Boeing Reports Larger-Than-Expected Q2 Loss Due to Air Force One Program Costs
Boeing reported a larger-than-expected second-quarter net loss of $428 million, driven by an additional $280 million charge related to its delayed and over-budget Air Force One replacement program. The company cited higher engineering costs for ensuring the delivery of two U.S. presidential aircraft in 2028 as contributing factors. Despite this, Boeing generated positive free cash flow of $631 million—up from a negative $200 million last year—and maintained its annual guidance of $1 billion to $3 billion in free cash flow for 2026. The core loss per share was worse than analyst expectations at 76 cents, compared to an average forecasted loss of 30 cents. Boeing attributed the improved cash flow partly to higher-than-expected customer payments and increased production of its best-selling 737 MAX jets. The company also expanded capital investments in South Carolina for 787 jet production and military jet manufacturing near St. Louis, Missouri. The Air Force One program is now over $1 billion above the original $3.9 billion contract value signed in 2018 and four years behind schedule.
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Topics: aviation defense contracts free cash flow