BA stock rises as Boeing reports smaller Q1 loss as jet deliveries recover and turnaround plan gains traction

Boeing’s shares rose on Wednesday after the company posted a narrower-than-expected quarterly loss and a steady increase in jet deliveries, offering a glimmer of hope for the embattled US planemaker.

The BA stock was rising by 6.51% during pre-market trading hours on Wednesday.

The results mark a key step in Boeing’s efforts to recover from a turbulent 2024, marked by quality control issues, supply chain setbacks, and a damaging strike that halted aircraft production.

The company reported an adjusted loss of 49 cents per share for the first quarter of 2025, far better than Wall Street’s average estimate of a $1.29 loss per share, according to data compiled by LSEG.

Boeing’s revenue increased by 18% year-on-year to $19.5 billion, just ahead of analyst expectations.

Much of the improvement came from a rebound in deliveries and gradual increases in aircraft output.

Production of Boeing’s best-selling 737 Max aircraft rose from the low-to-mid 20s in January and is expected to reach the regulator-imposed cap of 38 jets per month by the end of the year.

“There is a lot of good work happening across our teams, and we are seeing positive results,” said CEO Kelly Ortberg, who took the helm last year.

Ortberg described 2025 as “our turnaround year” in a letter to employees, pointing to better production flow and operational discipline.

Strategic divestments and cash improvements strengthen outlook

Boeing also reported a significant improvement in free cash flow usage.

The company used $2.3 billion in the first quarter, far less than the analysts’ average forecast of $3.6 billion.

The better-than-expected cash performance was supported by improved delivery volumes and tighter cost controls.

In line with Ortberg’s strategy to simplify operations and reduce debt, Boeing announced the sale of several digital aviation businesses to private equity firm Thoma Bravo for $10.5 billion.

This includes its Jeppesen navigation business, which has long been seen as a valuable but non-core asset.

“This was a good quarter for Boeing,” said Peter McNally, global head of analysts at Third Bridge.

“The sale of digital assets at a strong valuation will give the company breathing room as it works through its broader restructuring plan.”

Challenges remain amid geopolitical uncertainty and supply chain bottlenecks

Despite signs of progress, Boeing continues to face challenges.

Lingering supply chain disruptions have delayed parts of its jet production schedule, while US-China trade tensions led to the return of two aircraft previously destined for a Chinese airline, underlining the geopolitical risk tied to the company’s global exposure.

Boeing’s financial recovery is also taking place against the backdrop of long-standing concerns about its safety culture and regulatory compliance, particularly in light of past quality issues involving the 737 Max and other aircraft types.

Still, the company remains focused on its core goal: stabilising aircraft output and improving delivery consistency.

Ortberg has made it clear that Boeing’s immediate priority is to build planes “with more predictability and higher quality,” aiming to regain customer trust and investor support over the next several quarters.

With jet backlogs growing across the industry due to post-pandemic demand and constrained capacity, Boeing is hoping its renewed operational focus and financial discipline will set it on a path to long-term recovery.

The company is set to report its second-quarter results later this summer.

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