Boeing shares rise 5% despite higher than expected Q2 loss on Air Force One costs
US aircraft maker Boeing reported a wider-than-expected Q2 loss Tuesday after booking a $280 million charge tied to its troubled Air Force One replacement program
US aircraft maker Boeing reported a wider-than-expected Q2 loss Tuesday after booking a $280 million charge tied to its troubled Air Force One replacement program, Reuters reported.The charge reflected higher engineering costs associated with delivering two delayed US presidential aircraft in 2028 and contributed to a second-quarter net loss of $428 million.The aircraft maker’s shares rose 5% in midday trading despite the Q2 loss, as investors focused on improving production and stronger cash flow. Its core loss of 76 cents per share was wider than analysts’ estimate of a 30-cent loss but narrower than the $1.24-per-share loss recorded a year earlier, according to LSEG data.Boeing generated $631 million in free cash flow, reversing a $200 million outflow in the second quarter of 2025, partly due to stronger-than-expected customer payments.
The company maintained its full-year free cash flow forecast of $1 billion to $3 billion, which would mark its first positive annual result since 2023, as it ramps up production of its best-selling 737 MAX jets.Boeing also lifted capital spending year-on-year in the quarter, mainly to expand 787 production in South Carolina and military jet output near St. Louis, Missouri. It is separately working to deliver two 747-8 jets as Air Force One under a $3.9 billion fixed-price 2018 contract — now four years late and over $1 billion above budget. President Donald Trump has meanwhile been using a Qatari-donated 747-8 in the role, though he said this month it would soon be pulled for upgrades over security concerns, according to a Reuters report.Also Read | Coca-Cola shares surge 7% as earnings beat lifts outlookMeanwhile, Boeing is raising monthly production of its best-selling 737 MAX jets from 42 to 47 aircraft, a crucial step in its financial recovery after years of crises left the company with nearly $26 billion in net debt and damaged its reputation.The aircraft aims to increase output to 52 jets a month by early next year and eventually reach 57.
CEO Kelly Ortberg said hitting the final target would require stronger supplier performance and a smooth ramp-up in key areas, including 737 wing assembly.For the 787, Ortberg said GE Aerospace’s engine deliveries
remain the biggest constraint on Boeing’s goal of producing 10 aircraft a month. Boeing is working with GE on a recovery plan after engine shipments fell behind schedule during the first half.
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