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Yahoo
3 days ago
- Business
- Yahoo
Boeing Commercial Airplane Revenue Recovers, Backlog Grows To $619 Billion
Boeing Co. (NYSE:BA) on Tuesday reported stronger-than-expected revenue for the second quarter, driven by a sharp rise in commercial aircraft deliveries. However, its adjusted loss per share was wider than Wall Street projections. The aerospace giant posted an adjusted loss of $1.24 per share, missing analyst expectations of a 94 cent loss. GAAP loss per share came in at 92 cents. Revenue climbed 35% year over year to $22.75 billion, beating the Street estimate of $20.20 billion. This was primarily due to higher delivery volume and improved operational performance. Also Read: Boeing delivered 150 commercial airplanes in the quarter, up 63% from a year ago. The total company backlog rose to $619 billion, including more than 5,900 commercial aircraft orders valued at $522 billion. The company reported operating cash flow of $227 million and a free cash outflow of $200 million. Segment Performance Commercial Airplanes: Revenue surged 81% year over year to $10.87 billion. Operating margin improved to -5.1%, compared to -11.9% a year ago. The 737 program stabilized at 38 aircraft per month, while the 787 ramped up to seven. The segment booked 455 net orders, including major deals with Qatar Airways and British Airways. Defense, Space & Security: Revenue rose 10% to $6.62 billion. Operating margin turned positive at 1.7%, reversing a 15.2% loss margin last year. The unit secured a U.S. Air Force contract for T-7A aircraft, began testing the MQ-25 Stingray for the Navy, and grew backlog to $74 billion, 22% of which came from international customers. Global Services: Revenue increased 8% to $5.28 billion. Operating margin expanded to 19.9%, up from 17.8%, boosted by a favorable mix and key contract wins. Boeing completed the sale of its Gatwick MRO facility and secured a P-8A support contract with the South Korean Navy. Cash and marketable securities totaled $23.0 billion, down from $23.7 billion in the prior quarter, primarily due to debt repayments and cash flow usage. Consolidated debt stood at $53.3 billion. Boeing continues to maintain access to $10 billion in undrawn credit facilities. View more earnings on BA The company also recorded a $445 million charge tied to its May 2025 non-prosecution agreement with the U.S. Department of Justice, booked under unallocated items. 'Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher-quality airplanes,' said president and CEO Kelly Ortberg in a statement. 'As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment.' Analyst Sentiment During the quarter, Boeing's turnaround gained traction. In April, Goldman Sachs reiterated a Buy rating, citing minimal impact from the China delivery freeze, which affects only about 2% of the company's backlog. Aircraft initially destined for China were expected to be redirected to fast-growing markets like India. Meanwhile, Bernstein upgraded the stock to Outperform, highlighting Boeing's progress toward its target production rates—38 737 MAX aircraft per month by July and seven 787s per month by year-end. In July, the FAA advanced certification of the long-delayed 777-9. Air India also completed a safety inspection of its 737 and 787 fleets, finding no issues. Additionally, Boeing expanded its aerospace footprint with the successful launch of O3b mPOWER satellites, supporting next-generation global broadband infrastructure. Price Action: At last check Tuesday, BA shares were trading lower by 2.34% to $230.88. Read Next:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? BOEING (BA): Free Stock Analysis Report This article Boeing Commercial Airplane Revenue Recovers, Backlog Grows To $619 Billion originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
5 days ago
- Business
- Mint
Boeing Defense Workers Reject Contract in New Labor Turmoil
(Bloomberg) -- Boeing Co. faces the risk of a strike at its St. Louis defense hub after union workers rejected a contract offer that would boost their wages by 20% over four years. The International Association of Machinists and Aerospace Workers Local 837, which represents 3,200 Boeing defense workers in Missouri and Illinois, voted overwhelmingly against the new terms Sunday. The Boeing proposal 'fell short of addressing the priorities and sacrifices' of the company's skilled workforce, the union said in a statement. 'Our members are standing together to demand a contract that respects their work and ensures a secure future.' While the present contract expires at 11:59 p.m. Central Time on Sunday, management still has a chance to win over rank-and-file members by sweetening its offer during a seven-day 'cooling off' period. If that's unsuccessful, IAM Local 837 workers will walk off the job and shut down manufacturing in Boeing's military aircraft hub. The aerospace manufacturer is seeking to avoid another labor standoff after a strike by a Seattle-based Machinists union crippled manufacturing at its commercial jet factories for more than two months last year. Boeing could not be immediately reached for comment. Any labor strife would be costly for Boeing's defense division, which hasn't earned an annual profit since 2022 and is in the middle of a turnaround. A strike would shut down assembly lines for Boeing's F-15 and F/A-18 fighter jets, T-7A trainer, MQ-25 drone refueler and other weapons systems. The labor uncertainty will be a focus for analysts when Boeing reports quarterly earnings on Tuesday. It's also a bellwether as GE Aerospace launches contract negotiations with a separate IAM local on Sunday. St. Louis workers last went on strike in 1996 and don't have a history of activism, unlike Boeing's unions in the Pacific Northwest, according to Scott Mikus, an analyst with Melius Research. Union members initially rejected management's offer during the last negotiation with Boeing in 2022, before accepting a three-year deal with a 14% general wage increase and cost-of-living adjustments. While Puget Sound labor leaders endorsed Boeing's initial offer last year, they were rebuffed by rank-and-file members embittered by an earlier 10-year contract that stripped away pensions and locked in low wage increases while inflation soared. The lengthy strike squeezed the company's working capital and spurred Boeing to sell equity worth almost $24 billion. --With assistance from Bill Haubert. (Updates with comments from labor union in third paragraph, attempt to reach Boeing in fifth paragraph.) More stories like this are available on
