Boeing: A 14% Revenue Gain Masks Free Cash Flow Pressure!

The Boeing Company reported its first quarter 2026 financial results with consolidated revenue increasing 14% year-over-year to $22.2 billion, reflecting solid growth across its Commercial Airplanes, Defense & Space, and Global Services segments. The company’s operating margin was 2%, down from the prior year due mainly to lower pension-related adjustments, though partially offset by higher segment earnings. Core loss per share narrowed to $0.20. Free cash flow was negative $1.5 billion, attributed primarily to seasonal corporate expenses and planned capital expenditures but was better than recent expectations due to a recovery from the earlier 737 wiring issue and favorable collections. In the Commercial Airplanes segment, revenues grew 13% to $9.2 billion with deliveries reaching 143 airplanes. The 737 program stabilized production at 42 aircraft per month and delivered 114 units, including the final ‘shadow factory’ airplane.