DALLAS — Boeing reported stronger revenue and positive quarterly free cash flow, a non-GAAP measure, in the second quarter of 2026 as commercial-aircraft deliveries increased, but its main airplane business remained unprofitable.
The manufacturer reported revenue of US$24.56 billion and a net loss of US$428 million for the three months ending June 30. Revenue rose 8% from US$22.75 billion a year earlier, while the net loss narrowed from US$612 million.
Boeing generated US$1.36 billion in operating cash flow and US$631 million in free cash flow, its non-GAAP measure of operating cash flow after capital expenditures. In the second quarter of 2025, the company generated US$227 million in operating cash and used $200 million in free cash flow.
The improvement shows that higher aircraft handovers are supporting stronger cash generation, alongside the working-capital timing cited by Boeing. However, a US$322 million operating loss at Commercial Airplanes and a non-GAAP companywide core operating result of just US$1 million show that delivery growth has not yet produced a broad profit recovery.
Deliveries Raise Commercial Revenue
Boeing Commercial Airplanes delivered 171 aircraft during the quarter, up 14% from 150 a year earlier. Boeing's model-by-model delivery data lists 129 737s, 10 767s, seven 777s, and 25 787s.
The higher volume helped lift Commercial Airplanes revenue 8% to $11.75 billion. Its operating loss narrowed from US$557 million to US$322 million, while the operating margin improved from negative 5.1% to negative 2.7%.
The segment comparison matters because Boeing's overall revenue growth did not translate evenly across the company. Global Services remained the strongest profit contributor, while both aircraft manufacturing and defense finished the quarter with operating losses.
Boeing Moves the 737 Toward 47 Per Month
Boeing said the 737 program began transitioning to a production rate of 47 aircraft per month during the quarter. In July, the company also activated low-rate initial production on what it calls the 737 North Line.
That wording describes the planned production system rather than 47 completed deliveries in every month. Rate transitions require factories and suppliers to move toward a new pace, while quarterly deliveries can also include aircraft produced earlier and held in inventory.
The move marks another step beyond the 38-per-month ceiling imposed after the January 2024 Alaska Airlines door-plug event. Airways previously examined why the FAA's continued oversight remains central to Boeing's production recovery.
Boeing also said certification flight testing is complete for the 737-7 and 737-10. The manufacturer continues to expect certification of both variants in 2026 and first deliveries in 2027. Those dates remain Boeing's expectations until regulators complete certification and customers accept their aircraft.
On the 777X, the Federal Aviation Administration (FAA) approved Boeing to begin the Type Inspection Authorization 4B phase of certification flight testing. Boeing maintained its expectation for first delivery in 2027. Airways has previously detailed how the 777X schedule affects airline fleet planning and entry-into-service preparations.
Cash Improves, but First-Half Free Cash Flow Remains Negative
Boeing's quarterly cash performance was stronger, but the six-month picture remains mixed. The company generated US$1.19 billion in operating cash during the first half and used US$823 million in free cash flow after US$2.01 billion of capital spending.
Capital expenditures nearly doubled from US$1.10 billion in the first half of 2025. Boeing attributed the increase mainly to investments at its Charleston, South Carolina, and St. Louis, Missouri, sites.
Cash and marketable securities declined from US$20.9 billion at the end of March to US$20.0 billion at the end of June. Boeing said debt repayments more than offset the cash generated during the quarter; consolidated debt fell by US$1.3 billion to US$45.9 billion. The company also reported US$10 billion in undrawn credit facilities.
Those figures, included in Boeing's earnings release filed with the SEC, show why free cash flow is as important as revenue during the recovery. Aircraft programs require substantial spending before customer payments are fully realized, while debt reduction also uses cash after it is generated.
Backlog Reaches US$715 Billion
Total company backlog reached a record US$715 billion at the end of the quarter. Commercial Airplanes accounted for a record US$597 billion and more than 6,200 aircraft, while Defense, Space & Security held US$85 billion and Global Services held US$33 billion.
Boeing booked 246 net commercial orders during the quarter. A large backlog gives the manufacturer long-term demand visibility, but converting it into revenue and cash depends on production stability, certification, supply-chain performance, and customer deliveries.
The backlog therefore measures business Boeing has recorded for future execution, not near-term output. It also carries different execution requirements across commercial aircraft, defense programs, and services.
Defense Charge Offsets Higher Volume
Defense, Space & Security revenue increased 13% to US$7.48 billion, but the segment moved from a US$110 million operating profit a year earlier to a US$15 million loss.
The result included US$280 million in losses on the VC-25B presidential-aircraft program. Boeing attributed the charge primarily to additional production and certification resources and maintained its expectation for the first delivery in 2028.
Global Services revenue increased 1% to US$5.34 billion. Operating profit fell 8% to $968 million, and its margin declined from 19.9% to 18.1%. Boeing attributed the lower margin to the Digital Aviation Solutions divestiture, higher costs, and an unfavorable mix of work.
The next operational tests are whether Boeing can stabilize the higher 737 production system, complete certification of the 737-7 and 737-10 on its stated schedule, advance the 777X flight-test program, and turn Commercial Airplanes profitable. The second-quarter results show measurable progress in deliveries and cash, but they do not yet mark the end of Boeing's financial recovery.
Featured image: Simone Chellini/Airways
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