Boeing reported a net loss of $428 million in the second quarter, coming in worse than what analysts had anticipated. The major drag was a $280 million charge related to the ongoing Air Force One replacement program, which has faced significant delays and cost overruns. Despite the hit, shares edged up slightly in premarket trading to $211.50.
Revenue climbed 8% year over year, reaching $24.56 billion, signaling that Boeing's commercial operations are gaining momentum. The company managed to generate $631 million in free cash flow, a sharp turnaround from the negative $200 million seen in the same quarter last year. This improvement was driven largely by better-than-expected customer payments. Boeing remains confident in hitting its full-year free cash flow target between $1 billion and $3 billion, which would be its first positive annual total since 2023.
Costly Delays on Air Force One
The Air Force One program continues to pose challenges. Boeing is constructing two 747-8 aircraft under a $3.9 billion fixed-price contract from 2018. The project is now over four years late and $1 billion over budget. The latest charge is tied to rising engineering costs as Boeing works toward delivering the planes in 2028. While the broader business shows signs of progress, this program remains a costly and persistent obstacle.
Alongside the Air Force One issues, Boeing is ramping up production of its 737 MAX jets and increasing capital spending to expand 787 manufacturing in South Carolina and military jet output around St. Louis. The company’s backlog stands at a record $715 billion, offering some long-term stability amid short-term pressures.
This content is informational and should not be taken as financial advice.
