Boeing reported a significant reduction in its first-quarter losses, driven by an increase in aircraft deliveries. On April 22, the global aircraft manufacturer announced its financial results for the first quarter. Revenue rose 14% year-over-year to $22.217 billion, exceeding market expectations. The net loss narrowed sharply to $7 million, an improvement of over 77% compared to the same period last year. The net loss attributable to shareholders was $4 million, narrowing by nearly 90% year-over-year. The GAAP loss per share was $0.11, a reduction of more than 30%.
The company reported an operating cash flow of -$200 million and a free cash flow (non-GAAP) of -$1.5 billion, both showing improvement. These results were primarily attributed to higher commercial airplane deliveries, improved operational performance, and favorable order timing. Boeing's total backlog reached a record $695 billion, with all three business segments maintaining historically high levels.
During an earnings call, Boeing's management projected free cash flow for 2026 to be between $1 billion and $3 billion. They stated that cash flow is expected to improve in the second quarter, turn positive in the second half of the year, and continue growing after 2026, with a long-term goal of exceeding $10 billion.
In the first quarter, the Commercial Airplanes division, which accounts for over 40% of business, generated revenue of $9.203 billion, a 13% increase year-over-year. Its operating margin was -6.1%, compared to -6.6% a year ago, mainly reflecting the higher delivery volume.
Boeing President and CEO Kelly Ortberg stated that with a strong start to the year and continued growth in the order backlog, the company remains focused on safety and quality. He emphasized the commitment to delivering high-quality products and services, increasing production capacity, meeting customer commitments, and restoring Boeing's position as a leading global aerospace company.
The number of aircraft delivered in the first quarter reached the highest level since 2019. The Commercial Airplanes division secured 140 net new orders and delivered 143 aircraft during the quarter. The division's backlog now exceeds 6,100 aircraft, valued at a record $576 billion.
Boeing is planning to further increase production of its best-selling narrow-body 737 series, a key step in its financial recovery and debt repayment efforts. In the first quarter, 114 737s were delivered, up from 105 in the same period last year.
The 737 program continues to produce at a rate of 42 aircraft per month. During the quarter, the 737-10 entered the Type Inspection Authorization Phase 2 and made progress toward final certification flight testing. Boeing anticipates the 737-7 and 737-10 will be certified in 2026, with initial deliveries expected in 2027.
Regarding previously identified wiring issues, Ortberg noted that rework has been completed on 25 affected aircraft. This does not impact the full-year delivery target or the plan to increase the 737 production rate to 47 aircraft per month this summer.
Boeing's previous target was to produce approximately 50 737s per month in 2025 or 2026. However, production of the 737 MAX, a major profit driver, has declined significantly as U.S. regulators intensified factory safety and quality inspections. Further increases in 737 MAX production require approval from the Federal Aviation Administration (FAA), a requirement instituted after a mid-air cabin door incident in January 2024.
Ortberg, who became President and CEO in August 2024, brings over 35 years of aerospace leadership experience. Industry observers note he faces multiple challenges in steering Boeing toward profitability, including persistent losses, heightened regulatory scrutiny, supply chain pressures, customer trust issues due to delivery delays, cost overruns in the defense division, and tense labor negotiations with potential strike threats. The market is watching to see if his leadership can address these issues and stabilize the company following repeated safety and quality crises.
For the 787 program, production remains stable at a rate of eight aircraft per month. The 787 is Boeing's best-selling wide-body aircraft and its most advanced model in service. The company also received FAA certification for increased maximum takeoff weight on the 787-9 and 787-10 models, enhancing their range or cargo capacity.
Management noted that while delivery of some completed 787s has been delayed due to late seat certification, there are no substantial certification obstacles. The company is enhancing early collaboration with the FAA and customers to prevent future delays. Engine supply chain bottlenecks persist, but a recovery plan is in place to increase the production rate to 10 aircraft per month later this year. The full-year delivery target of 90 to 100 aircraft remains unchanged.
Progress continued on the 777X program, with the 777-9 receiving FAA approval to begin Type Inspection Authorization Phase 4a certification flight testing. Initial deliveries are anticipated in 2027. The target production rate for the 777X is five aircraft per month, subject to market demand and capacity planning. The new 777X is slated to be the world's largest and most efficient twin-engine jet. Originally scheduled for commercial service in 2020, its first delivery was previously delayed to 2026 due to development challenges and production halts; the latest announcement indicates a further delay.
Regarding potential new orders from China, Ortberg told analysts that this depends on negotiations and the broader relationship between the U.S. and China. Should an intergovernmental agreement be reached, it is expected to include a substantial aircraft order, though specific quantities were not disclosed.
When asked about the impact of Middle East conflicts on deliveries, management stated there is currently no direct effect and that no customers have requested delivery delays. Important deliveries to customers in the region were completed in the first quarter, and the situation is being monitored. Approximately 14% of Boeing's backlog comes from Middle Eastern clients, but about two-thirds of those orders are scheduled for delivery in 20 to 30 years, allowing the company flexibility to adjust delivery sequences within a 12- to 18-month window.
Management also highlighted the need to monitor the overall impact of jet fuel prices and potential effects on the aftermarket, though Boeing has relatively low exposure to aftermarket fluctuations.
Boeing's stock closed at $231.28 per share on April 22, up 5.53%.