Boeing Company Conference Call Summary Company Overview - **Company**: The Boeing Company (NYSE: BA) - **Date**: December 02, 2025 - **Event**: UBS Industrials Conference Key Points Company Culture and Management - The new representative has spent significant time in Boeing's factories, emphasizing the importance of understanding daily operations and culture [2][3] - Observations indicate a strong management team with a focus on improvement and a performance-oriented culture [3][4] - Active management is highlighted as a key approach, with a willingness to engage directly in problem-solving [4][5] Production and Delivery Updates - Boeing is currently stabilizing production rates for the 737 and 787 models, with expectations to increase output in 2026 [8][10] - For 737 deliveries, the company anticipates around 440-450 deliveries for the current year, with a shift to production rollouts for future deliveries [12][13] - The 737-10 certification is expected later in the year, impacting delivery timelines [13] Financial Outlook - The company expects to see year-over-year growth in cash flow, projecting low single-digit positive free cash flow for 2026 despite increased capital expenditures [25][28] - A significant Department of Justice payment originally anticipated for 2025 has been pushed to 2026, affecting cash flow projections [25][26] - Boeing's cash balance is projected to be around $29 billion by the end of the year, bolstered by the Jeppesen divestiture [39] Defense and Space Segment - The defense segment is showing signs of stabilization, with expectations for improved margins and performance in the coming years [19][21] - The new representative will gain access to the defense segment in January, with a focus on understanding and mitigating risks [18][20] Future Growth and Challenges - Boeing aims to achieve a cash flow generation target of $10 billion, contingent on successful delivery rates and program certifications [33][34] - The company is cautious about launching new aircraft programs, emphasizing the need for market readiness and technological advancements [41][42] - There are ongoing challenges related to legacy deliveries and inventory management, which are expected to improve with increased production rates [27][31] Conclusion - The conference call provided insights into Boeing's operational improvements, financial outlook, and strategic focus on stabilizing production while preparing for future growth opportunities [45]

Financial Performance - Q4 FY25 - Net sales reached $7696 million, a 1.6% increase excluding the 14th week of FY24[15] - Adjusted EBITDA was $116 million, a decrease of 12.8% excluding the 14th week of FY24[15] - Adjusted EPS was $(0.11)[15] - Free cash flow was $86 million[15] Financial Performance - FY25 - Net sales reached $31784 million, a 4.6% increase excluding the 53rd week of FY24[15] - Adjusted EBITDA was $552 million, an 8.7% increase excluding the 53rd week of FY24[15] - Adjusted EPS was $0.71[15] - Free cash flow was $239 million[15] Factors Impacting Performance - The cyber incident impacted Q4 net sales by an estimated $400 million and Adjusted EBITDA by an estimated $50 million[16, 31] - Fiscal year 2024 included an extra week that produced approximately $582 million of sales and $10 million of Adjusted EBITDA[16] Future Outlook - FY26 - Net sales are projected to be between $31600 million and $32000 million[42] - Adjusted EBITDA is projected to be between $630 million and $700 million[42] - Adjusted EPS is projected to be between $1.50 and $2.30[42] - Free cash flow is projected to be approximately $300 million[42]