Boeing's operations turned a profit of $156m in the quarter, and interest on its debt cost nearly four times that
Boeing's operations made money in the quarter. The company lost $428m anyway.
Both statements come from the same release, filed with the Securities and Exchange Commission before the market opened on Tuesday. Earnings from operations were $156m, against a loss of $176m in the same quarter last year, on revenue of $24,560m and 171 commercial deliveries. Below the operating line the release records $600m of interest and debt expense, down from $710m a year ago but still roughly four times what the operating line produced. That gap is the quarter in one comparison.
The loss narrowed on every measure the company reports. Diluted loss per share was $0.67 against $0.92, and core loss per share, a non-GAAP figure that strips out pension service cost adjustments, was $0.76 against $1.24. Operating cash flow was $1,364m against $227m. Free cash flow was positive at $631m, against negative $200m in the same quarter last year, though the first half is still negative at $823m.
Backlog is where the release puts its emphasis, and it is a record on both measures it gives: $715bn for the company and $597bn for Commercial Airplanes, which ended the quarter with more than 6,200 aeroplanes on order. Commercial Airplanes booked 246 net orders in the quarter, including from Korean Air, Delta Air Lines and SMBC Capital. The segment still lost $322m from operations at a margin of negative 2.7 percent, an improvement of 2.4 points on last year.
Defence went the other way. Revenue at Defense, Space and Security rose 13 percent to $7,483m, and the segment recorded a loss from operations of $15m against earnings of $110m a year ago. The release attributes $280m of losses in the quarter to the VC-25B programme, the two aircraft being converted to serve as Air Force One, and says the cost reflects an investment in additional production and certification resources. First delivery is still anticipated in 2028.
Global Services was the only segment in profit, earning $968m on revenue of $5,344m at a margin of 18.1 percent, down from 19.9 percent. The release attributes the margin decline to the Digital Aviation Solutions divestiture, higher costs and unfavourable mix.
On the production programmes, the release says the 737 began transitioning to a rate of 47 a month during the quarter and activated low-rate initial production on the 737 North Line in July. Certification flight testing on the 737-7 and the 737-10 is now complete, with certification anticipated in 2026 and first delivery in 2027 for both. The 777X received approval from the Federal Aviation Administration to begin certification flight testing under Type Inspection Authorization 4B, and first delivery is still expected in 2027.
Kelly Ortberg, the chief executive, said the team is making progress executing its plan, that operations are more stable, and that the focus has been on restoring trust. He also said there is more work ahead in the second half of the year.
Cash and investments in marketable securities finished at $20.0bn against $20.9bn at the start of the quarter, and consolidated debt at $45.9bn against $47.2bn. The company says its $10.0bn of credit facilities remain undrawn.
