Core Insights - Boeing's shares have increased by 2.2% over the past month, while the Zacks Aerospace-Defense industry has grown by 3% [1][2] - The company is one of the largest U.S. commercial aircraft manufacturers, with a positive outlook for both its commercial and defense segments [1][3] Commercial Aerospace - Boeing is experiencing strong demand in commercial aerospace, evidenced by solid aircraft orders and deliveries [3] - In Q4 2025, Boeing recorded 336 net commercial airplane orders, which is expected to enhance revenue performance in the long term [4][6] - The company has secured significant orders from Air Cambodia and Alaska Airlines, further boosting its order backlog and revenue visibility [7][8] Defense and Space Segment - Boeing's Defense, Space & Security (BDS) unit booked $15 billion in orders during Q4 2025, contributing to a backlog of $85 billion as of December 31, 2025 [4][6] - The defense segment is expected to benefit from the U.S. government's focus on strengthening defense and space systems [2][20] Challenges - Despite strong growth potential, Boeing faces challenges such as supply-chain disruptions that affect aircraft deliveries and increase production costs [9][10] - The company experienced $11.09 billion in aircraft order cancellations in 2025, impacting revenue potential [10] Financial Performance - The Zacks Consensus Estimate for Boeing's 2026 earnings per share (EPS) has decreased by 37.11% over the past 60 days [11] - Boeing's trailing 12-month return on equity (ROE) stands at 360.39%, significantly higher than the industry average of 10.99% [15] - Boeing's trailing 12-month price/book (P/B) ratio is 32.51X, which is a premium compared to the industry's average of 6.96X [17] Investment Outlook - Boeing's strong demand across its commercial, defense, and space businesses is driving revenue growth and expanding backlogs [20] - However, due to negative earnings estimates and high valuation, new investors are advised to wait for a better entry point, while existing investors may consider retaining their holdings [21]

The Boeing Company (BA) has finally broken a long cycle of financial pain, closing the chapter on nearly seven years of persistent setbacks. The aerospace and defense giant reported quarterly revenue of $23.9 billion, up around 57% year-over-year (YOY), its highest since 2018, marking a decisive inflection driven by operational discipline, higher commercial deliveries, and stronger defense volumes. This rebound matters because Boeing burned roughly $40 billion between the first quarter of 2019, after the ...

As Boeing (BA) entered Tuesday’s Q4 earnings to prove it can outshine a rocky 2025, analysts braced for a roughly $0.39 per share loss on $21.7 billion in revenue, but ​the aerospace giant delivered a $9.92 per share profit, largely driven by a $9.6 billion one-time business gain. The main emphasis is on the 737 MAX production rate, which is set to jump to 47 from 42 aircraft per month. Since the U.S. Government's $1.6 billion investment in USA Rare Earth (USAR) -- via the CHIPS Act-- Boeing is positioned ...

Core Viewpoint - Boeing Company has shown improvement in free cash flow visibility and a clearer path to normalization, leading analysts to view the fourth-quarter results positively as a credibility reset for the company [1][2]. Financial Performance - Boeing reported approximately $24 billion in fourth-quarter revenue, representing a 57% year-over-year increase, and delivered around $400 million in free cash flow, exceeding expectations and establishing a firmer baseline heading into 2026 [2]. - The company reaffirmed a free cash flow range of $1 billion to $3 billion for 2026, with a base case expectation of around $2 billion [3]. Cash Flow and Production Outlook - Analysts expect Boeing to achieve a normalized cash profile of $7 billion to $9 billion, with potential for over $10 billion in mid-term free cash flow, as the company has outlined specific factors contributing to this transition [4]. - Key cash headwinds for 2026 include higher capital expenditures, impacts from the Spirit AeroSystems deal, ongoing investment in the 777X, and customer-related pressures, although there are expected offsets from inventory reductions in the 737 MAX and 787 [5]. Production and Delivery Targets - Boeing aims for approximately 500 737 MAX and around 95 787 deliveries in 2026, indicating about 10% delivery growth, with plans to increase 737 MAX production from 42 to 47 per month by mid-2026 and targeting 52 per month by early 2027 [6][7]. - The company plans to deliver most of its remaining pre-2022 MAX inventory in the first quarter of 2026, while also aiming for MAX-7 and MAX-10 certification in the second half of 2026 [7]. Valuation and Analyst Ratings - RBC Capital Markets has set a price target of $275 for Boeing, based on a 22.5x multiple of projected 2028 free cash flow of about $10 billion, reflecting confidence in the company's long-term production and cash generation potential [9]. - Other analysts, including UBS and Citigroup, have also raised their price targets for Boeing, indicating a positive outlook on the stock as it approaches its 52-week high [11][12].

