Boeing Q2 earnings lift stock as CNBC club upgrades rating
Boeing beat revenue and cash-flow expectations, while a defense charge kept its adjusted loss wider than Wall Street expected.
By Jordan Bell · Startups & Deals Reporter
· 3 min read
Boeing q2 earnings gave investors a cleaner read on CEO Kelly Ortberg’s turnaround plan: commercial jet production is improving, cash generation beat expectations, and the stock rose more than 4% in late-morning trading Tuesday. CNBC’s Investing Club said it upgraded Boeing to a buy-equivalent rating of 1 after the report, while keeping its $275 price target unchanged.
The company reported second-quarter revenue of $24.56 billion, up 8% from a year earlier and above the $24.25 billion consensus estimate compiled by LSEG. Boeing’s adjusted loss was 76 cents a share, wider than the 30-cent loss analysts expected, according to LSEG.
The number that drew the most attention was free cash flow, which means cash left after operating expenses and capital spending. Boeing generated $631 million in free cash flow, compared with the $177 million cash burn analysts expected, according to FactSet.
What did Boeing report in Q2 earnings?
- Revenue rose 8% year over year to $24.56 billion, beating LSEG consensus estimates.
- Adjusted earnings per share showed a 76-cent loss, worse than analysts expected, according to LSEG.
- Free cash flow was positive at $631 million, versus a projected cash burn, according to FactSet.
- Boeing reiterated its 2026 outlook for 500 airplane deliveries and $1 billion to $3 billion in free cash flow.
For Boeing, cash flow is tied closely to deliveries. Airlines typically make a large part of their payment when they receive an aircraft, so higher production rates can translate into more cash coming in.
Ortberg said on the earnings call that Boeing has begun increasing 737 Max output to 47 aircraft a month and expects factory rollouts to reach that level this summer. The Federal Aviation Administration had capped 737 Max production after the January 2024 Alaska Airlines door-plug incident, later raising the limit from 38 to 42 aircraft a month in October and then to 47 in late May.
Boeing’s next production target is 52 737 Max jets a month, followed by longer-term goals of 57 and 63. Ortberg said he was not seeing anything in the supply chain that made him “overly concerned” about reaching 52, while adding that further increases would get harder.
Why aircraft certifications matter for Boeing cash flow
Boeing also needs regulatory approvals for aircraft that are already in its order book. Ortberg said the company expects FAA certification for the 737 Max 7 “very soon,” with the Max 10 expected after that. He said those approvals would allow deliveries to begin in 2027.
The 777X, Boeing’s wide-body aircraft for longer routes, remains on track for first delivery next year after the FAA moved it into a later phase of test flights during the second quarter, according to the company. Boeing said its commercial backlog stands at about $597 billion and includes more than 6,200 airplanes.
The weaker part of the quarter came from Boeing’s defense and space business, which accounts for almost a third of total revenue. Boeing recorded a $280 million charge tied to the delayed and over-budget VC-25B program, the replacement Air Force One aircraft. Ortberg called the charge “disappointing” and said Boeing added resources to support the build and testing schedule, with delivery still planned for 2028.
Boeing signed a $4 billion fixed-price contract in February 2018 to convert two 747 jumbo jets into Air Force One aircraft. Under that type of deal, Boeing is responsible for cost overruns, which have already affected the program.
CNBC’s Investing Club also noted that Boeing shares had been volatile in 2026 amid oil-price swings tied to the Iran war and concerns about airline demand. As of Monday’s close, Boeing was about 16% below its highest close of the year, $252.15 on Jan. 23.
Ortberg said talks with the Society of Professional Engineering Employees in Aerospace had begun early ahead of an October contract expiration, describing the tone as respectful and productive. Boeing CFO Jay Malave also reaffirmed expectations for cash flow growth beyond 2026 and said reaching $10 billion was “very attainable,” while Wall Street expects that level in 2028.
This story draws on original reporting from CNBC.
