This quarter's webcast, earnings release, and presentation, which include relevant disclosures and non-GAAP reconciliations, are available on our website. It's been great to have Jay on board and officially welcome him to his first quarterly earnings call for The Boeing Company. Across all of our market segments, we continue to see strong demand, which is reflected in our growing backlog. We marked important milestones in our recovery as operations generated positive free cash flow in the quarter for the first time since 2023.
Earlier this month, we jointly agreed with the FAA to increase 737 production to 42 airplanes per month. Once we were satisfied with the sustained health and stability of the production system, we then presented our discipline plan to the FAA to increase production to 42 airplanes a month. While rate increase breaks won't be earlier than six months apart, we will remain disciplined, and we won't move to higher rates until we achieve stability and readiness. The airplane and the engine are performing well, demand for the airplane remains strong, and we remain confident that the 777X will be the next flagship airplane for our global customers.
More recently, we signed multi-year contracts valued at $2.7 billion to produce additional PAC-3 seekers, leveraging the advanced investments we've made to ramp up quickly and meet the demand. Revenue was up 30% to $23.3 billion, primarily driven by improved operational performance across the business, including higher commercial deliveries and defense volume. Free cash flow was positive $238 million in the quarter, primarily reflecting higher commercial deliveries and working capital that improved compared to both the prior year and the prior quarter. Importantly, this was the first positive free cash flow quarter since the fourth quarter of 2023 and serves as an important progress point in our company's recovery.