Core Viewpoint - Boeing's stock remains stable as investors assess the implications of the FTC's consent order regarding its acquisition of Spirit AeroSystems and Air Astana's recent order for 15 Boeing 787-9 Dreamliners [1] Group 1: FTC Consent Order - The Federal Trade Commission (FTC) has finalized conditions for Boeing's acquisition of Spirit AeroSystems, addressing antitrust concerns [1][2] - The order requires Boeing to divest certain Spirit operations while ensuring support services for competing aerospace manufacturers [3] - The FTC's ruling aims to prevent restrictions on Airbus's access to critical aerostructure components and to maintain fair pricing and innovation in the aviation supply chain [4] Group 2: Air Astana Order - Air Astana has finalized an order for up to 15 Boeing 787-9 Dreamliners, marking its largest single aircraft purchase to modernize its fleet [5] - This order, initially disclosed as a commitment in November 2025, will increase Air Astana's Dreamliner fleet to as many as 18 aircraft to support long-haul growth [5] Group 3: Stock Performance - Boeing shares were down 0.71% at $242.31, nearing a 52-week high of $254.34 [6]

Group 1 - The U.S. Federal Trade Commission has finalized a consent order regarding Boeing's acquisition of Spirit AeroSystems [1] - This decision marks a significant regulatory step in the aerospace industry, impacting Boeing's strategic positioning [1] Group 2 - The acquisition is part of Boeing's broader strategy to enhance its supply chain and production capabilities [1] - The finalized consent order may include specific conditions or requirements that Boeing must adhere to post-acquisition [1]

Core Viewpoint - Boeing has achieved significant quality improvements in its commercial airplane supply chain over the past two years, leading to reduced problem-solving hours and defect rates [1]. Group 1: Supply Chain Improvements - Boeing now spends 40% fewer hours addressing supply chain issues compared to 2024 [1]. - Defects from Spirit AeroSystems, a key supplier, have decreased by 60% since Boeing enhanced quality control inspections in 2024 [1]. Group 2: Strategic Moves - Boeing acquired Spirit AeroSystems in December, which allows for greater control over its supply chain [1]. - The return of Spirit to Boeing is viewed positively by executives, with one stating it was "probably the best thing that's happened in my career" [1]. Group 3: Historical Context - Spirit AeroSystems was originally created in 2005 when Boeing sold parts of its aerostructures production business [1]. - Quality defects from Spirit and other suppliers previously hindered Boeing's efforts to resume jetliner production post-COVID-19 pandemic [1].

Group 1 - NRG Energy, Inc. has appointed Sanjay Kapoor to its Board of Directors, effective February 3, 2026, and he will also serve on the Board's Audit Committee [1][2] - Kapoor's appointment increases NRG's Board to 11 members, enhancing its expertise in industrial, financial, and operational leadership [2] - Kapoor has over 30 years of experience in senior financial and operational roles, particularly in regulated and complex industries [3] Group 2 - Kapoor is the retired Executive Vice President and CFO of Spirit AeroSystems and has held leadership positions at Raytheon and United Technologies, where he significantly increased revenue [4] - He has extensive board experience with companies such as Crane Company, SAAB, Inc., and Black & Veatch, contributing to governance in industrial and technology-driven markets [5] - NRG is a major provider of electricity, natural gas, and smart home solutions to eight million customers across North America, operating approximately 25 GW of power generation [6]

Core Insights - Boeing is experiencing a turnaround with improved operational performance, record backlogs, and increased commercial production, although management cautions that the company has not fully turned the corner [3][4][7] Production and Delivery - The 737 program is stabilizing at a production rate of 42 airplanes per month, with plans to increase to 47 in 2026, and has received positive customer feedback on quality [1][6] - Boeing delivered 160 airplanes in Q4 and 600 for the year, with the 737 program accounting for 117 deliveries in the quarter and 447 for the year [7][8] - The 787 program is stabilizing at approximately 8 airplanes per month, targeting an increase to 10 later in 2026, with 27 deliveries in Q4 and 88 for the year [8] Financial Performance - Q4 revenue reached $23.9 billion, the highest quarterly total since 2018, with a full-year revenue of $89.5 billion, up 34% year-over-year [5][15] - Free cash flow for Q4 was positive at $375 million, while the full-year free cash flow was a usage of $1.9 billion, showing significant improvement year-over-year [5][15] Defense and Services - Boeing Defense, Space & Security (BDS) revenue rose 37% to $7.4 billion in Q4, despite a $565 million loss on the KC-46A tanker [11][12] - BDS booked $15 billion in orders during the quarter, lifting the backlog to a record $85 billion [12] Strategic Initiatives - Boeing has implemented process changes to reduce complexity, including simplifying over 5,100 work instruction documents [2][7] - The company completed the acquisition of Spirit AeroSystems to support production stability and improve safety and quality across factories and the supply chain [16] Future Outlook - Boeing reaffirmed guidance for 2026 free cash flow of $1 billion to $3 billion, with expectations for improved cash flow driven by higher commercial deliveries and better BDS performance [17][19] - Management anticipates capital expenditures to rise to about $4 billion in 2026, including investments related to Spirit [17]

