Boeing (BA) Stock: Gains After Q125 Revenue Jumps 18% Despite Ongoing Cash Strain

TLDR

Boeing stock climbed 1.01% to $174.11 after posting an 18% rise in Q1 revenue. The company delivered 130 aircraft, with stronger performance in commercial and defense segments. Core loss per share was $0.49, a significant improvement from previous periods. Free cash flow usage stood at $2.3 billion, with ongoing financial pressures. Vietnam Airlines is close to finalizing a 50-plane 737 MAX order.

The Boeing Company (NYSE: BA) reported Q1 2025 revenue of $19.5 billion, up 18% year-over-year due to increased commercial airplane deliveries. The company delivered 130 planes during the quarter and recorded a $460 billion backlog for its commercial unit (BCA), growing $25 billion sequentially. Despite a negative earnings profile, Boeing’s sales performance outpaced expectations and lifted market sentiment.

Boeing (BA) 

Shares climbed 1.01% to $174.11 after the announcement. Though the stock is down 1.62% year to date, it has posted a modest 1-year return of 5.96%.

Profitability Still in the Red, But Improving

Boeing posted a core loss per share of $0.49, an improvement over prior periods. However, the company continues to struggle with profitability. The BCA unit saw an operating margin of -6.6%. Boeing’s total net income remains deep in the red at -$11.66 billion, while its profit margin stands at -16.58%. The diluted EPS over the trailing 12 months is -$17.96.

Free cash flow usage totaled $2.3 billion for the quarter, reflecting ongoing cost pressures and increased working capital demands. Levered free cash flow over the trailing twelve months remains negative at -$7.57 billion.

Segment Highlights and Production Plans

Defense, Space & Security (BDS) revenue dropped 9% to $6.3 billion but posted a slight improvement in margin at 2.5%. Global Services (BGS) revenue held steady at $5.1 billion, with an operating margin increase to 18.6%. The 100th 767 freighter conversion was completed, marking a milestone for BGS.

Boeing plans to ramp up 737 MAX production to 38 planes per month and later increase to 42, aiming to meet strong demand and fill large backlogs.

Vietnam Airlines Nearing Major Boeing Deal

A separate highlight was Vietnam Airlines nearing a deal to finalize a 2023 order for 50 Boeing 737 MAX jets. The airline secured funding from Vietcombank and plans to expand its regional network. Though the order is not yet confirmed, this deal could provide a significant boost to Boeing’s backlog and future revenue.

Boeing’s ability to fulfill this order may be challenged by production bottlenecks and delivery delays. Nonetheless, it represents a strategic win for Boeing in the Asia-Pacific market, particularly amid tensions with Chinese buyers.

Risks and Trade Headwinds Persist

Despite positive revenue growth, Boeing faces several challenges. Retaliatory tariffs from China and delays in 787 certifications may affect future deliveries. Input cost inflation and geopolitical risks also weigh on the company’s outlook.

Debt remains high at $53.6 billion, even though it declined slightly by $300 million. The company holds $23.67 billion in cash and marketable securities, offering a buffer against volatility.

Outlook

Though Boeing remains unprofitable, the Q1 report shows operational momentum. Increasing aircraft deliveries, a robust backlog, and potential new deals—like the Vietnam Airlines agreement—could position the company for recovery in the second half of 2025. Investors, however, must weigh ongoing cash burn, trade-related risks, and margin pressures in their outlook for the stock.

 

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