TLDR
- Boeing stock dropped 3.7% to $201.96 on heavy volume after the CEO said stabilizing 737 MAX production is taking longer than expected.
- Q2 revenue rose 8% to $24.6 billion, but the company posted a $428 million GAAP net loss and missed EPS estimates by $0.42.
- Korean Air finalized a record order for 103 Boeing aircraft worth roughly $36.2 billion, and a 150-jet deal with Turkish Airlines is reportedly close.
- The Pentagon raised Boeing’s KC-46 contract ceiling to $19.1 billion, up from $5.7 billion.
- Wall Street holds a consensus “Moderate Buy” with an average price target of $272.58, well above current trading levels.
Boeing (BA) stock fell 3.7% on Wednesday to $201.96, hitting an intraday low of $197.01 on volume of nearly 12.8 million shares, almost double its daily average. The drop came after CEO Kelly Ortberg said it is taking longer than expected to stabilize 737 MAX production.
That single admission hit hard. The market has been watching Boeing’s production ramp closely, and any delay feeds directly into concerns about cash flow and delivery timelines.
Q2 revenue came in at $24.6 billion, up 8% year over year, beating analyst expectations of $24.26 billion. But the bottom line was a different story. Boeing reported a GAAP net loss of $428 million and EPS of -$0.76, well below the consensus estimate of -$0.34.
Commercial Airplanes delivered 171 aircraft in the quarter but still posted a $322 million operating loss and a -2.7% operating margin. The business is moving more planes out the door, but not yet making money doing it.
Orders Provide Some Cushion
Boeing did land some big wins this week. Korean Air finalized a record order for 103 aircraft, including 777-9 jets, 787 Dreamliners, 737-10 planes and freighters. The deal is valued at roughly $36.2 billion at list prices.
Boeing is also reportedly close to finalizing a delayed order for 150 737 MAX jets from Turkish Airlines after a dispute over engine maintenance. That deal had been in limbo, and closing it would be a meaningful win for the commercial backlog.
Total backlog now stands at a record $715 billion, covering more than 6,200 commercial aircraft. The pipeline is deep. The challenge is converting it into profitable production.
The Pentagon also increased the ceiling on Boeing’s KC-46 Pegasus tanker contract from $5.7 billion to $19.1 billion and expanded it to foreign military sales. No funds were immediately obligated, but the move improves long-term defense revenue visibility.
Balance Sheet Pressure Remains
Boeing ended June with $45.9 billion in consolidated debt against $20 billion in cash and marketable securities. The debt-to-equity ratio sits at 6.77, which leaves limited room for further setbacks.
Jim Cramer weighed in on the stock recently, saying Boeing is “ready to go up” but flagged the crude oil relationship. He noted that when oil rises, Boeing stock tends to fall in roughly the same dollar amount, even though fuel-efficient planes should be a positive in a high-oil environment.
The FAA certified the 737-7 on August 3. Boeing continues working toward certification of the 737-10, with first deliveries of both variants expected in 2027.
Hedge fund ownership dipped from 99 funds in Q1 to 90 in Q2. Pentwater Capital Management, the largest hedge fund holder, trimmed its position by 13% to 6.2 million shares.
Analysts maintain a consensus “Moderate Buy” with an average price target of $272.58. Of 22 analysts tracked, 13 rate it Buy or Strong Buy, six Hold, and three Sell.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
