Is White House Pressure Curbing Boeing's Cash Flow?

Cash Flow Challenges - Boeing's consolidated debt reached $54.1 billion at the end of 2025, with cash and marketable securities totaling $29.4 billion, resulting in a net debt of $24.7 billion [2] - The company burned through $1.9 billion in cash during 2025, indicating significant cash flow pressures [2] - Management is guiding for free cash flow of only $1 billion to $3 billion next year, reflecting ongoing cash flow challenges [4] Investment and Development Costs - Boeing's former CEO indicated that developing a new narrowbody airplane would require an investment of $50 billion [2] - The company is also facing costs related to the acquisition of Spirit AeroSystems, its eVTOL business Wisk, and the ramp-up of 737 deliveries, which are all impacting cash flow [3] - Capital spending is projected to increase to $4 billion, up from $2.9 billion in 2025 and $2.2 billion in 2024, contributing to cash flow strain [6] Operational Issues - The increase in capital spending is partly due to the need to address issues with fixed-price development programs, which cost Boeing $5 billion in 2024 and $802 million in 2025 [6] - The KC-46 refueling tanker program is highlighted as particularly problematic, necessitating higher resource allocation to ensure timely deliveries [7] - Management believes that without the 777X issues and other investments, underlying free cash flow could be in the high-single-digit billions [5]