Boeing slows cash burn, narrows losses as turnaround begins to show lift

Dubai: Boeing is showing early signs of recovery from one of the toughest stretches in its recent history, reporting a dramatic slowdown in cash burn and a better-than-expected quarterly performance, driven by higher aircraft deliveries and stabilizing operations.

The US aerospace giant consumed just $200 million in free cash flow in the second quarter—far lower than analysts' forecast of $1.8 billion—and generated positive operating cash flow for the first time since 2023. Revenue jumped 35% year-on-year to $22.75 billion, beating Wall Street expectations, while its net loss narrowed to $612 million from $1.4 billion a year earlier.

CEO Kelly Ortberg, who came out of retirement last year to lead Boeing through a sweeping turnaround, credited the results to operational improvements across commercial, defense, and services divisions.

“We’re just over halfway through 2025 and I’m pleased with our progress,” Ortberg told employees. “Change takes time, but we’re starting to see a difference in our performance across the business.”

Boeing delivered 150 commercial jets in the quarter—part of 280 aircraft handed over in the first half of the year, the strongest six-month tally since 2018. The 737 MAX production line, the company’s most important commercial program, has stabilized at 38 jets per month, with a request pending FAA approval to increase output to 42. The long-haul 787 Dreamliner line also increased to seven jets per month.

Analysts said Boeing's performance reflects stabilizing factory operations and a more predictable delivery rhythm after years of turbulence. The company’s commercial backlog stood at more than 5,900 aircraft valued at $522 billion.

The manufacturer also secured 455 net aircraft orders in the second quarter, including high-profile deals with Qatar Airways and British Airways. Analysts flagged this momentum as key in helping Boeing regain market confidence and rebuild long-term cash flow.

Operating losses narrowed to $176 million from over $1 billion in the same period last year. Boeing's Global Services division remained its most profitable arm, posting a 19.9% operating margin and $1.05 billion in earnings. Meanwhile, the defense unit stayed in the black for a second consecutive quarter, generating $110 million in operating profit with no major cost overruns.

Still, analysts cautioned that the turnaround remains in early stages. Boeing’s total debt load remains steep at $53.3 billion, and its recovery could be tested by labor tensions. Over 90% of Boeing’s defense workers in St. Louis recently voted to strike, although negotiations are still in a cooling-off period.

“Obviously, that’s a huge positive because they have to generate cash to put the company’s balance sheet back in good shape,” one analyst said. “That’s a sign of health.”

Boeing also set aside $445 million during the quarter to settle a U.S. criminal investigation linked to two fatal 737 Max crashes. The settlement is pending court approval.

Certification delays also continue to cloud the commercial roadmap. The final two 737 Max variants—the -7 and -10—are unlikely to be certified before 2026, due to an anti-ice system redesign, Boeing confirmed.

Ortberg said the company remains in close coordination with the Federal Aviation Administration and has invited the newly appointed FAA Administrator to visit its Seattle factories in the coming weeks.

Despite a choppy trading session, Boeing shares are up 34% year-to-date—making it the best-performing stock on the Dow Jones Industrial Average. That performance reverses the heavy losses of 2024, when the stock plunged 32%.

Analysts evaluated the second-quarter results as a turning point, but one that still demands disciplined execution ahead.

“This is probably one of the best quarters Boeing’s had in a long time, but the company’s not taking a victory lap,” another analyst noted. “There are more steps to take.”