Boeing Company - First Quarter Financial Results
Boeing Reports First Quarter Results
ARLINGTON,
Va.,
First Quarter 2026
-- Revenue increased to $22.2 billion primarily reflecting 143
commercial deliveries
-- GAAP loss per share of ($0.11 ) and core loss per share (non-GAAP)* of
($0.20 )
-- Operating cash flow of ($0.2) billion and free cash flow
(non-GAAP)* of ($1.5) billion
-- Total company backlog grew to a record $695 billion , including
over 6,100 commercial airplanes
______________________________________________________________________________ | Table 1. Summary Financial Results || First Quarter || | |_______________________________________||________________________||___________| | (Dollars in Millions, except per share|| 2026 || 2025 || Change | |data) || || || | |_______________________________________||___________||___________||___________| | || || || | |_______________________________________||___________||___________||___________| | Revenues ||$22,217 ||$19,496 || 14 % | |_______________________________________||___________||___________||___________| | || || || | |_______________________________________||___________||___________||___________| |GAAP || || || | |_______________________________________||___________||___________||___________| | Earnings from operations ||$448 ||$461 || (3) %| |_______________________________________||___________||___________||___________| | Operating margins || 2.0 %|| 2.4 %|| (0.4) Pts | |_______________________________________||___________||___________||___________| | Net loss || ($7 ) || ($31 ) || NM | |_______________________________________||___________||___________||___________| | Diluted loss per share || ($0.11 ) || ($0.16 ) || NM | |_______________________________________||___________||___________||___________| | Operating cash flow || ($179 ) || ($1,616 ) || NM | |_______________________________________||___________||___________||___________| | || || || | |_______________________________________||___________||___________||___________| |Non-GAAP* || || || | |_______________________________________||___________||___________||___________| | Core operating earnings ||$293 ||$199 || 47 % | |_______________________________________||___________||___________||___________| | Core operating margins || 1.3 %|| 1.0 %|| 0.3 Pts | |_______________________________________||___________||___________||___________| | Core loss per share || ($0.20 ) || ($0.49 ) || NM | |_______________________________________||___________||___________||___________|
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
"We're building on our momentum with a strong start to the year and growing record-breaking backlog across our business, while supporting our customers with inspiring missions like Artemis II," said
___________________________________________________________________ | Table 2. Cash Flow || First Quarter | |_____________________________________________||____________________| | (Millions) || 2026 || 2025 | |_____________________________________________||_________||_________| | Operating cash flow || ($179 ) || ($1,616 )| |_____________________________________________||_________||_________| |Less additions to property, plant & equipment|| ($1,275 )|| ($674 ) | |_____________________________________________||_________||_________| | Free cash flow* || ($1,454 )|| ($2,290 )| |_____________________________________________||_________||_________|
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was
___________________________________________________________________________ | Table 3. Cash, Marketable Securities and Debt Balances|| Quarter End | |_______________________________________________________||__________________| | (Billions) || 1Q 2026|| 4Q 2025| |_______________________________________________________||________||________| | Cash and investments in marketable securities 1 ||$20.9 ||$29.4 | |_______________________________________________________||________||________| | Consolidated debt ||$47.2 ||$54.1 | |_______________________________________________________||________||________|
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities totaled
Segment Results
Commercial Airplanes
________________________________________________________________________ | Table 4. Commercial Airplanes|| First Quarter || | |______________________________||____________________________||__________| | (Dollars in Millions) || 2026 || 2025 || Change | |______________________________||_____________||_____________||__________| | || || || | |______________________________||_____________||_____________||__________| | Deliveries || 143 || 130 || 10 %| |______________________________||_____________||_____________||__________| | || || || | |______________________________||_____________||_____________||__________| | Revenues ||$9,203 ||$8,147 || 13 %| |______________________________||_____________||_____________||__________| | Loss from operations || ($563 ) || ($537 ) || NM | |______________________________||_____________||_____________||__________| | Operating margins || (6.1) %|| (6.6) %|| NM | |______________________________||_____________||_____________||__________|
Commercial Airplanes first quarter revenue of
