Latest news with #737
Yahoo
10 hours ago
- Business
- Yahoo
Boeing Co (BA) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Challenges
Revenue: $22.7 billion, up 35% year-over-year. Core Loss Per Share: $1.24, showing significant improvement from the previous year. Free Cash Flow: Usage of $200 million, better than expectations due to higher commercial delivery volume and favorable timing of CapEx. Commercial Airplane Deliveries: 150 airplanes in the quarter, 280 in the first half of the year. BCA Revenue: $10.9 billion with an operating margin of -5.1%. BCA Backlog: $522 billion, up more than $60 billion sequentially. BDS Revenue: $6.6 billion, up 10% year-over-year. BDS Operating Margin: 1.7%, showing significant improvement. BGS Revenue: $5.3 billion, up 8% year-over-year. BGS Operating Margin: 19.9%, up 210 basis points compared to last year. Debt Balance: $53.3 billion, down $300 million in the quarter. Cash and Marketable Securities: $23 billion. Warning! GuruFocus has detected 6 Warning Signs with BA. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Boeing Co (NYSE:BA) announced its largest wide-body order ever for up to 210 commercial airplanes, indicating strong market demand. The company delivered 150 commercial jets in the quarter, marking the most deliveries in the second quarter since 2018. Boeing Co (NYSE:BA) achieved a production rate of 38 airplanes per month for the 737 and is on track to request an increase to 42 per month. The 787 program successfully increased its production rate to seven airplanes per month, with stable key performance indicators. Boeing Global Services (BGS) delivered strong financial results with a 19.9% operating margin, reflecting improved commercial and government volume. Negative Points The 737-7 and -10 certification is delayed to 2026 due to prolonged technical solution development for engine anti-ice. Boeing Co (NYSE:BA) reported a core loss per share of $1.24, despite improvements compared to the previous year. Free cash flow was a usage of $200 million in the quarter, reflecting ongoing challenges in working capital management. The 777X program continues to grow inventory as it moves towards entry into service, impacting financials. Boeing Defense and Space (BDS) margins remain low, with ongoing challenges in stabilizing fixed-price development programs. Q & A Highlights Q: Can you explain the $2 billion better performance in free cash flow for the second quarter and how it affects the full-year target? A: Brian West, CFO, explained that the $3 billion figure is a reasonable assumption for the year. The first half free cash flow usage of $2.5 billion exceeded expectations, with the second quarter usage of $200 million being better than anticipated. This was driven by better BCA delivery performance and timing items, including an incremental $700 million from 13 777 deliveries. The third quarter is expected to mirror the second quarter, with a potential $700 million one-time DOJ payment. The fourth quarter is anticipated to be positive, setting up for a strong 2026. Q: How do recent trade agreements and tariffs impact Boeing's order momentum and pricing? A: Kelly Ortberg, CEO, noted that recent trade agreements have been beneficial, particularly the Japan agreement, which includes zero tariffs on imports. The order environment is strong, and Boeing is managing pricing to reflect the constrained environment, which helps offset inflationary cost growth. The focus remains on avoiding retaliatory tariffs with China and maintaining favorable trade terms with Mexico and Canada. Q: What are the long-term production rate plans for the 737 MAX and 787, given the strong demand? A: Kelly Ortberg stated that Boeing is stabilizing the 787 production at seven per month and plans to increase rates as market demand is strong. For the 737 MAX, the current rate is 38 per month, with plans to increase in increments of five, no earlier than six months apart, pending FAA discussions. The focus is on maintaining stability and high-quality production. Q: Can you provide an update on the engine anti-icing issue with the 737-7 and -10? A: Kelly Ortberg explained that the delay is due to unresolved design issues affecting airflow into the engines. The engineering designs have not met expectations, requiring additional design changes to meet de-icing requirements. The certification is now expected in 2026. Q: How is Boeing addressing the challenges in Boeing Defense and Space (BDS) and what is the outlook for margin improvement? A: Kelly Ortberg highlighted that BDS is focused on stabilizing production and executing development programs. Recent contract wins have been cost-plus, avoiding past mistakes of fixed-price development contracts. The goal is to return to high single-digit margins, with active management and derisking of programs being key strategies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
NZ Herald
16 hours ago
- Business
