Boeing Company - 2nd Quarter Financial Results
Boeing Reports Second Quarter Results
Second Quarter 2026
-- Revenue increased to $24.6 billion primarily reflecting 171
commercial deliveries
-- GAAP loss per share of ($0.67 ) and core loss per share
(non-GAAP)* of ($0.76 )
-- Operating cash flow of $1.4 billion and free cash flow
(non-GAAP)* of $0.6 billion
-- Total company backlog grew to a record $715 billion ,
including over 6,200 commercial airplanes
Table 1. Summary Second Quarter First Half Financial Results (Dollars in Millions, 2026 2025 Change 2026 2025 Change except per share data) Revenues$24,560 $22,749 8 %$46,777 $42,245 11 % GAAP Earnings/ (loss) from$156 ($176 ) NM$604 $285 112 % operations Operating 0.6 % (0.8) % 1.4 Pts 1.3 % 0.7 % 0.6 Pts margins Net loss ($428 ) ($612 ) NM ($435 ) ($643 ) NM Diluted loss ($0.67 ) ($0.92 ) NM ($0.79 ) ($1.09 ) NM per share Operating cash$1,364 $227 501 %$1,185 ($1,389 ) NM flow Non-GAAP* Core operating earnings/$1 ($433 ) NM$294 ($234 ) NM (loss) Core operating 0.0 % (1.9) % 1.9 Pts 0.6 % (0.6) % 1.2 Pts margins Core loss per ($0.76 ) ($1.24 ) NM ($0.97 ) ($1.73 ) NM share
* Non-GAAP measure; complete definitions of Boeing's non-GAAP
measures are on page 5, "Non-GAAP Measures Disclosures."
"I'm very pleased with the progress our team is making as we execute our plan. Our operations are more stable and key certification programs remain on plan. Our focus has been on restoring trust and we are now building on that through a sustained focus on safety, quality, and on-time performance," said
Second
Table 2. Cash Quarter First Half
Flow
2026 2025
(Millions) 2026 2025
Operating cash $1,364 $227 $1,185 ($1,389 )
flow
Less
additions to
property, plant & ($733 ) ($427 ) ($2,008 ) ($1,101 )
equipment
Free cash flow* $631 ($200 ) ($823 ) ($2,490 )
* Non-GAAP measure; complete definitions of Boeing's non-GAAP
measures are on page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was
Table 3. Cash,
Marketable Securities and Debt Quarter End
Balances
(Billions) 2Q 2026 1Q 2026
Cash and investments $20.0 $20.9
in marketable securities1
Consolidated debt $45.9 $47.2
1 Marketable securities consist primarily of time deposits due
within one year classified as "short-term investments."
Cash and investments in marketable securities totaled
Segment Results
Commercial Airplanes
Table 4. Second First Half Commercial Quarter Airplanes (Dollars in 2026 2025 Change 2026 2025 Change Millions) Deliveries 171 150 14 % 314 280 12 % Revenues$11,751 $10,874 8 %$20,954 $19,021 10 % Loss from ($322 ) ($557 ) NM ($885 ) ($1,094 ) NM operations Operating (2.7) % (5.1) % 2.4 Pts (4.2) % (5.8) % 1.6 Pts margins
Commercial Airplanes second quarter revenue of
The 737 program began transitioning production to 47 per month rate in the quarter and activated low-rate initial production on the 737 North Line in July. As of July, certification flight testing has been completed on both the 737-7 and 737-10. The company continues to anticipate certification in 2026 and first delivery in 2027 for both variants. In the quarter, the 777X program received FAA approval to begin certification flight testing under Type Inspection Authorization 4B. The company continues to anticipate first delivery in 2027.
