Cash flow rebounded amazingly! Boeing (BA.US) Q2 free cash flow got back on track, and the “Air Force One” project surged by another 280 million dollars

The Zhitong Finance App notes that Boeing (BA.US) generated more cash flow than expected in the second quarter due to continued strong market demand for its aircraft. According to financial reports, Boeing's second-quarter revenue reached 24.6 billion US dollars, up 8.4% year on year, exceeding expectations of 330 million US dollars; the adjusted quarterly loss per share was 0.76 US dollars, which was higher than analysts' expectations of 0.28 US dollars.

Thanks to an increase in new aircraft payments, the company reported free cash flow of $631 million, beating analysts' estimates of a net outflow of $331 million. Revenue increased 8% to $24.6 billion, and Boeing said it still plans to achieve free cash flow of $1 billion to $3 billion this year.

The company's total backlog of orders grew to a record $715 billion, including more than 6200 commercial aircraft.

However, this positive cash surprise was overshadowed by the additional $280 million in fees for the Air Force One (Air Force One) project. The project is many years behind schedule and has overspent billions of dollars. Boeing said that after sending additional engineering and quality personnel to support production and making investments related to airworthiness certification, the company had the latest cost overrun on the Presidential Jet 747 giant jet project.

The US aircraft manufacturer has been struggling to cope with the difficulty of completing these complex “air bastions,” accumulating more than 3 billion US dollars in expenses. While losing 76 cents per share in the adjusted quarter, the US aircraft manufacturer revealed this latest cost overrun.

Boeing's defense business continues to be hampered by related costs due to the postponement of the presidential jet “Air Force 1” fleet replacement project. The company recorded an additional loss of $280 million on the VC-25B project this quarter due to investments in production and certification resources, but the company maintained expectations that the first aircraft would be delivered in 2028.

The “Air Force One” project was overspent by more than 3 billion US dollars

This has not only aroused the anger of US President Trump, but also raised doubts about whether these planes will actually be ready before their second term ends in early 2029. Meanwhile, Trump has begun using a modified 747-8 gifted by Qatar.

After years of crisis and quality errors that triggered a major reshuffle in the leadership and damaged its relationships with customers and US regulators, Boeing is now working to turn a loss into a profit.

The aircraft manufacturer currently produces 47 737 Max aircraft per month in the Seattle area and plans to eventually increase that production to 63. Increased production is the key to repairing its balance sheet and cashing out cash from orders worth $715 billion, which were fueled by a series of new orders at the Farnborough International Air Show last week.

Boeing is about to obtain safety certification for the 737-7, the smallest model in its best-selling aircraft family, while the largest model, the Max 10, is expected to be approved around October.

These repeatedly delayed regulatory milestones are at the heart of the aircraft manufacturer's attempt to challenge Airbus SE's dominance in the lucrative single-aisle jet market. Boeing announced on Tuesday that the 777X long-range jet is still in operation as planned in 2027.

CEO Kelly Otterberg said in a memo sent to employees at the same time as the earnings report was released: “We have made progress on the development project, but we must never relax until it is completed.”

Earlier this month, Boeing also regained the ability to autonomously certify new aircraft for airworthiness before delivering them to customers. This permission was revoked by the US Federal Aviation Administration (FAA) after a 737 Max quasi-catastrophic accident in 2024 revealed serious quality issues.

“As I continue to meet our customers, suppliers, and partners, they all express the same thing: a different and better Boeing is on the horizon,” Otterberg said.