Loading...
01/09 22:52
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A indicate positive sentiment. Boeing's recovery plan is showing effectiveness, production ramp-up is underway, and the backlog is strong. Financial performance is improving, with increased revenues and operating margins. The Q&A revealed confidence in future production increases and positive impacts from trade agreements. While some uncertainties exist, like the engine anti-icing issue and unclear timelines for certain targets, overall, the positive developments and optimistic guidance outweigh the negatives, suggesting a stock price increase of 2% to 8% over the next two weeks.
Revenue $22.7 billion, up 35% year-over-year, primarily driven by higher commercial delivery volume.
Core loss per share $1.24, a significant improvement compared to last year, driven by higher commercial deliveries and improved operational performance.
Free cash flow Usage of $200 million, reflecting higher commercial deliveries and improved working capital compared to both the prior year and the prior quarter.
BCA Revenue $10.9 billion, with an operating margin of -5.1%, driven by 150 airplane deliveries in the quarter.
BCA Backlog $522 billion, up more than $60 billion sequentially, including more than 5,900 airplanes translating to over 7 years of production.
BDS Revenue $6.6 billion, up 10% year-over-year, driven by improved operational performance.
BDS Operating Margin 1.7%, up significantly compared to last year, reflecting better operational performance.
BGS Revenue $5.3 billion, up 8% year-over-year, primarily reflecting improved commercial and government volume.
BGS Operating Margin 19.9%, up 210 basis points compared to last year, driven by favorable performance and mix, including a one-time gain.
Debt Balance $53.3 billion, down $300 million in the quarter due to debt repayment.
Largest wide-body order: Boeing announced its largest wide-body order ever for up to 210 commercial airplanes.
737 production rate: Achieved a production rate of 38 airplanes per month, with plans to request FAA approval to increase to 42 per month.
787 production rate: Increased production rate to 7 airplanes per month, with stabilization efforts ongoing.
777X program: Progressing with flight tests and production of the first 777X-8 Freighter.
Global trade agreements: Recent trade deals between the U.S., EU, and U.K. are resolving input tariffs and promoting free trade.
Backlog growth: Commercial backlog grew to $522 billion, with over 5,900 airplanes in backlog.
Operational KPIs: Key performance indicators for production health are progressing as planned.
Safety and quality improvements: Reduced traveled work by 50%, simplified 1,500 work instructions, and implemented structured on-the-job training.
Cultural transformation: Introduced new performance management to strengthen accountability and align with company values.
Defense and space strategy: Secured a $2.8 billion U.S. Space Force contract and progressed on MQ-25 and T-7 programs.
737 MAX certification delays: The certification path for the 737 MAX family derivatives, including the 737-7 and -10, is taking longer than expected, with certification now anticipated in 2026. This delay could impact production schedules and customer deliveries.
Supply chain stability: The company continues to face challenges in stabilizing its supply chain, with ongoing efforts to manage supplier performance and inventory levels. This could affect production rates and delivery timelines.
Input cost pressures: Higher input costs, including tariffs, remain a risk despite some recent trade agreements. These costs could impact financial performance if not effectively managed.
Fixed price development programs: Boeing's fixed price development programs, such as the MQ-25 and T-7A, continue to carry risks related to cost overruns and delays, which could affect profitability and customer satisfaction.
777X program risks: The 777X program faces ongoing challenges, including inventory growth and the need to complete certification and deliver the aircraft by the planned timeline. Delays could impact financials and customer relationships.
Global trade uncertainties: Dynamic global trade policies and potential tariff impacts pose risks to Boeing's operations and financial performance, particularly as 80% of its commercial deliveries are to customers outside the U.S.
Defense program execution: While progress has been made, Boeing's defense programs still face risks in stabilizing production and executing development programs, which could impact margins and long-term performance.
737 Production Rate: Boeing achieved a production rate of 38 airplanes per month for the 737 and is focused on stabilizing at this rate. The company expects to request FAA approval in the coming months to increase production to 42 airplanes per month.
787 Production Rate: The production rate for the 787 has increased to 7 airplanes per month. Boeing is working on stabilizing this rate before preparing for future rate increases.
777X Program: The 777X flight test program is progressing, with certification and delivery expected in 2026. Production of the first 777X-8 Freighter is underway.
737 MAX Certification: Certification for the 737-7 and 737-10 is now expected in 2026 due to delays in maturing technical solutions for engine anti-ice systems. This is not expected to impact production plans.
Defense Programs: Boeing's defense portfolio is positioned for growth, supported by increased U.S. defense spending through fiscal year 2029. Key programs include the F-15EX, MQ-25, and E-7.
Space Portfolio: Boeing secured a $2.8 billion contract with the U.S. Space Force for satellite development and production. The company is also positioned for future programs like the Golden Dome.
Free Cash Flow: Boeing expects positive free cash flow in the fourth quarter of 2025, contingent on a favorable global trade environment and meeting commercial delivery forecasts.
The selected topic was not discussed during the call.
The earnings call summary presents a mixed picture. Positive aspects include increased production rates for 737 and 787, a $2.8 billion contract with the U.S. Space Force, and expected positive free cash flow by 2025. However, delays in 737 MAX certification, reliance on a favorable global trade environment, and potential production impacts due to lower-grade stockpiles next year temper enthusiasm. The Q&A section reveals management's lack of clarity on several issues, further contributing to a neutral outlook. Given these factors, the stock price is likely to remain stable in the short term.
The earnings call highlights a mix of positive and negative factors. The $4.9 billion charge for the 777X program and delays in certification are significant negatives. The Q&A reveals further concerns about cash flow and certification delays. While there are positive elements like improved operating margins and strategic production increases, the financial burden and uncertainties weigh heavily. The lack of clear guidance on cash flow targets and production challenges further dampen sentiment, leading to a negative outlook for the stock price over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
