Wire flash
FinanceBoeing posts larger-than-expected Q2 loss on $280 mln Air Force One charge
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
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 expanding capabilities for 787 production in South Carolina and military jets in St. Louis. 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.
Source report
By Dan Catchpole Tue, July 28, 2026 at 4:34 AM PDT | 2 min read
SEATTLE, July 28 (Reuters) — Boeing on Tuesday reported a larger-than-expected quarterly loss after taking a $280 million charge on its troubled Air Force One replacement program, but generated positive free cash flow as its turnaround plans gained momentum.
Key Financial Results
- Net loss: $428 million for the second quarter
- Core loss per share: 76 cents, worse than analysts' average estimate of 30 cents (per LSEG data), though narrower than the $1.24 per share core loss in the same period last year
- Free cash flow: $631 million, compared to a negative $200 million during the second quarter of 2025
The cash flow improvement was due in part to higher customer payments than anticipated, according to the company.
Air Force One Program
The $280 million charge was driven by higher engineering costs to ensure delivery of the two delayed U.S. presidential plane replacements in 2028. Boeing is working to deliver two 747-8 jets to serve as Air Force One under a $3.9 billion fixed-price contract signed in 2018. The program is now four years behind schedule and more than $1 billion over budget.
In the interim, U.S. President Donald Trump accepted a Qatari-donated 747-8 jet that is serving as an Air Force One plane. However, he said this month it would soon be sent away for upgrades following questions about its security features.
Production and Outlook
- Boeing is maintaining its guidance of $1 billion to $3 billion in free cash flow for the year, which would be its first positive result since 2023
- The company is increasing production of its best-selling 737 MAX narrow-body jets
- Capital investments rose in the quarter compared to last year, driven largely by expanding capabilities for 787 production in South Carolina and military jet production in the St. Louis, Missouri, area
(Reporting by Dan Catchpole in Seattle; Editing by Jamie Freed)
Source
Yahoo FinanceWestern
Part of this Story
Boeing posts larger-than-expected Q2 loss as Air Force One costs rise