Boeing loss tops forecasts as Air Force One costs hit results

• Boeing posted a net loss of $428 million (67 cents per share), missing analyst estimates, primarily due to the Air Force One program charge with first delivery still expected in 2028
• Commercial aircraft deliveries increased 14% year-over-year to 171 planes, with 737 Max production ramping to 47 per month and further increases planned
• Free cash flow of $631 million significantly exceeded the $177 million cash burn analysts expected, marking improvement from the $200 million cash burn in the prior year quarter

Boeing Q2 Summary: Wider Loss on Air Force One Costs

Key Financial Results

Boeing reported a Q2 net loss of $428 million ($0.67 per share), exceeding Wall Street expectations of a $0.50 per share loss. Revenue rose 8% year-over-year to $24.56 billion, slightly beating the $24.25 billion consensus. Free cash flow reached $631 million, significantly outperforming analyst expectations of a $177 million cash burn.

Primary Loss Driver

The company recorded a $280 million charge on its long-delayed Air Force One program for two modified 747 aircraft, citing increased investment costs. Boeing maintains its 2028 target for first delivery of the presidential aircraft.

Operational Highlights

• Commercial aircraft deliveries increased 14% year-over-year to 171 planes versus 150 in Q2 2023
• Production of the 737 Max ramped up to 47 units monthly, with further increases planned
• Revenue gains reported across all business segments

Market Implications

CEO Kelly Ortberg acknowledged progress while emphasizing the need for continued focus on "safety, quality and on-time performance" to strengthen competitiveness. The company anticipates a strong second half and faces upcoming certification milestones for delayed programs, including the 737 Max 7 (expected first), 737 Max 10, and 777X wide-body aircraft.

Boeing's positive free cash flow represents a significant turnaround from the prior year's $200 million burn, suggesting improving financial stability despite ongoing program challenges. Investors await management's analyst call for further guidance on certification timelines and production ramp-up plans.