Boeing posts larger-than-expected Q2 loss as Air Force One costs rise

Boeing reported a larger-than-expected second-quarter net loss of $428 million, driven by a $280 million charge on its delayed Air Force One replacement program due to higher engineering costs. The core loss per share of 76 cents exceeded analyst expectations of a 30-cent loss, though it narrowed from $1.24 per share a year earlier. Despite the loss, Boeing generated $631 million in positive free cash flow, compared to negative $200 million in Q2 2025, aided by higher customer payments. The company maintained its full-year free cash flow guidance of $1-3 billion, which would be its first positive annual result since 2023. Boeing is increasing production of its 737 MAX jets and investing in 787 production in South Carolina and military jet production in Missouri. The Air Force One program, under a $3.9 billion fixed-price contract signed in 2018, is now four years behind schedule and over $1 billion over budget, with delivery expected in 2028.