Boeing: defense and maintenance, shields of a convalescing giant

Despite a loss of $7 million, Boeing reduces its deficit. The American giant relies on the strength of its Defense and Services sectors to fund its industrial transformation.

Key Points: – Why is Boeing still not profitable despite increasing sales? – The civil sector recorded a $563 million operational loss. – Massive investments in the 737 MAX and 787 impact the accounts. – Increased FAA oversight imposes costly quality controls.

Boeing seems to be finally emerging from turbulence. For the first quarter of 2026, the group reported revenue of $22.2 billion, a 14% year-on-year increase. The net result remains negative with a $7 million loss. However, this figure demonstrates a spectacular turnaround compared to past massive losses. The group is surviving thanks to the military sector and maintenance, but its flagship sector, civil aviation, is still recovering.

The civil aviation sector is under pressure despite deliveries. Boeing delivered 143 aircraft compared to Airbus’ 114 in one quarter, a first in years. The revenue of the civil division increased by 13% to $9.2 billion, but it remains the weak link in profitability.

On the other hand, the Defense, Space, and Security division shows outstanding health. Its operational profit surged by 50% to $233 million. Amid a tense geopolitical context, the sector’s revenues increased by 21%. Major contracts and sixth-generation programs are ensuring long-term visibility for the group.

The real profit engine lies in the Services division, ensuring financial stability. With an operational profit of $971 million and a 18.1% margin, maintenance and digital services generate constant cash flow crucial for Boeing’s industrial ramp-up.

Boeing is still consuming its reserves, with a negative cash flow of $1.45 billion in the quarter, lower than forecasted. The company aims to return to positive cash generation by the end of 2026.

The backlog of orders reaches a record level of $695 billion with over 6,100 airplanes to deliver. Boeing can complete its transformation, now walking on two uneven legs with the support of the military and services sectors.

In the delivery duel, Boeing surpasses Airbus, delivering 143 aircraft in the first quarter compared to Airbus’ 114. This is the first time since 2019 that Boeing outperforms Airbus, partly due to Airbus’ engine shortages and production issues with the A320. Airbus aims for 870 deliveries in 2026, while Boeing relies on a record order book of 6,100 aircraft.