- NZ Herald
Boeing announces latest results
Footage from inside Boeing's 737 production facility in Renton, Washington, and the 737 and 787 Dreamliner in flight. Video / Boeing
Yahoo
a day ago
- Business
- Yahoo
Boeing Commercial Airplane Revenue Recovers, Backlog Grows To $619 Billion
Boeing Co. (NYSE:BA) on Tuesday reported stronger-than-expected revenue for the second quarter, driven by a sharp rise in commercial aircraft deliveries. However, its adjusted loss per share was wider than Wall Street projections. The aerospace giant posted an adjusted loss of $1.24 per share, missing analyst expectations of a 94 cent loss. GAAP loss per share came in at 92 cents. Revenue climbed 35% year over year to $22.75 billion, beating the Street estimate of $20.20 billion. This was primarily due to higher delivery volume and improved operational performance. Also Read: Boeing delivered 150 commercial airplanes in the quarter, up 63% from a year ago. The total company backlog rose to $619 billion, including more than 5,900 commercial aircraft orders valued at $522 billion. The company reported operating cash flow of $227 million and a free cash outflow of $200 million. Segment Performance Commercial Airplanes: Revenue surged 81% year over year to $10.87 billion. Operating margin improved to -5.1%, compared to -11.9% a year ago. The 737 program stabilized at 38 aircraft per month, while the 787 ramped up to seven. The segment booked 455 net orders, including major deals with Qatar Airways and British Airways. Defense, Space & Security: Revenue rose 10% to $6.62 billion. Operating margin turned positive at 1.7%, reversing a 15.2% loss margin last year. The unit secured a U.S. Air Force contract for T-7A aircraft, began testing the MQ-25 Stingray for the Navy, and grew backlog to $74 billion, 22% of which came from international customers. Global Services: Revenue increased 8% to $5.28 billion. Operating margin expanded to 19.9%, up from 17.8%, boosted by a favorable mix and key contract wins. Boeing completed the sale of its Gatwick MRO facility and secured a P-8A support contract with the South Korean Navy. Cash and marketable securities totaled $23.0 billion, down from $23.7 billion in the prior quarter, primarily due to debt repayments and cash flow usage. Consolidated debt stood at $53.3 billion. Boeing continues to maintain access to $10 billion in undrawn credit facilities. View more earnings on BA The company also recorded a $445 million charge tied to its May 2025 non-prosecution agreement with the U.S. Department of Justice, booked under unallocated items. 'Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher-quality airplanes,' said president and CEO Kelly Ortberg in a statement. 'As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment.' Analyst Sentiment During the quarter, Boeing's turnaround gained traction. In April, Goldman Sachs reiterated a Buy rating, citing minimal impact from the China delivery freeze, which affects only about 2% of the company's backlog. Aircraft initially destined for China were expected to be redirected to fast-growing markets like India. Meanwhile, Bernstein upgraded the stock to Outperform, highlighting Boeing's progress toward its target production rates—38 737 MAX aircraft per month by July and seven 787s per month by year-end. In July, the FAA advanced certification of the long-delayed 777-9. Air India also completed a safety inspection of its 737 and 787 fleets, finding no issues. Additionally, Boeing expanded its aerospace footprint with the successful launch of O3b mPOWER satellites, supporting next-generation global broadband infrastructure. Price Action: At last check Tuesday, BA shares were trading lower by 2.34% to $230.88. Read Next:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? BOEING (BA): Free Stock Analysis Report This article Boeing Commercial Airplane Revenue Recovers, Backlog Grows To $619 Billion originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
a day ago
- Business
- Fast Company
Boeing beats Wall Street's expectations with 2nd quarter rise in revenue
Boeing's second-quarter loss narrowed and revenue improved as the aircraft manufacturer delivered more commercial planes in the period. Boeing Co. lost $611 million, or 92 cents per share, for the three months ended June 30. A year earlier it lost $1.44 billion, or $2.33 per share. Adjusting for one-time gains, Boeing lost $1.24 per share. This was better than the loss of $1.54 per share that analysts surveyed by Zacks Investment Research expected. Shares rose slightly before the market open on Tuesday. Revenue climbed to $22.75 billion from $16.87 billion, mostly due to 150 commercial deliveries compared with 92 deliveries in the prior-year period. The performance topped Wall Street's estimate of $21.86 billion. 'Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,' CEO Kelly Ortberg said in a statement. 