Boeing's quarterly loss shrinks as jet deliveries rebound, but shares drop

By Dan Catchpole and Shivansh Tiwary

(Reuters) -Boeing's quarterly loss more than halved and was much smaller than analysts expected as the U.S. planemaker ramped up jet deliveries, recovering from a regulatory crisis and a major strike that halted most production last year.

Boeing shares dropped 2% in early trading.

The results highlighted Boeing's efforts to cautiously increase monthly output this year, following years of quality issues and production delays on its flagship 737 MAX. Increased deliveries mark a pivotal step in Boeing's effort to rebound from years of production disruptions and crises that piled on debt, increasing the urgency of accelerating output to restore financial stability.

Boeing's financial improvements were tempered by its announcement that certification of the new 777-9 and 737 MAX 7 and 10 models will not happen until 2026, another setback for those programs. The company previously said it expected to finish certification by the end of this year. 

The company is still developing solutions to address several lingering issues stalling certification, Boeing CEO Kelly Ortberg told CNBC. 

During the interview, he praised President Donald Trump's aggressive use of tariffs to hammer out trade deals. 

"I like the way this tariff situation is playing out," Ortberg told CNBC. "It's good for our business, is good for aerospace, and will create jobs in the United States."

The planemaker posted an adjusted core loss per share of $1.24 for the quarter through June, compared with a $2.90 loss a year ago. Analysts had expected a loss of $1.48 per share.

The planemaker's free cash flow usage, a key metric for Wall Street, was better than expected, signaling an improving cash position.

"As we continue to execute our Safety & Quality Plan, there's more stability in our operations," Ortberg said in a letter to Boeing employees.

In May, the company produced 38 737s and production has been stable since then, according to the company.

CAPPED PRODUCTION

The U.S. Federal Aviation Administration capped the production of Boeing's best-selling 737 MAX jets following a mid-air panel blowout in a nearly new jet in January 2024.

"We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we're ready," Ortberg added.

Boeing delivered 206 737 MAX jets through the first half of the year, compared to 135 a year earlier. Across all commercial jet programs, it delivered 285 airliners through June, compared to 175 during the same period in 2024. Wall Street closely tracks aircraft deliveries because planemakers collect much of their payment when they hand over jets to customers. 

Boeing also increased 787 production at its plant in Charleston, South Carolina, from five aircraft a month to seven.

Through the first half of the year, the planemaker booked 668 orders, or 625 net orders after cancellations and conversions.

It reported free cash flow usage of $200 million for the second quarter, compared with analysts' expectations of $1.72 billion, according to data compiled by LSEG. Boeing burned $2.3 billion in free cash during the previous quarter and $4.33 billion during the second quarter of 2024.

Its defense, space, and security business earned an operating profit of $110 million, compared with a loss of $913 million a year ago.

Revenue for the quarter rose 35% to $22.75 billion, beating analysts' estimates of $21.84 billion.

(Reporting by Shivansh Tiwary in Bengaluru and Dan Catchpole in Seattle; Editing by Saumyadeb Chakrabarty and Rod Nickel)