Boeing stock beat masks supply chain nightmare

Core Insights - Boeing reported a surprising profit of $9.92 per share for Q4, significantly exceeding analysts' expectations of a $0.39 per share loss, primarily due to a one-time business gain of $9.6 billion [1][5] Financial Performance - Boeing's total revenue for 2025 reached $89.5 billion, marking a 34% increase from 2024, with net earnings of $2.2 billion compared to a loss of $11.8 billion in 2024 [3] - The company achieved a Q4 revenue of $23.9 billion, contributing to a record-high backlog of $682 billion, indicating strong demand for its aircraft [7] Production and Deliveries - The production rate of the 737 MAX is set to increase from 42 to 47 aircraft per month, while the total commercial deliveries rose by 72%, totaling 600 planes for the year [2][4] - The 787 program maintained a production rate of 8 planes per month, with the 777X program expected to commence in 2027 [4] Segment Performance - Boeing's Commercial Airplanes (BCA) segment reported a loss of $632 million in Q4, while the Defense, Space & Security (BDS) segment incurred a loss of $507 million, largely due to costs associated with the KC-46A Tanker program [5][6] - The Global Services (BGS) segment generated $5.2 billion in revenue, serving as a key profit driver for the company [6] Supply Chain and Strategic Moves - The U.S. government's $1.6 billion investment in USA Rare Earth is expected to help Boeing mitigate supply chain risks related to rare-earth magnets, which are critical for various aircraft systems [2][8] - Boeing's reliance on rare-earth materials exposes it to price volatility and supply risks, particularly due to export controls from China [8]