Boeing reported solid Q2 with highest quarterly deliveries since 2018 and positive free cash flow. Management reiterated full-year guidance, with certification milestones on 737-10 and 777X on track. Key cross-company signals: GE engine delays constrain 787 rate ramp, VC25B charge of $280M increases program cost, and supply chain eyes on 737 wing capacity for higher rates. Boeing delivered 171 aircraft in Q2, highest since 2018; on track for 500 737s and 90-100 787s in 2026.
Buzzberg readRamping 737 to 47 per monthBoeing reported solid Q2 with highest quarterly deliveries since 2018 and positive free cash flow. Management reiterated full-year guidance, with certification milestones on 737-10 and 777X on track. Key cross-company signals: GE engine delays constrain 787 rate ramp, VC25B charge of $280M increases program cost, and supply chain eyes on 737 wing capacity for higher rates. Boeing delivered 171 aircraft in Q2, highest since 2018; on track for 500 737s and 90-100 787s in 2026.Read full analysisCollapse analysis
Boeing reported solid Q2 with highest quarterly deliveries since 2018 and positive free cash flow. Management reiterated full-year guidance, with certification milestones on 737-10 and 777X on track. Key cross-company signals: GE engine delays constrain 787 rate ramp, VC25B charge of $280M increases program cost, and supply chain eyes on 737 wing capacity for higher rates. Boeing delivered 171 aircraft in Q2, highest since 2018; on track for 500 737s and 90-100 787s in 2026.
FAA has authorized Boeing to resume issuing airworthiness certificates for 737 MAX and 787, clearing a regulatory bottleneck.
738-7 certification imminent; 737-10 certification expected after; both deliveries begin in 2027.
777X flight testing 55% complete; ETOPS test approval expected later this year; first delivery still 2027.
Revenue$24.56B
+11% QoQ
EPS$-0.76
reported
Gross margin9.83%
reported
Op margin0.32%
reported
What changed this quarter
01
Supply chain
Ramping 737 to 47 per month
Boeing's 787 rate-10 timing is gated by GE engine deliveries; GE fell behind in H1 and recovery starts only in Q3.
02
Risk
FAA reauthorized airworthiness certificates
Boeing delivered 171 aircraft in Q2, highest since 2018; on track for 500 737s and 90-100 787s in 2026.
03
Guidance
Free cash flow positive $631 million
Guidance tone
04
Demand
Record backlog of $715 billion
Management expressed strong confidence driven by production ramp, certification progress, record backlog, and positive free cash flow; no notable shift in tone.
Demand & capex
Demand
Bookings & conversion
Record backlog of $715 billion. Management expressed strong confidence driven by production ramp, certification progress, record backlog, and positive free cash flow; no notable shift in tone.
Capex
Investment and capacity
Jay Malabe stated that free cash flow improved due to 'planned CapEx increases as we continue to make progress on our growth investments in St. Louis and Charleston.' Kelly Ortberg also noted additional resources for VC25B, resulting in a $280 million charge.
Tone · confident
Management expressed strong confidence driven by production ramp, certification progress, record backlog, and positive free cash flow; no notable shift in tone.
Supply-chain alpha
A1
Boeing's 787 rate-10 timing is gated by GE engine deliveries; GE fell behind in H1 and recovery starts only in Q3.
Boeing is pulling forward resources on VC25B (Air Force One) and taking a $280M charge to hold the 2028 delivery schedule.
“We've made the decision to add significant resources to support the build and test schedule of VC25B. These additional resources resulted in a $280 million charge during the quarter.”
Jay MalabeExecutive Vice President and Chief Financial Officer
… expected to resume in the third quarter. We continue to manage the entire production system for increased rates. Supply chain readiness, including engines, remains a key factor in our production and delivery plans next year. Shifting over to BDS on the next page. BDS delivered 35 aircraft in the quarter. REVENUE INCREASED 13% TO $7.5 BILLION PRIMARILY DRIVEN BY HIGHER VOLUME INCLUDING GROWTH ON CLASSIFIED PROGRAMS, MISSILES AND WEAPONS AND KC-46A TANKER SPIRIT CONTRIBUTED APPROXIMATELY $130 MILLION TO SALES IN THE QUARTER OR ABOUT TWO POINTS OF GROWTH OPERATING MARGIN WAS NEGATIVE .2% WHICH REFLECTS THE $280 MILLION LOSS ON THE VC-25B PROGRAM BDS booked $7 billion in orders during the quarter and backlog remains strong at $85 billion. Excluding the impact of the VC25B adjustment, BDS operating margin was 3.5% in the quarter, reflecting better operating performance across the rest of the business and in line with our expectations for steady margin improvement. Further progress will come from completing fixed price development programs that currently dilute margins and from executing our sizable backlog. which carries attractive margins that will accelerate improvement. I'm …
Boeing's 787 rate-10 timing is gated by GE engine deliveries; GE fell behind in H1 and recovery starts only in Q3. — A delay in GE's engine output pushes Boeing's 787 production break to 10/month into 2027, capping near-term cash flow from that program.
“we'll continue to work with GE on the engine delivery recovery this summer, which will be important for our rate 10 timing”
… and the low rate production will include certification of that new line. In Charleston on the 787 program, we've now stabilized at eight airplanes per month. We did take the decision to temporarily slow production systems for several days in April to allow portions of the supply chain to recover. As we said before, we're guided by our safety and quality plan and will only move production forward when the system and our supply chain are ready. and we'll continue to work with GE on the engine delivery recovery this summer, which will be important for our rate 10 timing. Across the commercial market, we continue to see exceptional demand and market conditions as evidenced by our record backlog of more than 6,200 airplanes and a market outlook of nearly 44,000 new aircraft over the next 20 years. Let's now shift to BDS where we're making progress and staying focused on disciplined execution to strengthen performance, meeting customer commitments, and making deliberate investments in our programs. During the quarter, we achieved milestone C for both the T7 and the MQ25 programs, securing approval to begin low-rate initial production. For the T7, as an outcome of our active management …
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