Boeing(US:BA) The Motley Fool·2025-12-02 20:27Core Viewpoint - Boeing's CFO provided an optimistic outlook for the company's profitability in 2026, alleviating concerns that arose after the recent Q3 report, leading to a significant increase in share price [1][2]. Financial Outlook - CFO Jay Malave projected a transition from a $2 billion cash flow loss in 2025 to positive free cash flow in the "low single-digit billions" for 2026, despite a payment to the Department of Justice being deferred to 2026 [3][4]. - Malave expressed confidence that achieving a $10 billion annualized free cash flow target is feasible, which reassured investors following the stock's recent decline [4]. Market Performance - Following the positive outlook, Boeing's shares rose by 10.21%, with a current market capitalization of approximately $156 billion and an enterprise value of about $186 billion when accounting for $30 billion in net debt [5][6]. - If Boeing meets analysts' targets of around $2.2 billion in free cash flow for the next year, the stock would be trading at roughly 71 times the projected 2026 free cash flow, but if the $10 billion target is achieved by 2027 or 2028, the valuation would drop to less than 16 times that figure [6]. Investor Sentiment - The market is beginning to recognize Boeing's potential for future improvement, and there is room for the stock to rise further if investors gain confidence in the company's ability to reach the $10 billion cash flow target [7].