Boeing's losses shrink as jet deliveries rebound
Shares of the planemaker rose 2.4% in premarket trading as the results highlighted Boeing's efforts to cautiously increase monthly output this year, following years of quality issues and production delays on its flagship 737 MAX.
An improvement in deliveries marks a pivotal step in Boeing's effort to rebound from years of production disruptions and crises that piled on debt, highlighting the urgency of accelerating output to restore financial stability.
The planemaker's free cash flow usage, a key metric for Wall Street, also came in better than expected, signaling an improving cash position.
"As we continue to execute our Safety & Quality Plan, there's more stability in our operations," CEO Kelly Ortberg said in a letter to Boeing employees on Tuesday.
In May, the company produced 38 737s and production has been stable since then, according to the company.
The U.S. Federal Aviation Administration had capped the production of Boeing's best selling 737 MAX jets following a mid-air panel blowout in a nearly new jet in January 2024.
"We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we're ready," Ortberg added.
It delivered 206 737 MAX jets through the first half of the year. Wall Street closely tracks aircraft deliveries, because planemakers collect much of their payment when they hand over jets to customers.
Boeing also increased 787 production at its plant in Charleston, South Carolina, from five aircraft a month to seven a month.
Through the first half of the year, the planemaker booked 668 orders, or 625 net orders after cancellations and conversions.
It reported free cash flow usage of $200 million for the quarter, compared with analysts' expectations of $1.72 billion, according to data compiled by LSEG.
Operating profit in its defense, space and security business came in at $110 million, compared with a loss of $913 million a year ago.
The planemaker posted an adjusted core loss per share of $1.24 for the quarter through June, compared with $2.90 a year ago. Analysts had expected loss of $1.48 per share.
Revenue for the quarter rose 35% to $22.75 billion, beating analysts' estimates of $21.84 billion.
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