Core Insights - Boeing reported better-than-expected fourth-quarter free cash flow of $375 million, surpassing Bloomberg consensus expectations of $271.9 million, indicating progress in operational performance and safety execution [1] Financial Performance - Revenue from the commercial airplanes division increased to $11.4 billion, more than doubling from the previous year and exceeding forecasts, driven by increased production of the 737 program and the acquisition of Spirit AeroSystems for $4.7 billion [2] - Boeing delivered 160 aircraft during the quarter, with a backlog of over 6,100 airplanes valued at a record $567 billion [3] - In the defense sector, revenue rose to $7.4 billion, a 37% year-over-year increase, despite losses related to the KC-46A Pegasus tanker program, with the defense backlog reaching an all-time high of $85 billion [3]

Key Takeaways BA posted a Q4 adjusted loss of $1.91 per share, wider than estimates, though improved from last year.BA revenues surged 57.1% to $23.95B as commercial airplane deliveries jumped 181% y/y.BA reduced long-term debt to $45.64B and ended 2025 with $29.4B in cash and short-term investments.The Boeing Company (BA) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year- ...

Core Insights - Boeing Co. reported an earnings per share (EPS) of $9.92, significantly exceeding the anticipated loss of $0.40 per share, indicating a strong recovery and operational efficiency [1][5] - The company's revenue for the fourth quarter reached $23.95 billion, a 57% increase from the previous year, driven by a rise in commercial aircraft deliveries [2][5] - Boeing's net earnings for the quarter were $8.22 billion, a turnaround from a loss of $3.86 billion the previous year, aided by a $9.6 billion gain from the sale of a business unit [3] - The company's current ratio of approximately 1.18 suggests it can cover short-term liabilities, but the enterprise value to operating cash flow ratio of -63.90 indicates potential cash flow generation issues [4] Financial Performance - Revenue for the fourth quarter was $23.95 billion, surpassing the estimated $22.43 billion [2] - Commercial aviation segment revenue reached $11.38 billion, exceeding expectations of $10.72 billion, with 160 commercial airplanes delivered [2] - Net earnings of $8.22 billion or $10.23 per diluted share represent a significant improvement from the previous year's loss [3] Financial Metrics - Boeing's debt-to-equity ratio of -6.47 indicates a high level of debt relative to equity, which may affect financial stability [3] - Current ratio of approximately 1.18 reflects the company's ability to meet short-term obligations [4] - The enterprise value to operating cash flow ratio of -63.90 highlights challenges in cash flow generation [4]

After years of safety crises, production delays, and quality defects, Boeing finally seems to be turning a corner. >> We had a really good close to 2025. Uh I think the important thing is that we saw free cash flow, positive again uh in the fourth quarter.So that's really good news is we're starting this this recovery. >> The return to profitability is a crucial step in turning the company around. Boeing's net orders for 2025 was for 1,173 planes.It's the first time since 2018 it has outsold Airbus. Boeing ...

Company Performance - Boeing Company reported fourth-quarter revenue of $23.948 billion, a 57% increase from $15.242 billion, driven by a sharp rise in commercial deliveries, with 160 airplanes delivered in the quarter [2][3] - The revenue exceeded analyst estimates of $22.470 billion, but the company reported an adjusted loss of $1.91 per share, missing Wall Street expectations for a loss of $0.39 per share [3] Stock Movements - Boeing's stock fell 3% following the earnings report [2] - Redwire Corp shares surged 135% to $0.63 after securing a contract worth up to $151 billion for the Missile Defense Agency [9] - HCA Healthcare Inc shares rose 9% to $514.82 after reporting better-than-expected fourth-quarter adjusted EPS and raising FY25 guidance [9] - Corning Inc shares increased by 15% to $109.16 after announcing a $6 billion agreement with Meta [9] - CommVault Systems, Inc. shares dropped 35% to $84.72 following third-quarter results [9] - Twin Hospitality Group Inc shares fell 43% to $0.30 after filing for Chapter 11 [9] - FAT Brands Inc shares decreased by 43% to $0.23 after commencing Chapter 11 [9] Sector Performance - Information technology shares gained 1.3% on Tuesday, while health care stocks fell by 1% [1]

On the 737 program, Ortberg said production is stabilizing at 42 airplanes per month, with on-time delivery performance improving “threefold” from the prior year and positive customer feedback on quality. He said Boeing plans to use the same monitoring and safety/quality discipline for future rate increases. For production above 47 per month, Boeing intends to add a new “North Line” in Everett, with facility and tooling investments complete and a staffing plan underway.Ortberg said Boeing increased commerci ...