Financial Performance - The company reported revenue of $23.9 billion for the quarter, a 57% increase, marking the highest quarterly total since 2018, driven by improved operational performance and higher commercial deliveries [16][17] - Core earnings per share reached $9.92, primarily reflecting a gain of $11.83 from the Digital Aviation Solutions divestiture [16] - Free cash flow was positive at $375 million, slightly exceeding expectations due to higher commercial deliveries and improved working capital [16][27] Business Line Performance - The Boeing Commercial Airplanes (BCA) segment delivered 160 airplanes in the quarter and 600 for the year, the highest annual total since 2018, with revenue of $11.4 billion [16][17] - The Defense, Space & Security (BDS) segment delivered 37 aircraft in the quarter, with revenue growing 37% to $7.4 billion, despite a $565 million loss on the KC-46A tanker program [21][22] - The Global Services (BGS) segment reported revenue of $5.2 billion, a 2% increase, with an adjusted operating margin of 18.6% [24] Market Data - BCA booked 336 net orders in the quarter, including significant orders for the 737-10 and 787-9, ending the year with a record backlog of $567 billion [17][19] - BDS secured $15 billion in orders during the quarter, contributing to a record backlog of $85 billion [21] - BGS achieved an annual high of $28 billion in orders for 2025, ending the year with a record backlog of $30 billion [24] Company Strategy and Industry Competition - The company is focused on stabilizing its business, executing development programs, and improving its culture to restore trust with stakeholders [3][10] - A significant investment was made in the Spirit AeroSystems acquisition to enhance safety and quality across operations [9] - The company aims to improve margins and cash flow through better management of risks and contracts in the aerospace market [91][92] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges in certification timelines for new aircraft but expressed confidence in meeting revised schedules [10][11] - The company anticipates positive free cash flow of $1-$3 billion in 2026, driven by higher commercial deliveries and improved performance across segments [28][30] - Management emphasized the importance of production stability and continuous improvement to address customer considerations and excess advances [31][32] Other Important Information - The company completed the $10.6 billion sale of Digital Aviation Solutions, strengthening its balance sheet while retaining essential capabilities [9][25] - Cash and marketable securities grew to $29.4 billion, with a debt balance of $54.1 billion, reflecting the acquisition of Spirit AeroSystems [25][26] Q&A Session Summary Question: Clarification on cash flow building blocks - Management indicated that excess advances and customer considerations are expected to normalize over time, with excess advances burning down quicker than considerations [41][42] Question: Free cash flow expectations - Management reiterated confidence in achieving $10 billion in free cash flow, emphasizing the need to complete certification programs and ramp up production rates [49][50] Question: Production ramp challenges - Management discussed the challenges in increasing production rates for the 737 and 787 programs, highlighting the need for improved supply chain performance [60][62] Question: Defense program updates - Management addressed the discrete charge on the KC-46A tanker program, stating it reflects increased costs but is necessary to ensure timely deliveries [83][84] Question: Broader industry profitability concerns - Management acknowledged the challenges in achieving profitability in the aerospace industry and emphasized the need for better risk management and contract pricing strategies [91][92]

