Boeing reported a first-quarter loss of $7 million, or 11 cents per share, narrowing sharply from $31 million a year earlier as commercial jet deliveries rose and defense sales strengthened.
The improvement came despite ongoing production constraints tied to Federal Aviation Administration oversight following the January 2024 door-plug blowout on an Alaska Airlines 737 MAX 9. CEO Kelly Ortberg said the company is on track to increase 737 MAX output to 47 planes per month this summer, up from 42, pending FAA approval.
Revenue reached $22.22 billion, a 14% increase year-over-year and above the $21.78 billion analysts had expected. Adjusted loss per share was 20 cents, far better than the projected 83 cents loss.
Commercial aircraft deliveries totaled 143 for the quarter, up 10% from 130 a year earlier and marking the first time Boeing surpassed Airbus in quarterly deliveries since approximately 2019. The 737 MAX accounted for 114 of those shipments, or about 80%, with widebody models making up the remainder.
Ortberg highlighted steady customer confidence, telling CNBC that airlines are reporting positive feedback on airplane quality and that order flow has not slowed despite the war in the Middle East that began in February.
The defense business posted a 21% revenue increase to $7.6 billion, while services revenue rose 6% to $5.37 billion. While the commercial unit still operates at an operating loss, its revenue grew 13% to $9.2 billion.
Cash burn showed signs of easing, with negative adjusted free cash flow at $1.454 billion — better than the $2.61 billion expected — and operating cash flow improving to negative $179 million from negative $1.6 billion a year ago.
Boeing confirmed a sustained production rate of 38 MAX aircraft per month as of late March, with Ortberg indicating plans to increase output in five-aircraft increments. A fourth 737 assembly line at the Renton, Washington plant is expected to open this summer, potentially raising combined narrowbody output to 53 per month by year-end.
The company still anticipates certification for the delayed 737 MAX 7 and MAX 10 models later in 2026, with initial deliveries slated for 2027. Ortberg, who became CEO in August 2024, said his focus remains on improving factory morale, rebuilding regulator trust, and returning the company to positive cash flow.
In a note to employees, Ortberg acknowledged ongoing challenges but praised teamwork: “Though we’ve faced some challenges, I’m proud of how our team has pulled together and worked through them to keep us on plan for the year.”
Why did Boeing’s losses narrow despite ongoing production limits?
The reduction in losses stemmed from higher commercial jet deliveries, increased defense and services revenue, and improved cash flow, all of which offset continued operating losses in the commercial aircraft unit.
What is holding Boeing back from increasing 737 MAX production faster?
Federal Aviation Administration approval is required for any further increases in 737 MAX production rates, a safeguard implemented after the January 2024 fuselage door-plug failure on an Alaska Airlines flight.
