Boeing (BA) delivered a markedly improved performance in Q2 2025, signaling meaningful progress in its recovery trajectory. Revenue surged to $22.7 billion, a 35% year-over-year increase, driven by a sharp rise in commercial aircraft deliveries. Despite ongoing challenges, the company narrowed its GAAP operating loss to $176 million, compared to a $1.09 billion loss in the same quarter last year. On a core basis, the operating loss was $433 million, a substantial improvement from $1.39 billion a year ago. The net loss also shrank to $611 million (or $0.92 per share), a significant recovery from $1.44 billion in Q2 2024.

Crucially, free cash flow usage was just $200 million, a dramatic turnaround from a $4.3 billion outflow a year earlier, supported by a $227 million operating cash inflow. Boeing ended the quarter with a robust backlog of $619 billion, including more than 5,900 commercial aircraft valued at $522 billion.

In the Commercial Airplanes (BCA) segment, performance was especially strong. Revenue jumped 81% year-over-year to $10.9 billion, with 150 aircraft delivered, up 63% from last year. Although the segment posted an operating loss of $557 million, its margin improved meaningfully to -5.1% from -11.9%. Boeing secured 455 net orders during the quarter, including major deals with Qatar Airways and British Airways. Production stabilized at 38 units/month for the 737 and 7/month for the 787, with the 777X program progressing toward a 2026 delivery.

The Defense, Space & Security (BDS) division also saw a return to profitability, posting $110 million in operating earnings (a 1.7% margin) on $6.6 billion in revenue, reversing a $913 million loss a year earlier. Orders reached $19 billion, boosting the segment’s backlog to $74 billion. Key milestones included progress on the MQ-25, T-7A, and KC-46 programs, and a notable $2.8 billion contract with the U.S. Space Force.

Global Services (BGS) maintained steady growth, generating $5.3 billion in revenue (+8% YoY) and $1.05 billion in operating earnings, with a margin of 19.9%, up 210 basis points. The segment secured $5 billion in orders and executed several strategic initiatives, including the sale of the Gatwick MRO facility and new international contracts.

Among strategic actions, Boeing announced the $10.55 billion sale of its Digital Aviation Solutions portfolio to Thoma Bravo, expected to close in 2025, with proceeds aimed at strengthening the balance sheet. Meanwhile, it reached a settlement with the DOJ over the 737 MAX investigation, agreeing to a $244 million fine, a $445 million compensation fund, and $455 million in compliance investments over three years.

On the labor front, tensions rose as IAM 837 rejected a contract offer, authorizing a potential strike in August that could affect BDS and BGS Government operations. Management, however, played down the anticipated disruption.

Looking ahead, Boeing reaffirmed its full-year free cash flow guidance of around $3 billion (excluding a potential $700 million DOJ-related payment in Q3), with Q4 expected to be free cash flow positive. Delivery guidance remains strong, with 737 shipments forecast to exceed 400 and 787 deliveries tracking at the upper end of the 70–80 range.

Management emphasized operational discipline, with CEO Kelly Ortberg noting measurable gains in quality and production stability. CFO Brian West highlighted working capital improvements and reiterated Boeing’s commitment to preserving investment-grade ratings.

Despite persistent risks—including potential labor disruption, trade tensions, and lingering regulatory scrutiny—Boeing’s Q2 performance marks a turning point, underscoring its renewed operational momentum and positioning the company for a stronger second half and a more stable 2026.