By Dan Catchpole
SEATTLE, April 22 (Reuters) - Boeing on Wednesday reported a much smaller first-quarter loss than analysts expected, a sign of continued operational recovery after the COVID-19 pandemic
and years of crises that dented its reputation and left it with a mountain of debt.
The aerospace giant posted a $7 million net loss for the quarter, narrower than a $31 million loss during the same period 12 months ago. The core loss per share of 20 cents was far lower than the 83 cents per share average loss expected by analysts.
"We're off to a good start and continue building on our momentum with stronger performance across our business," Boeing CEO Kelly Ortberg said in a memo to employees after the results were released.
"Working together, we're making strides to strengthen our culture and restore trust with our customers while growing our record backlog to nearly $700 billion," he said.
Boeing burned through $1.5 billion of cash in the quarter, due in large part to significant spending to expand capabilities for 787 production in South Carolina and military jet production in the St. Louis area, as well as opening a new 737 MAX production line in Everett, Washington.
The company currently produces around 42 of its best-selling single-aisle jets a month and expects an increase to 47 a month by the end of the year.
Ongoing efforts to certify the 737-7 and -10, the smallest and largest MAX variants, respectively, and the 777X also contributed to the cash burn.
The company began test-flying a new anti-icing system for the 737 MAX engine, a major impediment to certification, industry publication the Air Current reported on Tuesday.
Boeing expects U.S. regulators to certify the MAX 7 and 10 this year, followed by first deliveries in 2027.
STRONG JET DELIVERIES, DEFENSE EARNINGS
Revenue at Boeing's commercial jet division rose 13% to $9.2 billion, buoyed by its highest first-quarter deliveries since 2019. However, it still lost $563 million in the quarter.
The U.S. planemaker's defense and space division's earnings rose 50% to $233 million in the first quarter, during which its Space Launch System rocket, a joint venture with Northrop Grumman, successfully launched NASA's Artemis II mission around the moon.
Analysts and company leadership expect the company to continue benefiting from increased defense spending around the world amid wars in the Middle East and Ukraine and heightened geopolitical tensions.
Last year, the Pentagon awarded the company the contract for the country's first sixth-generation fighter, the F-47, and it is a finalist for the U.S. Navy's sixth-generation F/A-XX fighter.
Finally, the company's steadiest performer, Boeing Global Services, booked a 3% increase in operating income of $971 million. However, its operating margin dropped slightly to 18.1%, which company leadership attributed to the $10.6 billion sale last year of its digital aviation services subsidiary Jeppesen, a top earner for the company.
Boeing recorded a loss of 11 cents per diluted share, or 20 cents per share for core operations, in the first quarter, compared to a 16-cent loss per diluted share in the first three months of 2025.
(Reporting by Dan Catchpole in Seattle; Editing by Jamie Freed)