Commercial Airplanes booked 246 net orders including orders from Korean Air, Delta Air Lines, and
Defense, Space & Security
Table 5. Second First Defense, Space Quarter Half & Security (Dollars in 2026 2025 Change 2026 2025 Change Millions) Revenues$7,483 $6,617 13 %$15,082 $12,915 17 % Earnings/ (loss) from ($15 )$110 NM$218 $265 (18) % operations Operating (0.2) % 1.7 % (1.9) Pts 1.4 % 2.1 % (0.7) Pts margins
Defense, Space & Security second quarter revenue was
During the quarter, Defense, Space & Security secured an award from the
Global Services
Table 6. Second First Global Quarter Half Services (Dollars in 2026 2025 Change 2026 2025 Change Millions) Revenues$5,344 $5,281 1 %$10,714 $10,344 4 % Earnings from$968 $1,049 (8) %$1,939 $1,992 (3) % operations Operating 18.1 % 19.9 % (1.8) Pts 18.1 % 19.3 % (1.2) Pts margins
Global Services second quarter revenue was
In the quarter, Global Services captured an award from the
Additional Financial Information
Table 7. Additional Second Quarter First Half Financial Information (Dollars in 2026 2025 2026 2025 Millions) Revenues Unallocated items, ($18 ) ($23 )$27 ($35 ) eliminations and other Earnings/(loss) from operations Unallocated items, ($630 ) ($1,035 ) ($978 ) ($1,397 ) eliminations and other FAS/CAS service$155 $257 $310 $519 cost adjustment$79 Other income, net$325 $273 $648 Interest and debt ($600 ) ($710 ) ($1,216 ) ($1,418 ) expense Income Tax ($63 ) ($51 ) ($96 ) ($158 ) Expense
Unallocated items, eliminations and other primarily reflects timing of allocations.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in
Core Operating Earnings/(Loss), Core Operating Margins and Core Earnings/(Loss) Per Share
Core operating earnings/(loss) is defined as GAAP Earnings/(loss) from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margins is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP Diluted earnings/(loss) per share excluding the net earnings/(loss) per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for a reconciliation of free cash flow to the most directly comparable GAAP measure, operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, industry projections and outlooks, plans, objectives and goals, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate.
These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes and geopolitical developments; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Contact:
Investor Relations: Eric Hill or Mike Harris BoeingInvestorRelations@boeing.com
Communications: Wilson Chow media@boeing.com
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Six months Three months ended
ended
June 30
June 30
(Dollars in
millions, 2026 2025 2026 2025
except per
share data)
Sales of $40,364 $35,269 $21,366 $19,122
products
Sales of 6,413 6,976 3,194 3,627
services
Total revenues 46,777 42,245 24,560 22,749
Cost of (36,518) (31,785) (19,487) (17,406)
products
Cost of (5,299) (5,608) (2,659) (2,908)
services
Total costs and (41,817) (37,393) (22,146) (20,314)
expenses
4,960 4,852 2,414 2,435
Income from
operating 14 28 24 25
investments,
net
General and
administrative (2,625) (2,905) (1,428) (1,793)
expense
Research and
development (1,824) (1,754) (921) (910)
expense, net
Gain on 64 67 67
dispositions, 79
net
Earnings/(loss) 604 285 156 (176)
from operations
Other income, 273 648 79 325
net
Interest and (1,216) (1,418) (600) (710)
debt expense
Loss before (339) (485) (365) (561)
income taxes
Income tax (96) (158) (63) (51)
expense
Net loss (435) (643) (428) (612)
Less: Net
earnings/(loss) 5 16 (1)
