Boeing Company (The)
BA · NYSE
Next quarter
Expected to report Oct 28, 2026 — estimated from last year’s reporting date.
Consensus is -$0.18 EPS for Sep 2026 across 5 estimates, ranging -$0.40 to $0.10.
BA Jun 2026
- 123.53%
- -3.41%
- -$0.34
- -$0.76
- —
- $24.56B
Reported results
- $24.56B
- 9.83%
- $156.00M
- 0.64%
- -$444.00M
- -$0.67
Highlights
- Earnings miss: Core loss per share was $0.76 versus consensus of a $0.34 loss, while GAAP loss per share was $0.67; core EPS was also better than the year-ago $1.24 loss.
- Higher revenue, weaker sequential profit: Revenue rose 8% year over year to $24.6 billion from $22.7 billion, but operating income fell to $156 million from $448 million in Q1.
- Commercial delivery recovery: Commercial Airplanes delivered 171 aircraft, up 14% year over year, driving $11.8 billion of revenue and narrowing its operating loss to $322 million from $557 million.
- Defense charge: Defense, Space & Security revenue increased 13% to $7.5 billion, but the segment posted a $15 million operating loss after a $280 million VC-25B reach-forward loss.
- Cash flow inflection: Operating cash flow was $1.4 billion and free cash flow was $631 million, versus $227 million and negative $200 million, respectively, in Q2 2025.
- Record backlog: Total backlog reached a record $715.3 billion, including more than 6,200 commercial aircraft; Commercial Airplanes backlog was $596.7 billion.
- Balance-sheet repair: Debt declined to $45.9 billion from $47.2 billion at the end of Q1 and $54.1 billion at year-end 2025, while cash and investments ended at $20.0 billion.
- Certification and production: Boeing began transitioning 737 production toward 47 aircraft per month, activated low-rate production on the 737 North Line in July, and continued to target 2026 certification for the 737-7 and 737-10.
Analysis
Boeing’s second quarter was a higher-volume, cash-generative quarter that still fell short of earnings expectations. Revenue increased 8% year over year to $24.56 billion, compared with $22.75 billion in Q2 2025, while GAAP operating income improved to $156 million from a $176 million loss. However, core loss per share was $0.76 versus consensus of a $0.34 loss. The GAAP loss was $0.67 per share, compared with $0.92 a year ago and $0.11 in Q1; net loss attributable to Boeing shareholders was $444 million versus $611 million a year ago and $4 million in Q1.
The print was defined by commercial delivery progress, a defense program setback and improved liquidity. Commercial Airplanes delivered 171 aircraft, up from 150, narrowing its operating loss to $322 million, though the segment remained unprofitable at a 2.7% margin. Defense revenue grew 13%, but a $280 million VC-25B charge pushed the segment to a $15 million loss. Operating cash flow of $1.4 billion and free cash flow of $631 million benefited from deliveries and working-capital timing, supporting $8.4 billion of first-half debt repayments. Backlog grew to $715.3 billion, but execution, certification and fixed-price contract risks remain material.
Commercial Airplanes recovery
Commercial Airplanes was the clearest operational improvement, but not yet a return to profitability. Revenue increased 8% year over year to $11.75 billion as deliveries rose to 171 from 150, including 129 737s versus 104 a year ago. The operating loss narrowed to $322 million from $557 million, and margin improved to negative 2.7% from negative 5.1%, reflecting higher volume, favorable mix and improved performance.
- Production: The 737 program began transitioning from 42 to 47 aircraft per month, and low-rate initial production began on the North Line in July. Boeing continues to target 2026 certification and 2027 first deliveries for the 737-7 and 737-10.
- New programs: The 777X received approval to begin certification flight testing under Type Inspection Authorization 4B, with first delivery still targeted for 2027.
- Orders and backlog: The segment booked 246 net orders and ended with a $596.7 billion backlog covering more than 6,200 aircraft. Boeing also reported $2.8 billion of aircraft order cancellations in the first half, primarily involving 737 aircraft.
- Cost risk: Commercial aircraft inventory reached $74.4 billion, up from $70.8 billion at year-end, while 737 and 777X certification, production-rate increases and supply-chain execution remain key assumptions.
Defense program charges
Defense, Space & Security delivered strong top-line growth but absorbed another fixed-price program setback. Revenue rose 13% to $7.48 billion on higher volume, including proprietary and weapons programs, KC-46 activity, Foreign Military Sales and the acquired Spirit defense business. Operating performance deteriorated to a $15 million loss from $110 million of earnings a year earlier.
- VC-25B: Boeing recorded a $280 million reach-forward loss, primarily for additional production and certification resources related to structural, wiring and airworthiness work. First delivery remains targeted for 2028, but the filing says additional losses remain possible.
- Other milestones: MQ-25 completed first flight and received Milestone C, while the T-7A entered low-rate initial production after receiving Milestone C.
- Backlog: Defense backlog was $85.3 billion, up modestly from $84.8 billion at year-end, with 27% attributable to customers outside the United States.
Cash flow and leverage
Cash flow improved materially despite the GAAP loss, though the quarter’s benefit was tied in part to working-capital timing. Operating cash flow was $1.364 billion, compared with $227 million in Q2 2025, and free cash flow was $631 million versus negative $200 million. First-half operating cash flow was $1.185 billion, compared with negative $1.389 billion a year ago.
- Working capital: First-half operating cash flow benefited from a $4.66 billion increase in advances and progress billings and a $1.38 billion increase in accounts payable, partly offset by a $3.86 billion inventory investment.
- Debt reduction: Boeing repaid $8.38 billion of debt in the first half, reducing total debt to $45.9 billion at quarter-end from $54.1 billion at December 31 and $47.2 billion at March 31.
- Liquidity: Cash and marketable securities totaled $20.0 billion, down from $20.9 billion at the start of the quarter. The company also had $10.0 billion of undrawn credit facilities and maintained investment-grade ratings.
Services profitability pressure
Global Services remained Boeing’s most profitable operating segment, but its contribution softened. Revenue increased 1% to $5.34 billion, while operating earnings fell 8% to $968 million and margin declined to 18.1% from 19.9%. The decline reflected the Digital Aviation Solutions divestiture, higher costs, unfavorable mix and disruption in a distribution business during an enterprise resource planning transition. Services backlog increased to $32.8 billion from $29.7 billion at year-end.
Backlog and execution
Boeing’s record backlog provides substantial demand visibility but does not remove the execution burden. Total backlog increased to $715.3 billion from $682.2 billion at year-end, with $674.5 billion contractual and $40.8 billion unobligated. Management expects approximately 21% to convert to revenue through 2027 and 62% through 2030, although the filing cautions that delivery delays, production disruptions, customer cancellations and delayed aircraft certification could reduce or defer conversion.
