Boeing taps Kelly Ortberg as new CEO, reports wider-than-expected Q2 loss and revenue miss

 Ortberg will start Aug. 8 and has been named to the Boeing board.

He will inherit an aerospace giant that has faced an extraordinarily turbulent year, which was reflected in its second-quarter earnings report. Boeing reported revenue of $16.9 billion vs. $17.46 billion estimated per Bloomberg. The company also posted an adjusted loss per share of $2.90 vs. $1.82 estimated, resulting in a core operating loss of $1.392 billion.

Free-cash flow burn hit $4.3 billion, topping the nearly $4 billion it did lost in Q1, meaning the company could reported an astounding $8.256 billion in negative free cash flow for the first half of the year.

Boeing stock was up about 3% in pre-market trading. The stock is down over 25% this year.

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Not surprisingly, Boeing’s commercial deliveries took a hit in the second quarter as well. Boeing delivered 92 commercial jets in Q2, down from the 136 planes delivered year ago, or a 32% drop. The 737 Max program had 70 deliveries in Q2, down from the 103 delivered a year ago.

Before its recent issues, Boeing had monthly production target of 38 737 MAX jets, with a stretch goal of 50 planes per month. Boeing confirmed that it intends to hit the 38 plane goal by the end of the year.

Boeing also delivered nine widebody Dreamliner jets in Q2, down from 20 a year ago. The Dreamliner jet has been the subject of a few whistleblower complaints in 2024 alone, highlighting more issues with Boeing’s production and assembly processes. Boeing said it plans to return to 5 787 produced per month

Boeing pulled its full-year outlook at the start of the year given the issues it was facing, most seriously at the time the Alaska Airlines door plug blowout in January.

Alaska Airlines N704AL, a 737 Max 9, which made an emergency landing at Portland International Airport on January 5 is parked on the tarmac in Portland, Oregon, on January 23, 2024. (Photo by PATRICK T. FALLON/AFP via Getty Images) (PATRICK T. FALLON via Getty Images)

“Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future,” said Dave Calhoun, outgoing Boeing president and CEO.

He added: “We are executing on our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems. While we have more work ahead, the steps we’re taking will help stabilize our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue