By Pras Subramanian

Boeing (BA) reported second quarter results on Tuesday that beat revenue and cash flow expectations, as rising jet deliveries pushed the planemaker to positive free cash flow, continuing CEO Kelly Ortberg's turnaround progress.

Boeing reported Q2 revenue of $24.6 billion, up 8% year over year and above the $24.26 billion consensus estimate from Bloomberg. However, Boeing's adjusted (or core) loss per share came in at $0.76, wider than the $0.28 loss expected.

But Boeing posted positive adjusted free cash flow of $631 million versus the negative $331.4 million that analysts expected and the negative $200 million cash flow burn from a year ago. Operating cash flow came in at $1.4 billion, nearly double the $687.7 million consensus and up from just $227 million in the prior-year quarter. The company cited higher commercial deliveries and favorable working capital timing.

Boeing stock was up nearly 2% in premarket trade.

"While two quarters don't make a year, if we work together and stay focused on safety, quality and on-time performance — we'll improve our competitiveness and set ourselves up for a big second half," Ortberg said in a memo to employees.

Commercial Airplanes revenue rose 8% to $11.8 billion, narrowing its operating margin loss to (2.7)% from (5.1)%. 

Defense, Space & Security revenue climbed 13% to $7.5 billion but swung to a (0.2)% margin on $280 million of losses tied to the VC-25B program — the long-delayed pair of jets being converted to serve as the next Air Force One. 

Boeing said the charge was primarily driven by an investment in additional production and certification resources and that it still anticipates first delivery in 2028. 

Earlier in the month, Boeing reported 171 commercial aircraft deliveries for the quarter — up from 150 a year ago and continuing a steady climb since the Alaska Air (ALK) door plug blowout in early 2024.

The workhorse 737 Max accounted for 129 of Boeing's 171 commercial shipments, around 75% of total output. Widebody and other deliveries came in at 42 jets, comprising 25 787 Dreamliners, seven 777s, and ten 767s. 

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The 737 program began transitioning to a rate of 47 per month during the quarter and activated low-rate initial production on a new 737 North Line in July. Boeing said certification flight testing is complete on both the 737-7 and 737-10, with certification still expected in 2026, while the 777X received FAA approval to begin certification flight testing under TIA 4B.

Boeing reaffirmed full-year guidance for positive free cash flow of $1 billion to $3 billion and operating cash flow of $5 billion to $7 billion. For the year, analysts model operating cash flow of $6.93 billion, a core loss per share of $0.30, and adjusted free cash flow of $2.42 billion.

Pras Subramanian is the Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram.

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