After years of safety crises, production delays, and quality defects, Boeing finally seems to be turning a corner. >> We had a really good close to 2025. Uh I think the important thing is that we saw free cash flow, positive again uh in the fourth quarter.So that's really good news is we're starting this this recovery. >> The return to profitability is a crucial step in turning the company around. Boeing's net orders for 2025 was for 1,173 planes.It's the first time since 2018 it has outsold Airbus. Boeing ...

On the 737 program, Ortberg said production is stabilizing at 42 airplanes per month, with on-time delivery performance improving “threefold” from the prior year and positive customer feedback on quality. He said Boeing plans to use the same monitoring and safety/quality discipline for future rate increases. For production above 47 per month, Boeing intends to add a new “North Line” in Everett, with facility and tooling investments complete and a staffing plan underway.Ortberg said Boeing increased commerci ...

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 negative operating margin of 6.8% [21][22] - The Global Services (BGS) segment reported revenue of $5.2 billion, up 2%, 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 [8][9] - The company aims to increase production rates for the 737 and 787 models, with plans to ramp up to 47 and 10 airplanes per month, respectively [6][19] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges in certification timelines for the 737 MAX derivatives and the 777-9 but expressed confidence in meeting revised schedules [10][11] - The company anticipates positive free cash flow of $1-$3 billion in 2026, despite some temporary impacts from the Spirit acquisition and delayed certifications [28][30] - Management emphasized the importance of continuous improvement and operational stability to meet customer commitments and enhance future performance [14][15] Other Important Information - The company completed the $10.6 billion sale of Jeppesen, strengthening its balance sheet while retaining essential digital capabilities [9] - A new five-year labor agreement was ratified with the IAM workforce in St. Louis, supporting production stability [8] Q&A Session Summary Question: Clarification on cash flow building blocks - Management discussed the excess advances and customer considerations, indicating that while both will normalize, excess advances will burn down quicker than customer 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 identified potential bottlenecks in increasing production rates, particularly from 47 to 52 for the 737, and emphasized the importance of managing the supply chain effectively [60][62] Question: BCA margins and Spirit's impact - Management acknowledged that current cash margins for the 737 and 787 are depressed but expect improvements over time, with Spirit's performance contributing positively in the future [68][70] Question: Defense program updates - Management clarified that the charge taken on the KC-46 tanker program is specific to that program and does not reflect on other BDS programs, with plans to deliver 19 tankers in 2026 [83][84]

The Boeing Company (NYSE:BA) Q4 2025 Earnings call January 27, 2026 10:30 AM ET Company ParticipantsBrian West - EVP and CFOEric Hill - VP of Investor RelationsKelly Ortberg - CEOConference Call ParticipantsDoug Harned - AnalystGavin Parsons - AnalystJason Gursky - AnalystMyles Walton - AnalystNoah Poponak - AnalystPeter Arment - AnalystRobert Stallard - AnalystRon Epstein - AnalystSeth Seifman - AnalystSheila Kahyaoglu - AnalystOperatorThank you for standing by. Good day, everyone, and welcome to The Boein ...

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]

Fourth Quarter 2025 Earnings Review Kelly Ortberg President and Chief Executive Officer January 27, 2026 Copyright © 2026 Boeing. All rights reserved. Caution Concerning Forward-Looking Statements Certain statements made today constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressio ...