Boeing shares rose early Tuesday even after a second-quarter loss came in far wider than analysts expected, with a $280 million charge on the Air Force One program weighing on results. Revenue grew 8% to $24.56 billion and the company’s backlog climbed to a record $715 billion.
Boeing’s stock rose in early Tuesday trading as investors shrugged off a surprisingly large second-quarter loss to focus on a revenue beat fueled by strength in the aerospace company’s defense and space business.
The adjusted loss came to 76 cents a share against the 30-cent loss that analysts surveyed by LSEG expected. Boeing took a $280 million loss on the program to deliver two 747s that will serve as the next-generation Air Force One aircraft, and said it still expects the first delivery in 2028.
Revenue and deliveries rise across Boeing’s units
Total revenue rose 8% to $24.56 billion, ahead of the $24.26 billion analysts expected, according to FactSet. Commercial airplane revenue increased 8.1% to $11.75 billion, and the unit booked 246 net orders while delivering 171 planes. Deliveries rose 14% from 150 a year earlier. Defense, space and security revenue jumped 13.1% to $7.48 billion.
Cash held up as well. Free cash flow of $631 million came in well above the $177 million cash burn analysts expected. The total company backlog rose to a record $715 billion and included over 6,200 commercial airplanes.
Production is moving up with it. The company’s 737 output began transitioning during the quarter to a 47-per-month rate from 42. CEO Kelly Ortberg said the company’s focus has been on restoring trust through safety, quality and on-time performance, according to MarketWatch: “Our operations are more stable, and key certification programs remain on plan.”
FAA orders seat inspections as certification work advances
But the regulator added a new item to the list. The Federal Aviation Administration late Monday called for the inspection of 453 Boeing jets following reports of improperly installed cabin seats, the Wall Street Journal reported. The issue reportedly affects 737-8 and 737-9 aircraft.
Certification work is further along. Boeing is about 95% done with its certification process for the 737-7 and about 98% complete with certification flight tests for the 737-10, AviationWeek reported, while about 50% of certification flights for the 777-9 are done. The planes still need to undergo a design review process.
Boeing trails the S&P 500 in 2026
The stock was up 1.7% in premarket trading, on track for a fifth straight gain after closing at a nearly four-month low on July 21. Boeing has slipped 2.6% in 2026 through Tuesday, while U.S.-listed shares of rival Airbus have gained 2.2% and the S&P 500 index has advanced 8.3%.
Shares have traded sideways since mid-May and recently lost their grip on support at the stock’s converged 50-day and 200-day moving averages, IBD reported.
Sources: MarketWatch, CNBC, Investor’s Business Daily
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