Boeing Reports Second Quarter 2025 Results, Highlights Recovery Momentum and Strategic Progress
The Boeing Company has announced its financial results for the second quarter of 2025, revealing signs of continued operational progress and a strengthening commercial aviation business, despite ongoing challenges in a complex global environment. Boeing reported quarterly revenue of $22.7 billion, driven largely by improved commercial aircraft deliveries. The company’s GAAP loss per share stood at ($0.92), while its core loss per share—excluding certain pension-related costs and other items—was ($1.24).
While profitability remained under pressure, Boeing generated a positive operating cash flow of $0.2 billion. However, free cash flow—a key non-GAAP metric used by the company to reflect cash available after capital expenditures—was slightly negative at ($0.2) billion. These results underscore Boeing’s ongoing efforts to recover from past production and quality issues while maintaining its focus on delivering for customers.
Strengthening Operational Performance and Delivery Volumes
Boeing President and CEO Kelly Ortberg emphasized the company’s commitment to transformation and customer trust. “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 Ortberg. He added that the company remains focused on restoring confidence, stabilizing operations, and achieving recovery milestones in the second half of 2025.
Boeing’s Commercial Airplanes division played a significant role in the revenue increase, with the company delivering 150 aircraft in Q2. The 737 production rate increased to 38 aircraft per month, signaling momentum in the narrow-body segment. The company intends to maintain that rate before seeking regulatory approval to increase it further to 42 per month by the end of the year. Additionally, the 787 Dreamliner program maintained its production pace of seven aircraft per month.
Commercial Airplanes revenue for the quarter was $10.9 billion, while the segment posted an operating margin of -5.1%, reflecting the lingering financial impact of past disruptions and rework costs. Nevertheless, Boeing’s robust order activity continued. The company recorded 455 net commercial aircraft orders during the quarter, including major deals such as 120 787s and 30 777-9 aircraft for Qatar Airways, along with 32 787-10 Dreamliners for British Airways. The backlog in the commercial segment climbed to over 5,900 aircraft, with an estimated value of $522 billion.
Defense, Space & Security and Global Services Performance
Boeing’s Defense, Space & Security (BDS) unit generated $6.6 billion in second-quarter revenue, with an operating margin of 1.7%. Performance in this segment reflected improving operational discipline, though margins remain thin. Notable developments during the quarter included a contract from the U.S. Air Force for four T-7A Red Hawk production representative aircraft and progress on the MQ-25 Stingray program, with ground testing beginning on the first drone for the U.S. Navy. BDS’s total backlog grew to $74 billion, with 22% stemming from international customers.
The Global Services division reported strong quarterly revenue of $5.3 billion and an impressive operating margin of 19.9%. This performance was supported by a favorable services mix and continued demand for maintenance and support. During the quarter, Boeing Global Services completed the sale of its MRO facility at Gatwick Airport and secured a contract to provide P-8A training systems and support services to the Republic of Korea Navy, further strengthening its global defense partnerships.
Financial Position and Liquidity
Boeing ended the second quarter with cash and marketable securities totaling $23.0 billion, a slight decrease from $23.7 billion at the beginning of the quarter. The decline primarily resulted from debt repayment and usage of free cash flow. Total debt was reduced marginally to $53.3 billion from $53.6 billion. The company also retains access to $10.0 billion in undrawn credit facilities, supporting financial flexibility as it navigates ongoing challenges and future investments.
The company’s total backlog grew to $619 billion, highlighting the strength and demand of Boeing’s product and services offerings across commercial and defense sectors.
Legal Matters and Non-GAAP Disclosures
Boeing reported a $445 million earnings charge under “unallocated items, eliminations and other” related to the May 2025 non-prosecution agreement with the U.S. Department of Justice. The company continues to face scrutiny and obligations stemming from legacy compliance issues, which it is addressing through ongoing reforms and legal settlements.
To provide clearer insights into its performance, Boeing supplements GAAP reporting with non-GAAP measures such as core earnings and free cash flow. These adjustments help investors better understand the company’s underlying operating trends by excluding pension-related volatility and other non-operational items. Definitions and reconciliations of these metrics are included in Boeing’s detailed financial disclosures.
