Key Stats for Boeing Stock
- Price change for Boeing stock: 5%
- $BA Stock Price as of Jul. 28: $222
- 52-Week High: $254
- $BA Stock Price Target: $270
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What Happened?
Boeing (BA) stock slipped after the company posted a wider-than-expected loss for Q2. The culprit was the long-delayed Air Force One program, which took a $280 million charge as Boeing poured more resources into building the jets.
The company still expects to deliver the first of two 747s that will serve as the next Air Force One in 2028. CEO Kelly Ortberg told staff in a note that development programs take patience, saying you’re never really done until you’re done.
He also told CNBC’s Squawk on the Street that the program has cleared its design phase, and that Boeing is committed to delivering on time for its customer.
The timing is notable given recent headlines.
- President Trump took his first flight this month on a luxury 747 gifted by Qatar, meant to serve as a stopgap Air Force One while Boeing finishes the new jets.
- That aircraft’s security was reportedly called into question after a trip involving Turkey and the old Air Force One plane.
Despite the Air Force One charge, the rest of the quarter actually looked pretty solid for Boeing stockholders.
Revenue climbed 8% to $24.56 billion, beating estimates, driven by gains across the business, including more commercial jet deliveries. Revenue fared better compared to analysts’ expectation of $24.25 billion.
Boeing delivered 171 aircraft in the quarter, up 14% from 150 a year earlier. The company has also been ramping up 737 Max production to 47 planes per month, with further increases planned.
Free cash flow came in at a positive $631 million, a big swing from the $177 million cash burn analysts had expected, and a major improvement from the $200 million burn in the same quarter last year.
The net loss for the quarter was $428 million, or $0.67 per share, an improvement from last year’s $612 million loss, or $0.92 per share. On an adjusted basis, the loss came to $0.76 per share.
Ortberg struck a cautiously optimistic tone in his staff note, saying that while two quarters don’t make a year, staying focused on safety, quality, and on-time performance should improve Boeing’s competitiveness heading into the second half.
Looking ahead, investors are watching for more certification milestones, starting with the smaller 737 Max 7, followed by the 737 Max 10 and the 777X wide-body jet.
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What the Market Is Telling Us About Boeing Stock
The stock’s slip suggests investors are weighing the Air Force One charge more heavily than the otherwise strong revenue beat and cash flow improvement.
A government program running over budget tends to draw extra scrutiny, especially given the political attention on presidential aircraft right now.
Still, the underlying momentum in commercial deliveries and cash generation gives Boeing stock some support.
Whether that’s enough to offset lingering concerns about fixed-price program losses will likely depend on how the certification timelines for the Max 10 and 777X play out in the coming months.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
