Boeing posted a bigger-than-expected loss as Air Force One costs weighed on results

Boeing $BA reported a second-quarter net loss of $428 million, or 67 cents a share, as a $280 million charge on the program to build the next generation of Air Force One aircraft pushed results well past analyst expectations. Stripping out one-time items, Boeing's loss came to 76 cents a share, more than double the 30-cent shortfall analysts had penciled in, according to CNBC. Quarterly revenue climbed 8% year over year to $24.

56 billion, topping the consensus estimate of $24.25 billion. The Air Force One charge came inside Boeing's Defense, Space & Security segment, which swung to an operating loss of $15 million in the quarter from operating profit of $110 million a year earlier.

The company said it took the $280 million VC-25B loss as it ramped up investment in additional production and certification resources, and said it still expects first delivery of the aircraft in 2028. "While we're making progress on our development programs, you're never done until you're done," Chief Executive Officer Kelly Ortberg said in a note to staff, according to CNBC. On the commercial side, Boeing's results improved.

The Commercial Airplanes segment posted revenue of $11.8 billion, up from $10.9 billion a year earlier, as deliveries climbed 14% to 171 planes from 150 in the same period last year.

The segment's operating loss narrowed to $322 million from $557 million a year ago. The company generated $631 million in free cash flow, swinging from a $200 million cash burn it recorded in last year's second quarter. Boeing ended the quarter with $20 billion in cash and investments and cut consolidated debt to $45.

9 billion from $47.2 billion at the start of the quarter. Boeing's total backlog grew to a record $715 billion, including more than 6,200 commercial aircraft valued at $597 billion.

During the quarter, Boeing moved into the transition toward building 47 737 Max jets per month, a target the company has been working toward with additional rate increases still on the horizon. A fourth final assembly line opened in Everett, Washington in July, focused initially on the 737 Max 10 variant. The company said certification flight testing has been completed on both the 737-7 and 737-10, and it continues to anticipate certification in 2026 and first delivery in 2027 for both variants.

Boeing's first-half commercial deliveries of 314 aircraft were the most for any first half since 2018, with the 737 program accounting for 243 of those handovers. The 777X wide-body program received FAA approval to begin certification flight testing under Type Inspection Authorization 4B during the quarter, with first delivery still anticipated in 2027. "While two quarters don't make a year, if we work together and stay focused on safety, quality and on-time performance — we'll improve our competitiveness and set ourselves up for a big second half," Kelly Ortberg said.