Good morning. Turning around a company is no small feat—it requires a sustained, collective effort. The Boeing Company is one to watch, as it appears to be making progress after years of safety and leadership issues.
CFO Brian West concluded his final earnings call on Tuesday, reporting strong Q2 results: revenue rose 35% year over year to $22.7 billion—driven primarily by higher commercial aircraft deliveries—and topped forecasts. Boeing reported an adjusted (core) loss per share of $1.24, less than the anticipated $1.31 to $1.40 per share. Free cash flow also exceeded expectations, helped by robust commercial deliveries.
West will step down in mid-August and become a senior advisor to CEO Kelly Ortberg, the company announced earlier this month. Jesus “Jay” Malave, most recently Lockheed Martin’s CFO, will succeed him on Aug. 15.
On the call, West noted that Boeing’s production quality and efficiency are improving. If this continues, the company expects to soon seek FAA approval to increase the 737 Max production rate—an important step in rebuilding after years of setbacks. Boeing increased 737 Max production to 38 units per month in Q2 and plans to discuss raising the rate to 42 per month.
The most important metric Morningstar is tracking on Boeing’s path to recovery is the production and delivery rate of its 737 and 787 jets, equity analyst Nic Owens wrote in a Tuesday note. Morningstar adjusted its 2025 forecast to reflect recent progress and raised its fair value estimate from $242 to $249 per share. While the largest special charges and fleet groundings are largely behind Boeing, Morningstar expects another year of resolving labor, manufacturing, and supply chain issues that continue to affect production, according to Owens.
Regarding U.S. trade policy, Boeing was encouraged by several bilateral trade deals announced in the quarter, including a recent agreement with the EU, West said. “Given our position as a top U.S. exporter, free-trade policy across commercial aerospace continues to be very important to us.” West also noted: “And, as we said, any financial impact is not significant.”
A turnaround plan
Following the highly publicized door-plug blowout over Portland, Oregon, on Jan. 5, 2024, then-CEO Dave Calhoun announced in March that he would retire by year-end. Ortberg became CEO on Aug. 8. After a tumultuous year and an erosion of customer trust, Boeing’s turnaround now appears to be progressing.
During the call, Ortberg thanked West for his “outstanding work” over the past four years in helping to stabilize the business and position it for growth. “I particularly want to thank him for the support he’s given me this past year,” Ortberg said.
A four-part turnaround plan introduced by Ortberg focuses on changing company culture, stabilizing the business, improving project execution, and building “a new future for Boeing.” This has included leadership changes and downsizing. For example, in September 2024, Boeing dismissed Ted Colbert, president and CEO of its defense, space, and security unit, after the unit posted a $913 million loss in the previous quarter, Fortune reported. Earlier this month, Boeing veteran Steve Parker was named CEO of the defense business. In October, Boeing announced plans to lay off 10% of its workforce.
After more than 33,000 machinists went on strike in 2024, changing company culture remains a top priority. “Earlier this year, employees helped create a new set of values and behaviors that we shared across the company,” Ortberg said on the call. This month, Boeing introduced a new performance management approach focused on accountability and career development.
Commenting on Boeing’s progress, “It’s turning a big ship around,” Ortberg said. “We still have a lot of work to do.”
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Patricia Cobian was appointed CFO of BT Group plc. Cobian will succeed Simon Lowth, who plans to retire after nine years in the role. Cobian is currently the CFO at Virgin Media O2. She will join the BT Group board and its executive committee in the summer of 2026, with Simon to retire following a transition period.
Raymond Rindone was appointed CFO of Sunwest Bank. Rindone has more than three decades of experience in the financial services and banking industry. Before joining Sunwest Bank, he served as deputy CFO and head of corporate finance at Banc of California. Earlier in his career, he was deputy CFO at City National Bank.
Big Deal
The 2025 Fortune Global 500, released this week, ranks the world’s largest corporations by revenue for the 2024 fiscal year. Together, these companies generated $41.7 trillion in revenue in 2024, up 1.8% from the previous year. They employ 70.1 million people, and their combined revenue represents more than one-third of global GDP. The Global 500 earned $2.98 trillion in profit.
Walmart secured the top spot on the Fortune Global 500 for the 12th consecutive year, followed by Amazon, State Grid, Saudi Aramco, and China National Petroleum.
Going deeper
"Jerome Powell has a chance to appease Trump with a rate cut today, so will he? Not likely" is a new Fortune report by Eleanor Pringle
From the report: "The markets expect the Federal Reserve to hold rates steady today, despite pressure from the White House and public calls for cuts from FOMC members like Governor Waller. Analysts see signs of a shift toward easing—possibly beginning in September—but warn that President Trump’s fiscal policies may complicate Fed chair Jerome Powell’s efforts to control inflation, regardless of rate decisions."
Overheard
"Our ownership structure may be the greatest in the world, right? We’re owned by—who I would call the GOAT of capitalism—Warren Buffett."
Brooks Running CEO Dan Sheridan told Fortune‘s Leadership Next podcast, reflecting on Brooks’ status as a wholly owned subsidiary of Berkshire Hathaway, led by Warren Buffett. “GOAT” stands for “greatest of all time,” an acronym from the sports world increasingly spreading to other walks of life.