Boeing NYSE: BA executives said the company began 2026 with improved performance across its three major businesses, with higher revenue, progress on commercial production stability, and continued efforts to de-risk defense development programs. Management also said it has not seen a near-term impact on aircraft deliveries from the ongoing Iran war, though it is monitoring potential downstream effects from higher fuel prices and flight-hour trends in the aftermarket.
First-quarter financial results
Executive Vice President and Chief Financial Officer Jay Malave said consolidated revenue rose 14% year over year to $22.2 billion, driven by growth across Commercial Airplanes, Defense & Space, and Global Services. Operating margin was 2%, which Malave said was down primarily due to a lower FAS/CAS pension adjustment versus the prior year, partially offset by improved segment earnings.
Boeing reported a core loss per share of $0.20, which Malave said improved from last year due to segment growth and other non-operating improvements. Free cash flow was a usage of $1.5 billion, reflecting seasonal corporate expenditures and planned capital spending increases tied to growth investments in St. Louis and Charleston. Malave said the cash result was “notably better” than what he had communicated the prior month, citing recovery from a 737 wiring issue and favorable collections timing late in the quarter.
On the balance sheet, Malave said cash and marketable securities ended the quarter at $20.9 billion, while debt declined by $6.9 billion during the quarter to $47.2 billion due to repayment of maturing debt. Boeing has $1.4 billion of maturities remaining in 2026 and maintains $10 billion of undrawn credit facilities, Malave said.
Commercial Airplanes: deliveries, rates, and certification work
President and CEO Kelly Ortberg said Boeing’s Commercial Airplanes organization is integrating its safety and quality plan into operations, which he said has enabled higher production rates and “high-quality airplanes” delivered to customers. Malave reported that Boeing Commercial Airplanes delivered 143 airplanes in the quarter, with segment revenue up 13% to $9.2 billion. Operating margin improved to -6.1%, driven by higher delivery volume and a favorable accounting adjustment, partially offset by the “dilutive impact” of the Spirit AeroSystems acquisition.
On the 737 program, Ortberg said production stabilized at 42 airplanes per month and Boeing delivered the “final 737 MAX from storage” during the quarter. Malave said the company delivered 114 737s, including the “final shadow factory airplane built prior to 2023.”
Management also addressed a wiring nonconformance that shifted some first-quarter 737 deliveries into the second quarter. Ortberg said Boeing reworked all 25 airplanes affected, and “most of these have already been delivered.” He said the issue will not change the company’s full-year delivery goals or its plan to increase 737 production to 47 per month this summer. Malave added Boeing remains on track to deliver 500 737 airplanes in 2026 and noted a “nearly 20% reduction in final assembly rework hours” compared with the first quarter of 2025.
Looking beyond 47 per month, Ortberg and Malave said a move to 52 per month will be enabled by activating the 737 North Line in Everett. Malave said the North Line is expected to start later this year at a low initial rate to demonstrate conformity to the FAA under Boeing’s current production certificate, followed by increases “when the entire production system is ready.”
Ortberg also provided updates on certification efforts:
- 737-7 and 737-10: Ortberg said Boeing began final phases of certification and flight tests for the 737-10, including testing related to auto-throttle, autopilot, enhanced angle of attack, and an engine anti-ice solution. He said Boeing remains on plan for certification “later this year,” with deliveries expected to start in 2027.
- 777-9: Ortberg said Boeing received FAA approval for the next certification phase, TIA 4A, focused on natural ice testing. He also said the next milestone will be TIA 4B, which he described as a “pretty large package” expected soon.
- 777X engines: Ortberg reiterated Boeing is working with its supplier after a potential durability issue was found in an inspection. He said the supplier believes it has identified the root cause and is finalizing a modification, and Boeing is working with the supplier and FAA to incorporate it into the certification plan. Ortberg said Boeing remains on track for first 777X delivery in 2027.
- 787 weight certification: Ortberg said Boeing received FAA certification for increased maximum takeoff weight for the 787-9 and 787-10, enabling longer range or more cargo capability.
787 supply chain and seating certification delays
Ortberg said 787 deliveries were impacted by delays in “premium seat certifications,” though Boeing still expects to deliver 90 to 100 787s in 2026. Malave said Boeing delivered 15 787s in the quarter, consistent with prior expectations, while production continues to stabilize at eight per month as the company works through supply chain delays involving interiors and engines.
Ortberg said the seating issues have had less effect on factory output than on deliveries because aircraft can be built but not delivered until certification is complete. He said Boeing has “a fair number of 787s that are held up” awaiting seat certification, adding that he does not see “showstoppers” but the process is taking longer than anticipated. On engines, he described a “tough quarter” for engine deliveries and said Boeing has a recovery plan that needs to stay on track to support a planned increase to 10 per month later in the year.
Malave said Boeing is working with the FAA and customers to address the risk of seating certification delays by partnering earlier in the development process and adding “contractual off-ramps” to avoid future delivery delays.
Defense & Space and Global Services: growth and backlog
In Defense & Space, Ortberg said the segment continues to stabilize operations and emphasized the relevance of Boeing platforms in the current threat environment. Malave reported BDS revenue increased 21% to $7.6 billion, driven by higher volume on the KC-46 tanker, missiles and weapons, and classified programs. Operating margin increased to 3.1%. BDS booked $9 billion of orders and ended the quarter with a record $86 billion backlog.
Ortberg pointed to increased defense demand and cited budget areas he believes could benefit Boeing, including funding he associated with F-47, KC-46 production increases, F-15EX, enhanced SATCOM, and higher weapons system production. Malave said Boeing expects KC-46 deliveries to rise from about 14 last year to about 19 in 2026.
Global Services also posted growth. Malave said BGS revenue rose 6% to $5.4 billion, driven primarily by increased government volume. Excluding the impact of the Digital Aviation Solutions divestiture, he said revenue was up 13%. Operating margin was 18.1%, down from the prior year due to the divestiture and mix. BGS recorded $8 billion of orders, producing a book-to-bill of 1.6, and ended the quarter with a record $33 billion backlog.
Outlook: cash flow, Middle East exposure, and China order discussions
Malave reiterated Boeing’s 2026 free cash flow guidance of $1 billion to $3 billion, stating the second quarter is expected to be an outflow “in the range of low hundreds of millions of dollars,” followed by a positive second half. He said Boeing’s outlook assumes an “expected DOJ payment” in the second half of the year. Beyond 2026, Malave said Boeing views $10 billion of free cash flow as “very attainable,” with further growth tied to higher commercial deliveries, improved BDS performance, and continued BGS growth.
On geopolitical risks, Ortberg said Boeing had not seen delivery impacts from the Iran war and noted the company’s backlog diversity provides flexibility if customers adjust plans. He told analysts that 14% of Boeing’s unit backlog is tied to Middle East customers, but about two-thirds of that backlog delivers in 2030 and beyond, and Boeing can resequence aircraft in a “12-18-month timeframe.” Malave said Boeing had delivered four airplanes to customers in the region since the conflict began and had not received requests for delivery deferrals.
In response to a question about China, Ortberg said any significant order is “100% dependent” on U.S.-China negotiations and relations. He referenced an upcoming summit between President Trump and President Xi and said that if an agreement is reached “that will include some aircraft orders.” Ortberg characterized the opportunity as “a big number,” but did not provide a specific figure.
About Boeing NYSE: BA
Boeing Company NYSE: BA is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.
Boeing's principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.
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