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Boeing Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 22 April 2026: press release. Guidance figures: 2 new, 2 kept. The quarter’s numbers.

Key takeaways

  • Revenue rose on deliveries: Revenue was $22.2 billion, up 14 percent from $19.5 billion, primarily reflecting 143 commercial deliveries against 130 a year earlier. Management attributed results to delivery volume, operational performance and order timing. Source
  • Loss per share smaller on both bases: GAAP diluted loss per share was ($0.11) against ($0.16). Core loss per share, a non-GAAP measure, was ($0.20) against ($0.49), excluding FAS/CAS service cost and non-operating pension items. Source
  • 737-10 enters final certification phase: The 737-10 began Type Inspection Authorization 2 in the quarter and made progress on the final phase of certification flight testing. Source
  • Operating cash flow negative: Operating cash flow was ($0.2) billion against ($1.6) billion a year earlier, which the company attributes to higher commercial deliveries. Source
  • Cash and securities fell in quarter: Cash and marketable securities totaled $20.9 billion, down from $29.4 billion at the start of the quarter, which the company attributes to debt repayments and free cash flow usage. Source
  • Total backlog reached a record: Total backlog grew to $695 billion from $682 billion at December 31, with all three segments at record levels. Source

“We're building on our momentum with a strong start to the year and growing record-breaking backlog across our business”

Kelly Ortberg, Boeing president and chief executive officer

Guidance

AreaPeriodFigureAgainst last quarter
Commercial Airplanes, 737 production rate SourceCurrent quarter42 per monthKept
737-7 and 737-10 certification Source20262026New
737-7 and 737-10 first delivery Source20272027New
777X first delivery Source20272027Kept

What changed from last quarter

  • New guidance: Certification of the 737-7 and 737-10 is now given a 2026 timing, which the prior release did not state. Source
  • Guidance kept: 777X first delivery timing remains 2027, the same timing the prior release gave. Source
  • New: FAA certified the 787-9 and 787-10 for an increased maximum takeoff weight during the quarter. Source
  • New: Defense, Space & Security signed a seven-year framework agreement to expand PAC-3 Seeker production. Source
  • New: Defense, Space & Security announced a partnership with Rheinmetall to offer the MQ-28 Ghost Bat to Germany. Source
  • New: Global Services secured its largest-ever Landing Gear Exchange Program agreement, with Singapore Airlines Group. Source

Quarter results and drivers

  • Revenue rose on deliveries: Revenue was $22.2 billion, up 14 percent from $19.5 billion, primarily reflecting 143 commercial deliveries against 130 a year earlier. Management attributed results to delivery volume, operational performance and order timing. Source
  • Loss per share smaller on both bases: GAAP diluted loss per share was ($0.11) against ($0.16). Core loss per share, a non-GAAP measure, was ($0.20) against ($0.49), excluding FAS/CAS service cost and non-operating pension items. Source
  • Core operating earnings rose 47 percent: Core operating earnings were $293 million against $199 million, with core margin of 1.3 percent against 1.0 percent. GAAP earnings from operations were $448 million against $461 million, at a 2.0 percent margin against 2.4 percent. Source

Commercial Airplanes

  • Commercial loss narrowed on volume: Revenue was $9.2 billion, up 13 percent. The operating loss was ($563) million against ($537) million, and the margin was (6.1) percent against (6.6) percent. Source
  • 737-10 enters final certification phase: The 737-10 began Type Inspection Authorization 2 in the quarter and made progress on the final phase of certification flight testing. Source
  • 787-9 and 787-10 weight certified: FAA certified the 787-9 and 787-10 for a higher maximum takeoff weight, which management described as an important capability for customers. Source
  • 777-9 certification testing continues: The FAA approved the 777-9 to begin Type Inspection Authorization 4a, a phase of certification flight testing, in the quarter. Source
  • Deliveries of 143 airplanes: Commercial Airplanes delivered 143 airplanes in the quarter, against 130 a year earlier, with the 737 accounting for 114 of them. Source

“With a continued focus on safety and quality, we're delivering high-quality commercial and defense products and services, while increasing production to uphold our customer commitments and get back to the iconic global aerospace company that leads our industry.”