attributable to 13
noncontrolling
interest
Net loss
attributable to (448) (648) (444) (611)
Boeing
shareholders
Less: Mandatory
convertible
preferred stock 172 86 86
dividends 172
accumulated
during the
period
Net loss
attributable to ($620 ) ($820 ) ($530 ) ($697 )
Boeing common
shareholders
Basic loss per ($0.79 ) ($1.09 ) ($0.67 ) ($0.92 )
share
Diluted loss ($0.79 ) ($1.09 ) ($0.67 ) ($0.92 )
per share
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in June 30 December 31
millions, except per share 2026
data) 2025
Assets
Cash and cash $7,239 $10,921
equivalents
Short-term and 12,783 18,479
other investments
Accounts 3,515 2,921
receivable, net
Unbilled 9,660 9,158
receivables, net
Inventories 88,388 84,679
Other current 3,045 2,301
assets, net
Total current 124,630 128,459
assets
Financing
receivables and operating lease 365 241
equipment, net
Property, plant
and equipment, net of
accumulated depreciation of 16,321 15,361
$24,318 and
$23,613
Goodwill 17,554 17,275
Acquired 1,531 1,567
intangible assets, net
Deferred income 152 107
taxes
Investments 1,117 1,048
Other assets, net
of accumulated amortization of 4,200 4,177
$1,138 and $1,014
Total assets $165,870 $168,235
Liabilities and
equity
Accounts payable $14,346 $13,109
Accrued 26,593 27,141
liabilities
Advances and 64,059 59,404
progress billings
Short-term debt
and current portion of 4,565 8,461
long-term debt
Total current 109,563 108,115
liabilities
Deferred income 260 216
taxes
Accrued retiree 2,027 2,091
health care
Accrued pension 4,108 4,287
plan liability, net
Other long-term 2,462 2,432
liabilities
Long-term debt 41,335 45,637
Total liabilities 159,755 162,778
Shareholders'
equity:
Mandatory
convertible preferred stock,
6.00% Series A, par value $1.00
-
6 6
20,000,000 shares authorized;
5,750,000 shares issued;
aggregate
liquidation preference $5,750
Common stock, par
value $5.00 – 1,200,000,000
shares authorized; 5,061 5,061
1,012,261,159 shares issued
Additional paid-in 21,949 21,441
capital
Treasury stock, at
cost - 222,468,625 and (27,416) (28,029)
227,562,887 shares
Retained earnings 16,632 17,252
Accumulated other (10,132) (10,277)
comprehensive loss
Total 6,100 5,454
shareholders' equity
Noncontrolling 15 3
interests
Total equity 6,115 5,457
Total liabilities $165,870 $168,235
and equity
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows(Unaudited)
Six months ended June 30
(Dollars in 2026 2025
millions)
Cash flows –
operating activities:
Net loss ($435 ) ($643 )
Adjustments to
reconcile net loss to net cash
provided/(used) by operating
activities:
Non-cash items –
Share-based plans 264 254
expense
Treasury shares 855 793
issued for 401(k) contributions
Depreciation and 1,169 926
amortization
Investment/asset 18 30
impairment charges, net
Gain on dispositions, (79) (64)
net
Other charges and 149 162
credits, net
Changes in assets and
liabilities –
Accounts receivable (553) (683)
Unbilled receivables (504) (908)
Advances and progress 4,660 (616)
billings
Inventories (3,859) (374)
Other current assets (642) 265
Accounts payable 1,381 (46)
Accrued liabilities (1,070) (248)
Income taxes (20) (3)
receivable, payable and deferred
Other long-term (92) (212)
liabilities
Pension and other (55) (292)
postretirement plans
Financing receivables (137) 185
and operating lease equipment, net
Other 135 85
Net cash provided/ 1,185 (1,389)
(used) by operating activities
Cash flows –
investing activities:
Payments to acquire (2,008) (1,101)
property, plant and equipment
Proceeds from
disposals of property, plant and 3 4
equipment
