Boeing reported a larger-than-expected loss for the second quarter after taking a $280 million charge tied to its delayed Air Force One replacement program. The company posted a net loss of $428 million, with a core loss of 76 cents per share, exceeding analysts’ expectations but improving from the same period last year.
Despite the earnings miss, Boeing generated positive free cash flow of $631 million, a sharp turnaround from the negative $200 million recorded a year earlier. The improvement was driven in part by stronger-than-expected customer payments. The company maintained its full-year free cash flow forecast of $1 billion to $3 billion as production of its 737 MAX aircraft continues to increase.
Boeing also boosted capital investments to expand 787 production in South Carolina and military aircraft manufacturing in St. Louis. Meanwhile, the company continues work on two delayed Air Force One replacement aircraft under a $3.9 billion fixed-price contract that is now four years behind schedule and more than $1 billion over budget.
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