Kelly Ortberg, Boeing president and chief executive officer

Defense, Space & Security

  • Defense revenue and margin rose: Revenue was $7.6 billion, up 21 percent. Operating margin was 3.1 percent against 2.5 percent, on higher volume and stabilizing operational performance. Source
  • PAC-3 Seeker production framework signed: The segment signed a seven-year framework agreement to expand PAC-3 Seeker production during the quarter. Source
  • MQ-28 offer to Germany with Rheinmetall: A strategic partnership with Rheinmetall is intended to offer the MQ-28 Ghost Bat to Germany, announced in the quarter. Source
  • Artemis II mission completed: Artemis II completed its moon mission in April, propelled by the Boeing-built Space Launch System core stage rocket. Source
  • Defense backlog reached record level: Segment backlog grew to a record $86 billion, with 27 percent of it from customers outside the U.S. Source

Global Services

  • Services revenue up on government: Revenue was $5.4 billion, up 6 percent. Operating margin was 18.1 percent against 18.6 percent, and management cites the Digital Aviation Solutions divestiture for the margin. Source
  • Largest Landing Gear Exchange agreement: The segment secured its largest-ever Landing Gear Exchange Program agreement, with Singapore Airlines Group, and received initial FAA and EASA qualification for 777-9 training devices. Source
  • Services backlog set record: Segment backlog reached a record $33 billion at quarter end, up from $29.7 billion at December 31. Source

Costs, margins and adjustments

  • FAS/CAS adjustment declined: The FAS/CAS service cost adjustment was $155 million against $262 million, the amount excluded from core operating earnings. Pension and postretirement components were $93 million and $62 million. Source
  • Unallocated items reflect allocation timing: Unallocated items, eliminations and other were ($348) million against ($362) million. The company says this primarily reflects timing of allocations. Source
  • Interest, tax and other income lower: Other income, net was $194 million against $323 million. Interest and debt expense was $616 million against $708 million, and income tax expense was $33 million against $107 million. Source
  • Diluted share count higher: Diluted weighted average shares were 788.0 million against 753.4 million a year earlier. Core per-share adjustments were smaller in the period. Source

Cash flow and balance sheet

  • Operating cash flow negative: Operating cash flow was ($0.2) billion against ($1.6) billion a year earlier, which the company attributes to higher commercial deliveries. Source
  • Capital spending rose on two sites: Additions to property, plant and equipment were ($1.3) billion against ($0.7) billion, and free cash flow (non-GAAP) was ($1.5) billion. Source
  • Cash and securities fell in quarter: Cash and marketable securities totaled $20.9 billion, down from $29.4 billion at the start of the quarter, which the company attributes to debt repayments and free cash flow usage. Source

Backlog and orders

  • Total backlog reached a record: Total backlog grew to $695 billion from $682 billion at December 31, with all three segments at record levels. Source
  • Commercial orders from named customers: Commercial Airplanes booked 140 net orders, including 25 737-10 and 25 737-8 for Aviation Capital Group, 30 787-10 for Delta Air Lines and 20 737-8 for Air India. Source
  • Contractual and unobligated backlog: Contractual backlog was $652.7 billion and unobligated backlog $42.0 billion, against $639.7 billion and $42.5 billion at December 31. Source

Capital and shareholder payments

  • Preferred dividends paid: Dividends paid on the mandatory convertible preferred stock were $86 million, against $72 million a year earlier. Source
  • Debt repayments of $6.95 billion: Debt repayments were $6.95 billion against $295 million a year earlier. Consolidated debt was $47.2 billion, against $54.1 billion at year-end. Source
  • Undrawn credit facilities: The company maintains access to $10.0 billion of credit facilities, all of which remain undrawn. Source

Coming up, as management said on 22 April 2026

  • 737-7 and 737-10 certification and first delivery: Management expects certification of the 737-7 and 737-10 in 2026, with first delivery anticipated in 2027. Source
  • 777-9 certification flight testing continues: The 777-9 moves through certification flight testing, with first delivery anticipated in 2027. Source
  • Production increase to meet commitments: Management said it is increasing production to uphold its customer commitments. Source

Figures management reported

FigureReported
Deliveries Source143 commercial airplanes in the quarter, against 130 a year earlier
Backlog Source$695 billion total company backlog
Backlog, Commercial Airplanes Source$575,583 million
Backlog, Defense, Space & Security Source$86 billion, a record
Backlog, Global Services Source$33 billion, a record

Risks management discussed

  • Regulatory: The 737-10 remains in its final certification phase, so timing of certification depends on flight testing still in progress. Source
  • Regulatory: The 777-9 certification testing continues, with FAA approval for the next phase received in the quarter. Source
  • Financial: Global Services operating margin reflects the impact of the Digital Aviation Solutions divestiture. Source

Earlier plans management reported on

  • Not stated: The prior release said the 737 rate was increased to 42 per month; this release says it continues at that rate. Source
  • Not stated: The prior release said the 787 program remained focused on stabilizing at eight per month; this release says stabilizing continued. Source
  • Not stated: The prior release said the company still anticipated first 777X delivery in 2027; this release repeats that timing. Source
  • Not stated: Management refers to increasing production to uphold customer commitments, without a status update. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.