Boeing Stock Slides Amid Air Force One Program Challenges
Boeing reported strong commercial airplane deliveries, reaching a five-year high in the second quarter. However, its stock declined following revelations about ongoing issues with the Air Force One program. The company recorded $24.6 billion in revenue and positive free cash flow of $631 million but still posted GAAP and core losses per share due to costs tied to defense programs. The Defense, Space, and Security division was hit by a $280 million charge related to the VC-25B program—the new Air Force One aircraft. This fixed-price contract is already expected to result in an overall loss for Boeing, with additional charges flowing directly through due to schedule adjustments and resource allocation. CEO Kelly Ortberg emphasized progress on production ramp-ups but acknowledged the disappointment from the charge. Investors are closely watching how these costs affect Boeing’s financial performance as it aims to deliver Air Force One by 2028.
Tickers: $BA
Topics: Air Force One Boeing defense contracts stock performance