Boeing Stock: Losing Money, But At A Slower Rate
Boeing (BA) stock has been struggling over the past year, down 12% to $208.87 while the S&P 500 returned 20.5%. The main issue is that Boeing still loses money building airplanes, but the rate of this loss is decreasing rapidly.
The company's operating margin has improved significantly, from a negative 12.4% in the same period last year to a negative 5.4% now. In the second quarter of 2026, Boeing even managed to turn a profit with an operating margin of 0.6%. This improvement is attributed to higher delivery volumes and mix, as well as favorable adjustments.
However, the commercial airplane unit still shows losses, with an operating margin of negative 2.7% in the second quarter of 2026. Management attributes this to pricing drags on the 737 and 787 programs, but expects these issues to be resolved as deliveries increase.
The company's suppliers are also a concern, with management indicating that they will need rates above 63 to feed the ramp-up in production. Boeing currently produces 47 airplanes per month, with plans to reach 52 by increasing production line capacity.