Core Viewpoint - Cathay Pacific Airways (00293.HK) has exercised its purchase rights under a 2013 subscription agreement to acquire additional Boeing 777-9 aircraft, which is expected to enhance future growth and replace part of its existing long-haul wide-body fleet [1] Group 1: Aircraft Purchase Details - CPAS has exercised its purchase rights to buy 14 Boeing 777-9 aircraft and has been granted the right to purchase up to 7 additional aircraft from the manufacturer [1] - The basic price for the aircraft is approximately $8.1 billion, equivalent to about HKD 63.2 billion, with significant price discounts provided by the manufacturer [1] - Payment for each aircraft will be made in five installments, with the first four payments due before delivery, covering a substantial portion of the total cost [1] Group 2: Future Expectations - The new aircraft are expected to be delivered by 2034 or earlier [1] - The aircraft will primarily serve long-haul routes and specific regional destinations, contributing to the company's sustainable development commitments through improved fuel efficiency [1] - The introduction of these aircraft aims to ensure operational cost-effectiveness while providing a high level of comfort and safety for passengers [1]

Financial Performance - Spirit AeroSystems reported second quarter 2025 revenue of $1.635 billion, a 10% increase from $1.492 billion in the same period of 2024 [23] - The operating loss for the second quarter of 2025 was $481 million, compared to a loss of $331 million in the same period of 2024, representing a 45% increase in losses [23] - The net loss for the second quarter of 2025 was $631 million, a 52% increase from $415 million in the second quarter of 2024 [23] Earnings and Cash Flow - The second quarter 2025 EPS was $(5.36), compared to $(3.56) in the same period of 2024, indicating a 51% decline [6][23] - Cash used in operations improved to $144 million in the second quarter of 2025 from $566 million in the same period of 2024, a 75% improvement [23] - Free cash flow usage decreased to $190 million in the second quarter of 2025 from $597 million in the same period of 2024, a 68% improvement [23] Backlog and Deliveries - Spirit's backlog at the end of the second quarter of 2025 was approximately $51 billion, encompassing work packages on all commercial platforms in the Airbus and Boeing backlog [3] - Total deliveries in the second quarter of 2025 increased significantly, with Boeing 737 deliveries rising to 113 from 27 year-over-year [24] Segment Performance - The Commercial segment revenue increased to $1.266 billion in the second quarter of 2025, up 8.6% from $1.166 billion in the same period of 2024 [23] - The Defense & Space segment revenue rose to $266 million, an 18.5% increase from $224 million in the second quarter of 2024 [23] - The Aftermarket segment revenue increased slightly to $102.8 million, up 1.7% from $101.1 million in the same period of 2024 [23] Strategic Developments - The company entered into a merger agreement with Boeing, expected to close in the fourth quarter of 2025, subject to regulatory approvals and other conditions [10] - Spirit has received a request for additional information from the Federal Trade Commission as part of the regulatory review process for the merger [10] Recent Legislation Impact - The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, includes business tax reform provisions, but is not expected to have a material impact on Spirit's financial statements or cash taxes in 2025 [12]

Group 1 - The new tax law, referred to as the "OBBB," is praised by companies for enhancing consumer capacity and releasing funds, allowing immediate expensing of domestic capital costs for various enterprises [1] - 19% of companies in the Russell 3000 index mentioned the new tax regulation during their earnings calls, indicating a significant awareness and potential impact on corporate strategies [1] - Companies can now fully deduct expenses related to R&D, new equipment, and property in one go, which is expected to save funds and accelerate equipment procurement and facility upgrades [1] Group 2 - Johnson & Johnson views the tax law favorably, linking it to their previously announced $55 billion investment plan in the U.S. and expressing optimism about job creation and innovation [2] - AT&T anticipates saving up to $8 billion in cash taxes from 2025 to 2027, planning to allocate approximately $3.5 billion to expand its fiber network [2] - PACCAR and General Dynamics report increased business inquiries due to released funds, with PACCAR projecting a 4% to 6% growth in parts sales this quarter [3] Group 3 - Companies like Booz Allen and United Rentals have raised their free cash flow expectations by $200 million and $400 million, respectively, due to tax incentives [3] - Northrop Grumman expects to receive $200 million to $250 million in cash tax benefits this year, while Roper Technologies anticipates a tax reduction of about $150 million and $120 million in benefits next year [3] - Some companies, such as Ford and Sherwin-Williams, are still assessing the financial impact of the new tax law, while Boeing does not foresee significant effects this year [3] Group 4 - The tax law may encourage companies to expand their operations in the U.S., but it could also lead to increased costs, complicating the overall financial landscape [4] - Ongoing tariff negotiations add complexity to the situation, suggesting that the financial benefits of the tax law may not be straightforward for all companies [4]

