Boeing beats Q1 expectations with $22B revenue despite 777X delays

Boeing has reported strong financial results for the first quarter, beating expectations despite ongoing challenges. The company secured major contracts, expanded its backlog, and received an upgraded price target from analysts.

Yet, technical hurdles with its 777X programme continue to cast a shadow over its progress.

Boeing’s Q1 earnings surpassed forecasts, with a loss of $0.20 per share—better than the predicted $0.68 loss. Revenue rose 14% to $22.22 billion, driven by growth in its defence and space divisions. The Defence, Space & Security segment alone brought in $7.6 billion, a 21% increase from last year, supported by an $86 billion backlog.

The company also landed key defence contracts. It secured a seven-year deal with the U.S. Department of Defense to triple production of PAC-3 missile seekers. Additionally, Boeing was awarded the engineering and manufacturing contract for the F-47, the Air Force’s Next Generation Air Dominance platform. On the commercial side, Boeing confirmed a 200-plane order from China as part of broader U.S.-China trade talks. Its total backlog now stands at a record $695 billion, reflecting strong long-term demand. However, the 777X certification process faces delays due to unexpected technical issues, particularly with 'hot brakes.' Meanwhile, Wall Street remains cautiously optimistic. Citi raised its price target to $260 with a Buy rating, calling the recent dip in aerospace defence a buying opportunity. The overall Wall Street consensus is a 'Moderate Buy,' with an average target of $259.80. Director Bradley D. Tilden also showed confidence by purchasing nearly $300,000 in Boeing shares on May 20th.

Boeing’s financial performance and defence contracts highlight its resilience amid operational setbacks. The expanded backlog and new orders suggest sustained demand, though technical challenges with the 777X could impact future timelines. Analysts and insiders continue to signal cautious optimism in the company’s outlook.