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Will Boeing's Commercial Aircraft Division Maintain Its Altitude?

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Key Takeaways

  • Boeing's commercial jet deliveries jumped 63% in Q2 2025, led by strong 737 growth.
  • Commercial unit revenues soared 81% and 75% in the first two quarters of 2025.
  • New deals with Cathay Pacific, Gulf Air and Qatar Airways bolster Boeing's order book.

The Boeing Company (BA - Free Report) is seeing steady progress in its commercial airplane segment, driven by rising demand for aircraft amid growing global air traffic, encouraging airlines to expand their fleet significantly. Resultantly, Boeing’s commercial jets are witnessing strong traction, buoyed by increased delivery figures for its 737 product line, in particular, which is bolstering the commercial segment’s top line.

Notably, in the second quarter of 2025, Boeing’s commercial aircraft deliveries improved 63% year over year, primarily driven by 49% growth in 737 deliveries. In the first quarter, Boeing’s deliveries soared 56.6%, on account of 57.6% 737 delivery growth.  Resultantly, the company witnessed a solid 81% and 75% year over year growth in its commercial unit’s revenues in the first two quarters of 2025, respectively.

Looking ahead, a strong order book should help Boeing’s commercial jet business unit to maintain its growth in the coming days as well. A few recent contracts clinched by this unit include a Cathay Pacific order for 14 additional 777-9 aircraft, Gulf Air’s agreement to purchase 12 787 Dreamliner jets with options for six additional jets as well as Qatar Airways' historic order to buy 210 widebody jets from Boeing.

Boeing is currently in talks with Chinese officials to sell as many as 500 jets, which, in the case of fruition, could become one of the largest deals in aviation history and further strengthen its commercial unit.

Industry Peers Gaining From Rising Air Travel

Apart from Boeing, other aircraft makers like Airbus SE (EADSY - Free Report) and Embraer SA (ERJ - Free Report) are also witnessing solid delivery and robust backlog numbers for their commercial jets, thanks to rising air travel.

Airbus delivered 306 commercial aircraft in first half of 2025. Its gross commercial aircraft orders were 494, which culminated in a solid backlog of 8,754 commercial aircraft, at June 2025-end.

Embraer delivered 57 commercial aircraft in the second quarter of 2025, with its commercial aviation unit registering a record backlog of $13.1 billion. Its Executive Aviation unit posted a backlog of $7.4 billion.

The Zacks Rundown for BA

Shares of Boeing have risen 32.5% in the past year compared with the Zacks aerospace-defense industry’s growth of 11.4%.

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Image Source: Zacks Investment Research

From a valuation standpoint, BA is currently trading at a forward 12-month sales multiple of 1.87X, a roughly 18.7% discount when stacked up with the industry average of 2.30X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BA’s near-term earnings reflects a mixed movement over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

BA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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