Boeing tops revenue estimates on record jet deliveries
Aircraft maker delivers 160 planes in Q4 and generates $1.3B operating cash flow
Boeing delivered 160 commercial airplanes in the fourth quarter and generated $1.3 billion in operating cash flow, marking the most jet deliveries the aircraft manufacturer has completed since 2018. The strong performance helped drive revenue to $23.9 billion, beating analyst estimates by more than 8%.The aerospace giant delivered 600 commercial airplanes for the full year 2025, a 72% increase from the previous year. The surge in output reflects Boeing's continued recovery from supply chain disruptions that had hampered production rates following the COVID-19 pandemic. "We are rebuilding our commercial airplanes business through a relentless focus on safety, quality and stability," Boeing Chief Executive Kelly Ortberg said in a statement.Commercial airplane deliveries for the quarter totaled 160 aircraft, contributing to a full-year total of 600 commercial deliveries, according to the company's earnings release. The delivery growth represents a 181% year-over-year increase in the fourth quarter alone.
Boeing reported revenue of $23.9 billion for the fourth quarter of 2025, surpassing Wall Street projections of approximately $21.7 billion. For the full year 2025, revenue reached $89.5 billion. The company generated $0.4 billion in non-GAAP free cash flow during the quarter, reversing from negative cash flow in the prior-year period.The earnings report included significant one-time items that boosted per-share results. Boeing completed a $9.6 billion gain on sale from closing the Digital Aviation Solutions transaction, which drove Global Services' operating margin to an extraordinary 202.4%. The special item was a primary factor behind the company's GAAP diluted earnings per share of $10.23 for the quarter, far exceeding analyst expectations for a loss of roughly $0.40 per share.Despite the headline earnings beat, Boeing continues to face operational challenges. The Commercial Airplanes segment recorded an operating margin of negative 5.6%, and consolidated debt increased to $54.1 billion. Additionally, the Defense, Space & Security segment incurred $0.6 billion in losses on the KC-46A program due to increased estimated production support and supply chain costs.
Boeing's total company backlog reached a record $682 billion, including over 6,100 commercial airplanes valued at $567 billion. The Defense, Space & Security segment also achieved a record backlog of $85 billion, while Global Services ended the year with a record backlog of $30 billion.Boeing stock traded at approximately $251.55 following the earnings announcement, up from its closing price of $248.43 on the previous trading day. The positive market reaction suggests investors are focusing on the improving delivery numbers and record order book rather than ongoing margin pressures. Analysts have an average target price of $258.04 on the stock, with 22 analysts rating it a buy or strong buy versus just one sell rating, according to market data.The delivery surge comes as Boeing works to increase production rates across its commercial aircraft portfolio. The company has been gradually ramping up output of its best-selling 737 MAX and 787 Dreamliner models, while navigating complex regulatory requirements and supply chain constraints that continue to weigh on the aerospace industry.Looking ahead, Boeing faces the challenge of sustaining its delivery momentum while improving operational efficiency. The company's negative operating margin in the Commercial Airplanes segment highlights the pressure on profitability despite higher production volumes. Additionally, rising debt levels and ongoing program losses in the defense segment present financial headwinds.However, the record backlog provides visibility into future revenue streams, with more than 6,100 commercial airplanes on order. This substantial order book should support revenue stability as Boeing continues to normalize production rates and improve cost structure. Investors will be watching for progress on margin improvement and debt reduction in the coming quarters as the company executes its recovery strategy.