Description
The Boeing Company: Assessing How Inventory Reduction and Production Discipline Shape the Turnaround!
The Boeing Company, in its fourth quarter of 2025, demonstrated several aspects of progress and challenges that form the basis for an investment thesis. The company reported a significant increase in revenue of 57% year-over-year, reaching $23.9 billion, the highest since 2018, driven primarily by improved operational performance, higher commercial deliveries, and a gain from divestiture. The positive free cash flow of $375 million, above expectations, is reflective of the Boeing’s turnaround efforts. Despite this positive performance, Boeing’s core earnings per share were significantly impacted by past strategic decisions and production challenges. The $11.83 gain from the sale of the Digital Aviation Solutions overshadowed aircraft production-related costs and charges, highlighting a reliance on commercial transactions over operational profitability. Free cash flow guidance for 2026 is projected at $1 billion to $3 billion, incorporating the acquisition of Spirit AeroSystems, indicating an optimistic outlook backed by improved commercial deliveries.
