Boeing has significantly reduced its quarterly losses, showcasing a remarkable turnaround as sales surged following the delivery of the highest number of airplanes since 2018. This development marks a pivotal moment for the aerospace giant, which has faced a series of crises over the past few years.
In the second quarter, Boeing reported a loss per share of $1.24 adjusted, which is an improvement compared to the anticipated loss of $1.48. The company generated $22.75 billion in revenue, surpassing analysts' expectations of $21.84 billion. Notably, Boeing's losses amounted to $176 million for the three months ending June 30, a significant decrease from the $1.09 billion loss reported during the same period last year.
Revenue saw a substantial increase of 35%, climbing from $16.87 billion in the previous year to $22.75 billion. After adjusting for one-time items, Boeing's reported loss was $433 million, translating to $1.24 per share, which was better than the losses analysts had forecasted.
CEO Kelly Ortberg expressed optimism in a note to staff, emphasizing that the company is beginning to see positive changes across its operations. "Change takes time, but we're starting to see a difference in our performance across the business," Ortberg noted. He underscored the importance of focusing on safety, quality, and stability, with the goal of making 2025 a turnaround year for Boeing.
Under Ortberg's leadership, Boeing has made significant strides in several key metrics. The company has improved its airplane deliveries and stabilized production levels. In the second quarter alone, Boeing delivered 150 airplanes, the highest number for a second quarter since 2018, which was also the last time the company achieved an annual profit. Additionally, the commercial airplane unit saw an impressive 81% increase in sales compared to the previous year, totaling $10.87 billion.
Boeing's negative operating margin has also improved, more than halving to 5.1%. The company has ramped up production of its 737 Max aircraft to 38 per month, which is the Federal Aviation Administration's (FAA) limit following a near-catastrophic incident in January 2024.
Despite these promising developments, Boeing still faces several challenges. The long-awaited certification of the Boeing 737 Max 7 and Max 10 is unlikely to occur this year, contrary to Ortberg's earlier forecasts. Furthermore, the defense unit has encountered significant issues in recent quarters and may soon face a factory worker strike after employees rejected a new labor agreement.
Investors are eagerly awaiting insights from Ortberg and the executive team during a scheduled call at 10:30 a.m. on Tuesday, where they will discuss the outlook for improved production, financial results, and overall stability at the company. This comes at a time when Boeing has been navigating through crises since 2018, following the tragic 737 Max crashes.
This is breaking news, and we will provide updates as more information becomes available.
