Key Takeaways:
Boeing reported Q2 revenue of $24.56 billion, up 8%, as commercial aircraft deliveries reached their highest level since 2018.
"I'm very pleased with the progress our team is making as we execute our plan," Kelly Ortberg, president and chief executive officer at Boeing, said. "Our operations are more stable and key certification programs remain on plan."
The company narrowed its net loss to $428 million from $612 million a year earlier, with loss per share improving to $0.67 from $0.92. Free cash flow turned positive at $631 million, compared with a $200 million outflow in the second quarter of 2025 and a $1.45 billion burn in the first quarter of 2026. Operating cash flow rose to $1.36 billion from $227 million.
Shares rallied in the regular session after the results, with CNBC's Jim Cramer declaring Boeing "at last ready to run" and naming it his top stock pick. The endorsement signals a potential turning point for the aerospace giant, which has spent years navigating production disruptions, certification delays and mounting losses.
Deliveries drive commercial recovery
Boeing Commercial Airplanes delivered 171 aircraft during the quarter, up 14% year over year and the highest quarterly total since 2018. The 737 program led with 129 deliveries, alongside 10 767s, seven 777s and 25 787 Dreamliners. First-half deliveries reached 314 aircraft, compared with 280 during the opening six months of 2025.
The division generated $11.75 billion in revenue, up 8%, while its operating loss narrowed to $322 million from $557 million. The 737 program began transitioning toward a production rate of 47 aircraft per month during the quarter and activated low-rate initial production on a fourth assembly line in Everett, Washington, in July.
Certification flight testing has been completed for both the 737-7 and 737-10, with Boeing expecting both variants to be certified in 2026 and first deliveries scheduled for 2027. The 777X program received Federal Aviation Administration approval to begin certification flight testing under Type Inspection Authorization phase 4B, with first delivery targeted for 2027.
Commercial Airplanes booked 246 net orders during the quarter, including deals with Korean Air, Delta Air Lines and SMBC Aviation Capital. The division ended June with more than 6,200 aircraft in its backlog, valued at a record $597 billion.
Defense losses and services strength
Boeing Defense, Space & Security increased revenue 13% to $7.48 billion but posted a $15 million operating loss, compared with earnings of $110 million a year earlier. The result included $280 million in additional losses on the VC-25B program to develop two new Air Force One presidential aircraft. Boeing continues to expect the first VC-25B delivery in 2028.
Global Services remained the company's most profitable division, recording revenue of $5.34 billion and operating earnings of $968 million. Its operating margin declined to 18.1% from 19.9%, reflecting the divestment of Digital Aviation Solutions, higher costs and an unfavorable sales mix.
Boeing's total backlog reached a record $715 billion at the end of the quarter, up from $682 billion at the end of 2025. The company held $20 billion in cash and marketable securities, while consolidated debt declined to $45.9 billion from $47.2 billion at the end of March.
The free cash flow inflection and production ramp signal that Boeing's multiyear turnaround is gaining traction. Investors will watch whether the company can sustain delivery momentum through the second half and achieve the $10 billion free cash flow target that Chief Financial Officer Brian West called "very attainable."
This article is for informational purposes only and does not constitute investment advice.
