Boeing narrows cash burn in first quarter as deliveries rise

Boeing Co. reported lower-than-expected cash outflow as it delivered the most aircraft in the first quarter since 2019, continuing its recovery with higher output and more steady operations at its defense and services units. The cash burn in the three months was $1.45 billion, less than the $2.61 billion estimated by analysts. Commercial aircraft deliveries rose 10% in period to 143 planes, pushing revenue up by 14% to about $22.2 billion. [caption id="attachment_57296441" align="aligncenter" width="2343"] A Boeing Co. 737 MAX airplane at the company's manufacturing facility in Renton, Washington. (Courtesy/David Ryder/Bloomberg)[/caption] The planemaker is ramping up output of the 737 family, a major step toward turning around Boeing’s finances and paying down debt. The company continues to expect to generate $1 billion to $3 billion in free cash in 2026, it said on Wednesday. “We’re making strides to strengthen our culture and restore trust with our customers while growing our record backlog to nearly $700 billion,” Chief Executive Officer Kelly Ortberg wrote in a message to employees. Boeing shares gained as much as 2.7% in pre-market trading. The stock is little changed in value this year. Ortberg touted milestones including NASA’s Artemis II moonshot, launched this month by the Boeing-built Space Launch System rocket, and progress ramping up production and deliveries — key to restoring profitability after a decade punctuated by a series of crises. Boeing was forced to fix about 25 of its 737 Max aircraft after discovering that a machine had damaged wiring, while deliveries of some 787 Dreamliner jets were also delayed due to a shortage of seats and cabin interiors. Those issues, along with integration challenges at newly-acquired Spirit AeroSystems Inc., were expected to weigh on first-quarter results. Deliveries to the Middle East, a region that’s an important buyer of Boeing aircraft, haven’t yet been impacted by the war in Iran, Ortberg said last week at Boeing’s shareholder meeting. Boeing also expects its defense business to see an uptick from maintenance and services as well as demand for replenishment munitions, Ortberg said at the time. The company’s defense and space unit reported a 21% increase in revenue to $7.6 billion in the first quarter, and operating margins rose 0.6 percentage points to 3.1%. The Arlington, Virginia-based manufacturer reported an adjusted loss of 20 cents per share in the first quarter, narrower than the 76 cents forecast by analysts. In March, Chief Financial Officer Jay Malave said that Boeing had pushed back its goal of generating positive margins at its key commercial unit by a year until 2027. Analysts on a conference call later on Wednesday will likely press executives on details on Boeing’s progress with a slate of aircraft programs that are vital to its battle with rival Airbus SE, including its 777X widebody. The head of the US Federal Aviation Administration said in an interview on Tuesday that the regulator currently hasn’t identified issues that would delay certification of the 737 Max 7 and 10 beyond 2026. The smallest and largest variants of Boeing’s cash-cow narrowbody family are in flight testing as part of a certification process that includes vetting changes to resolve a safety issue with the planes’ engine anti-ice system. Cargo Facts EMEA 2026 will take place April 28-30 in Brussels at the Marriott Hotel Grand Place. For more information and to register, visit CargoFactsEvents.com .

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