Boeing posts second-quarter loss, cites improving cash flow and record backlog

Boeing said it made progress in stabilizing operations and maintaining key certification timelines in the second quarter, even as it reported a GAAP loss and broadly negative margins across much of its commercial and defense manufacturing business. The results, released July 28, underscore how the plan to rebuild confidence at the company depends on execution in aircraft programs and cash generation, not just booked orders.

For the quarter, Boeing reported $24.6 billion in revenue. The company recorded a GAAP loss per share of $0.67 and a core loss per share (non-GAAP) of $0.76. It posted operating cash flow of $1.4 billion and non-GAAP free cash flow of $0.6 billion. Boeing attributed the quarter’s performance largely to higher commercial delivery volume and favorable working capital timing within the year.

Backlog grew to a record $715 billion at quarter end, a key metric for assessing long-term revenue visibility in aerospace manufacturing. Boeing also said its cash and marketable investments totaled $20.0 billion at the end of the quarter, down from $20.9 billion at the start, reflecting debt repayments partially offset by cash flow generated during the period. The company said it maintained access to $10.0 billion of credit facilities, which remained undrawn.

In Commercial Airplanes, Boeing reported second-quarter revenue of $11.8 billion and an operating margin of negative 2.7 percent. The company said the segment’s results reflected higher deliveries, favorable mix, improved performance and other adjustments. Boeing added that the 737 program continued its transition toward a 47 per month production rate and that it completed certification flight testing for both the 737-7 and 737-10 by July.

Boeing said it continues to anticipate FAA certification in 2026 and first deliveries in 2027 for both 737 variants. On the widebody side, Boeing reported that the 777X program received FAA approval to begin certification flight testing under Type Inspection Authorization 4B during the quarter, and it maintained its view that it expects first delivery in 2027.

Commercial Airplanes booked 246 net orders in the quarter, including orders associated with Korean Air, Delta Air Lines and SMBC Capital. The company delivered 171 airplanes. Boeing said backlog included more than 6,200 airplanes valued at a record $597 billion, reflecting both the scale of its order book and the way it supports future production planning.

In Defense, Space & Security, Boeing reported second-quarter revenue of $7.5 billion and an operating margin of negative 0.2 percent. The company said results included $280 million of losses on the VC-25B program, driven by an investment in additional production and certification resources. Boeing reiterated that it continues to anticipate first delivery in 2028 for the VC-25B, a contract tied to replacing the U.S. Air Force One fleet.

Boeing also said it secured an award from the U.S. Space Force to provide proprietary communications capabilities during the quarter, completed first flight and received Milestone C on the U.S. Navy MQ-25A Stingray, and began low-rate initial production of the U.S. Air Force T-7A Red Hawk. Defense, Space & Security backlog was $85 billion, with 27 percent from customers outside the U.S., according to the company.

Global Services posted second-quarter revenue of $5.3 billion, with an operating margin of 18.1 percent. Boeing attributed the margin to a mix of factors, including impacts from the Digital Aviation Solutions divestiture, higher costs and unfavorable mix. Boeing said Global Services captured a U.S. Navy award to provide training systems for the P-8A and announced an agreement with Alaska Airlines to integrate its Boeing Virtual Airplane training solution. The segment ended the quarter with backlog of $33 billion.

Boeing framed the quarter as evidence of operational stability and ongoing work to restore trust. In a statement, CEO Kelly Ortberg said the company has focused on safety, quality and on-time performance, and that there is more work ahead in the second half of the year. Still, the release did not provide details on how much of the cash improvement reflects structural changes versus timing, and it did not break out specific drivers behind the operating margin shortfalls across segments.

What to watch next is whether Boeing’s commercial production ramp supports further cash generation while keeping certification and delivery milestones on track for the 737 and 777X programs. For defense, attention will likely center on the VC-25B cost outlook after the additional production and certification resources, and whether milestones continue to progress on the MQ-25A Stingray and T-7A Red Hawk without incremental schedule or cost pressure. The record backlog provides a base for future deliveries, but investors and customers will still be looking for consistent execution.