Boeing Q2 revenue increased by 35% year-on-year, exceeding expectations, with net loss narrowing to $612 million | Financial Report Insights

In the second quarter, Boeing's financial report signaled that Boeing is "stabilizing after a decline." Although net profit remains negative, core losses continue to narrow, and orders and deliveries have shown significant recovery, the restoration of the commercial aviation business is accelerating. However, considering the negative free cash flow and still high debt levels, the company still needs time to fully emerge from the trough.

Boeing announced its second-quarter financial report for 2025 on July 29:

Thanks to the rebound in commercial aircraft deliveries, the company's revenue increased by 35% year-on-year to $22.75 billion, exceeding the market expectation of $21.68 billion;

The net loss was $612 million, or a loss of $0.92 per share, significantly narrowing compared to the same period last year.

Commercial Aviation Business Drives Overall Revenue Growth

In the second quarter, Boeing delivered a total of 150 commercial aircraft, a year-on-year increase of 63%. Among them, the monthly production of the 737 program increased to 38 aircraft, and the monthly production of the 787 program also reached 7 aircraft. Driven by strong deliveries, the commercial aviation segment's revenue increased by 81% year-on-year to $10.87 billion, and losses decreased from $715 million in the same period last year to $557 million, with the operating profit margin improving to -5.1%.

Boeing President and CEO Kelly Ortberg stated, "The fundamental adjustments we have made in safety and quality are bringing improvements, and operations are gradually stabilizing. The company will continue to focus on restoring market trust and advancing the recovery process in the second half of the year."

Defense and Services Segment Continues to Be Profitable

The Defense, Space & Security (BDS) segment reported revenue of $6.62 billion this quarter, a year-on-year increase of 10%, achieving a profit of $110 million, reversing a loss of $913 million in the same period last year, thanks to improved project execution. This quarter, the segment received an order for the U.S. Air Force T-7A trainer aircraft and initiated ground testing for the MQ-25 unmanned refueling aircraft.

The Global Services (BGS) segment continued to maintain stable growth, with revenue increasing by 8% year-on-year to $5.28 billion, and an operating profit margin of 19.9%. The segment completed the sale of the Gatwick Airport maintenance facility and secured a contract for the P-8A training support system for the South Korean Navy.

Free Cash Flow Remains Negative, Debt Levels Slightly Decrease

Despite improved cash flow driven by commercial deliveries, Boeing's free cash flow in the second quarter remained negative at -$200 million, primarily due to capital expenditures increasing to $427 million. The total cash and short-term investments at the end of the period decreased to $23 billion, and total debt slightly decreased to $53.3 billion.

Record Backlog, Strongest in Commercial Models

As of the end of the quarter, Boeing's total backlog rose to $619 billion, with commercial aircraft orders exceeding 5,900 units, valued at $522 billion. The net new orders in the second quarter reached 455 units, mainly including multiple model orders for the 787 and 777-9 from Qatar Airways and British Airways.

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