The 737 program continues to produce at a 42 per month rate. In the quarter, 737-10 began the Type Inspection Authorization 2 and made progress on this final phase of certification flight testing. We expect certification of the 737-7 and 737-10 in 2026 and the company anticipates first delivery in 2027. The 787 program continued stabilizing production at eight per month. We also received
Commercial Airplanes booked 140 net orders in the quarter, including 25 737-10 and 25 737-8 airplanes for
Defense, Space & Security
_________________________________________________________________________ | Table 5. Defense, Space & Security|| First Quarter || | |___________________________________||________________________||__________| | (Dollars in Millions) || 2026 || 2025 || Change | |___________________________________||___________||___________||__________| | || || || | |___________________________________||___________||___________||__________| | Revenues ||$7,599 ||$6,298 || 21 %| |___________________________________||___________||___________||__________| | Earnings from operations ||$233 ||$155 || 50 %| |___________________________________||___________||___________||__________| | Operating margins || 3.1 %|| 2.5 %|| 0.6 Pts | |___________________________________||___________||___________||__________|
Defense, Space & Security first quarter revenue of
During the quarter, Defense, Space & Security signed a seven-year framework agreement to expand PAC-3 Seeker production and announced a strategic partnership with Rheinmetall to offer the MQ-28 Ghost Bat to
Global Services
_________________________________________________________________ | Table 6. Global Services|| First Quarter || | |_________________________||__________________________||__________| | (Dollars in Millions) || 2026 || 2025 || Change | |_________________________||____________||____________||__________| | || || || | |_________________________||____________||____________||__________| | Revenues ||$5,370 ||$5,063 || 6 % | |_________________________||____________||____________||__________| | Earnings from operations||$971 ||$943 || 3 % | |_________________________||____________||____________||__________| | Operating margins || 18.1 %|| 18.6 %|| (0.5) Pts| |_________________________||____________||____________||__________|
Global Services first quarter revenue was
During the quarter, Global Services secured the largest-ever Landing Gear Exchange Program agreement with
Additional Financial Information
____________________________________________________________ | Table 7. Additional Financial Information|| First Quarter | |__________________________________________||________________| | (Dollars in Millions) || 2026 || 2025 | |__________________________________________||_______||_______| | Revenues || || | |__________________________________________||_______||_______| |Unallocated items, eliminations and other ||$45 || ($12 ) | |__________________________________________||_______||_______| | Earnings/(loss) from operations || || | |__________________________________________||_______||_______| |Unallocated items, eliminations and other || ($348 )|| ($362 )| |__________________________________________||_______||_______| |FAS/CAS service cost adjustment ||$155 ||$262 | |__________________________________________||_______||_______| | Other income, net ||$194 ||$323 | |__________________________________________||_______||_______| | Interest and debt expense || ($616 )|| ($708 )| |__________________________________________||_______||_______| | Income Tax Expense || ($33 ) || ($107 )| |__________________________________________||_______||_______|
Unallocated items, eliminations and other primarily reflects timing of allocations.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in
Core Operating Earnings/(Loss), Core Operating Margins and Core Earnings/(Loss) Per Share
Core operating earnings/(loss) is defined as GAAP
Earnings/(
l
oss) from operations
excluding the
FAS/CAS service cost adjustment.
The
FAS/CAS service cost adjustment
represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margins is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP
Diluted earnings/(loss) per share
excluding the net earnings/(loss) per share impact of the
FAS/CAS service cost adjustment
and
Non-operating pension and postretirement expenses
. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment . Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for a reconciliation of free cash flow to the most directly comparable GAAP measure, operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, industry projections and outlooks, plans, objectives and goals, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate.
