Tuesday, July 29, 2025 - Boeing delivered 150 commercial aircraft in 2Q25, marking a 63% increase compared to the same period in 2024. The rise in deliveries contributed to a 35% year-over-year revenue increase, totaling US$22.7 billion. The company also narrowed its losses, reporting a GAAP loss per share of US$0.92, down from US$2.33 a year earlier. Free cash flow remained negative at US$200 million, a significant improvement from the US$4.3 billion outflow recorded in 2Q24.
The Commercial Airplanes division accounted for US$10.9
billion in revenue, nearly double that of the prior year. Boeing reported that
production of the 737 increased to 38 aircraft per month, while output of the
787 reached seven per month. Operating margins in the unit improved but
remained negative at -5.1%, compared to -11.9% in the same quarter last year.
Boeing’s Defense, Space & Security segment returned to
profitability with a 1.7% margin, following periods of operational and
contractual challenges. The Global Services division generated US$5.3 billion
in sales and achieved nearly 20% operating margins, making it the most
consistently profitable segment across the company.
CEO Kelly Ortberg stated, “We are seeing improved results as
we remain focused on safety, quality, and stabilizing production.” He also
noted that tariffs imposed during President Donald Trump's administration
continue to influence costs and operational strategy.
Boeing's backlog rose to US$619 billion, which includes over
5,900 commercial aircraft orders. While the backlog supports long-term revenue
potential, the company’s total debt remains at US$53.3 billion. In addition, a
US$445 million charge tied to a US Department of Justice settlement weighed on
the quarter’s bottom line.
In the past two months, Boeing secured orders for around 400
aircraft through at least five major deals tied to US trade negotiations led by
President Donald Trump. In July 2025, the White House announced a deal with
Japan that includes 100 Boeing aircraft and reduced tariffs from 25% to 15%.
Another agreement with Indonesia includes 50 aircraft valued at US$20 billion,
alongside US$19.5 billion in US energy and agricultural imports. Both deals
were negotiated directly between Trump and foreign heads of state.
Additional orders came from Bahrain’s Gulf Air (12 aircraft
with options for six more) and larger deals with Qatar (210 aircraft) and
Etihad (28 aircraft). Airbus CEO Guillaume Faury commented on the political
dynamic, stating that while politics plays a role, Airbus relies on product
strength to compete.
In the past year, Boeing faced multiple setbacks, beginning
with a January 2024 incident when a 737 Max 9 door panel blew off
midair due to missing bolts, exposing lapses in safety and quality
control. Though there were no fatalities, it renewed scrutiny over Boeing’s
standards, still shadowed by the two fatal 737 Max crashes that claimed 346
lives.
Most recently, a fatal Air India 787 crash in June 2025
further damaged Boeing’s safety record, though the cause remains under
investigation. Despite ongoing financial pressure, production disruptions and
regulatory pressure, investor sentiment showed modest optimism. Boeing shares
rose by 1% in pre-market trading ahead of the company’s earnings announcement.
The company’s challenge remains converting a substantial order book into
sustained profitability and consistent free cash flow.
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