Financial Performance - The company reported revenue of $23.9 billion for Q4 2025, a 57% increase, marking the highest quarterly total since 2018, driven by improved operational performance and higher commercial deliveries [16][26] - Core earnings per share reached $9.92, primarily reflecting a gain of $11.83 from the digital aviation solutions divestiture [16] - Free cash flow was positive at $375 million, slightly exceeding expectations due to higher commercial deliveries and improved working capital [16][26] Business Line Performance - Boeing Commercial Airplanes (BCA) delivered 160 airplanes in Q4 and 600 for the year, the highest annual total since 2018, with revenue of $11.4 billion and an operating margin of negative 5.6% [16][17] - BCA booked 336 net orders in Q4, including significant orders from Alaska Airlines and Emirates, ending the year with a record backlog of $567 billion [17][18] - Boeing Defense, Space & Security (BDS) delivered 37 aircraft in Q4, with revenue growing 37% to $7.4 billion, despite a negative operating margin of 6.8% due to a loss on the KC-46A tanker [20][21] - Boeing Global Services (BGS) reported revenue of $5.2 billion, up 2%, with an adjusted operating margin of 18.6%, driven by improved government volume [24][25] Market Performance - The backlog for BCA includes over 6,100 airplanes, with strong demand for the 737 and 787 models, indicating a robust market position [17][18] - BDS secured $15 billion in orders during Q4, contributing to a record backlog of $85 billion, reflecting strong demand in defense [20][21] Company Strategy and Industry Competition - The company is focused on stabilizing its business, executing development programs, and improving its culture to enhance performance and stakeholder trust [3][10] - Boeing is investing in production capacity and quality improvements, including a new North Line in Everett and factory expansions for the 787 program [5][6][9] - The company aims to address challenges in production rates and certification timelines for new aircraft models, including the 737 MAX derivatives and 777-9 [10][11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's turnaround, highlighting significant progress in operational metrics and customer satisfaction [3][10] - The company anticipates positive free cash flow of $1-$3 billion in 2026, despite challenges related to the Spirit AeroSystems acquisition and delayed aircraft certifications [27][30] - Management acknowledged the need to improve contract management and risk assessment to enhance profitability in the aerospace industry [59][60] Other Important Information - The company completed the acquisition of Spirit AeroSystems and the $10.6 billion sale of Jeppesen, strengthening its balance sheet [9][26] - The defense portfolio is expected to return to historical performance levels as the company continues to drive execution and transition to new contracts [24] Q&A Session Summary Question: Clarification on cash flow building blocks - Management indicated that excess advances and customer considerations are expected to normalize over time, with excess advances burning down quicker than customer considerations [35][36] Question: Expectations for normalized free cash flow - Management reiterated confidence in achieving $10 billion in free cash flow, emphasizing the importance of ramping up production rates and improving performance across business segments [39][40] Question: Production ramp challenges - Management discussed the challenges of increasing production rates for the 737 and 787 programs, emphasizing the need for supply chain stability and effective management of inventory levels [42][44] Question: Defense program updates - Management addressed the discrete charge on the KC-46A tanker program, stating that it reflects increased costs but is necessary to ensure timely deliveries [55] Question: Geopolitical risks and procurement shifts - Management acknowledged the dynamic nature of geopolitical risks but expressed confidence in the U.S. administration's support for the aerospace industry [62]

Core Insights - Boeing Company's shares have increased by 2.6% over the past three months, outperforming the Zacks Aerospace-Defense industry's growth of 1.1% [1][8] - The company is experiencing growth across its commercial, defense, and services sectors, driven by strong aircraft demand, significant contract awards, and a solid backlog [1][4] Company Performance - Boeing has secured its largest-ever airplane order from Alaska Airlines, which will enhance its order backlog and long-term revenue visibility [5] - The company was awarded a $2 billion contract from the U.S. Air Force for the B-52 Commercial Engine Replacement Program, reinforcing its position as a key defense contractor [6] - Boeing's forward price-to-sales (P/S) ratio is 1.84X, which is lower than the aerospace-defense industry's average of 2.71X, indicating a potential undervaluation [8][18] Challenges - Despite strong growth potential, Boeing faces challenges such as supply-chain disruptions, including shortages of engines and critical components, which have delayed aircraft deliveries and increased production costs [10][11] - The Zacks Consensus Estimate for Boeing's 2026 earnings per share (EPS) has decreased by 21.83% in the past 60 days, indicating a decline in earnings expectations [12] Investment Considerations - Boeing's trailing 12-month return on invested capital (ROIC) is negative and lags behind the peer group's average, suggesting insufficient returns on investments [16] - The company has beaten earnings estimates in two of the last four quarters, but has a negative average surprise of 22.4% [14]

Group 1: Company Overview - The Boeing Company (NYSE:BA) is recognized as one of the 14 Best Large Cap Stocks to Invest In Now, with a Buy rating assigned by Citi and a price target set at $265 [1] - Boeing has completed its acquisition of Spirit AeroSystems, which includes fuselages for various aircraft programs such as the 737, 767, 777, and 787 Dreamliner, as well as military aircraft [3][4] Group 2: Industry Trends - Citi has initiated coverage on 24 stocks in the aerospace and defense sector, highlighting the presence of "megatrends" that could lead to at least one company reaching a market cap of one trillion dollars in the coming years [2] - The aerospace and defense sector is expected to see improvements in trends during the fourth quarter, with positive momentum anticipated to carry into the first quarter [2]

Core Viewpoint - Boeing is experiencing positive operational developments, including a strong aircraft order backlog and improved delivery performance, despite a recent decline in stock price [1][2][4][6]. Group 1: Operational Performance - Boeing delivered 44 planes in November, indicating its capability to meet aviation market demand [2][6]. - The International Air Transport Association (IATA) noted improvements in Boeing's delivery performance compared to Airbus [2]. Group 2: Strategic Moves - Boeing completed a $4.7 billion acquisition of Spirit AeroSystems, regaining control over a key manufacturer of wings and fuselages, which is vital for enhancing its supply chain [3][6]. Group 3: Stock Performance - Boeing's stock price decreased by approximately 2.78%, dropping $5.73, with trading fluctuations between $200.02 and $207.09 [4]. - Over the past year, Boeing's stock reached a high of $242.69 and a low of $128.88, with a market capitalization of around $150.9 billion [4]. Group 4: Market Activity - Today's trading volume for Boeing on the NYSE was 6,651,195 shares, reflecting significant investor interest [5].