircraft development. Ortberg said operations are more stable but acknowledged that further work remains in the second half.
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