Boeing shares rise 5% despite higher than expected Q2 loss on Air Force One costs

The charge reflected higher engineering costs associated with delivering two delayed US presidential aircraft in 2028 and contributed to a second-quarter net loss of $428 million.

The aircraft maker’s shares rose 5% in midday trading despite the Q2 loss, as investors focused on improving production and stronger cash flow. Its core loss of 76 cents per share was wider than analysts’ estimate of a 30-cent loss but narrower than the $1.24-per-share loss recorded a year earlier, according to LSEG data.

Boeing generated $631 million in free cash flow, reversing a $200 million outflow in the second quarter of 2025, partly due to stronger-than-expected customer payments. The company maintained its full-year free cash flow forecast of $1 billion to $3 billion, which would mark its first positive annual result since 2023, as it ramps up production of its best-selling 737 MAX jets.

Boeing also lifted capital spending year-on-year in the quarter, mainly to expand 787 production in South Carolina and military jet output near St. Louis, Missouri. It is separately working to deliver two 747-8 jets as Air Force One under a $3.9 billion fixed-price 2018 contract — now four years late and over $1 billion above budget. President Donald Trump has meanwhile been using a Qatari-donated 747-8 in the role, though he said this month it would soon be pulled for upgrades over security concerns, according to a Reuters report.

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Meanwhile, Boeing is raising monthly production of its best-selling 737 MAX jets from 42 to 47 aircraft, a crucial step in its financial recovery after years of crises left the company with nearly $26 billion in net debt and damaged its reputation.

The aircraft aims to increase output to 52 jets a month by early next year and eventually reach 57. CEO Kelly Ortberg said hitting the final target would require stronger supplier performance and a smooth ramp-up in key areas, including 737 wing assembly.

For the 787, Ortberg said GE Aerospace’s engine deliveries remain the biggest constraint on Boeing’s goal of producing 10 aircraft a month. Boeing is working with GE on a recovery plan after engine shipments fell behind schedule during the first half.