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Boeing reported a smaller than expected first-quarter loss after an increase in aircraft deliveries, giving some respite to the US plane maker after a turbulent year.
The aerospace and defence group said it incurred a net loss of $31mn in the first three months of the year, significantly lower than the $355mn loss it reported in the same period last year. Revenues in the quarter rose 18 per cent to $19.5bn amid higher aircraft deliveries. The company had negative free cash flow of $2.3bn, compared with a negative $3.9bn in the same period last year.
On an adjusted basis, Boeing reported a loss per share in the quarter of $0.49, down from a loss of $1.13 per share a year earlier and less than the loss of $1.24 per share expected by analysts.
The company’s shares rose 5 per cent in pre-market trading on Wednesday after the results were released.
Kelly Ortberg, Boeing’s chief executive, who was brought in last August to turn around the group in the aftermath of a mid-air accident on one of its planes, said the company was “moving in the right direction and making progress”.
“We’re building higher quality aeroplanes and delivering them with more predictability,” he said in a letter to staff on Wednesday, in which he described 2025 as the company’s “turnaround year”.
Boeing on Tuesday announced a plan to sell parts of its digital aviation unit to private equity group Thoma Bravo for $10.6bn to shore up its finances. Last year, it raised $24bn in equity and said it would cut 17,000 jobs.
The company on Wednesday reaffirmed plans to reach a target of producing 38 of its best-selling 737 Max planes a month this year. It is also stabilising production of its 787 jets at five a month, with plans to increase to seven per month this year.
Boeing delivered 130 planes in the first three months of the year — including 104 of the 737 Max — up from 83 deliveries in the same period of 2024.
Despite its stronger operational performance, Boeing faces several challenges, notably from Donald Trump’s trade war, in particular with China. The company is one of the largest US exporters and Beijing’s retaliatory tariffs on US goods have made Boeing’s jets significantly more expensive for Chinese airline customers. Several Chinese airlines have deferred aircraft deliveries in recent days.
Ortberg told employees that while the company was “closely watching the developments in global trade”, its strong start to the year, combined with strong demand for aeroplanes, gave it the “flexibility we need to navigate this environment”.
The results only reflected tariffs enacted as of March 31, Boeing said on Wednesday.
Additional reporting by Claire Bushey in Chicago
