Boeing posts bigger loss than expected as Air Force One costs weigh on results - CNBC

What the report says

CNBC reported that Boeing’s second-quarter results missed profit expectations after the company recorded a $280 million charge tied to its delayed program to build two new 747 aircraft for use as the next-generation Air Force One. The company said the added cost reflected increased investment in the project, while CEO Kelly Ortberg told employees that development work was advancing but not complete.

For the quarter, Boeing posted an adjusted loss of 76 cents per share, compared with analysts’ expected 30-cent loss, according to LSEG estimates cited by CNBC. Revenue rose 8% from a year earlier to $24.56 billion, slightly ahead of expectations, with gains across its business lines and more commercial jet deliveries. Boeing’s net loss narrowed to $428 million, or 67 cents per share, from $612 million, or 92 cents per share, a year earlier.

The Air Force One program remains a closely watched contract because of its importance to the U.S. government and its long delays. CNBC reported that Boeing still expects the first delivery in 2028. Ortberg said on CNBC’s “Squawk on the Street” that the aircraft has moved beyond the design phase and that Boeing plans to add resources to help meet the schedule.

The results also showed improvement in cash generation, with free cash flow of $631 million versus analysts’ expectation for a cash burn. Boeing delivered 171 commercial aircraft in the quarter, up from 150 a year earlier, and continues to increase 737 Max output while seeking certification for delayed models including the 737 Max 7, 737 Max 10 and 777X.