Boeing Company (NYSE: BA) experienced a downturn in its stock price on Tuesday following the release of its fourth-quarter financial results, which highlighted a notable revenue increase yet a substantial adjusted loss per share that missed market expectations. The aerospace manufacturer posted fourth-quarter revenue of $23.948 billion, representing a 57% rise compared to $15.242 billion during the same period a year prior. This increase was propelled principally by a sharp uptick in commercial airplane deliveries, with Boeing delivering 160 aircraft in the quarter, signaling an improvement in its operational capabilities.
The reported revenue exceeded analyst projections, which had anticipated $22.470 billion. Despite this top-line strength, Boeing recorded an adjusted loss per share of $1.91, wider than the anticipated loss of $0.39 per share. On a GAAP basis, diluted earnings per share stood at $10.23, contrasting with a loss of $5.46 per share from the previous year. Additionally, the company's non-GAAP core earnings per share was $9.92, a significant turnaround from a loss of $5.90 recorded a year earlier.
A key contributor to the earnings figures was a $9.6 billion gain associated with the sale of part of the Digital Aviation Solutions business. This transaction notably enhanced earnings per share by $11.83, underscoring the impact of strategic asset realignment within Boeing’s broader recovery strategy.
Segment Performance in Q4
The Commercial Airplanes division reported fourth-quarter revenue of $11.379 billion, up from $4.762 billion in the corresponding quarter of the previous year. However, the segment posted an operating margin of negative 5.6%, an improvement from a negative 43.9% previously. The financials incorporated effects stemming from Boeing's acquisition of Spirit AeroSystems, a move aimed at strengthening the company's production capabilities.
Notably, Commercial Airplanes secured net orders for 336 units during the quarter and amassed 1,173 net orders for the full year. As a result, the division ended 2025 with a backlog exceeding 6,100 aircraft, valued at a record $567 billion, indicating strong future revenue streams and industry demand.
The Defense, Space & Security segment generated revenue of $7.417 billion in the quarter, marking an increase from $5.411 billion the previous year, though the division recorded an operating margin of negative 6.8%. This margin included approximately $600 million in losses related to the KC-46A tanker program, reflecting ongoing challenges within certain defense projects.
Global Services revenues were relatively stable at $5.209 billion for the quarter, slightly above last year’s $5.119 billion. The segment's operating margin was an unusually high 202.4%, primarily due to the aforementioned $9.6 billion gain from the Digital Aviation Solutions sale.
Cash Flow and Production Updates
Operating cash flow for the quarter was positive at $1.331 billion, a marked improvement from a negative $3.450 billion in the prior year’s quarter. Free cash flow was reported at $375 million, turning around from a negative $4.098 billion previously. Production rates for the 737 aircraft improved, with the monthly output rising to 42 units, and the Federal Aviation Administration approved the final certification flight testing phase for the 737-10 model, indicating progress toward expanding the family of aircraft offered.
Full-Year 2025 Results
For the full year, Boeing's revenue totaled $89.463 billion, up 34% from $66.517 billion in 2024, supported by 600 commercial airplane deliveries—the highest annual total since 2018. The company reported GAAP diluted earnings per share of $2.48, a sharp improvement from a loss of $18.36 per share the previous year. Core earnings per share, on a non-GAAP basis, were $1.19, significantly higher than a loss of $20.38 recorded in 2024.
Annual operating cash flow came in at $1.065 billion, recovering from an outflow of $12.080 billion the prior year. Despite this, Boeing recorded a negative free cash flow of $1.877 billion, an improvement from a negative $14.310 billion the year before. At the end of the year, the company's cash and investments stood at $29.4 billion, while consolidated debt totaled $54.1 billion.
The company highlighted in its forward-looking risk disclosures that factors such as ongoing tariffs and regulatory changes continue to pose uncertainties for its business landscape.
Backlog and Outlook
Boeing's total backlog has grown to an all-time high of $682 billion, with all three primary business segments—Commercial Airplanes, Defense, Space & Security, and Global Services—posting record backlog levels. This substantial backlog represents a critical pillar supporting Boeing's future revenues and underlines market confidence in its product offerings and long-term business model.
Kelly Ortberg, Boeing's president and CEO, remarked, “We made significant progress on our recovery in 2025 and have set the foundation to keep our momentum going in the year ahead. We completed the acquisition of Spirit AeroSystems and the sale of portions of the Digital Aviation Solutions business and remain focused on promoting stable operations, completing our development programs, rebuilding trust with our stakeholders, and fully restoring Boeing to the iconic company we all know it can be.”
Market Reaction
Shares of Boeing traded down by approximately 1.38% at $245.00 in premarket activity on Tuesday. This places the stock close to its 52-week high of $254.14, indicating investor interest amid the company’s complex financial disclosures and operational advances.