“On the 737-10, we recently completed our final test flight and expect certification following the -7.”

In context

“Kelly Ortberg (President and Chief Executive Officer): Thanks, Eric, and good morning, everyone. Thanks for joining in today's call. Before we get started, I want to express our sincere condolences to the families and loved ones of the eight dedicated aircrew whose lives were lost in the U.S. Air Force B-52 accident in June. Our hearts remain heavy for the lives lost, including two incredible Boeing colleagues who work side-by-side with our customer on the program. We continue to provide technical assistance to the investigation, and we're supporting the Air Force in every way we can. Now let's shift our focus to the second quarter. We're halfway through the year, and I'm very pleased with our progress as we execute on our 2026 plan. With the continued focus on safety and quality, our teams are increasing production and delivering at levels we have not seen since 2018. Our commercial certification programs, a key focus for us this year, remain on plan, and I'm proud of our team's dedication to complete the certification work as well as how we have continued to work collaboratively with our regulators. Earlier this month, the FAA authorized Boeing to resume issuing airworthiness certificates for all 737 MAX and 787 airplanes. We worked hard to build this trust with the FAA, and we take this responsibility very seriously. Safety will continue to lead the way in everything we do. In Defense and Space, we continue to address risks in the portfolio while increasing output to meet today's mission and invest in the capabilities for the future fight. Our service business has seen robust growth despite macro uncertainty, and we continue to win favor with our customers every day. We are strengthening the trust with our supply chain through increased transparency and strong demonstrated performance. This positions us to deliver higher volumes and respond quickly when challenges arise. All of this progress is set against a backdrop of a record backlog and culture change that continues to take hold and improve the way we work together. We know there's more work to do and remain clear-eyed about managing the risks in front of us. But the momentum that we've built in the first half of this year is setting us up for more dependable performance as we execute the second half. Let's now take a closer look at our businesses, and we'll start with Commercial Airplanes. As we said all year long, completing the certification work on our development programs is one of our biggest goals. We continue to make a lot of progress consistent with our plans. In fact, on the 737-7, testing is done, and we expect to receive an amended type certificate from the FAA very soon. On the 737-10, we recently completed our final test flight and expect certification following the -7. These certifications paved the way for both airplane variants to start deliveries in 2027, and I'm confident these newest members of the 737 MAX family will deliver on the promise of greater efficiency and more capability for our customers. On the 777-9, we remain on plan for first delivery in 2027. In June, we received approval from the FAA for the next phase of the certification flight test called TIA 4B. This unlocked the largest remaining portion of the flight testing, and we've currently completed more than 55% of the certification flight testing and expect our accelerated pace to continue progressing this summer. In addition to certification flight testing under the phase TIAs, we expect approval to start ETOPS testing later this year. Turning now to the BCA production programs. On 737, we're now ramping to 47 airplanes per month after a successful Capstone review in May and expect factory rollouts to reach 47 per month this summer. Just as with our previous rate breaks on the program, we're closely monitoring our key performance indicators in the factory. And so far, early results are within our expectations, driven by the fundamental improvements we made to the factory help. In Wichita, our integration is going well as teams continue to meet targeted reduction in quality defects before shipping fuselages to final assembly. Earlier this month, we began low-rate MAX production on our North Line, which enables us to reach our next planned rate break of 52 per month. I was with the team in Everett just after the first fuselage loaded into our new production line, and I can tell you they are ready and energized to build 737s. Our Everett team will be guided by the same safety and quality plan that has been successful in Renton, and the low-rate production will include certification of that new line. In Charleston, on the 787 program, we've now stabilized at eight airplanes per month. We did take the decision to temporarily slow production systems for several days in April to allow portions of the supply chain to recover. As we've said before, we're guided by our safety and quality plan, and we'll only move production forward when the system and our supply chain are ready. And we'll continue to work with GE on the engine delivery recovery this summer, which will be important for our rate 10 timing. Across the commercial market, we continue to see exceptional demand and market conditions as evidenced by our record backlog of more than 6,200 airplanes and a market outlook of nearly 44,000 new aircraft over the next 20 years. Let's now shift to BDS, where we're making progress and staying focused on disciplined execution to strengthen performance, meeting customer commitments and making deliberate investments in our programs. During the quarter, we achieved Milestone C for both the T-7 and the MQ-25 programs, securing approval to begin low-rate initial production. For the T-7, as an outcome of our active management efforts, we're delivering a production-ready configuration that further reduces risk and accelerates future deliveries. We also recently reached a memorandum of agreement with the U.S. Air Force, which strengthens KC-46A mission readiness and allows us to partner on the Remote Vision System 2.0 retrofit to get these capability upgrades faster into the full fleet. In fact, we recently completed a very successful first phase of flight testing on the RVS 2.0 upgrade. One of our fixed-price development programs where we have seen cost growth is the VC-25B. As we disclosed this morning, we've made the decision to add significant resources to support the build and test schedule of VC-25B. We have also aligned with the Air Force on moving from an FAA to a military certification basis. These additional resources will also help mitigate potential risks during certification and flight test. Since this program is in a reach-forward loss, these additional investments resulted in a $280 million charge during the quarter. Now while the charge is disappointing, we recognize how critical schedule performance is to our customer, and we are investing accordingly to maintain our commitment to deliver this airplane in 2028. It shouldn't overshadow all the meaningful progress we're making to reduce the risk across our Defense portfolio, and we are in much better shape than we were two years ago. Like in our Commercial business, the demand signal on our Defense and Space products remains very strong with notable increased demand in missiles and munitions and secure communications satellites programs. We continue to do a good job in improving our underwriting of new contracts and being selective on the programs we bid. Finally, in BGS, where our service team continues to deliver strong results against the backdrop of a robust aftermarket. So far, we have not seen a material impact in the commercial service business from the conflict in the Middle East, and the government service business has seen incremental demand to support ongoing operations. In closing, the momentum we're seeing across these three businesses reflect the steady work our teams are doing every day to strengthen safety, quality and stability. And I want to thank all of our employees for elevating our performance and helping deliver another improving quarter. As you may know, we've been in early contract negotiations with our Puget Sound Engineering Union, SPEEA, ahead of the current contract expiration this October. We began these discussions early because we wanted to work towards an agreement that supports our employees and their families, creates greater clarity for our business and helps us stay focused on the progress we're making. And so far, the tone of those talks has been respectful and productive. Looking ahead, I'm encouraged by the broader momentum we're building across Boeing as we move into the second half of the year. We had a great Farnborough Airshow last week. Customers and suppliers I spoke with have renewed confidence in our team, products and ability to deliver on time with higher quality. The work we've done together over the last two years is making a difference, and our team is ready to meet the rising expectations. We have a stronger foundation to build upon. Our operations are more stable, and we're ramping up production to deliver on our record $715 billion backlog. We're on track to be free cash flow positive for the year. And most importantly, we're building trust with all of our stakeholders. So now I'll turn the call over to Jay for our second quarter results in more detail before we take on the questions.”