These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes and geopolitical developments; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Contact: Investor Relations:Eric Hill orMike Harris BoeingInvestorRelations@boeing.com Communications: Wilson Chow media@boeing.com
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three months ended
March 31
(Dollars in millions, except per share data) 2026 2025
Sales of products $18,998 $16,147
Sales of services 3,219 3,349
Total revenues 22,217 19,496
Cost of products (17,031) (14,379)
Cost of services (2,640) (2,700)
Total costs and expenses (19,671) (17,079)
2,546 2,417
Loss/income from operating investments, net (10) 3
General and administrative expense (1,197) (1,112)
Research and development expense, net (903) (844)
Gain/(loss) on dispositions, net 12 (3)
Earnings from operations 448 461
Other income, net 194 323
Interest and debt expense (616) (708)
Earnings before income taxes 26 76
Income tax expense (33) (107)
Net loss (7) (31)
Less: net (loss)/earnings attributable to noncontrolling (3) 6
interest
Net loss attributable to Boeing shareholders (4) (37)
Less: Mandatory convertible preferred stock dividends 86 86
accumulated during the period
Net loss attributable to Boeing common shareholders ($90 ) ($123 )
Basic loss per share ($0.11 ) ($0.16 )
Diluted loss per share ($0.11 ) ($0.16 )
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
March 31 December 31
(Dollars in millions, except per share data)
2026 2025
Assets
Cash and cash equivalents $9,441 $10,921
Short-term and other investments 11,464 18,479
Accounts receivable, net 3,485 2,921
Unbilled receivables, net 9,793 9,158
Inventories 87,225 84,679
Other current assets, net 2,733 2,301
Total current assets 124,141 128,459
Financing receivables and operating lease equipment, net 389 241
Property, plant and equipment, net of accumulated
depreciation of $23,961 and 15,763 15,361
$23,613
Goodwill 17,633 17,275
Acquired intangible assets, net 1,517 1,567
Deferred income taxes 136 107
Investments 1,048 1,048
Other assets, net of accumulated amortization of $1,076 4,160 4,177
and $1,014
Total assets $164,787 $168,235
Liabilities and equity
Accounts payable $13,713 $13,109
Accrued liabilities 26,388 27,141
Advances and progress billings 62,591 59,404
Short-term debt and current portion of long-term debt 2,855 8,461
Total current liabilities 105,547 108,115
Deferred income taxes 237 216
Accrued retiree health care 2,059 2,091
Accrued pension plan liability, net 4,198 4,287
Other long-term liabilities 2,405 2,432
Long-term debt 44,354 45,637
Total liabilities 158,800 162,778
Shareholders' equity:
Mandatory convertible preferred stock, 6.00% Series A,
par value $1.00 -
20,000,000 shares authorized; 5,750,000 shares issued; 6 6
aggregate
liquidation preference $5,750
Common stock, par value $5.00 – 1,200,000,000 shares
authorized; 5,061 5,061
1,012,261,159 shares issued
Additional paid-in capital 21,671 21,441
Treasury stock, at cost - 224,344,344 and 227,562,887 (27,647) (28,029)
shares
Retained earnings 17,162 17,252
Accumulated other comprehensive loss (10,266) (10,277)
Total shareholders' equity 5,987 5,454
Noncontrolling interests 3
Total equity 5,987 5,457
Total liabilities and equity $164,787 $168,235
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Three months
ended
March 31
(Dollars in millions) 2026 2025
Cash flows – operating activities:
Net loss ($7 ) ($31 )
Adjustments to reconcile net loss to net cash used by
operating activities:
Non-cash items –
Share-based plans expense 161 135
Treasury shares issued for 401(k) contributions 466 418
Depreciation and amortization 573 466
Investment/asset impairment charges, net 9 7
(Gain)/loss on dispositions, net (12) 3
Other charges and credits, net 45 99
Changes in assets and liabilities –
Accounts receivable (509) (570)
Unbilled receivables (635) (671)
Advances and progress billings 3,181 781
Inventories (2,634) (1,521)
Other current assets (418) (29)
Accounts payable 1,073 (95)
Accrued liabilities (1,260) (386)
Income taxes receivable, payable and deferred (16) 26
Other long-term liabilities (49) (151)
Pension and other postretirement plans (22) (150)
Financing receivables and operating lease equipment, net (156) 12
Other 31 41
Net cash used by operating activities (179) (1,616)
Cash flows – investing activities:
Payments to acquire property, plant and equipment (1,275) (674)
Proceeds from disposals of property, plant and equipment 2 3
Contributions to investments (9,265) (8,797)
Proceeds from investments 16,256 7,750
Supplier notes receivable (3)
Other (4) 1
Net cash provided/(used) by investing activities 5,711 (1,717)
Cash flows – financing activities:
