The Boeing Company (NYSE:BA) Conference Transcript

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]