BA earnings analysis
What we found in BA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Boeing delivered solid Q2 revenue growth, with revenue up 8.0% year over year to $24.560B and GAAP operating income recovering to $156M from a $176M loss. However, diluted EPS remained negative at $0.67, worsening from a $0.11 loss in Q1, while gross margin declined to 9.8% and BDS turned to a loss on a $280M VC-25B charge. Liquidity improved through $8.2B of debt reduction and a first-half operating-cash-flow swing to a $1.185B inflow, though higher inventory investment and rising capex remain cash demands.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated on deliveries
- Q2 revenue rose $1.811B year over year to $24.560B (+8.0%), led by 171 commercial-aircraft deliveries versus 150 a year earlier. Revenue also increased 10.5% from $22.220B in Q1 2026.
- Operating result returned to profit
- GAAP operating income improved to $156M from a $176M loss a year ago, moving operating margin to 0.6% from negative 0.8%. Commercial Airplanes narrowed its operating loss by $235M to $322M.
- Commercial aircraft recovery continued
- Commercial Airplanes revenue increased to $11.751B from $10.874B as deliveries rose to 171 from 150; 737 deliveries increased to 129 from 104. The segment's operating margin improved 2.4 percentage points to negative 2.7%.
- Backlog expanded to $715.3B
- Total backlog reached $715.261B at June 30, up $33.054B from $682.207B at year-end; Commercial Airplanes backlog rose $29.434B to $596.724B.
- First-half operating cash flow turned positive
- Six-month operating cash flow swung to a $1.185B inflow from a $1.389B outflow in the prior year, a $2.574B improvement, primarily from working-capital changes. Advances and progress billings provided a $5.3B favorable change.
- Debt reduction strengthened liquidity
- Debt declined $8.2B from $54.1B at December 31 to $45.9B at June 30. Available liquidity included $7.2B cash, $12.8B short-term investments and $10.0B of unused revolver capacity.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- VC-25B charge pushed BDS into loss
- Defense, Space & Security moved to a $15M Q2 operating loss from $110M of profit, driven principally by a $280M VC-25B reach-forward loss and $186M higher net unfavorable cumulative catch-up adjustments.
- Gross and services margins contracted
- Gross margin declined 0.9 percentage points year over year to 9.8% as cost of sales rose to 90.2% of revenue from 89.3%. Global Services operating margin fell to 18.1% from 19.9%, including the Digital Aviation Solutions divestiture and ERP disruption.
- Certification and production execution remain key
- Boeing had approximately 40 uncertified 737-7 and 737-10 aircraft in inventory at June 30. The company says failure to certify these models in 2026 or raise production beyond the transition from 42 to 47 aircraft per month would adversely affect financial results and cash flow.
- No formal risk-factor update; 777X risk persists
- The filing reports no material changes to Item 1A risk factors versus the 2025 10-K, but identifies continued exposure to potential 777X reach-forward losses. The 777-9 first delivery remains expected in 2027, while the 777-8 passenger variant is not expected before 2030.
- Capex and inventory needs are increasing
- First-half capital expenditures increased to $2.0B from $1.1B, equal to 4.3% of $46.777B revenue, and management expects 2026 capex to be higher than 2025. Higher production also created a $3.5B unfavorable inventory working-capital change.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.67
- Gross margin
- 9.8%
- Operating margin
- 0.6%
- Segment
- Commercial Airplanes revenue: $11.751B, up $877M (+8.1%) year over year; operating loss: $322M versus $557M loss.
- Segment
- Defense, Space & Security revenue: $7.483B, up $866M (+13.1%) year over year; operating loss: $15M versus $110M operating profit.
- Segment
- Global Services revenue: $5.344B, up $63M (+1.2%) year over year; operating earnings: $968M versus $1.049B.
What they said about what is next.
No numeric revenue or EPS outlook was included in the 10-Q. Boeing continues to expect 737-7 and 737-10 certification in 2026, 777-9 first delivery in 2027, 777-8 Freighter first delivery approximately two years after the 777-9, and 777-8 passenger first delivery not before 2030. Management expects 2026 capital expenditures to exceed 2025.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 22, 2026
- Boeing reported Q1 2026 revenue of $22,217 million, up $2,721 million (+14.0%) year-over-year, with a much smaller net loss of $7 million (net loss attributable to Boeing shareholders $4 million) and diluted loss per…
- 10-K · January 30, 2026
- Boeing's 2025 10-K reveals ongoing challenges with production and margin pressures across its segments. Although total revenue showed an upswing to $23.95B in Q4 2025, the company faced significant losses in earlier…
- 10-Q · October 29, 2025
- Boeing reported Q3 2025 revenue of $23,270 million (up from $17,840 million in Q3 2024) but continued to report a GAAP operating loss and a significant diluted loss per share of $7.14. Commercial Airplanes led top-line…
- 10-Q · October 23, 2024
- Boeing reported a third-quarter 2024 total revenue of $17,840 million and a diluted loss per share of $9.97. Gross margin deteriorated to a negative $3,507 million (≈ -19.7%) and operating loss widened to $5,761 million…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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