Navigating a turnaround, Boeing soars on better-than-expected earnings
The plane maker reported its first-quarter earnings on Wednesday.
After one of its worst years ever, marred by safety issues, regulator pressure, and a seven-week strike, Boeing appears to be making progress on turning things around.
Boeing’s higher Q1 delivery total drove an 18% spike in revenue to $19.5 billion, narrowly missing analyst estimates. It’s the first time Boeing’s revenue has grown since 2023.
The plane maker reported -$0.49 earnings per share, significantly better than expectations of -$1.17. Its commercial airplane segment posted an operating loss of $537 million on the quarter, improving from a $1.1 billion loss the same quarter last year.
Boeing shares were up more than 5% in premarket trading.
Tariffs, which will be more reflected in next quarter’s report, are causing some turbulence. This month, China ordered airlines to stop accepting deliveries of Boeing planes. Boeing estimates China will order $1.2 trillion worth of planes in the next 20 years, but in the short term, most analysts don’t view China’s Boeing boycott as a major issue, since rival Airbus can’t fill the needs of Chinese carriers alone.
Also softening the blow: reports that airlines including Air India and Malaysia Aviation Group are interested in snatching up any Boeing planes turned away by Chinese airlines.
Long-term, tariffed skies are a bit rougher. Bernstein analyst Douglas Harned believes the jet builder’s risks could be larger than expected, in part because airlines — including Delta Air Lines and Ryanair — are already insisting that they won’t pay for tariff-inflated planes. Following President Trump’s hints at coming tariff relief, it appears unlikely that worst-case scenarios play off.
Overall, Boeing’s off to a better start this year than last year, when a door plug blew off one of its airplanes mid-flight. In the first quarter, Boeing made major progress in closing its delivery gap with Airbus, handing off 56% more planes to customers than it managed in 2024.
Kelly Ortberg appears to be making some progress in shrinking the company’s $58 billion debt load. Yesterday, Boeing announced it would sell a chunk of its digital business to a private equity firm for $10.6 billion.
