Boeing(US:BA)2025-07-29 15:30Financial Performance - Revenue for the quarter was $22.7 billion, up 35% primarily driven by higher commercial delivery volume [24] - Core loss per share improved to $1.24 compared to the previous year, reflecting higher commercial deliveries and improved operational performance [24] - Free cash flow usage was $200 million in the quarter, better than expectations, driven by higher commercial delivery volume and improved working capital [24][25] Business Segment Performance Boeing Commercial Airplanes (BCA) - BCA delivered 150 airplanes in the quarter, with revenue of $10.9 billion and an operating margin of -5.1% [25] - BCA booked 455 net orders in the quarter, with a backlog of $522 billion, up more than $60 billion sequentially [26] - The 737 program delivered 104 airplanes in Q2, with production steadily increasing to 38 per month [27] Boeing Defense, Space & Security (BDS) - BDS booked $19 billion in orders during the quarter, with revenue of $6.6 billion, up 10% [31] - Operating margin improved to 1.7%, reflecting better operational performance [31] - BDS delivered 34 aircraft and two satellites in the quarter, with a focus on stabilizing production and improving margins [31][32] Boeing Global Services (BGS) - BGS revenue was $5.3 billion, up 8% year-over-year, with an operating margin of 19.9% [33] - BGS received $5 billion in orders, ending the quarter with a backlog of $22 billion [33] Market and Strategic Insights - The company is seeing strong market demand and is focused on stabilizing production and executing planned increases [5][6] - Recent trade agreements are expected to positively impact Boeing's order momentum and pricing strategies [50][54] - The company is committed to a culture change aimed at improving accountability and performance [20][21] Management Commentary - Management expressed optimism about the recovery plan's progress and the stability of operations, while acknowledging the work still ahead [5][6] - The company is focused on maintaining a strong supply chain and managing input costs amid a dynamic trade environment [17][18] - Future cash flow expectations are positive, with a target of achieving positive free cash flow in Q4 [38][46] Q&A Session Summary Question: Free cash flow performance and guidance - Management indicated that a free cash flow target of around $3 billion for the year is reasonable, with Q3 expected to resemble Q2 usage [42][46] Question: Impact of tariffs and trade agreements - Management discussed the positive effects of recent trade agreements on input tariffs and order momentum, emphasizing the importance of maintaining favorable trade conditions [49][54] Question: Long-term delivery guidance and inventory management - Management confirmed that they are tracking ahead of delivery targets for the MAX program and are managing inventory levels effectively [70][71] Question: Engine anti-icing issue with 737 models - Management explained that delays in the engine anti-icing design are due to ongoing testing and design adjustments [74][75] Question: Future rate increases and production capacity - Management expressed confidence in achieving planned rate increases, supported by inventory levels and production stability [80][81] Question: BDS margin improvement and strike risks - Management reassured that the potential impact of strikes on BDS operations is manageable and that they are focused on returning to high single-digit margins [94][95]