Boeing’s second quarter was marked by significant year-on-year growth in sales volumes and revenue, yet the market responded negatively to the results. Management attributed the quarter’s improvement to higher aircraft deliveries, particularly in its commercial airplane division, along with operational changes that reduced production bottlenecks. CEO Robert K. Ortberg highlighted that the company delivered its highest number of commercial jets since 2018 and noted, “almost every customer I talk to has said they're seeing higher quality airplane deliveries.” However, persistent challenges remain, including the need to further stabilize production lines and manage ongoing supply chain risks.
Is now the time to buy BA? Find out in our full research report (it’s free).
Boeing (BA) Q2 CY2025 Highlights:
- Revenue: $22.75 billion vs analyst estimates of $21.67 billion (34.9% year-on-year growth, 5% beat)
- Adjusted EPS: -$1.24 vs analyst estimates of -$1.31 (5.8% beat)
- Adjusted EBITDA: $27 million vs analyst estimates of $467.3 million (0.1% margin, 94.2% miss)
- Operating Margin: -0.8%, up from -6.5% in the same quarter last year
- Backlog: $618.5 billion at quarter end
- Sales Volumes rose 63% year on year (-32.4% in the same quarter last year)
- Market Capitalization: $170.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Boeing’s Q2 Earnings Call
- Myles Alexander Walton (Wolfe Research): Asked about the sustainability of improved free cash flow and whether a $3 billion annual figure was reasonable. CFO Brian West confirmed this estimate, attributing it to stronger commercial deliveries and favorable timing.
- Sheila Karin Kahyaoglu (Jefferies): Queried the impact of recent tariff agreements and how these shape order momentum and supply chain pricing. CEO Robert K. Ortberg detailed the benefits of zero-tariff deals with Japan and potential negotiations with Italy, highlighting ongoing watch points with China and USMCA.
- Peter J. Arment (Baird): Sought clarification on long-term production rate increases for 737 and 787. Ortberg explained that rate hikes would be methodical and contingent on operational stability and supply chain readiness, with incremental increases planned no earlier than every six months.
- Ronald Jay Epstein (Bank of America): Examined the root causes behind the engine anti-ice certification delays on the 737-7 and -10. Ortberg identified unresolved engineering design challenges and ongoing work on technical solutions, emphasizing no impact to current production rates.
- Kenneth George Herbert (RBC Capital Markets): Inquired about the timeline for restoring defense segment margins and implications of current labor negotiations. Ortberg stated the business remains focused on reaching high single-digit margins and is actively managing through labor disruptions with revised contracting approaches.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) Boeing’s progress in stabilizing and increasing aircraft production rates, especially for the 737 and 787 lines, (2) the resolution of technical and certification challenges on new aircraft variants, and (3) the impact of evolving trade agreements and tariffs on supply chain costs. Additional focus will be given to defense contract execution, services growth, and the integration of new executive leadership.
Boeing currently trades at $226.05, down from $236.32 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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