Boeing’s quarterly losses have significantly decreased as the company experienced a rebound in jet deliveries, but shares saw a decline.
Why it matters: The improvements are primarily attributed to the ramped-up production of the 737 MAX models, but the Federal Aviation Administration (FAA) will not certify the 737 MAX 7 and 10 models until 2026, posing a potential delay for the new aircraft entering the market.
The details:
- Boeing’s revenue for the quarter was $22.7 billion, surpassing the $21.68 billion forecasted by analysts, reflecting a 35% increase compared to the previous year.
- The company posted an adjusted loss per share of $1.24, better than the $1.40 forecast, while its operating loss came in at $176 million, compared to the expected $161.1 million.
- Boeing’s cash burn reduced to $200 million, from $2.3 billion in the previous quarter and $4.3 billion during the same period last year.
- Boeing continues to face challenges due to ongoing supply chain disruptions and tariff pressures, which have impacted operations and profit margins.
What they’re saying:
- “Change takes time, but we’re starting to see a difference in our performance across the business. If we continue to tackle the important work ahead of us and focus on safety, quality, and stability, we can navigate the dynamic global environment and make 2025 our turnaround year,” said Boeing CEO Kelly Ortberg.
- “With the start of the second half of the year, we are moving in the right direction and ahead of where I thought we would be in our recovery,” Ortberg said in a memo to employees.
What’s next: Boeing aims to increase its 737 Max production rate to 42 per month by midyear and possibly 47 per month by the end of 2025, with focused efforts on safety, quality, and stability to make 2025 a pivotal year in its recovery journey.