Boeing posts stronger Q2 with record $715 billion backlog but remains unprofitable

Boeing reported a stronger second quarter, with higher revenue, positive operating and free cash flow, and a record backlog, even as the aircraft maker remained in the red.

The mixed result, published Monday in an earnings release from Arlington, Virginia, offered a clearer sign of recovery for a manufacturer whose turnaround depends less on order announcements than on getting airplanes out the door. Deliveries are critical because they drive cash generation, and cash matters especially for Boeing as it continues to carry a heavy debt load.

Boeing said second-quarter revenue rose to $24.6 billion. It posted a GAAP net loss of $428 million for the quarter, with a diluted GAAP loss per share of 67 cents and a core loss per share, a non-GAAP measure, of 76 cents. Operating cash flow was $1.364 billion and free cash flow was $631 million. Boeing also said its total backlog climbed to a record $715 billion, including more than 6,200 commercial airplanes.

In commercial aviation, the company said it delivered 171 airplanes in the quarter, up 14% from the same period a year earlier, and 314 year to date. It booked 246 net commercial orders during the quarter. Boeing said it began transitioning 737 production to 47 airplanes per month and in July activated low-rate initial production on the 737 North Line. The company also said certification flight testing was completed for the 737-7 and 737-10, and it continues to expect certification in 2026 and first delivery in 2027 for both variants. On the 777X, Boeing said the program received Federal Aviation Administration approval during the quarter to begin certification flight testing under Type Inspection Authorization 4B.

The segment results showed both the progress and the remaining pressure points. Boeing Commercial Airplanes generated $11.751 billion in revenue, but posted an operating margin of negative 2.7%, underscoring that higher output has not yet translated into sustained profitability. In Defense, Space & Security, revenue was $7.483 billion. That unit’s results included $280 million in losses on the VC-25B program, the replacement aircraft for the U.S. president, which Boeing said reflected additional production and certification investments. Boeing said it still expects the first VC-25B delivery in 2028. Global Services was the strongest business line, with $5.344 billion in revenue and an operating margin of 18.1%.

At quarter end, Boeing had $20.0 billion in cash and investments, $45.9 billion in consolidated debt, and $10.0 billion in undrawn credit facilities. The year-over-year comparison showed improvement in direction, if not a full recovery: In the second quarter of 2025, Boeing reported $22.7 billion in revenue, a GAAP diluted loss per share of 92 cents, and operating cash flow of $0.2 billion.

Regulatory conditions also improved. In mid-July, the FAA told Congress it would again allow Boeing to issue airworthiness certificates for 737 MAX and 787 aircraft, effective around July 20. That matters because the certificates are needed before planes can be delivered to customers, potentially easing a delivery bottleneck after prolonged FAA scrutiny. It also helps explain why Boeing highlighted both certification progress and production milestones in the quarter.

Kelly Ortberg, Boeing’s president and CEO since August 2024, said in the earnings release: “I'm very pleased with the progress our team is making as we execute our plan. Our operations are more stable and key certification programs remain on plan. Our focus has been on restoring trust and we are now building on that through a sustained focus on safety, quality, and on-time performance. While there is more work ahead in the second half of the year, the momentum we are building continues to move Boeing in the right direction.”

For Boeing, the quarter suggested that momentum is improving. But the company is still losing money, and its recovery still hinges on a basic test: turning production into deliveries, and deliveries into cash.