Executive Summary

Boeing’s Q1 2025 showed sequential recovery: revenue rose to $19.5B, GAAP diluted loss per share improved to ($0.16), and core loss per share to ($0.49), with operating cash flow usage narrowing to ($1.6B) vs Q4’s ($3.5B) .
Versus S&P Global consensus, Boeing posted a major EPS beat (core EPS loss of $0.49 vs consensus loss of $1.30*) and an EBITDA beat ($1.01B vs $0.64B*), while revenue was modestly below ($19.50B vs $19.79B*) — a favorable quality mix given delivery-driven margins .
Management reaffirmed 2025 free cash flow cadence (Q2 usage similar to Q1; second half turning positive) and production ramp plans (737 to 38/month in the next few months; intent to request 42 later in the year; 787 to 7/month in the next few months) .
Emerging tariff and China delivery risks look manageable: input tariffs net impact < $500M annually; plan to remarket ~50 China-bound aircraft if needed without disrupting rate increases .
Strategic portfolio shaping advanced: definitive agreement to sell parts of Digital Aviation Solutions (Jeppesen, ForeFlight, AerData, OzRunways) to Thoma Bravo for $10.55B (approx. $10B net cash), supporting balance sheet strength and focus on core businesses .

What Went Well and What Went Wrong

What Went Well

Commercial delivery volume and margin trajectory improved: 130 deliveries; BCA operating margin improved to (6.6)% from (24.6)% in Q1 2024, reflecting higher 737/777 deliveries and lower period costs .
EPS and EBITDA beats versus consensus driven by operational progress and favorable working capital timing; tariffs enacted by March 31 were immaterial in the quarter .
Defense, Space & Security stabilized with positive margin (2.5%) and improved performance on fixed-price development programs; U.S. Air Force selected Boeing for next-generation F‑47 (pending backlog inclusion) .

Management quotes:

“Improved operational performance across our businesses… committed to making fundamental changes needed to fully recover” — CEO Kelly Ortberg .
“We’re currently producing [737] in the low 30s per month… expect 38 per month cap over the next few months… then request 42 later this year” — CEO Kelly Ortberg .

What Went Wrong

Revenue modestly missed consensus ($19.50B vs $19.79B*), with continued GAAP loss and free cash flow usage ($2.29B) despite improvements .
China retaliatory tariffs created delivery uncertainty (approx. 50 planned for 2025); requirement to remarket already built aircraft increases operational complexity .
Seat/monument certification constraints continued to challenge 787 deliveries and timing; 777X inventory build and development spend still a cash drag pre-EIS .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$17.84	$15.24	$19.50
GAAP Diluted EPS ($)	($9.97)	($5.46)	($0.16)
Core (Non-GAAP) EPS ($)	($10.44)	($5.90)	($0.49)
Operating Income ($USD Millions)	($5,761)	($3,770)	$461
Operating Margin (%)	(32.3)%	(24.7)%	2.4%
Operating Cash Flow ($USD Billions)	($1.35)	($3.45)	($1.62)
Free Cash Flow (Non-GAAP) ($USD Billions)	($1.96)	($4.10)	($2.29)

Segment breakdown

Segment	Q1 2024 Revenues ($MM)	Q1 2024 Op Margin (%)	Q1 2024 Op Inc ($MM)	Q1 2025 Revenues ($MM)	Q1 2025 Op Margin (%)	Q1 2025 Op Inc ($MM)
Commercial Airplanes	$4,653	(24.6)%	($1,143)	$8,147	(6.6)%	($537)
Defense, Space & Security	$6,950	2.2%	$151	$6,298	2.5%	$155
Global Services	$5,045	18.2%	$916	$5,063	18.6%	$943

KPIs

KPI	Q1 2024	Q1 2025
737 Deliveries (units)	67	105
787 Deliveries (units)	13	13
777 Deliveries (units)	—	7
Total Commercial Deliveries (units)	83	130
Total Company Backlog ($USD Millions)	$521,336 (Dec 31, 2024)	$544,736 (Mar 31, 2025)
Cash & Marketable Securities ($USD Billions)	$26.3 (Q4 2024)	$23.7 (Q1 2025)
Consolidated Debt ($USD Billions)	$53.9 (Q4 2024)	$53.6 (Q1 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
737 Production Rate (per month)	2025	Gradual restart; aim above 38 later in year	Low-30s currently; expect 38 in next few months; plan to request 42 later this year	Refined timeline; increased confidence
787 Production Rate (per month)	2025	At 5; intent to move to 7 sometime this year	At 5; expect increase to 7 in next few months	Maintained; timeline clarified
777‑9 First Delivery	2026	2026 target reaffirmed; flight testing resumed	2026 maintained; FAA expanded flight test authorization	Maintained; testing expanded
Free Cash Flow (FY 2025)	2025	Usage ~$4–$5B	Range maintained; Q2 usage similar to Q1; 2H positive and accelerating	Maintained; cadence reaffirmed
Input Tariffs Net Impact	2025	N/A	< $500M annually; duty drawback available; manageable	New quantified impact (manageable)
China Deliveries	2025	N/A	~50 planned for rest of year; 41 built/in production could be redirected; 9 not in system	New risk; mitigation via remarketing
Digital Aviation Solutions Sale	2025	N/A	$10.55B all-cash; approx. $10B net; expected close by YE25	New; balance sheet strengthening

