Boeing reported a wider-than-expected loss for the second quarter as the aircraft manufacturer’s long-delayed Air Force One program weighed down results.
Boeing took a $280 million loss on the program to deliver two 747s that will serve as the next-generation Air Force One aircraft to the U.S. government as it said it ramped up investment for that plane. It said it still expects the first delivery in 2028.
“While we’re making progress on our development programs, you’re never done until you’re done,” CEO Kelly Ortberg said in a note to staff.
Ortberg told CNBC’s “Squawk on the Street” that the Air Force One program is through the design phase.
“It’s very important to our customer that we deliver that airplane on time,” he said. “We’re gonna put more resources on to make sure that we do that.”
President Donald Trump this month took his first flight on a luxury Boeing 747 gifted by Qatar that was meant to serve as the new Air Force One while Boeing works on the upcoming jets. That jet’s security was reportedly called into question after he took a trip to Turkey and left the country on the old Air Force One.
Here’s what the company reported for the second quarter compared with what Wall Street analysts surveyed by LSEG were expecting:
- Loss per share: 76 cents adjusted vs. a loss of 30 cents a share expected
- Revenue: $24.56 billion vs. $24.25 billion expected
The aircraft manufacturer, a top U.S. exporter, increased revenue 8% in the second quarter to $24.56 billion from a year earlier with gains across its businesses, including increased deliveries of commercial aircraft. Boeing has been ramping up production of its bestselling 737 Max airplanes to 47 a month, with further increases planned.
Boeing’s commercial aircraft deliveries in the second quarter rose 14% from a year earlier to 171 planes from 150 a year earlier.
Free cash flow of $631 million came in well above the $177 million cash burn analysts expected, and compares with a $200 million burn in the second quarter a year ago.
Boeing reported a net loss of $428 million, or 67 cents a share, compared with a net loss last year of $612 million, or 92 cents a share a year earlier. Adjusting for one-time items, Boeing reported a loss of 76 cents a share.
“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,” Ortberg said in the staff note.
Upcoming milestones include the certification of other delayed aircraft programs. First will likely be the Boeing 737 Max 7, the smallest aircraft in the family of planes.
Boeing executives will hold a call with analysts at 10:30 a.m. ET, where they’ll likely face questions about certification of the 737 Max 10 and the 777X, its new wide-body aircraft.