Boeing Posts Gains Amid Labor, Regulatory Challenges

Boeing reported a 35% year-over-year revenue increase in the second quarter of 2025, reaching $22.75 billion, fueled by a sharp rise in commercial aircraft deliveries from 92 to 150 units. The net loss narrowed to approximately $611–$612 million from $1.44 billion the prior year, surpassing analyst expectations. The Commercial Airplanes division contributed $10.9 billion in revenue, secured 455 net new orders, and expanded its backlog to over 5,900 planes valued at $522 billion. Despite these gains, Boeing continues to report negative free cash flow and faces persistent challenges, including regulatory production restrictions, delayed FAA certifications, supply chain issues, and a potential strike by over 3,200 union workers at its defense plants. The Defense, Space & Security and Global Services divisions also posted revenue growth and backlog increases. CEO Kelly Ortberg highlighted ongoing progress in operational recovery, safety, and quality, but emphasized that full recovery depends on resolving labor disputes and regulatory hurdles.