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By Karl Sinclair

August 5, 2025, © Leeham News: Boeing boosted program deferrals in the second financial quarter on the 777X and 737 MAX, shifting costs around, which had the effect of improving the profit-and-loss picture for the quarter.

Boeing spent more money on a unit-cost basis (UCB) than the company reported in its earnings.

Source: Boeing 2Q2025 Financial Reports.

Using program accounting, Boeing Commercial Aircraft (BCA) claimed a loss of $557m for the quarter.  On a unit-cost basis (UCB), the amount spent to produce those aircraft delivered to airlines during the period was ~$1bn more than declared in its financial results.

However, the silver lining is that this is an improvement over the 1Q2025 UCB, when $2.933bn was lost.

This has become the typical result at BCA, where expenses are understated on the income statement, with a sizable portion capitalized and stored in Inventory.