Boeing's losses narrowed to USD 31 million in the first quarter of 2025, leading to a 6% rise in its stock price due to better-than-expected performance.
In Boeing's first quarter 2025 financial report, despite U.S.-China trade tensions leading to China suspending the reception of new aircraft, Boeing narrowed its losses to $31 million, a decrease of over 90% compared to the same period last year, thanks to an increase in commercial aircraft deliveries and improved operational efficiency. As a result, Boeing's stock price rose by 6.06% on April 23. Boeing CEO Dave Calhoun stated that the company is advancing its recovery plan and considers 2025 a key year for transformation.
Key Updates
04/24 09:02
Boeing's losses narrowed to USD 31 million in the first quarter of 2025, leading to a 6% rise in its stock price due to better-than-expected performance.
In Boeing's first quarter 2025 financial report, despite U.S.-China trade tensions leading to China suspending the reception of new aircraft, Boeing narrowed its losses to $31 million, a decrease of over 90% compared to the same period last year, thanks to an increase in commercial aircraft deliveries and improved operational efficiency. As a result, Boeing's stock price rose by 6.06% on April 23. Boeing CEO Dave Calhoun stated that the company is advancing its recovery plan and considers 2025 a key year for transformation.
Surge in Commercial Aircraft Deliveries Boosts Revenue by 18%
According to Boeing's first-quarter 2025 financial report, the company's revenue reached $19.5 billion, an 18% increase from $16.57 billion in the same period last year, primarily benefiting from a significant rise in commercial aircraft deliveries from 83 to 130 aircraft. The commercial aviation sector's revenue grew by 75% year-over-year, reaching $8.1 billion, becoming the main driver of overall performance.
Despite facing supply chain bottlenecks and quality control pressures, Boeing successfully managed costs, reducing core loss per share to $0.49, far better than the market's expected loss of $1.29, and significantly improved from last year's loss of $1.13. Net loss narrowed from $355 million in the same period last year to $31 million.
Improvement in Free Cash Flow; Defense Sector Returns to Profitability
Investors' focus on free cash flow (FCF) also showed significant improvement. The first-quarter free cash flow deficit was $2.29 billion, better than the market's expected deficit of $3.42 billion, and significantly reduced from last year's deficit of $3.9 billion. There was an operating cash flow deficit of $1.6 billion.
Boeing's Defense, Space & Security division returned to profitability this quarter after three consecutive quarters of losses, with an operating profit of $155 million, slightly higher than last year's $151 million. The division's revenue was $6.3 billion, down 9% year-over-year, but it secured a contract for the U.S. Air Force's new F-47 fighter jets, providing a positive outlook for future operations.
Rising U.S.-China Trade Tensions; China Halts New Aircraft Deliveries
However, Boeing's international business still faces geopolitical risks. CEO Osterberg confirmed that due to the U.S.-China trade war, China has suspended the acceptance of new aircraft. Of the three 737 MAX planes originally scheduled for delivery to China, two have been forced to return to the U.S. Osterberg noted that the Chinese market accounts for about 10% of Boeing's commercial aircraft backlog, with plans to deliver about 50 planes this year.
"We will not let this affect the company's recovery," Osterberg stated in a conference call with analysts. "If Chinese customers do not accept, we will reallocate the planes to other airlines with demand."
Boeing has already received inquiries from airlines in other countries, preparing to take over the planes originally intended for China. Osterberg emphasized that the company is maintaining close communication with the White House and closely monitoring potential retaliatory tariff measures from Europe.
Focus on Increasing 737 MAX Production; Hopes for Positive Cash Flow in Second Half
Boeing views the 737 MAX as key to cash flow recovery. The company plans to increase the monthly production of the 737 MAX from the January level to 38 aircraft by the end of 2025, reaching the limit set by the Federal Aviation Administration (FAA). Osterberg stated that if approved by regulators, Boeing will further apply to increase production capacity to 42 aircraft per month.
Additionally, Boeing is actively selling non-core assets to strengthen its financial structure. On April 22, Boeing announced the sale of its digital aviation solutions business, including navigation company Jeppesen, to private equity firm Thoma Bravo for $10.55 billion in cash. Chief Financial Officer Brian West stated that this transaction will help reduce debt and focus on core business.
In a letter to employees, Osterberg noted, "We are moving in the right direction, from aircraft deliveries to key wins in next-generation fighter jets, our recovery plan is making progress in all four key areas."
Strong Market Reaction; Stock Price Hits One-Month High
Encouraged by better-than-expected financial results and production increase plans, Boeing's stock price surged 8.7% during the trading day on April 23, reaching $176.58, and closed up 6.06% at $172.37, marking a new high since March 28 and becoming the top performer among Dow Jones Industrial Average stocks that day. Since the beginning of the year, Boeing's stock price decline has narrowed to 2.62%.
Analysts generally believe that although Boeing's financial report still shows a loss this quarter, the loss has significantly narrowed, coupled with improved cash flow and production recovery, offering strong support for the company's recovery. Despite the uncertainty in U.S.-China trade relations, Boeing has demonstrated the ability to steadily advance operations in adversity.
