A $280 million charge on the VC-25B program pushed Boeing’s Defense segment to a $15M loss, missing earnings estimates by 123.53%.
Boeing reported a wider-than-expected Q2 2026 loss after booking a $280 million charge on the VC-25B presidential aircraft program. The charge flipped its Defense, Space & Security segment from a $110 million profit in Q2 2025 to a $15 million operating loss, driving a core loss of $0.76 per share versus a $0.34 consensus estimate.
Defense revenue rose 13% year over year to $7.483 billion, but the fixed-price VC-25B contract, awarded in 2018, requires Boeing to absorb all cost overruns until the 2028 delivery. The $3.9 billion program remains a financial risk, despite a record $715 billion backlog and $631 million in free cash flow.
Shares of BA rose 4% as investors focused on the backlog and cash flow, offsetting concerns over the earnings miss.