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Boeing Second-Quarter Loss Exceeds Estimates as Air Force One Program Weighs on Bottom Line

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Boeing Second-Quarter Loss Exceeds Estimates as Air Force One Program Weighs on Bottom Line

Boeing's (BA) second-quarter loss exceeded Wall Street's estimates amid a drag from its Air Force One program, while the aircraft manufacturer's free cash flow turned positive.

Boeing's core loss narrowed to $0.76 per share from $1.24 a year earlier, but came in higher than the FactSet-polled consensus that called for a $0.17 loss. Revenue increased 8% to $24.56 billion, while analysts expected $24.17 billion.

Boeing posted $280 million in losses on the VC-25B program, the next-generation Air Force One aircraft, as it ramped up spending on production and certification. The company continues to anticipate its first delivery in 2028.

US President Donald Trump took his first flight on the interim VC-25B "Bridge" aircraft this month.

The plane maker reported free cash flow of $631 million in the second quarter, compared with a year-ago cash burn of $200 million.

"While there is more work ahead in the second half of the year, the momentum we are building continues to move Boeing in the right direction," Chief Executive Kelly Ortberg said in a statement.

Boeing's commercial airplane revenue grew 8% to $11.75 billion as second-quarter deliveries jumped 14% year over year to 171 planes. Revenue in the defense, space and security segment rose 13% to $7.48 billion, while global services sales edged up 1% to $5.34 billion.

Total backlog increased to a record $715 billion, including orders for more than 6,200 commercial airplanes, Boeing said.

The planemaker has completed certification flight testing for the 737-7 and 737-10 variants, expecting first deliveries in 2027.

"Our operations are more stable and key certification programs remain on plan," Ortberg said.

Shares of Boeing were up 4.5% in Tuesday trade.

Price: $220.74, Change: $+9.24, Percent Change: +4.37%

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