Boeing stock fell Tuesday after clearing views for second-quarter results. Shares trended higher on Monday, bolstered by the new U.S. trade deal with the European Union. But the Dow Jones manufacturer faces the threat of a union workers strike this week.
Boeing Earnings
Boeing reported a loss of $1.24 per share adjusted, narrowing from a loss of $2.90 per share last year. Revenue increased 35% to $22.75 billion.
FactSet analysts expected a loss of $1.40 per share on $22.16 billion in revenue.
Commercial airplanes revenue increased 81% to $10.87 billion, outpacing estimates for 75% growth.
Defense, space and security sales climbed 10% to $6.6 billion, while FactSet expected $6.2 billion.
Global services revenue rose 8%, compared to analyst views for less than 4% growth.
Earlier this month, Boeing announced that it delivered 150 airplanes during Q2, including eight to China in June following a brief pause due to trade disputes. The company has delivered 280 commercial jets so far this year, and Susquehanna in a research note said it was "encouraged" by commercial production progress following the release.
The Dow manufacturer's backlog grew to about $619 billion, including over 5,900 commercial planes.
Boeing Benefits From Trade Deal
The U.S. trade deal with the EU, announced by President Donald Trump on Sunday, includes a tariff exemption on the aerospace sector, the Wall Street Journal reported. The new deal follows a similar carve-out in the U.S. agreement with the United Kingdom.
The EU also agreed to purchase $750 billion worth of U.S. energy and invest an additional $600 billion into the U.S. above current levels, according to Trump. The president also said the EU will be "purchasing hundreds of billions of dollars worth of military equipment," but did not specify an amount, CNBC reported.
The tariff reprieve is a major relief for Boeing. The Dow Jones manufacturer would have been on the hook for import duties under certain deals, such as its fixed-price contracts with Ryanair.
New Potential Strike
Meanwhile, Boeing could face another strike next week after members of its central U.S. workers union rejected a contract offer on Sunday.
More than 3,200 IAM District 837 members at the Boeing facilities in St. Louis, St. Charles, Mo., and Mascoutah, Ill. voted to reject the company's contract offer during a Sunday vote, the International Association of Mechanist and Aerospace Workers announced yesterday.
"The proposal from Boeing Defense fell short of addressing the priorities and sacrifices of the skilled IAM Union workforce," the release reads. "Our members are standing together to demand a contract that respects their work and ensures a secure future."
The current contract expired at 11:59 p.m. CT on Sunday. There is a seven-day cooling period before a new strike would begin, unless a new agreement is reached.
The IAM said it "looks forward" to returning to the bargaining table.
Boeing in November agreed to a new contract and ended a seven-week strike for separate districts of its machinist union. That deal included a 38% general wage increase over four years, which compounds to 43.65% over the lifetime of the agreement. The workers secured a $12,000 ratification bonus, which was up from $7,000 in a prior offer.
The deal also increased Boeing's 401(k) contribution to its union members' retirement plans, reinstated an incentive plan, and improved its disability plans and overtime rules, among other benefits.
Boeing stock rebounded 4% on the agreement and other factors in November, then jump 14% in December.
Boeing Stock
BA stock fell 4.3% Tuesday, reversing from its 2% advance in premarket trade. Shares climbed 1.4% Monday.
Boeing has rallied more than 75% from its 2025 low in early April. Shares are up 23% from a double-bottom entry following an April 28 breakout, with a 28% gain this year.
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