Boeing posts larger-than-expected Q2 loss on Air Force One costs

Despite the charge ​and larger-than-expected loss, Boeing's share price rose by 4% in midday trading, as investors appeared to respond to steady, continued progress ​in improving production

Boeing on Tuesday reported a larger-than-expected quarterly loss after taking a $280 million charge on its troubled Air Force One replacement program, but generated positive free cash flow as its turnaround plans gained momentum. 

It took the charge due to higher engineering costs to ensure it delivers the ‌two delayed U.S. presidential plane replacements in 2028, contributing to a $428 ​million net loss for the second quarter. 

Despite the charge ​and larger-than-expected loss, Boeing's share price rose by 4% in midday trading, as investors appeared to respond to Boeing's steady, continued progress ​in improving production and its increased free cash flow in the quarter. The core loss per share of 76 cents was worse than analysts' average expected loss per share of 30 cents, according to LSEG data, though narrower than the $1.24 per share core loss in the same period last year. 

 

Boeing recorded $631 million of free cash flow, compared to a negative $200 million during the second quarter of 2025. ​The cash flow bump was due in part to higher customer payments than anticipated, according to the company. The U.S. planemaker is maintaining its guidance ‌of $1 billion to $3 billion in free cash flow for the year, which would be its first positive result since ​2023, as it increases production of its best-selling 737 MAX narrow-body jets. 

Boeing also increased capital investments in the quarter compared to last year, due largely to expanding capabilities for 787 production in South Carolina and military jet production in the St. Louis, Missouri, area. 

The planemaker is also working to ‌deliver two 747-8 jets to serve as Air Force ​One under a $3.9 billion fixed-price contract signed in 2018 that is ‌now four years behind schedule and more than $1 billion over budget. U.S. President Donald Trump accepted a Qatari-donated 747-8 jet that is ‌serving ??as an Air Force One plane in the meantime, though he said this month it would soon be sent away ​for upgrades following questions about its security features.

 

IMPROVING PRODUCTION, INCREASING DELIVERIES  Boeing is currently increasing output of its best-selling 737 MAX from 42 to 47 jets a month. Increasing output is critical to the company's ​ongoing financial recovery after years of crises have left it with nearly $26 billion in net debt and a dented reputation. The company aims to move to 52 a month by early next year and then to 57 jets ‌a month. Boeing CEO Kelly Ortberg cautioned that moving to 57 a month would require stronger performance from suppliers. He added that Boeing ‌will need to ensure it smoothly increases production on key parts, such as wings assembly for 737s. On its 787 jets, Ortberg said engine deliveries from GE Aerospace remain the critical factor to raising output to 10 aircraft per month and that the U.S. planemaker is working closely with GE on a recovery plan after engine shipments lagged in the first half.