Boeing Surges On Narrower Q2 Loss, Big Free Cash Flow Boost

Boeing  (BA) – Get Free Report posted a narrower-than-expected second quarter loss Wednesday, with significantly firmer free-cash flows, as the planemaker continues to cut costs and boost production amid a surge in global airline demand. 

Boeing said its adjusted core loss for the three months ending in June was pegged at 82 cents per share, up from the 37 cents per share loss it reported last year but inside the Street consensus forecast of 88 cents per share.

Group revenues, Boeing said, rose 18.4% from last year to $19.75 billion, a tally that firmly topped analysts’ forecasts of an $18.37 billion tally. 

Adjusted free cash flow was pegged at $2.875 billion for the quarter, however, and Boeing reiterated its full-year forecast of a total between $3 billion and $5 billion. It also repeated production targets for the 737 Max, which is transitioning to 38 plans per month, and sees 787 production rising to 5 planes per month by the end of the year.

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“We had a solid second quarter with improved deliveries and strong free cash flow generation. We are well positioned to meet the operational and financial goals we set for this year and for the long term,” said Dave CEO Dave Calhoun. 

“While we have more work ahead, we are making progress in our recovery and driving stability in our factories and the supply chain to meet our customer commitments,” he added. “With demand strong, we’re steadily increasing our production rates across key programs and growing investments in our people, products and technologies.” 

Boeing shares were marked 3.8% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $222.22 each.

Last month, said an issue linked to a stabilizing bracket on the 787 Dreamliner could slow future deliveries as it inspects and repairs around 90 aircraft in its inventory.

The U.S. Federal Aviation Administration said that while it agrees with Boeing’s safety assessment, it will also “ensure that Boeing takes the appropriate steps to address the situation” and will issue “no new airworthiness certificates for the 787 until the matter is addressed to its satisfaction.

The issue partly clouded another solid quarter for Boeing orders, following a $40 billion commitment from Europe’s biggest discount airline, Ryanair, for the planemaker’s workhouse 737 Max aircraft amid a massive bet on the strength of the post-pandemic rebound in global travel.

Ryanair  (RYAAY) – Get Free Report said it would buy as many as 300 737 Max jets, which carry a list price of around $40 billion if the deal is filled to completion. The carrier noted that the deliveries would be phased over a period beginning in 2027 and ending in 2033. 

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