BA 2026 Q2

BCA delivered 171 airplanes in the quarter, the highest quarterly total since 2018, driven by increased production rates and stabilized factory flow.

“delivering 171 airplanes in the quarter, the highest quarterly total since 2018”— Jay Malave, Executive Vice President and Chief Financial Officer

Company backlog reached a record $715 billion, including BCA's record $597 billion and over 6,200 airplanes, reflecting sustained strong demand across segments.

“we're ramping up production to deliver on our record $715 billion backlog”— Kelly Ortberg, President and Chief Executive Officer

Boeing and Korean Air finalized a $36.2 billion order for 103 aircraft, boosting Boeing's backlog. Boeing (BA) Strengthens its Backlog with Korean Air’s 103-Aircraft Commitment — insidermonkey.com · 22 September 2026

787 engine deliveries fell behind schedule in the first half of the year, prompting a recovery plan with GE, with deliveries expected to resume in Q3 ahead of the rate 10 move.

“we have fallen behind deliveries in the first half of the year”— Kelly Ortberg, President and Chief Executive Officer

Boeing began low-rate 737 MAX production on a new North Line in Everett this month, a first-time step enabling the planned move to a 52-per-month rate.

“we began low-rate MAX production on our North Line, which enables us to reach our next planned rate break of 52 per month”— Kelly Ortberg, President and Chief Executive Officer

787 production was temporarily halted for several days in April to let the supply chain recover, before stabilizing at 8 per month.

“We did take the decision to temporarily slow production systems for several days in April to allow portions of the supply chain to recover.”— Kelly Ortberg, President and Chief Executive Officer

Defense demand strengthened notably in missiles and munitions and secure communications satellites programs, a new pocket of accelerating demand within BDS.

“notable increased demand in missiles and munitions and secure communications satellites programs”— Kelly Ortberg, President and Chief Executive Officer

Boeing completed its 13-satellite O3b mPOWER constellation for SES, supporting its secure communications satellite business. Boeing (BA) Completes 13-Satellite O3b mPOWER Constellation — Here’s What It Means for Defense Growth — finance.yahoo.com · 20 September 2026

Management flagged that further 737 rate increases beyond 52 to 57 per month and above will be harder to execute than the current ramp, requiring stronger supplier performance.

“I think it's going to get harder as we go from 52 to 57 and then beyond that”— Kelly Ortberg, President and Chief Executive Officer

Riyadh Air took delivery of the first large batch of previously built 787s that had been held up awaiting seat certification, though similar lumpiness is expected to continue through the year.

“In June, Riyadh Air took delivery of its first 787 Dreamliners, airplanes that were previously built but awaiting seat certification.”— Jay Malave, Executive Vice President and Chief Financial Officer

Government services business saw incremental demand tied to ongoing Middle East operations, a new modest demand tailwind versus prior periods.

“the government service business has seen incremental demand to support ongoing operations”— Kelly Ortberg, President and Chief Executive Officer

777-9 certification flight testing accelerated, now over 55% complete after unlocking the largest remaining test phase, with management expecting the faster pace to continue.

“we've currently completed more than 55% of the certification flight testing and expect our accelerated pace to continue progressing this summer”— Kelly Ortberg, President and Chief Executive Officer

T-7 and MQ-25 both achieved Milestone C during the quarter, securing approval for low-rate initial production, a first-time step advancing both programs toward production deliveries.

“we achieved Milestone C for both the T-7 and the MQ-25 programs, securing approval to begin low rate initial production”— Kelly Ortberg, President and Chief Executive Officer

Boeing's MQ-25A Stingray drone began production after winning a Pentagon contract. Boeing and Lockheed Martin Both Cash In on the Pentagon’s Contract Calendar — finance.yahoo.com · 21 September 2026

NASA is replanning its launch sequence for the Starliner (commercial crew) program, which will affect the timing of crewed and uncrewed launches versus prior plans.

“NASA is replanning their launch sequence, that will have some impact to when we're actually doing the launch”— Kelly Ortberg, President and Chief Executive Officer

A VC-25B reach-forward loss required adding significant resources for build/test schedule support, resulting in a $280 million charge that drove BDS operating margin to negative 0.2% for the quarter.

“these additional investments resulted in a $280 million charge during the quarter”— Kelly Ortberg, President and Chief Executive Officer

Consolidated operating margin increased to 0.6%, reflecting higher segment earnings and lower corporate expense, partially offset by the VC-25B charge.

“Operating margin increased to 0.6%.”— Jay Malave, Executive Vice President and Chief Financial Officer

BCA operating margin improved to negative 2.7% from the prior year, driven by higher delivery volume and favorable mix, including a one-time favorable adjustment.

“Operating margin of negative 2.7% improved compared to last year, primarily driven by increased delivery volume and mix”— Jay Malave, Executive Vice President and Chief Financial Officer

BGS operating margin declined to 18.1% from the prior year due to the Digital Aviation Solutions divestiture, higher costs, and a less favorable mix.

“Operating margin of 18.1% was down from the prior year, primarily related to the impacts of the Digital Aviation Solutions divestiture”— Jay Malave, Executive Vice President and Chief Financial Officer

Management now views KC-46A as very low risk for future cost estimate revisions, a marked improvement in risk perception for a historically troubled fixed-price program.

“KC-46 feels very low risk for the EACs going forward”— Kelly Ortberg, President and Chief Executive Officer

Core earnings per share improved to a loss of $0.76, reflecting higher segment earnings and lower corporate expense, partially offset by the VC-25B program loss.

“Core earnings per share improved to a loss of $0.76”— Jay Malave, Executive Vice President and Chief Financial Officer

Early SPEEA contract negotiations ahead of the October expiration have been respectful and productive so far, a constructive tone that could reduce risk of a labor-related cost or production disruption.

“the tone of those talks have been respectful and productive”— Kelly Ortberg, President and Chief Executive Officer

At the Farnborough Airshow, customers and suppliers expressed renewed confidence in Boeing's team, products, and on-time delivery with higher quality, a shift in stakeholder sentiment versus prior periods.

“Customers and suppliers I spoke with have renewed confidence in our team, products and ability to deliver on time with higher quality”— Kelly Ortberg, President and Chief Executive Officer

The FAA authorized Boeing to resume issuing its own airworthiness certificates for all 737 MAX and 787 airplanes, restoring authority that had been constrained.

“the FAA authorized Boeing to resume issuing airworthiness certificates for all 737 MAX and 787 airplanes”— Kelly Ortberg, President and Chief Executive Officer

Boeing and the Air Force agreed to shift VC-25B certification from an FAA basis to a military certification basis, a change intended to help mitigate certification and flight test risk.

“We have also aligned with the Air Force on moving from an FAA to a military certification basis.”— Kelly Ortberg, President and Chief Executive Officer

For a future new airplane program, management is now considering different, non-traditional business partnerships and ventures with suppliers, potentially including more vertical integration, a shift from past sourcing models.

“different kind of business partnerships, different type of ventures, certainly a different level of engagement with our supply chain depending on the commodity”— Kelly Ortberg, President and Chief Executive Officer

Boeing pledged a new $1 billion investment in Wichita over the next several years in people and capital to address under-utilized capacity ahead of higher 737 and 787 rate ramps.

“we pledged a $1 billion investment over the next several years in both people and capital to improve the facility”— Kelly Ortberg, President and Chief Executive Officer