The Boeing Co.‘s BA second-quarter earnings call highlighted a significant positive shift in the global trade environment, with recent agreements under the Donald Trump administration poised to alleviate tariff pressures and bolster the aerospace giant’s massive backlog of over $600 billion.
Check out the current price of BA stock here.
What Happened: Despite exceeding revenue forecasts and narrowing its core loss per share to $1.24, Boeing’s stock initially saw a 4.37% dip, reflecting investor concerns that linger beyond the financial beat.
However, CEO Kelly Orford expressed optimism regarding trade developments, noting that “We're certainly encouraged with the very recent trade deals.”
He specifically cited the “zero for zero” agreements with Japan and the European Union as being particularly helpful in reducing input tariffs, which had previously been projected to have a “less than $500,000,000 impact.”
Orford stated that if the “zero for zero” approach continues, Boeing could “be able to beat that $500,000,000 bogey that we've established here.”
This improved tariff landscape is expected to aid Boeing’s ability to capitalize on its robust backlog, which includes over 5,900 commercial aircraft.
“We're optimistic that future agreements will address aircraft and parts as we work through our diverse backlog of more than $600,000,000,000 for our global customers,” Orford added.
While the trade outlook brightens, Boeing continues to grapple with challenges. The certification of the 737 MAX-7 and -10 variants has been further delayed to 2026 due to technical issues with engine anti-icing solutions. “Work on the solution is taking longer than expected,” Orford acknowledged.
Nevertheless, Boeing affirmed it does not anticipate a material impact on production plans, prepared to build other MAX models for affected customers.
The company also reported progress in stabilizing 737 MAX production, achieving a rate of 38 airplanes per month and aiming for further increases, contingent on FAA approval and key performance indicators.
Why It Matters: It posted an adjusted loss of $1.24 per share, missing analyst expectations of a 94-cent loss, during the second quarter. GAAP loss per share came in at 92 cents.
Revenue climbed 35% year over year to $22.75 billion, beating the Street estimate of $20.20 billion.
Price Action: BA shares rose 0.34% in after-hours on Tuesday. The stock is up 31.54% year-to-date and 20.99% over the past year.
Benzinga's Edge Stock Rankings indicate that Boeing maintains solid momentum across short, medium, and long-term periods. However, the stock scores poorly on value rankings, and its growth rating remains relatively weak. Additional performance details are available here.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, ended lower on Tuesday. The SPY was down 0.26% at $635.26, while the QQQ declined 0.15% to $567.26, according to Benzinga Pro data.
On Wednesday, the futures of the Dow Jones, S&P 500, and Nasdaq 100 indices were trading higher.
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