‍DALLAS — Boeing’s first-quarter 2025 results portray a continuing recovery in commercial deliveries, modest operational improvements, and tighter liquidity, even as the aerospace giant remains in a loss position. 

Revenue jumped 18% year-over-year to US$19.5 billion, driven by a 57% rise in commercial airplane deliveries to 130 units. Despite improved top-line performance, Boeing reported a GAAP net loss of US$31 million (basic loss per share of US$0.16) and a core (non-GAAP) loss per share of US$0.49. 

Operating cash flow improved substantially, though it remained negative at US$1.6 billion, and free cash flow (non-GAAP) narrowed to –US$2.3 billion. The company’s total backlog grew to US$545 billion, including more than 5,600 commercial aircraft. 

Management reiterated production rate increases for the Boeing 737, 787, and 777X programs and highlighted progress in safety and quality under CEO Kelly Ortberg’s turnaround plan.

Financial Performance

Boeing reported first quarter revenue of US$19.5 billion, up 18% from US$16.6 billion a year earlier, primarily reflecting 130 commercial deliveries versus 83 in Q1 2024. The GAAP operating margin turned positive at 2.4%, compared to a –0.5% margin in Q1 2024. On a non-GAAP basis, core operating margin improved to 1.0% from –2.3%.

Net loss narrowed sharply to US$31 million, or US$0.16 per share, compared to a US$355 million loss (US$0.56 per share) in the prior year, beating analysts’ expectations (Financial Times, Investopedia) of a US$0.56 loss per share. The core (non-GAAP) loss per share was US$0.49, significantly better than the US$1.13 core loss per share reported in Q1 2024.

Cash Flow, Liquidity

Operating cash flow improved to a negative US$1.6 billion, down from –US$3.4 billion in Q1 2024, reflecting higher deliveries and favorable working capital timing. After subtracting US$674 million in capital expenditures, free cash flow (non-GAAP) was –US$2.3 billion, an improvement from –US$3.9 billion a year ago.

As of March 31, Boeing held US$23.7 billion in cash and marketable securities, down from US$26.3 billion at year-end 2024, primarily due to the use of free cash flow. Consolidated debt decreased slightly to US$53.6 billion from US$53.9 billion, while the company maintained undrawn credit facilities totaling US$10 billion.

Commercial Airplanes

Commercial Airplanes revenue rose 75% to US$8.15 billion, driven by the 57% increase in deliveries (130 vs. 83), though the segment remained unprofitable with a (6.6)% operating margin versus (24.6)% in Q1 2024.

• 737 Program: Production “gradually increased” during the quarter and remains on track to reach 38 aircraft per month by year-end.
• 787 Program: Stabilized at five per month, with plans to ramp to seven per month in 2025.
• 777X Program: Expanded FAA certification flight testing and still anticipates first delivery of the 777-9 in 2026.

The segment booked 221 net orders, including 20 777-9 and 20 787-10 for Korean Air, along with 50 737-8 for BOC Aviation. The backlog for Commercial Airplanes stood at over 5,600 units, valued at US$460 billion.

Global Services

Global Services revenue was flat at US$5.06 billion, but operating margin improved to 18.6% from 18.2%, resulting in US$943 million of earnings, according to FT Markets.

Key achievements included the 100th delivery of the 767-300 Boeing Converted Freighter to SF Airlines and a U.S. Air Force contract to integrate electronic warfare systems on the F-15 Eagle. 

Yesterday, Boeing agreed to sell portions of its Digital Aviation Solutions business, with closing expected by year-end 2025, subject to regulatory approvals.

Outlook, CEO Commentary

A recent survey of Boeing employees reveals mixed results, with low morale in areas such as pride in the company and trust in senior leadership. However, a majority of employees remain committed to the company and feel that their direct managers are effective.

The surveys also highlighted concerns about the company's culture, including a perceived lack of accountability and difficulty raising concerns without fear of retaliation. 

In response, Boeing introduced new company values focused on trust, ownership, innovation, people, and safety and quality. Ortberg stressed the need for a fundamental culture change, including increased interaction between leaders and employees and improved communication. 

In the Q125 Report, the CEO emphasized improved operational performance from enhanced safety and quality initiatives and reaffirmed plans to execute rate increases across key programs while navigating macroeconomic and geopolitical headwinds. 

Furthermore, Ortberg described 2025 as a “turnaround year” amid ongoing supply chain challenges, Chinese tariff impacts, and debt reduction measures, including the sale of non-core assets, such as parts of the Digital Aviation Solutions unit, for US$10.55 billion.

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