Boeing On Track to Generate Billions in Cash Next Year

Core Viewpoint - Boeing Co. anticipates generating positive cash flow in 2026, marking a significant turnaround in its financial outlook as it plans to increase monthly production rates of passenger aircraft [1]. Financial Projections - The company expects free cash flow to reach "low-single digits" billions of dollars in 2026, reversing a projected cash burn of $2 billion for 2025, as stated by CFO Jay Malave [2]. - Analysts predict Boeing will generate $2.46 billion in free cash flow next year, although estimates have been reduced by more than half since mid-July due to delays in the certification of the 777X jetliner [6]. Stock Performance - Following the positive cash flow projections, Boeing's shares rose by as much as 9.2%, the largest increase since April, reflecting renewed investor confidence [3]. Long-term Goals - Boeing aims to achieve a cash generation target of $10 billion, initially set for 2025 but delayed due to various challenges. CFO Malave expressed confidence in reaching this goal once production rates increase [4]. Operational Improvements - The CFO highlighted improvements in production rates for the 737 Max and 787 Dreamliner, alongside a reduction in undelivered aircraft inventory, as key factors contributing to the optimistic outlook [5].