Boeing NYSE:BA, a major U.S. manufacturer of commercial aircraft and defense systems, rose more than 1.5% in premarket trading despite reporting a larger-than-expected second-quarter loss. The company recorded a $280 million charge associated with higher engineering costs for its delayed Air Force One replacement program. The charge contributed to a quarterly net loss of $428 million.
Boeing reported a core loss of $0.76 per share, compared with the $0.30 loss expected by analysts surveyed by LSEG. The result nevertheless improved from the $1.24-per-share core loss recorded one year earlier. Free cash flow reached $631 million, compared with negative $200 million during the second quarter of 2025, partly because customer payments were higher than anticipated.
The company maintained its forecast for $1 billion to $3 billion in annual free cash flow, which would represent its first positive yearly result since 2023. Boeing is increasing 737 MAX production and investing in additional 787 manufacturing capability in South Carolina and military-aircraft production around St. Louis. Financially, quarterly free cash flow improved by $831 million from the previous year, potentially helping investors look beyond the additional Air Force One charge. The two presidential aircraft are being produced under a $3.9 billion fixed-price contract signed in 2018 that is four years behind schedule and more than $1 billion over budget, leaving program execution as a continuing investor concern.