Proceeds from 35
dispositions
Contributions to (19,444) (21,581)
investments
Proceeds from 25,090 18,847
investments
Supplier notes (11) (150)
receivable
Other (1)
Net cash provided/ 3,629 (3,946)
(used) by investing activities
Cash flows –
financing activities:
New borrowings 35 98
Debt repayments (8,376) (677)
Employee taxes on
certain share-based payment (32) (18)
arrangements
Dividends paid on
mandatory convertible preferred (172) (158)
stock
Other 32 30
Net cash used by (8,513) (725)
financing activities
Effect of exchange
rate changes on cash and cash 2 34
equivalents
Net decrease in cash
& cash equivalents, including (3,697) (6,026)
restricted
Cash & cash
equivalents, including restricted, 11,663 13,822
at beginning of year
Cash & cash
equivalents, including restricted, 7,966 7,796
at end of period
Less restricted cash
& cash equivalents, included in 727 709
Investments
Cash & cash $7,239 $7,087
equivalents at end of period
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Six months Three months ended
ended
June 30
June 30
(Dollars in 2026 2025 2026 2025
millions)
Revenues:
Commercial $20,954 $19,021 $11,751 $10,874
Airplanes
Defense, Space 15,082 12,915 7,483 6,617
& Security
Global Services 10,714 10,344 5,344 5,281
Unallocated
items, 27 (35) (18) (23)
eliminations
and other
Total revenues $46,777 $42,245 $24,560 $22,749
Earnings/(loss)
from
operations:
Commercial ($885 ) ($1,094 ) ($322 ) ($557 )
Airplanes
Defense, Space 218 265 (15) 110
& Security
Global Services 1,939 1,992 968 1,049
Segment 602
operating 1,272 1,163 631
earnings
Unallocated
items, (978) (1,397) (630) (1,035)
eliminations
and other
FAS/CAS service 310 519 155 257
cost adjustment
Earnings/(loss) 604 285 156 (176)
from operations
Other income, 273 648 79 325
net
Interest and (1,216) (1,418) (600) (710)
debt expense
Loss before (339) (485) (365) (561)
income taxes
Income tax (96) (158) (63) (51)
expense
Net loss (435) (643) (428) (612)
Less: Net
earnings/(loss) 5 16 (1)
attributable to 13
noncontrolling
interest
Net loss
attributable to (448) (648) (444) (611)
Boeing
shareholders
Less: Mandatory
convertible
preferred stock 86 86
dividends 172 172
accumulated
during the
period
Net loss
attributable to ($620 ) ($820 ) ($530 ) ($697 )
Boeing common
shareholders
Research and
development
expense, net:
Commercial $1,200 $1,092 $597 $558
Airplanes
Defense, Space 366 420 192 221
& Security
59 26 30
Global Services 48
183 101
Other 210 106
Total research
and development $1,824 $1,754 $921 $910
expense, net
Unallocated
items,
eliminations
and other:
Share-based ($52 ) ($51 ) $3 ($21 )
plans
Deferred (107) (80) (124) (85)
compensation
Amortization of
previously (45) (42) (23) (21)
capitalized
interest
Research and
development (210) (183) (106) (101)
expense, net
Eliminations
and other (564) (1,041) (380) (807)
unallocated
items
Sub-total
(included in (978) (1,397) (630) (1,035)
Core operating
earnings/(loss)
Pension FAS/CAS 390 92 197
service cost 185
adjustment
Postretirement 129 63 60
FAS/CAS service 125
cost adjustment
FAS/CAS service 310 519 $155 $257
cost adjustment
Total ($668 ) ($878 ) ($475 ) ($778 )
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Six Three months
months
ended June 30
Deliveries ended June 30
Commercial 2026 2025 2026 2025
Airplanes
737 243 209 129 104
14 9
767 16 10
20 7 13
777 15
37 24
787 40 25
Total
314 280 171 150
Defense, Space &
Security
AH-64 6 6 2
Apache (New) 8
AH-64
Apache 24 21 9 10
(Remanufactured)
CH-47 1 4 —
Chinook (New) 5
CH-47 7 2 5
Chinook (Renewed) 3
F-15 4 3 3
Models 4
