Boeing(US:BA) INDUSTRIAL SECURITIES·2025-02-21 14:21Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that Boeing is a dual-monopoly enterprise in the aerospace sector, with operations spanning commercial airplanes (BCA), defense and space (BDS), and global services (BGS). Despite facing challenges in 2024, including a significant drop in delivery volumes and a net cash flow loss, the company demonstrates strong corrective capabilities and strategic management adjustments [5][6] - The report anticipates a recovery in revenue and profitability, projecting a revenue increase to $81.99 billion in 2025, with a return to profitability by 2025 [6] Summary by Sections Company Overview - Boeing operates in three major segments: BCA, BDS, and BGS, and is the largest commercial aircraft manufacturer globally. The company faced a 51% quarter-on-quarter drop in delivery volumes in Q4 2024 due to operational disruptions [5][6] Financial Performance - In 2024, Boeing reported revenues of $66.52 billion and a net loss of $11.82 billion. The BCA segment generated $22.86 billion in revenue but incurred an operating loss of $7.97 billion, primarily due to the 737-9 incident and labor strikes [6] - The company ended 2024 with cash and securities totaling $26.3 billion and reduced total debt to $53.9 billion [6] Market Demand and Orders - Global air travel demand has surpassed pre-pandemic levels, with Boeing's backlog reaching $521 billion, involving 5,500 aircraft. The International Air Transport Association (IATA) projects industry net profits of $31.5 billion in 2024 and $36.6 billion in 2025 [6] Management Strategy - The new CEO, Kelly Ortberg, is implementing significant reforms to address quality control issues and streamline operations. The company aims to vertically integrate its supply chain through the acquisition of Spirit AeroSystems, expected to complete in 2025 [6] Production Adjustments - Boeing has adjusted its production rates in response to safety investigations and labor strikes, with plans to ramp up production of the 737 series once conditions allow [6] Future Projections - The report forecasts a recovery in deliveries and revenues, with expected deliveries of 544, 656, and 786 aircraft from 2025 to 2027, respectively. Revenue is projected to grow to $81.99 billion in 2025, with a return to profitability anticipated by 2025 [6]