The Boeing Company

Boeing reported Q2 revenue of $24.6 billion, up 8% year over year, operating margin of 0.6%, and core EPS of a loss of $0.76. Free cash flow was positive $631 million. In Commercial Airplanes, revenue was $11.8 billion, up 8%, and operating margin was negative 2.7%; BCA delivered 171 airplanes, up to the highest quarterly total since 2018. In Defense, revenue was $7.5 billion, up 13%, and operating margin was negative 0.2% due to a $280 million VC-25B loss; excluding that charge, BDS margin was 3.5%. In Global Services, revenue was $5.3 billion, up 1% and up 8% excluding the Digital Aviation Solutions divestiture, with operating margin of 18.1%. For the full year, Boeing reiterated free cash flow guidance of $1 billion to $3 billion, said it expects third-quarter free cash flow to be positive and in the low hundreds of millions of dollars, and maintained delivery targets of 500 737s and 90 to 100 787s.

Kelly Ortberg emphasized that Boeing is executing on its 2026 plan, with safety and quality still the priority while production and deliveries improve. He highlighted progress on certification, including FAA authorization to resume issuing airworthiness certificates for 737 MAX and 787 airplanes, and said the company is building trust with regulators, customers, suppliers, and employees. His tone was cautiously upbeat: he repeatedly noted there is more work to do, but said the first-half momentum sets up more dependable performance in the second half.

Jay Malave said the quarter benefited from higher commercial deliveries and strong defense volume, with revenue of $24.6 billion and free cash flow of $631 million. He explained that the VC-25B program drove a $280 million charge and that cash and marketable securities ended at $20 billion, while debt fell to $45.9 billion, down $1.3 billion in the quarter and $8.2 billion year to date. He also said Boeing remains committed to an investment-grade rating, still has $10 billion of undrawn credit facilities, and expects working capital to be a net source of cash in the second half. On margins, he said BDS should remain around the same zone for the rest of 2026, with full-year BDS margin around 2.5% including the VC-25B charge, and that Boeing remains confident in long-term free cash flow growth, including the view that $10 billion is very attainable.

Analysts focused on free cash flow seasonality, the 737 production ramp, 787 engine and seat certification issues, 777X progress, labor negotiations with SPEEA, and the long-term margin path for BCA and BDS. Management said the back-half cash flow relies on rising 737 and 787 deliveries, improving BDS performance, and seasonal advances, and that a stronger 2027 and beyond picture will depend on the year-end planning cycle. On the 787, Boeing said seat certification delays are still with them through the rest of the year and engine deliveries fell behind in the first half, though GE expects deliveries to resume in the third quarter. On labor, Ortberg said talks with SPEEA are respectful and productive, but Boeing is planning for the possibility of a work stoppage.