Earnings Reports - Boeing (BA) reported a Q4 loss of -$1.91 per share after excluding a one-time sale of Digital Aviation Solutions for $10.55 billion, with revenues up +57% year over year to $23.95 billion [1] - UnitedHealth (UNH) beat earnings estimates by 2 cents at $2.11 per share, but revenues fell slightly by -0.04% to $113.22 billion, leading to a pre-market share drop of -15% [2] - General Motors (GM) exceeded earnings expectations with $2.51 per share, a +14% beat, and reported quarterly revenues of $45.29 billion, down -1.83%, while announcing a +20% increase in dividends [3] - United Parcel Service (UPS) posted earnings of $2.38 per share on revenues of $24.48 billion, beating estimates by +7.2% and +1.95% respectively, although shares were trading modestly down after initial gains [4] Market Expectations - January Consumer Confidence is anticipated to be reported at 90, slightly above the previous month's 89.1, but still below the 100 points average seen over the past four years, reflecting consumer strain from a delicate labor market and policy shifts [5] Upcoming Earnings - Texas Instruments (TXN) is expected to report Q4 earnings with flat year-over-year growth but a +10.7% increase in revenues, continuing a streak of eight consecutive quarterly earnings beats, with the stock up +13% since the start of the year [6]

The Boeing Company (NYSE:BA) Q4 2025 Earnings call January 27, 2026 10:30 AM ET Company ParticipantsBrian West - EVP and CFOEric Hill - VP of Investor RelationsKelly Ortberg - CEOConference Call ParticipantsDoug Harned - AnalystGavin Parsons - AnalystJason Gursky - AnalystMyles Walton - AnalystNoah Poponak - AnalystPeter Arment - AnalystRobert Stallard - AnalystRon Epstein - AnalystSeth Seifman - AnalystSheila Kahyaoglu - AnalystOperatorThank you for standing by. Good day, everyone, and welcome to The Boein ...

Financial Performance - The company reported revenue of $23.9 billion for the quarter, a 57% increase, marking the highest quarterly total since 2018, driven by improved operational performance and higher commercial deliveries [16][17] - Core earnings per share reached $9.92, primarily reflecting a gain of $11.83 from the digital aviation solutions divestiture [16] - Free cash flow was positive at $375 million, slightly exceeding expectations due to higher commercial deliveries and improved working capital [16][27] Business Line Performance - The Boeing Commercial Airplanes (BCA) segment delivered 160 airplanes in the quarter and 600 for the year, the highest annual total since 2018, with revenue of $11.4 billion [16][17] - The Defense, Space & Security (BDS) segment delivered 37 aircraft in the quarter, with revenue growing 37% to $7.4 billion, despite a negative operating margin of 6.8% [21][22] - The Global Services (BGS) segment reported revenue of $5.2 billion, up 2%, with an adjusted operating margin of 18.6% [24] Market Data - BCA booked 336 net orders in the quarter, including significant orders for the 737-10 and 787-9, ending the year with a record backlog of $567 billion [17][19] - BDS secured $15 billion in orders during the quarter, contributing to a record backlog of $85 billion [21] - BGS achieved an annual high of $28 billion in orders for 2025, ending the year with a record backlog of $30 billion [24] Company Strategy and Industry Competition - The company is focused on stabilizing its business, executing development programs, and improving its culture to restore trust with stakeholders [3][10] - A significant investment was made in the Spirit AeroSystems acquisition to enhance safety and quality across operations [8][9] - The company aims to increase production rates for the 737 and 787 models, with plans to ramp up to 47 and 10 airplanes per month, respectively [6][19] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges in certification timelines for the 737 MAX derivatives and the 777-9 but expressed confidence in meeting revised schedules [10][11] - The company anticipates positive free cash flow of $1-$3 billion in 2026, despite some temporary impacts from the Spirit acquisition and delayed certifications [28][30] - Management emphasized the importance of continuous improvement and operational stability to meet customer commitments and enhance future performance [14][15] Other Important Information - The company completed the $10.6 billion sale of Jeppesen, strengthening its balance sheet while retaining essential digital capabilities [9] - A new five-year labor agreement was ratified with the IAM workforce in St. Louis, supporting production stability [8] Q&A Session Summary Question: Clarification on cash flow building blocks - Management discussed the excess advances and customer considerations, indicating that while both will normalize, excess advances will burn down quicker than customer considerations [41][42] Question: Free cash flow expectations - Management reiterated confidence in achieving $10 billion in free cash flow, emphasizing the need to complete certification programs and ramp up production rates [49][50] Question: Production ramp challenges - Management identified potential bottlenecks in increasing production rates, particularly from 47 to 52 for the 737, and emphasized the importance of managing the supply chain effectively [60][62] Question: BCA margins and Spirit's impact - Management acknowledged that current cash margins for the 737 and 787 are depressed but expect improvements over time, with Spirit's performance contributing positively in the future [68][70] Question: Defense program updates - Management clarified that the charge taken on the KC-46 tanker program is specific to that program and does not reflect on other BDS programs, with plans to deliver 19 tankers in 2026 [83][84]

