BA: Boeing Posts Strong Revenue Recovery — But $200M MAX Settlement Still Weighs on Outlook

Court: SEC

Case: 3-21140

Boeing BA reported a $643M net loss in 1H2025, but a powerful rebound in Commercial Aircraft revenue and unexpected profits in Defense signal that the turnaround is gaining traction. While the stock has found support on optimism around improved margins and deliveries, a $200M settlement tied to the 737 MAX scandal continues to pose a legal and reputational overhang.

Key Financial Highlights for 1H2025

• Total revenue rose $8.8B year-over-year, with product sales driving most of the gains
• Operating earnings turned positive at $285M, a $1.46B improvement from 1H2024
• BCA (Commercial Aircraft) cut its margin loss to -5.1%, down from -11.9%
• 777 and 787 deliveries were strong; 737 line remained flat
• Backlog at BCA stands at 5,900 aircraft valued at $522B
• BDS (Defense, Space & Security) posted $265M profit, defying negative margin expectations
• BDS backlog rose to $74B with contributions from KC-46 and MH-139 deliveries
• BGS (Global Services) delivered 19.9% margin and $5.3B in quarterly revenue
• Interest expense reached $1.4B; company plans to retire $8.7B in debt in 2H2025
• Liquidity concerns to be offset by $10.6B asset sale to Thoma Bravo by year-end

Timeline Overview

• October 29, 2018 – March 10, 2019: Two fatal crashes involving the 737 MAX
• March 11, 2019: FAA grounds MAX fleet; BA drops 10%
• April 2019: Shareholders sue for misleading safety statements
• September 2022: $200M SEC settlement announced

Allegations Include

• Failure to disclose known MCAS design risks
• Misleading investors after the first crash
• Public reassurances that contradicted internal safety data

Investor Update

Boeing is showing solid progress on operational recovery, particularly in aircraft delivery momentum and cost control. However, investor sentiment remains partly constrained by the unresolved reputational impact from its 737 MAX disclosures. A full rebound will likely depend on transparent execution, debt discipline, and a clean regulatory record moving forward.

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