EVERETT—Amid aircraft quality issues and a lengthy labor strike in 2024, Boeing delivered a mixed yet encouraging second-quarter earnings performance in 2025, posting revenue of $22.7 billion—a robust 35% jump from the prior year—while narrowing its GAAP loss per share to $0.92 from $2.33. The company’s massive backlog swelled to $619 billion, encompassing more than 5,900 commercial airplanes, signaling sustained demand.
“Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,” said Kelly Ortberg, Boeing’s President and Chief Executive Officer, framing 2025 as a pivotal “turnaround year.”
This uptick in revenue reflects Boeing’s push to ramp up output and clear delivery hurdles, with total operating cash flow swinging to a positive $227 million from a $3.9 billion outflow a year earlier. Free cash flow, though still negative at $200 million, marked a dramatic improvement over the $4.3 billion burn in the same period last year.
For the first half of 2025, Boeing’s revenue climbed 26% to $42.2 billion, and it flipped to positive GAAP earnings from operations of $285 million, compared to a $1.2 billion loss in 2024. These figures underscore a broader stabilization effort, as the company grapples with regulatory pressures and supply chain strains that have slowed its recovery from the 737 MAX crises and a mid-flight door plug incident on an Alaska Airlines jet.
Breaking down Boeing business segments earnings performance
Commercial Airplanes led the charge with an 81% revenue surge to $10.9 billion, fueled by 150 airplane deliveries—up 63% year-over-year, including 104 of the 737 model. Production of the 737 hit 38 per month, with plans to hold steady before edging up to 42 later in the year, while the 787 Dreamliner reached seven per month.
The segment booked 455 net orders, highlighted by deals like 120 787s and 30 777-9s for Qatar Airways, plus 32 787-10s for British Airways. Despite these gains, operating margins remained negative at 5.1%, though better than the 11.9% loss margin last year, as Boeing invests heavily in quality controls and integrates its recent acquisition of Spirit AeroSystems.
In Defense, Space & Security, revenue grew 10% to $6.6 billion, with operating margins turning positive at 1.7% from a steep 15.2% loss previously. Milestones included securing a U.S. Air Force contract for four T-7A Red Hawk aircraft and starting ground tests on the MQ-25 Stingray unmanned tanker for the Navy.
Deliveries here totaled 36 units, ranging from Apache helicopters to KC-46 tankers and commercial satellites. The backlog expanded to $74 billion, with about a fifth from international customers, offering a buffer against domestic budget uncertainties.
Global Services, often a steady performer, saw revenue rise 8% to $5.3 billion, with margins expanding to 19.9%. Key moves included divesting its Gatwick Airport maintenance facility and landing a contract for P-8A Poseidon training systems for South Korea’s navy, emphasizing Boeing’s pivot toward high-margin aftermarket support.
From a fiscal standpoint, Boeing’s year-over-year revenue growth outpaced its 26% first-half increase, driven largely by commercial deliveries that nearly doubled in the quarter.
Margins across the board showed progress: company-wide GAAP operating margins improved to negative 0.8% from 6.5%, while core margins rose to negative 1.9% from 8.3%. Cash reserves held firm at $23 billion, bolstered by $10 billion in undrawn credit, even as debt dipped slightly by $300 million to $53.3 billion.
While losses persist—net loss halved to $612 million—the narrowing gaps suggest cost-slashing measures, including workforce reductions and supplier negotiations, are taking hold.
Author: Mario Lotmore
