Strongest Quarter for Deliveries Since 2018
Boeing reported a significant improvement in its second-quarter performance, with the company delivering 150 aircraft — its highest since 2018 — and reducing losses compared to a year earlier. The aerospace firm posted a net loss of $176 million for the quarter ended June 30, down sharply from the $1.09 billion loss a year ago. Adjusted losses came in at $1.24 per share, better than the $1.48 expected by analysts.
Revenue jumped 35% year over year to $22.75 billion, exceeding Wall Street expectations. CEO Kelly Ortberg called the results a sign that Boeing is “starting to see a difference” in performance, and expressed confidence in making 2025 the company’s turnaround year.
737 Max Production at Full FAA Capacity
Boeing has increased output of its 737 Max jets to 38 per month, currently the Federal Aviation Administration’s upper limit. Ortberg said the company will request FAA approval later this year to raise that cap, with the aim of sustaining higher delivery volumes. Commercial airplane revenue soared 81% to $10.87 billion, while the unit’s negative operating margin narrowed to 5.1%.
Increased deliveries are crucial for Boeing’s financial recovery since customers typically make final payments upon receipt. The second-quarter delivery figures marked the best period since Boeing last turned an annual profit in 2018.
Legal and Operational Hurdles Persist
Despite the progress, Boeing continues to face legal and regulatory headwinds. The company took a $445 million charge related to a Department of Justice settlement over the two fatal 737 Max crashes. Additionally, certification for the Max 7 and Max 10 models has been pushed back to 2026, beyond Ortberg’s earlier forecast. These aircraft still require engineering fixes for an anti-ice system.
Boeing also faces potential labor disruptions. A 3,200-worker group in its defense unit rejected a labor deal, setting the stage for a possible strike. The defense and space division reported a 10% rise in revenue to over $6.6 billion, while its services business brought in $5.3 billion, up 8% year over year.
Cash Burn Down, Path to Profit in Sight
Cash burn was significantly reduced to $200 million in the second quarter from $4.3 billion in the same period last year. Ortberg told CNBC that Boeing aims to generate positive cash flow in the fourth quarter, marking a key milestone for recovery. Boeing’s leadership, once under intense industry criticism, is now being praised for steadying production and improving delivery timelines.
While challenges remain, Boeing’s momentum appears to be building. If certification delays are managed and output increases continue, the company could be positioned for its first full-year profit in years.
