SEATTLE – Boeing on July 28 reported a larger-than-expected quarterly loss after taking a US$280 million (S$362.2 million) charge on its troubled Air Force One replacement programme, but generated positive free cash flow as its turnaround plans gained momentum.
It took the charge due to higher engineering costs to ensure it delivers the two delayed US presidential plane replacements in 2028, contributing to a US$428 million net loss for the second quarter.
The core loss per share of 76 US cents was worse than analysts’ average expected loss per share of 30 US cents, according to LSEG data, though narrower than the US$1.24 per share core loss in the same period in 2025.
Despite the losses, Boeing recorded US$631 million of free cash flow, compared to a negative US$200 million during the second quarter of 2025. The cash flow bump was due in part to higher customer payments than anticipated, according to the company.
Boeing’s shares rose a little over 1.5 per cent in pre-market trading. The US planemaker is maintaining its guidance of US$1 billion to US$3 billion in free cash flow for 2026, which would be its first positive result since 2023, as it increases production of its best-selling 737 MAX narrow-body jets.
Boeing also increased capital investments in the quarter compared to in 2025, due largely to expanding capabilities for 787 production in South Carolina and military jet production in the St Louis, Missouri, area.
The planemaker is also working to deliver two 747-8 jets to serve as Air Force One under a US$3.9 billion fixed-price contract signed in 2018 that is now four years behind schedule and more than US$1 billion over budget.
US President Donald Trump accepted a Qatari-donated 747-8 jet that is serving as an Air Force One plane in the meantime, though he said in July it would soon be sent away for upgrades following questions about its security features. REUTERS
