Boeing reported a 14% year-on-year increase in first-quarter revenue to $22.2 billion, driven primarily by higher commercial aircraft deliveries, while its net loss narrowed significantly and total backlog surged to a record $695 billion.
The company delivered 143 commercial aircraft during the quarter, up 10% from a year earlier, supporting improved operating cash flow, although free cash flow remained negative at $1.5 billion.
Boeing posted a GAAP loss per share of $0.11, improving from a $0.16 loss a year earlier, while core (non-GAAP) loss per share narrowed to $0.20.
Operating cash flow improved sharply to negative $179 million from negative $1.6 billion last year, reflecting higher delivery volumes and operational improvements.
However, liquidity declined over the quarter, with cash and marketable securities falling to $20.9 billion from $29.4 billion, largely due to debt repayments and capital expenditures.
Segment performance was mixed:
Commercial Airplanes: Revenue rose 13% to $9.2 billion, but the segment remained loss-making, with a margin of -6.1%.
Defense, Space & Security: Revenue jumped 21% to $7.6 billion, with improved margins of 3.1%.
Global Services: Revenue increased 6% to $5.4 billion, maintaining strong margins above 18%.
The results highlight Boeing’s continued recovery trajectory following years of operational disruption, certification delays, and supply chain constraints. Increased production rates – particularly for the 737 program, now at 42 aircraft per month – are central to its turnaround strategy.
Progress on certification programs remains critical. Boeing expects certification of the 737-7 and 737-10 variants in 2026, with first deliveries anticipated in 2027, while the 777X program continues advancing through regulatory testing phases.
The company also continues to leverage its defense and space business to offset volatility in commercial aviation, with recent contracts and partnerships – including missile production expansion and international defense collaborations – supporting backlog growth.
Boeing’s expanding backlog – now approaching $700 billion – signals sustained long-term demand across both commercial aviation and defense sectors, even as near-term financial performance remains constrained by cash flow pressures and ongoing investment requirements.
The persistence of negative free cash flow underscores the capital intensity of ramping production and resolving legacy program issues, a dynamic that investors will continue to monitor closely.
By Charles Kennedy for Oilprice.com
finance.yahoo.com
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