Core Viewpoint - Boeing faces significant challenges as approximately 3,200 workers at its defense plant in St. Louis initiated a strike, marking the first such action since the mid-1990s, following the rejection of a new contract proposal [1][2] Group 1: Strike Details - The strike is organized by the International Association of Machinists and Aerospace Workers (IAM) District 837, affecting production lines for fighter jets F-15, F/A-18, and some missile products [1] - The latest contract proposal from Boeing included a 20% wage increase over four years, a one-time signing bonus of $5,000, and improved sick leave and vacation terms, but workers felt it did not adequately reflect their contributions [2] Group 2: Impact on Boeing - The strike poses a new challenge for Boeing, which had previously experienced a major strike in Seattle involving 33,000 workers that halted production for nearly two months [1][2] - Boeing's CEO attempted to downplay the strike's impact, stating it is smaller than last year's strike, but the ongoing labor dispute casts a shadow over the company's recovery efforts [2] Group 3: Industry Challenges - The strike highlights deeper structural labor issues within the U.S. defense industry, particularly at Boeing's St. Louis facility, which is crucial for producing military equipment [4] - The aerospace and defense (A&D) industry faces an aging workforce, with 29% of employees over the age of 55, and a projected shortage of up to 3.5 million skilled workers by 2026 [4][5] - There is a growing concern that the lack of qualified workers could severely impact the U.S. military's industrial base, necessitating improvements in wages, benefits, and training to attract and retain skilled labor [5]

Boeing Defense Workers Begin Striking For First Time Since 1996 After Rejecting Contract Offer https://t.co/jZJtFVu2Lj https://t.co/jZJtFVu2Lj ...

Core Points - Over 3,200 union members at Boeing's fighter jet assembly plants in St. Louis, Missouri, and Illinois went on strike after rejecting a second contract offer [1] - The rejected four-year contract proposed a 40% average wage increase, a 20% general wage increase, and a $5,000 ratification bonus, along with additional vacation time and sick leave [2][4] - Boeing's defense division is expanding its manufacturing facilities in St. Louis for the new F-47A fighter jet after winning the contract this year [8] Company Response - Boeing expressed disappointment over the rejection of the contract that included significant wage growth [4] - Boeing's CEO downplayed the potential impact of the strike, referencing a previous seven-week strike that the company managed effectively [6] Union Perspective - The union emphasized that workers deserve a contract that reflects their skills and critical roles in national defense [5]

Core Viewpoint - Boeing's defense sector is facing potential shutdown due to a strike by assembly workers in Missouri and Illinois, impacting the production of several military aircraft [1][3]. Group 1: Strike Impact - The strike began on April 4, affecting the assembly of F-15 and F/A-18 fighter jets, T-7 trainers, and MQ-25 carrier-based drones [1][3]. - Boeing is prepared for a shutdown and will implement emergency plans using non-human employees [1][3]. Group 2: Financial Context - Boeing's defense department was previously expanding production facilities in St. Louis after winning the F-47A fighter contract [3]. - The company reported a revenue improvement in Q2 but still incurred a loss of $612 million, which is an improvement from a loss of $1.439 billion in the same period last year [5]. Group 3: Underlying Issues - The strike is primarily due to a breakdown in negotiations regarding worker compensation [5]. - Boeing has been struggling with safety issues since the major accidents involving the 737 MAX 8 in 2018 and 2019, which have kept the company under scrutiny [5].

Let's turn to Boeing. Continued labor issues for that company and Phil Bose's got the latest for us. Phil, David, there is a strike right now of Boeing workers down in the St.Louis area. That part of the company builds defense projects. Specifically, they work on the F-16, F-18, some munition systems as well.About 3,200 workers who are represented by the International Association of Machinist went on strike at midnight. They have rejected a 20% raise, including a $5,000 signing bonus. And as I mentioned, th ...

A United Airlines plane was forced to make an emergency landing after one of its engines stopped working. Flight 108 departed Washington Dulles around 8 p.m. on Friday, July 25, more than two hours behind schedule. The 12-year-old Boeing 787 Dreamliner then spent around 30 minutes in the air before returning to the airport, which is just outside the nation's capital. In separate statements, United and the Metropolitan Washington Airports Authority said this was due to "a mechanical issue." Air traffic contr ...

Core Viewpoint - The technology sector in the United States is currently attracting most investor attention, leading to potential opportunities in other sectors, particularly for companies like Boeing that may be undervalued or overlooked [1]. Boeing's Current Situation - Boeing's stock is currently priced at $220.96, with a 52-week range between $128.88 and $242.69, and a price target set at $228.90 [2]. - Recent unusual call options activity indicates strong investor interest and confidence in Boeing's stock, suggesting a bullish sentiment [2][3]. Financial Performance - Boeing reported revenues of $22.7 billion, reflecting a 35% growth compared to the same quarter last year, which contradicts the recent stock sell-off [7]. - The company is on track to meet its free cash flow projections, with reported operating cash flows of $227 million [8]. Investor Sentiment - Institutional investors, such as Sumitomo Mitsui Trust Group, increased their stake in Boeing by 2.3%, raising their total investment to $422.2 million, which boosts retail investor confidence [9]. - Analysts maintain a Moderate Buy rating for Boeing, with a 12-month price forecast averaging $228.90, indicating a potential upside of 3.3% [9][10]. Analyst Outlook - Analysts project an average valuation of $275 per share for Boeing, suggesting a potential rally of about 25% from the current level, supported by strong revenue growth and cash flows [10]. - Notable analysts have reaffirmed their Buy ratings for Boeing, with target prices raised to $280 and $270 from previous levels [12].