Boeing Q1 2025 Earnings Report

Boeing Narrows Losses and Prepares to Increase 737 Max Production

Boeing narrowed its losses in the first quarter and is preparing to raise monthly output of 737 Max jets, as CEO Kelly Ortberg said the planemaker could send some aircraft destined for China to other airlines amid the trade war.

First-Quarter Results

Boeing reported a first-quarter net loss of $31 million, an improvement from a loss of $355 million a year earlier, as revenue rose 18% to $19.5 billion, slightly ahead of analysts’ estimates. The company’s aircraft deliveries rose nearly 60%. The cash burn of about $2.3 billion was an improvement over the nearly $4 billion it used in the first quarter of 2024, and was better than analysts expected.

Production Plans

The company is planning to seek Federal Aviation Administration approval later this year to increase production of the best-selling jets. Boeing is planning to remarket some of its Boeing jets that were earmarked for Chinese airlines after that country stopped taking delivery of its aircraft due to the trade war with the U.S. CEO Ortberg said on an earnings call that demand remains strong for its aircraft and said the company’s backlog is worth more than $500 billion.

Trade War Impact

The results include only the impact of global tariffs as of March 31, the company said. Executives will get questions on Wednesday’s 10:30 a.m. ET earnings call about tariffs as the manufacturer is currently caught in the crosshairs of President Donald Trump’s trade war, which is set to drive up prices of aircraft and imported parts and materials. GE Aerospace CEO Larry Culp said Tuesday that he’s met with Trump and suggested restoring duty-free trade for the aerospace industry, a major U.S. exporter that helps soften the United States’ trade deficit.

Financial Performance

On a per-share basis, the company reported a loss of 16 cents, compared with a loss of 56 cents during the same quarter a year earlier. Adjusting for one-time items related to pension costs and income taxes, among others, Boeing reported a loss of 49 cents per share. Shares of Boeing were up more than 5% in afternoon trading.

Comparison with Analysts’ Estimates

Here’s how Boeing performed compared with what Wall Street analysts surveyed by LSEG expected for the first quarter:

• Loss per share: 49 cents adjusted vs. $1.29 loss expected
• Revenue: $19.5 billion vs. $19.45 billion expected

Recent Developments

Since the January 2024 accident, Boeing must receive approval from the FAA to increase output of the 737 Max to above 38 jets a month. Boeing had been producing significantly below that level after the accident and a nearly two-month union strike last year halted much of the company’s manufacturing. Boeing said once it has stabilized its production rate at 38 per month, it will move up to 42, if it receives approval, and then increase it in five-per-month increments, up to about 52 a month, with about six months in between each hike.

Conclusion

Boeing is making progress in its recovery plan, with a strong start to the year and a backlog of over $500 billion. The company is preparing to increase production of the 737 Max and is exploring options to remarket jets destined for Chinese airlines. While the trade war with China poses a challenge, Boeing is confident in its ability to navigate the environment and deliver positive results.

FAQs

Q: What was Boeing’s net loss in the first quarter?
A: Boeing reported a first-quarter net loss of $31 million.
Q: What is Boeing’s plan for increasing 737 Max production?
A: Boeing is planning to seek Federal Aviation Administration approval later this year to increase production of the best-selling jets.
Q: How much is Boeing’s backlog worth?
A: Boeing’s backlog is worth more than $500 billion.
Q: What is the impact of the trade war on Boeing?
A: The trade war with China poses a challenge to Boeing, with tariffs set to drive up prices of aircraft and imported parts and materials.
Q: What is Boeing’s plan for jets destined for Chinese airlines?
A: Boeing is planning to remarket some of its Boeing jets that were earmarked for Chinese airlines after that country stopped taking delivery of its aircraft due to the trade war with the U.S.