Boeing beats on cash flow, books new charge on Air Force One

Boeing Co. generated better-than-expected cash flow in the second quarter on continued strong demand for its aircraft, extending the US manufacturer’s turnaround efforts after years of crises. The company reported free cash flow of $631 million, driven by higher airplane deliveries and solidly beating analyst estimates of a $331 million cash outflow. Boeing said it still aims to generate $1 billion to $3 billion in free cash this year. Boeing shares rose 2.4% as of 9:30 a.m. New York time. The positive cash surprise was overshadowed by a fresh $280 million charge for the Air Force One program, which is years behind schedule and billions over budget. Boeing said it incurred the latest cost overruns on the presidential 747 jumbo jets after adding engineering and quality personnel to support production, as well as certification-related investments. The US planemaker has struggled with the complexity of completing the sophisticated flying fortresses, wracking up more than $3 billion in charges, drawing President Donald Trump’s ire and raising doubts over whether the planes will in fact be ready before his second term ends in early 2029. Meanwhile, the commander-in-chief has started using a retrofitted 747-8 gifted by Qatar. Boeing Chief Executive Officer Kelly Ortberg said in a CNBC interview Tuesday that he expects a commitment from China to purchase 200 aircraft to be finalized “in the coming months,” despite a recent Politico report suggesting the deal may be in trouble. “Everything I see continues to say that we’ll have some contracts here shortly,” he said. [caption id="attachment_57298443" align="alignright" width="2560"] F22 Raptor jet fighters escort the new Air Force One over the National Mall during the "Salute to America" event in Washington, on July 4. (Courtesy/Bloomberg)[/caption] The Arlington, Virginia-based manufacturer disclosed the fresh cost overruns on Tuesday as it reported an adjusted quarterly loss of 76 cents a share. That was wider than the 28 cent deficit predicted by analysts surveyed by Bloomberg. Revenue rose 8% to $24.6 billion. Boeing is working on a turnaround after years of crises and quality lapses that triggered a leadership shakeup and tarnished its relationship with customers and US regulators. The planemaker is now building 47 of its 737 Max aircraft each month in the Seattle area, with plans to increase that rate eventually to 63. Ramping up production is key to repairing its balance sheet and cashing in on an order book worth $715 billion that gained a boost from a slate of commitments at last week’s Farnborough International Airshow. Boeing announced over 170 firm and preliminary orders at the show and the company’s management said demand remained strong for its aircraft. The planemaker is on the cusp of winning safety certification for the 737-7, the smallest variant of its best-selling aircraft family, while the largest model — the Max 10 — is expected around October, Bloomberg has reported. The long-delayed regulatory milestones are central to the planemaker’s quest to challenge Airbus’s grip on the lucrative single-aisle jet market. The 777X long-haul jet remains on track to enter service in 2027, Boeing reiterated on Tuesday. “While we’re making progress on our development programs, you’re never done until you’re done,” Ortberg told employees in a memo alongside the earnings. Boeing earlier this month also regained the authority to issue airworthiness certificates for its 737 Max and 787 Dreamliner jets prior to delivery. The Federal Aviation Administration revoked that ability for 737 Max planes in 2019 during their return to service following two crashes with that aircraft in short succession, and for the 787 Dreamliner in 2022 because of production quality issues. The company has been on a tighter leash since a near-fatal accident on a 737 Max in 2024 exposed serious quality lapses at its factories. “As I continue meeting with our customers, suppliers and partners, they all say the same thing: a different, better Boeing is showing up,” Ortberg said. Cargo Facts Symposium 2026, the premier event for the freighter aircraft and air cargo industries, will take place in Nashville, Tenn., on Oct. 21-23. Find out more and register by Sept. 4 to take advantage of early-bird pricing.

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