Boeing reported a wider-than-expected second-quarter loss after taking a $280 million charge on its long-delayed Air Force One program, highlighting the ongoing challenges of one of its most high-profile government contracts.
The aerospace giant posted an adjusted loss of 76 cents per share, significantly worse than Wall Street’s expectation of a 30-cent loss. However, revenue reached $24.56 billion, beating analyst forecasts thanks to higher commercial aircraft deliveries and stronger performance across its businesses.
The Air Force One program, which involves converting two Boeing 747s into the next-generation presidential aircraft, continues to weigh on Boeing’s finances. CEO Kelly Ortberg said the program has now moved beyond the design phase, and Boeing is adding more resources to ensure the first aircraft is delivered in 2028.
Despite the earnings miss, Boeing’s commercial business showed encouraging momentum. The company delivered 171 commercial aircraft during the second quarter, a 14% increase from the same period last year, while continuing to ramp up production of its bestselling 737 MAX family.
One of the biggest positives was Boeing’s cash generation. The company reported positive free cash flow of $631 million, far exceeding analysts’ expectations and marking a major improvement from the cash burn reported a year earlier.
Looking ahead, investors will be watching several key certification milestones, including the delayed Boeing 737 MAX 7, the larger 737 MAX 10, and the highly anticipated 777X wide-body program. Boeing executives are also expected to face questions about the timelines for these crucial aircraft during their earnings call.
While Boeing continues to recover its commercial aircraft business, the costly Air Force One program remains a major financial challenge as the company works toward restoring profitability and meeting critical delivery deadlines.
