Boeing reported first-quarter net income of $890 million on Friday, the company's first quarterly profit in over two years and a sharp turnaround from the $1.4 billion loss in Q1 2025. Revenue rose 28% year-over-year to $22.4 billion, beating consensus by approximately $1.1 billion, with strength across both Commercial Airplanes and Defense segments.
Boeing shares surged 12.4% to $238.40 on Friday, the largest single-day gain since 2020, as the results cemented investor confidence that the multi-year operational restructuring under CEO Kelly Ortberg has reached an inflection point. The stock has now gained 38% year-to-date, recovering all of its 2024 declines and trading at the highest level since the second 737 MAX grounding episode in 2024.
737 MAX Production at 42 per Month
Commercial Airplanes delivered 168 aircraft during the quarter, up 64% from 102 a year earlier. The 737 MAX line in Renton reached the Federal Aviation Administration-approved cap of 42 deliveries per month in March, with the company now seeking approval to advance to 50 per month by year-end. The 787 widebody program delivered 28 units, the highest quarterly figure since 2018.
Cash flow turned strongly positive at $1.8 billion, versus a cash burn of $3.2 billion in Q1 2025, and free cash flow reached $1.4 billion. The improvement allowed Boeing to begin reducing its $52 billion gross debt load, retiring $4 billion of senior notes during the quarter. Ortberg told analysts the company expects to generate $8-10 billion in free cash flow for the full year 2026.
Order Backlog Climbs to Record
Net new orders during the quarter totaled 412 aircraft, lifting the firm-order backlog to a record 6,820 units valued at $580 billion at list prices. Major orders included 142 737 MAX from IndiGo, 80 from Saudi Airlines, and 50 787-9s from Emirates. The cumulative backlog now represents approximately 13 years of production at planned rates.
Defense, Space & Security posted operating income of $310 million versus a loss of $145 million a year earlier, benefiting from the resolution of fixed-price contract overruns on the KC-46 tanker and T-7A Red Hawk programs. The Air Force F-47 NGAD contract continues to ramp on schedule with first flight targeted for Q3 2026. Bank of America raised its Boeing price target to $290 from $245.