Key facts
- Boeing reported a $428 million net loss for the second quarter.
- A $280 million charge was taken on the Air Force One replacement program due to higher engineering costs.
- The company generated $631 million in free cash flow.
- Boeing maintained its full-year free cash flow guidance of $1 billion to $3 billion.
Boeing reported a second-quarter net loss of $428 million, exceeding analyst expectations, largely due to a $280 million charge related to increased engineering costs for the delayed Air Force One replacement program. The company's core loss per share was 76 cents, worse than the anticipated 30 cents.
Despite the financial setback, Boeing achieved positive free cash flow of $631 million, a significant improvement from the negative $200 million in the same period last year. This was partly attributed to higher-than-expected customer payments. The aerospace giant maintained its full-year free cash flow guidance of $1 billion to $3 billion, signaling confidence in its ongoing turnaround efforts, which include increasing production of its 737 MAX jets.
Boeing also increased its capital investments, focusing on expanding production capabilities for its 787 model in South Carolina and military jets in Missouri. The company is working to deliver two 747-8 jets to serve as Air Force One under a $3.9 billion fixed-price contract signed in 2018. This program is now four years behind schedule and over budget by more than $1 billion. In the interim, U.S. President Donald Trump accepted a Qatari-donated 747-8 jet for Air Force One duties, though it is slated for upgrades.