Boeing (BA) reported its first-quarter 2026 financial results this week, disclosing a 14 percent increase in revenue to $22.2 billion. Despite the growth in sales, the company remained unprofitable, posting a net loss of $7 million. On April 24, the aerospace manufacturer further detailed significant production challenges, specifically citing supply chain constraints that are delaying deliveries of the 787 Dreamliner.
Chief Executive Officer Kelly Ortberg attributed the 787 delays to shortages in critical components, including engines and premium cabin seats. During a briefing, Ortberg described the quarter as tough regarding engine deliveries from suppliers GE Aerospace and Rolls-Royce. Additionally, certification delays for new business and first-class seat configurations have left a number of completed 787 aircraft undelivered. Ortberg characterized the backlog of finished jets awaiting parts as a need to get the pig through the python, noting that while these issues do not stop factory assembly, they prevent final handovers to airline customers.
Financially, the $7 million net loss represented a substantial improvement over the $31 million loss recorded in the first quarter of 2025. The company’s core loss per share was $0.20, significantly better than analyst expectations. The Commercial Airplanes segment generated $9.2 billion in revenue, a 13 percent increase, though it still operated at a loss of $563 million due to higher production costs and the integration of Spirit AeroSystems. The Defense, Space and Security division saw a 21 percent revenue jump to $7.6 billion, swinging to an operating profit of $233 million. Boeing Global Services contributed $5.4 billion in revenue with an 18.1 percent operating margin.
Operational metrics showed a rise in total deliveries to 143 commercial aircraft, the highest first-quarter volume since 2019. The 737 program maintained a production rate of 42 airplanes per month, with plans to increase to 47 by the summer. The 787 program is currently stabilizing at eight aircraft per month, with a target of reaching 10 per month later in 2026. Free cash flow for the quarter was negative $1.5 billion, an improvement from the negative $2.3 billion reported a year earlier.
Boeing ended the quarter with a record total backlog of $695 billion, including more than 6,100 commercial airplanes. The company also confirmed it expects Federal Aviation Administration (FAA) certification for the 737-7 and 737-10 models by the end of 2026, with initial deliveries slated for 2027. Progress also continued on the 777X program, which has entered a new phase of certification flight testing. Chief Financial Officer Brian West noted that while the company continues to burn cash to support production ramps and debt repayment, the narrowing loss reflects improved operational execution across its core business units.