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Supply chain and production stability	Q3: IAM strike drove disruption and charges . Q4: factory restarted; KPIs defined; 3 Renton lines cycling; plan to shut shadow factories .	KPIs trending positive; 787 all green; 737 rework KPI improving; traveled work down ~50%; 737 production to 38/month in coming months .	Improving stability
Tariffs/macro	Little explicit mention in Q3/Q4 press; focus on restart .	Input tariffs immaterial in Q1; net annual impact < $500M; China deliveries uncertain; plan to remarket .	Emerging headwind; manageable
Defense program execution (EAC stability)	Q3: large charges on T‑7A/KC‑46A/MQ‑25/Commercial Crew . Q4: further charges; updated T‑7A acquisition approach .	BDS margin +2.5%; EACs held; MQ‑25 moved to final assembly; T‑7 MOA milestones achieved .	Stabilizing
Portfolio shaping/divestitures	Q4: Portfolio review; potential pruning discussed .	DAS sale announced ($10.55B); net ~$10B cash proceeds; focus on core .	Executing
Certification/regulatory	Q3: 777X resumed flight testing . Q4: 777X thrust link fix; resumed flight test .	FAA expanded 777X test; 737‑7/10 certification timelines unchanged .	Progressing

Management Commentary

“Our company is moving in the right direction… ongoing focus on safety and quality” — CEO Kelly Ortberg .
“We are currently producing in the low 30s per month and expect… 38 per month cap over the next few months… then request an increase to 42 per month with the FAA later this year” — CEO Kelly Ortberg .
“Free cash flow… a usage of $2.3 billion… better than expectations… tariffs enacted as of March 31 were not material” — CFO Brian West .
“On the supply chain side, the net annual impact of higher tariffs on our input costs is… less than $500 million annually” — CFO Brian West .

Q&A Highlights

Tariffs and China deliveries: Management actively engaged with U.S. administration; hopeful for negotiated settlements; planning to remarket ~50 China aircraft to stable demand while preserving ramp cadence .
Production and deliveries: 737 deliveries framework ~400 in 2025; Q2 deliveries to be similar to Q1 ex-China; 787 ramp to 7/month in coming months, with handful of China impacts .
Free cash flow cadence: Q2 usage roughly in line with Q1; second half positive and accelerating; full-year usage range unchanged .
Digital Aviation Solutions sale proceeds: Approx. $10B net, all cash; minimal EBIT dilution to BGS long-term margin profile .
Certification/operational constraints: 787 seat/monument certification remains a near-term challenge; mitigation plans in place; shadow factories to be shut down by midyear (737) and early in year (787) .

Estimates Context

Metric (Q1 2025)	Consensus	Actual	Beat/Miss
Primary EPS Consensus Mean ($)	($1.30)*	($0.49)*	Beat
Revenue Consensus Mean ($USD Billions)	$19.79*	$19.50	Miss
EBITDA Consensus Mean ($USD Billions)	$0.64*	$1.01*	Beat
Primary EPS – # of Estimates	19*	—	—
Revenue – # of Estimates	21*	—	—

Values retrieved from S&P Global.*

Implications: The significant EPS and EBITDA beats vs consensus, coupled with a small revenue shortfall, point to better-than-expected operating leverage and cost control; estimate models likely revise higher for core EPS/EBITDA while revenue trajectories hinge on China delivery resolution and seat certification throughput .

Key Takeaways for Investors

Operational recovery gaining traction: delivery volume and margins improved; KPIs trending positive; production ramps to 38 (737) and 7 (787) near term underpin 2H cash inflection .
Tariff/China risks appear bounded: quantified input cost headwind (<$500M annually) and flexibility to remarket reduce downside to production cadence and cash plans .
Portfolio sale strengthens balance sheet: $10.55B sale (~$10B net cash) accelerates deleveraging and supports investment-grade objectives without disrupting BGS margin profile .
Defense stabilization is a medium-term margin lever: EAC holding, milestone progress (T‑7A, MQ‑25), and disciplined underwriting support a path back to high single-digit margins over time .
Watch certification milestones: FAA-expanded 777X testing and unchanged 737‑7/10 timelines are critical for 2026 EIS and long-term mix/margin improvements .
Near-term trading setup: EPS/EBITDA beats vs consensus and reaffirmed 2H FCF positivity can support sentiment; headlines around China/tariffs or 787 seat certification are key swing factors .
Estimate revisions: Expect upward EPS/EBITDA revisions near term; revenue estimates may stay cautious pending China delivery clarity and certification throughput for 787 interiors .

Appendix: Additional Q1 2025 Press Releases

First Quarter Deliveries: 737 (105), 787 (13), 777 (7), Total Commercial (130); D&S deliveries 26 .
BOC Aviation order: firm order for 50 737‑8 jets, expanding lessor portfolio and Boeing backlog health .

Citations:

8‑K Q1 2025 results and financial statements .
Q1 2025 press release and segment details .
Q4 2024 press release and transcript (operational cadence, FCF, certification, shadow factories) .
Q3 2024 press release (strike impacts and charges) .
Q1 2025 earnings call transcript (tariffs, China deliveries, production rate guidance, defense program progress, DAS sale) .
DAS sale press release .

BOEING CO (BA)·Q1 2025 Earnings Summary