Financial Performance - The company reported revenue of $23.9 billion for Q4 2025, a 57% increase, marking the highest quarterly total since 2018, driven by improved operational performance and higher commercial deliveries [16][26] - Core earnings per share reached $9.92, primarily reflecting a gain of $11.83 from the digital aviation solutions divestiture [16] - Free cash flow was positive at $375 million, slightly exceeding expectations due to higher commercial deliveries and improved working capital [16][26] Business Line Performance - Boeing Commercial Airplanes (BCA) delivered 160 airplanes in Q4 and 600 for the year, the highest annual total since 2018, with revenue of $11.4 billion and an operating margin of negative 5.6% [16][17] - BCA booked 336 net orders in Q4, including significant orders from Alaska Airlines and Emirates, ending the year with a record backlog of $567 billion [17][18] - Boeing Defense, Space & Security (BDS) delivered 37 aircraft in Q4, with revenue growing 37% to $7.4 billion, despite a negative operating margin of 6.8% due to a loss on the KC-46A tanker [20][21] - Boeing Global Services (BGS) reported revenue of $5.2 billion, up 2%, with an adjusted operating margin of 18.6%, driven by improved government volume [24][25] Market Performance - The backlog for BCA includes over 6,100 airplanes, with strong demand for the 737 and 787 models, indicating a robust market position [17][18] - BDS secured $15 billion in orders during Q4, contributing to a record backlog of $85 billion, reflecting strong demand in defense [20][21] Company Strategy and Industry Competition - The company is focused on stabilizing its business, executing development programs, and improving its culture to enhance performance and stakeholder trust [3][10] - Boeing is investing in production capacity and quality improvements, including a new North Line in Everett and factory expansions for the 787 program [5][6][9] - The company aims to address challenges in production rates and certification timelines for new aircraft models, including the 737 MAX derivatives and 777-9 [10][11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's turnaround, highlighting significant progress in operational metrics and customer satisfaction [3][10] - The company anticipates positive free cash flow of $1-$3 billion in 2026, despite challenges related to the Spirit AeroSystems acquisition and delayed aircraft certifications [27][30] - Management acknowledged the need to improve contract management and risk assessment to enhance profitability in the aerospace industry [59][60] Other Important Information - The company completed the acquisition of Spirit AeroSystems and the $10.6 billion sale of Jeppesen, strengthening its balance sheet [9][26] - The defense portfolio is expected to return to historical performance levels as the company continues to drive execution and transition to new contracts [24] Q&A Session Summary Question: Clarification on cash flow building blocks - Management indicated that excess advances and customer considerations are expected to normalize over time, with excess advances burning down quicker than customer considerations [35][36] Question: Expectations for normalized free cash flow - Management reiterated confidence in achieving $10 billion in free cash flow, emphasizing the importance of ramping up production rates and improving performance across business segments [39][40] Question: Production ramp challenges - Management discussed the challenges of increasing production rates for the 737 and 787 programs, emphasizing the need for supply chain stability and effective management of inventory levels [42][44] Question: Defense program updates - Management addressed the discrete charge on the KC-46A tanker program, stating that it reflects increased costs but is necessary to ensure timely deliveries [55] Question: Geopolitical risks and procurement shifts - Management acknowledged the dynamic nature of geopolitical risks but expressed confidence in the U.S. administration's support for the aerospace industry [62]