Despite earnings weaker than the market expected and ongoing pressure on profitability, Boeing Company’s (BA) report confirmed that the aircraft manufacturer continues to steadily restore its operations. Analysts maintained a “Buy” rating on the company’s shares with a target price of $286. At the current price of $233,3, the upside potential is about 23%.
Boeing returns to production growth
Boeing Company is one of the world’s largest manufacturers of civil and military aircraft. The company produces the 737, 787 Dreamliner, and 777X families of aircraft, and is also developing its defense, space, and services segments.
According to Freedom Broker analysts, the key takeaway from the quarter was not the size of the loss, but confirmation that the company is successfully restoring production and maintaining its free cash flow guidance. Experts see progress on production lines and in certification, which largely offsets negative factors.
Revenue beat market expectations
In the second quarter of 2026, Boeing increased revenue by 8% year over year to $24,6 billion, which was about 1,2% above the analysts’ consensus forecast. The growth was driven by higher deliveries of commercial aircraft.
At the same time, net loss decreased from $612 million to $428 million, and GAAP loss per share narrowed from $0,92 to $0,67. Adjusted loss per share (Core EPS) came in at $0,76, worse than market expectations. The main reasons were additional $280 million in charges under the VC-25B presidential aircraft program (used for air transport of the U.S. President), as well as the continued impact of pricing concessions on aircraft deliveries.
Meanwhile, operating cash flow rose more than sixfold to $1,36 billion, and free cash flow totaled $631 million versus a negative figure a year earlier. Boeing’s total order backlog обновил historical record and reached $715 billion, including more than 6,200 commercial aircraft.
Production continues to recover
The strongest results came from the commercial aviation division. In the second quarter, Boeing delivered 171 commercial aircraft—the highest figure since 2018—and also recorded 246 net orders. Production of the 737 MAX family is gradually increasing to 47 aircraft per month, and the company still expects to deliver around 500 737 aircraft for the year.
Analysts also view progress in certifying new models as another positive factor. Test flights of the 737-7 and 737-10 have already been completed; certification is expected by the end of 2026, with first deliveries in 2027. The 777X program also received another authorization from the U.S. Federal Aviation Administration (FAA) to conduct certification tests.
Freedom Broker believes that the recovery in production pace and the gradual increase in delivery volumes could become the main driver of the company’s free cash flow growth in the coming years.
Corporate recovery
In recent months, Boeing has continued to receive positive signals across key business areas. In June, the U.S. Space Force selected the company to implement a next-generation satellite program worth up to $2 billion. In June, Boeing delivered 60 commercial aircraft to customers, including 51 737 Max jets and six wide-body 787 Dreamliner aircraft
Earlier, the FAA allowed Boeing to move to the next stage of certification for the 777X wide-body aircraft, and the pace of commercial aircraft deliveries continues to rise after resolving supply-chain and production issues. According to Freedom Broker analysts, the successful implementation of these projects will be one of the main factors in restoring the company’s financial performance in the coming years.
This is not an individual investment recommendation.