By Todd Campbell TheStreet
Boeing has had more than its share of tough times. Over the past few years, Boeing has found itself on the hot seat over quality following significant aircraft problems, causing turnover in the C-Suite and a sharp decline in its stock price.
The mounting trade war with China hasn't helped reverse its fortunes. As part of a growing tit-for-tat, China's leadership instructed its airlines to shun Boeing, even returning some aircraft delivered by the manufacturer this month.
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As a result, Boeing's stock price fell by nearly one-third in 2024, despite the S&P 500 rallying about 23%. In 2025, Boeing's shares were down about 8% year-to-date through April 22.
However, the sell-off took a breather after Boeing reported better-than-hoped first-quarter earnings results on Monday, following President Trump's encouraging trade talk on tariffs.
Boeing delivers 'better' first-quarter earnings report
Make no mistake, Boeing's sales and profit remain lower than a few years ago before troubles grounded Boeing's 737 Max worldwide between March 2019 and December 2020, and again in 2024.
In the fourth quarter last year, Boeing reported a staggering $4.3 billion loss in its commercial and defense business.
Related: China is sending planes it ordered back to the U.S.
Still, perhaps a corner is turning.
The aircraft manufacturer's first quarter revenue improved 18% year-over-year to $19.5 billion due to a 75% lift in commercial airplane sales. Because of the strength of its 737 airplanes, commercial air deliveries soared 128% from the fourth quarter and 57% from one year ago. Analysts were looking for revenue of $19.8 billion.
It still lost a mountain of money, but less than Wall Street expected.
Earnings per share totaled 49 cents, far exceeding analysts' estimates for a loss of 1.30 per share. The company reported adjusted core operating earnings of $199 million, reversing a $388 million loss in Q1, 2024.
The earnings coincided with Boeing announcing the $10.5 billion sale of major parts of its Digital Aviation Solutions business to Thoma Bravo to bulk up its finances.
Trump tariff war takes positive turn for Boeing
Boeing is one of America's best-known manufacturers, and that status has put it in China's crosshairs amid the ongoing trade war over tariffs.
Related: Veteran trader turns heads with Boeing stock price call
On April 2, President Trump announced reciprocal tariffs on China that effectively increased import taxes on Chinese goods to 54% from 20% earlier this year. China retaliated with its own tariffs on U.S. imports, kicking off a dust-up that has since increased U.S.-Chinese import taxes to 145% and China's U.S. import taxes to 125%.
In addition to tariffs, China targeted U.S. companies, adding some to its export control and unreliable entities lists. It escalated those moves in mid-April, telling its airlines not to accept Boeing deliveries.
Chinese airlines followed through on those instructions, forcing the return of 737s previously ordered that arrived this month.
The moratorium remains in place, but hopes are that the trade war will soon ease following encouraging comments regarding the possibility of lower China tariffs from President Trump on April 23.
"It [tariffs] won't be that high. ... No, it won't be anywhere near that high. It'll come down substantially. But it won't be zero," said Trump.
Treasury Secretary Scott Bessent, who is leading trade negotiations, reinforced the possibility that a door is open to China negotiations that could end the trade war.
"There is an opportunity for a big deal here," said Bessent on Wednesday.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
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This story was originally published April 23, 2025 at 11:16 AM.
