Boeing posts wider loss than expected as Air Force One costs weigh on results
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- Boeing posted an adjusted Q2 loss of 76 cents per share versus the 30-cent loss analysts expected, on revenue of $24.56 billion that topped the $24.25 billion estimate.
- The aircraft maker took a $280 million loss on the Air Force One program — two 747s meant to serve as the next-generation presidential aircraft — with first delivery still slated for 2028.
- CEO Kelly Ortberg told CNBC the Air Force One program is through the design phase and pledged to 'put more resources' on ensuring on-time delivery.
- Boeing's net loss narrowed to $428 million (67 cents/share) from $612 million (92 cents/share) a year earlier.
- Free cash flow of $631 million handily beat the $177 million burn analysts had forecast, reversing a $200 million burn in the year-ago quarter.
- Commercial aircraft deliveries rose 14% year-over-year to 171 planes, with 737 Max production ramping to 47 per month and further increases planned.
- President Donald Trump this month flew aboard a luxury Boeing 747 Qatar gifted to serve as a stand-in Air Force One; the jet's security was reportedly questioned after he left Turkey on the older aircraft.
Why it matters: Boeing's $280 million Air Force One charge — on a program whose first delivery is still three years out — single-handedly doubled the company's adjusted per-share loss past Wall Street's expectations, even as revenue beat and free cash flow swung positive. With 737 Max certification and the 777X still ahead, Boeing's near-term story remains cost overruns on flagship programs offsetting operational improvements.