New borrowings 24 29
Debt repayments (6,950) (295)
Employee taxes on certain share-based payment arrangements (31) (14)
Dividends paid on mandatory convertible preferred stock (86) (72)
Other 15 14
Net cash used by financing activities (7,028) (338)
Effect of exchange rate changes on cash and cash equivalents 1 12
Net decrease in cash & cash equivalents, including restricted (1,495) (3,659)
Cash & cash equivalents, including restricted, at beginning of 11,663 13,822
year
Cash & cash equivalents, including restricted, at end of 10,168 10,163
period
Less restricted cash & cash equivalents, included in 727 21
Investments
Cash & cash equivalents at end of period $9,441 $10,142
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Three months
ended
March 31
(Dollars in millions) 2026 2025
Revenues:
Commercial Airplanes $9,203 $8,147
Defense, Space & Security 7,599 6,298
Global Services 5,370 5,063
Unallocated items, eliminations and other 45 (12)
Total revenues $22,217 $19,496
Earnings from operations:
Commercial Airplanes ($563 ) ($537 )
Defense, Space & Security 233 155
Global Services 971 943
Segment operating earnings 641 561
Unallocated items, eliminations and other (348) (362)
FAS/CAS service cost adjustment 155 262
Earnings from operations 448 461
Other income, net 194 323
Interest and debt expense (616) (708)
Earnings before income taxes 26 76
Income tax expense (33) (107)
Net loss (7) (31)
Less: Net (loss)/earnings attributable to noncontrolling (3) 6
interest
Net loss attributable to Boeing shareholders (4) (37)
Less: Mandatory convertible preferred stock dividends 86 86
accumulated during the period
Net loss attributable to Boeing common shareholders ($90 ) ($123 )
Research and development expense, net:
Commercial Airplanes $603 $534
Defense, Space & Security 174 199
Global Services 22 29
Other 104 82
Total research and development expense, net $903 $844
Unallocated items, eliminations and other:
Share-based plans ($55 ) ($30 )
Deferred compensation 17 5
Amortization of previously capitalized interest (22) (21)
Research and development expense, net (104) (82)
Eliminations and other unallocated items (184) (234)
Sub-total (included in Core operating earnings) (348) (362)
Pension FAS/CAS service cost adjustment 93 193
Postretirement FAS/CAS service cost adjustment 62 69
FAS/CAS service cost adjustment $155 $262
Total ($193 ) ($100 )
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Three
Deliveries months
ended
March 31
Commercial Airplanes 2026 2025
737 114 105
767 6 5
777 8 7
787 15 13
Total 143 130
Defense, Space & Security
AH-64 Apache (New) 2 4
AH-64 Apache (Remanufactured) 15 11
CH-47 Chinook (New) 1 1
CH-47 Chinook (Renewed) 1 2
F-15 Models 1 1
F/A-18 Models 2 5
KC-46 Tanker 4 —
MH-139 2 1
P-8 Models 1 1
Commercial Satellites 1 —
Total 1 30 26
1 Deliveries of new-build production units, including remanufactures and modifications
March 31 December 31
Total backlog (Dollars in millions)
2026 2025
Commercial Airplanes $575,583 $567,290
Defense, Space & Security 85,821 84,786
Global Services 32,957 29,720
Unallocated items, eliminations and other 348 411
Total backlog $694,709 $682,207
Contractual backlog $652,671 $639,721
Unobligated backlog 42,038 42,486
Total backlog $694,709 $682,207
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating earnings/(loss), core operating margins, and core earnings/(loss) per share with the most directly comparable GAAP financial measures of earnings/(loss) from operations, operating margins, and diluted earnings/(loss) per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except per First Quarter 2026 First Quarter 2025
share data)
$ millions Per Share $ millions Per Share
Revenues $22,217 $19,496
Earnings from operations (GAAP) 448 461
Operating margins (GAAP) 2.0 % 2.4 %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost (93) (193)
adjustment
Postretirement FAS/CAS service (62) (69)
cost adjustment
FAS/CAS service cost adjustment (155) (262)
Core operating earnings $293 $199
(non-GAAP)
Core operating margins 1.3 % 1.0 %
(non-GAAP)
Diluted loss per share (GAAP) ($0.11 ) ($0.16 )
Pension FAS/CAS service cost ($93 ) ($0.12 ) ($193 ) ($0.26 )
adjustment
Postretirement FAS/CAS service (62) (0.08) (69) (0.09)
cost adjustment
Non-operating pension income 74 0.10 (43) (0.06)
Non-operating postretirement (9) (0.01) (5) (0.01)
income
Provision for deferred income 19 0.02 65 0.09
taxes on adjustments 1
Subtotal of adjustments ($71 ) ($0.09 ) ($245 ) ($0.33 )
Core loss per share (non-GAAP) ($0.20 ) ($0.49 )
Diluted weighted average common
shares outstanding (in 788.0 753.4
millions)
1 The income tax impact is calculated using theU.S. corporate statutory tax rate.