F/A-18 9 3 4
Models 5
KC-46 5 4 5
Tanker 8
MH-139 5 3 4
5
P-8 2 1 1
Models 2
Commercial 1 2 — 2
Satellites
62 36
Total1 65 35
1 Deliveries of new-build production units, including
remanufactures and modifications
Total backlog June 30 December 31
(Dollars in millions) 2026
2025
Commercial $596,724 $567,290
Airplanes
Defense, Space & 85,322 84,786
Security
Global Services 32,840 29,720
Unallocated 375 411
items, eliminations and other
Total backlog $715,261 $682,207
Contractual $674,506 $639,721
backlog
Unobligated 40,755 42,486
backlog
Total backlog $715,261 $682,207
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating earnings/(loss), core operating margins, and core earnings/(loss) per share with the most directly comparable GAAP financial measures of earnings/(loss) from operations, operating margins, and diluted earnings/(loss) per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in Second Quarter
millions, 2026 Second Quarter 2025
except per
share data)
$ $ Per
millions Per Share millions Share
Revenues $24,560 $22,749
Earnings/(loss)
from operations 156 (176)
(GAAP)
Operating 0.6 % (0.8) %
margins (GAAP)
FAS/CAS service
cost
adjustment:
Pension FAS/CAS
service cost (92) (197)
adjustment
Postretirement
FAS/CAS service (63) (60)
cost adjustment
FAS/CAS service (155) (257)
cost adjustment
Core operating
earnings/(loss) $1 ($433 )
(non-GAAP)
Core operating
margins 0.0 % (1.9) %
(non-GAAP)
Diluted loss
per share ($0.67 ) ($0.92 )
(GAAP)
Pension FAS/CAS
service cost ($92 ) (0.12) ($197 ) (0.26)
adjustment
Postretirement
FAS/CAS service (63) (0.08) (60) (0.08)
cost adjustment
Non-operating
pension 73 0.10 (42) (0.05)
expense/
(income)
Non-operating (4)
postretirement (9) (0.01) (0.01)
income
Provision for
deferred income 19 0.02 64 0.08
taxes on
adjustments1
Subtotal of ($72 ) ($0.09 ) ($239 ) ($0.32 )
adjustments
Core loss per
share ($0.76 ) ($1.24 )
(non-GAAP)
Diluted
weighted
average common
shares
outstanding (in 790.6 756.6
millions)
1 The income tax impact is calculated using the U.S . corporate
statutory tax rate .
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating earnings/(loss), core operating margins, and core earnings/(loss) per share with the most directly comparable GAAP financial measures of earnings/(loss) from operations, operating margins, and diluted earnings/(loss) per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in First Half of First Half of
millions, 2026 2025
except per
share data)
$ $
millions Per Share millions Per Share
Revenues $46,777 $42,245
Earnings from
operations 604 285
(GAAP)
Operating 1.3 % 0.7 %
margins (GAAP)
FAS/CAS service
cost
adjustment:
Pension FAS/CAS
service cost (185) (390)
adjustment
Postretirement
FAS/CAS service (125) (129)
cost adjustment
FAS/CAS service (310) (519)
cost adjustment
Core operating
earnings/(loss) $294 ($234 )
(non-GAAP)
Core operating
margins 0.6 % (0.6) %
(non-GAAP)
Diluted loss
per share ($0.79 ) ($1.09 )
(GAAP)
Pension FAS/CAS
service cost ($185 ) (0.23) ($390 ) (0.52)
adjustment
Postretirement
FAS/CAS service (125) (0.16) (129) (0.17)
cost adjustment
Non-operating
pension 147 0.18 (85) (0.11)
expense/
(income)
Non-operating
postretirement (18) (0.02) (9) (0.01)
income
Provision for
deferred income 38 0.05 129 0.17
taxes on
adjustments1
Subtotal of ($143 ) ($0.18 ) ($484 ) ($0.64 )
adjustments
Core loss per
share ($0.97 ) ($1.73 )
(non-GAAP)
Diluted
weighted
average common
shares
outstanding (in 789.2 755.0
millions)
1 The income tax impact is calculated using the U.S . corporate
statutory tax rate .
