Boeing misses Q2 core loss per share estimates as VC-25B charges weigh

Overview

• US aerospace manufacturer's Q2 revenue rose 8% yr/yr, beating analyst expectations

• Core loss per share for Q2 missed analyst estimates

• Revenue growth driven by higher commercial airplane deliveries and favorable working capital

Outlook

• Boeing anticipates certification of 737-7 and 737-10 in 2026, first delivery in 2027

• Company expects first delivery of 777X program in 2027

• Boeing expects first delivery of VC-25B program in 2028

Result Drivers

• HIGHER COMMERCIAL DELIVERIES - Q2 revenue growth was primarily driven by increased commercial airplane deliveries and favorable mix

• FAVORABLE WORKING CAPITAL - Operating cash flow benefited from favorable working capital timing

• DEFENSE PROGRAM LOSSES - Defense, Space Security segment results included $280 million of losses on the VC-25B program due to investment in additional production and certification resources

Company press release: ID:nPn5Z0jJBa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace defense peer group is "buy"

• Wall Street's median 12-month price target for Boeing Co is $269.00, about 27.2% above its July 27 closing price of $211.50

• The stock recently traded at 98 times the next 12-month earnings vs. a P/E of 143 three months ago

Reuters Recommended Reads

• July 28 - FAA says seats on hundreds of Boeing 737 MAX jets may need inspections

• July 28 - Jet engine maker Safran raises targets after record first-half margin

• July 28 - Textron Q2 revenue meets estimates on military programs growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)