'As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment.' Boeing has been dealing with a variety of issues over the past few years. On Sunday Boeing said that it expects more than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets to strike after they rejected a proposed contract that included a 20% wage increase over four years. The International Machinists and Aerospace Workers union said the vote by District 837 members was overwhelmingly against the proposed contract. The existing contract was to expire at 11:59 p.m. Central time Sunday, but the union said that a 'cooling off' period would keep a strike from beginning for another week, until Aug. 4. Last fall, Boeing offered a general wage increase of 38% over four years to end a 53-day strike by 33,000 aircraft workers producing passenger aircraft. In June the National Transportation Safety Board said that its 17-month long investigation found that lapses in Boeing's manufacturing and safety oversight, combined with ineffective inspections and audits by the Federal Aviation Administration, led to a door plug panel flying off Alaska Airlines flight 1282, which was a Boeing 737 Max 9 aircraft, last year. Boeing said in a statement at the time that it will review the NTSB report and will continue working on strengthening safety and quality across its operations. The Max version of Boeing's bestselling 737 airplane has been the source of persistent troubles for the company since two of the jets crashed, one in Indonesia in 2018 and another in Ethiopia in 2019, killing a combined 346 people. In May the Justice Department reached a deal allowing Boeing to avoid criminal prosecution for allegedly misleading U.S. regulators about the Max before the two crashes. Boeing was also in the news last month when a 787 flown by Air India crashed shortly after takeoff and killed at least 270 people. Investigators have not determined what caused that crash, but so far they have not found any flaws with the model, which has a strong safety record.
The Hill
a day ago
- Business
- The Hill
Boeing's 2Q loss narrows and revenue rises, topping Wall Street's expectations
Boeing's second-quarter loss narrowed and revenue improved as the aircraft manufacturer delivered more commercial planes in the period. Boeing Co. lost $611 million, or 92 cents per share, for the three months ended June 30. A year earlier it lost $1.44 billion, or $2.33 per share. Adjusting for one-time gains, Boeing lost $1.24 per share. This was better than the loss of $1.54 per share that analysts surveyed by Zacks Investment Research expected. Shares rose slightly before the market open on Tuesday. Revenue climbed to $22.75 billion from $16.87 billion, mostly due to 150 commercial deliveries compared with 92 deliveries in the prior-year period. The performance topped Wall Street's estimate of $21.86 billion. 'Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,' CEO Kelly Ortberg said in a statement. 'As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment.' Boeing has been dealing with a variety of issues over the past few years. On Sunday Boeing said that it expects more than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets to strike after they rejected a proposed contract that included a 20% wage increase over four years. The International Machinists and Aerospace Workers union said the vote by District 837 members was overwhelmingly against the proposed contract. The existing contract was to expire at 11:59 p.m. Central time Sunday, but the union said that a 'cooling off' period would keep a strike from beginning for another week, until Aug. 4. Last fall, Boeing offered a general wage increase of 38% over four years to end a 53-day strike by 33,000 aircraft workers producing passenger aircraft. In June the National Transportation Safety Board said that its 17-month long investigation found that lapses in Boeing's manufacturing and safety oversight, combined with ineffective inspections and audits by the Federal Aviation Administration, led to a door plug panel flying off Alaska Airlines flight 1282, which was a Boeing 737 Max 9 aircraft, last year. Boeing said in a statement at the time that it will review the NTSB report and will continue working on strengthening safety and quality across its operations. The Max version of Boeing's bestselling 737 airplane has been the source of persistent troubles for the company since two of the jets crashed, one in Indonesia in 2018 and another in Ethiopia in 2019, killing a combined 346 people. In May the Justice Department reached a deal allowing Boeing to avoid criminal prosecution for allegedly misleading U.S. regulators about the Max before the two crashes. Boeing was also in the news last month when a 787 flown by Air India crashed shortly after takeoff and killed at least 270 people. Investigators have not determined what caused that crash, but so far they have not found any flaws with the model, which has a strong safety record.
