Boeing Clocks 18% Q1 Topline Growth, Plans Production Expansion For 737 And 787

Boeing Co BA stock soared on Wednesday following the company’s stronger-than-expected first-quarter 2025 results.

Revenue increased 18% year over year to $19.496 billion, beating the consensus of $19.43 billion.

Adjusted loss per share improved to 0.49 cents from $1.13 in the same quarter of 2024. It beat the consensus of a $1.27 loss per share.

The company reported an operating cash outflow of $1.6 billion and a free cash outflow of $2.3 billion, driven by enhanced operational performance and higher commercial delivery volume. These figures include only the tariffs implemented by March 31.

Also Read: Boeing Finalizes $10.55 Billion Deal To Divest Jeppesen And ForeFlight Assets

Boeing recorded an adjusted operating income of $199 million for the quarter, compared to an adjusted operating loss of $388 million a year ago. The core operating margin recovered to 1% from (2.3)% a year ago.

“Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality. We continue to execute our plan, are seeing early positive results and remain committed to making the fundamental changes needed to fully recover the company’s performance while navigating the current environment,” commented Kelly Ortberg, Boeing president and chief executive officer.

Commercial Airplanes revenue rose 75% year over year to $8.157 billion, and an operating margin of -6.6%, driven by higher deliveries. The 737 program gradually increased production, aiming for 38 per month this year, while the 787 program stabilized at five per month, with plans to expand to seven.

The 777X program began expanded FAA certification testing, with the first 777-9 delivery expected in 2026. The division booked 221 net orders and delivered 130 airplanes, with a backlog of over 5,600 planes valued at $460 billion.

Defense, Space & Security revenue slid 9% year over year to $6.298 billion. The backlog was $62 billion, of which 29% represents orders from customers outside the U.S.

Global Services revenue was flat year over year at $5.01 billion, with an operating margin of 18.6%, up 40 bps, driven by favorable performance and mix.

In April, the company agreed to sell parts of its Digital Aviation Solutions business to Thoma Bravo for $10.55 billion. The deal includes assets like Jeppesen and ForeFlight and is expected to close by the end of 2025, pending regulatory approval.

Boeing’s cash and investments in marketable securities rose to $23.7 billion from $26.3 billion, primarily driven by the quarter’s free cash flow usage. Debt was $53.9 billion, and it holds $10 billion in undrawn credit facilities.

Total backlog grew 5% sequentially to $544.74 billion, including over 5,600 commercial airplanes.

Last week, A Boeing aircraft intended for China was redirected to the U.S. amid escalating tariff tensions, with reports of a potential Chinese ban on Boeing imports.

While China’s move could benefit Airbus, it may also harm Comac, which relies on U.S. technology for its C919 model. Boeing’s deliveries face uncertainty, but the ongoing trade dispute highlights the company’s significant role in the global aviation market.

Price Action: At the last check on Wednesday, BA shares were trading higher by 5.67% at $171.74 premarket.

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