Boeing: Cash Getting Tighter. Backlog Getting Bigger.

Boeing is still in repair mode. The Q2 print showed progress on revenue and deliveries. Profitability and cash flow remain the swing factors.

Start with results. Revenue hit $22.7 billion. Commercial deliveries were 150. Management reported a GAAP loss per share of $0.92 and a core loss per share of $1.24. Operating cash flow was $0.2 billion. Free cash flow was negative $0.2 billion. The backlog rose to $619 billion, with more than 5,900 jets. Production of the 737 averaged 38 per month.

What changed under the hood. Commercial volume improved and losses narrowed versus last year. The company kept a tight grip on working capital. Defense stayed mixed, but management leaned on cost actions and schedule discipline. The tone on supply chain was firmer. The path to higher rates still runs through parts availability and factory stability.

The capex and power bill matter. Data from the deck showed investment focused on bottlenecks and rate increases. You want to see capex convert into sustained deliveries and lower unit cost. That is how free cash flow turns from small quarterly noise into durable annual generation.

Guidance frame. Management pointed to methodical rate increases across programs as regulators and suppliers line up. The target is positive free cash flow for the year, with a steeper ramp in the back half. Credit agencies moved from crisis footing to “prove it.” Your model should keep a discount until sustained positive free cash flow shows up.

Risks are clear. Supply hiccups can reset rate plans. Pricing pressure and out-of-sequence work can drag on margins. Any slip in the delivery schedule pushes cash to the right. The order book helps. Execution decides timing.

At the end of the day, the demand side looks solid. The balance sheet and cash engine still need proof. If Boeing strings together clean quarters with rising rates and fewer quality hits, the equity case improves fast. If execution stalls, the stock stays range-bound while investors wait for cash.