Download PDF

1. Company Snapshot

1.a. Company Description

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide.The company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital.The Commercial Airplanes segment provides commercial jet aircraft for passenger and cargo requirements, as well as fleet support services.


The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration.The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers.The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating leases, sales-type/finance leases, notes and other receivables, assets held for sale or re-lease, and investments.


The company was incorporated in 1916 and is based in Chicago, Illinois.

Show Full description

1.b. Last Insights on BA

The Boeing Company's recent performance has been driven by several positive factors. Strong aircraft demand, major contracts, and a solid backlog have supported growth, with the company beating its industry in the last three months. A recent analyst upgrade by JPMorgan Chase and Co., which raised its price target from $240.00 to $245.00, has also contributed to the positive momentum. Additionally, institutional investors have increased their stakes in the company, with Farther Finance Advisors LLC growing its holdings by 47.7% and Capital Advisors Inc. OK acquiring 8,985 shares. Boeing's improved jetliner deliveries and positive free cash flow have also been encouraging, with CFO Jay Malave confirming that the company's recovery is "in full force".

1.c. Company Highlights

2. Boeing's Turnaround Gains Momentum

Boeing reported a strong quarterly performance with total company revenue reaching $23.9 billion, the highest quarterly total since 2018, driven by improved operational performance across its businesses, including higher commercial deliveries and defense volume. Core earnings per share came in at $9.92, significantly beating estimates of -$0.44. The company's commercial airplanes segment delivered 160 airplanes in the quarter and 600 for the year, with revenue of $11.4 billion and an operating margin of -5.6%, both of which improved materially compared to the previous year's results.

Publication Date: Feb -02

📋 Highlights
  • Record Revenue:: Total company revenue reached $23.9 billion, the highest quarterly total since 2018, driven by a 57% year-over-year increase.
  • Commercial Deliveries:: Boeing delivered 600 commercial airplanes in 2025, the highest annual total since 2018, with 1,173 net orders booked, setting a $567 billion backlog.
  • Defense Growth:: Defense business revenue grew 37% to $7.4 billion, with $15 billion in orders booked, including 96 Apache helicopters for Poland and 15 KC-46A tankers for the U.S. Air Force.
  • Free Cash Flow Outlook:: Boeing projects 2026 free cash flow of $1 billion to $3 billion, driven by higher commercial deliveries and improved performance, despite temporary impacts from 777X delays.

Segment Performance

The defense business also saw significant improvements, with revenue growing 37% to $7.4 billion on improved operational performance and higher volume. The operating margin of -6.8% improved significantly compared to the last year. Global services continued to perform well, delivering strong financial results in the quarter with revenue up 2% to $5.2 billion. The business received $10 billion of orders in the quarter and ended the year with a record backlog of $30 billion.

Outlook and Guidance

Boeing expects free cash flow of $1 billion to $3 billion in 2026, driven by higher commercial deliveries, better performance at the defense business, and steady growth at global services. The company anticipates a few temporary impacts on free cash flow in 2026, including delayed certification and first delivery on the 777X program. Analysts estimate next year's revenue growth at 13.8%, indicating a continued strong performance.

Valuation

With a P/E Ratio of 80.32 and a P/S Ratio of 2.05, the market is pricing in high expectations for Boeing's future performance. The company's ROE is currently at -94.94%, but this is expected to improve as the turnaround continues. The Net Debt / EBITDA ratio stands at 5.87, indicating a significant debt burden, but one that is expected to be managed as free cash flow improves.

Challenges Ahead

As noted by Kelly Ortberg, "It's something we have to continue to watch... the US fully understands the importance of commercial aerospace to the economy... they've been very supportive." This highlights the challenges Boeing faces, including potential tariff risks and shifts in procurement policies, but also the support it receives from the US government. Boeing's ability to manage these challenges and deliver on its plans will be crucial to achieving its goal of $10 billion free cash flow.

3. NewsRoom

Card image cap

Channing Capital Management LLC Sells 6,771 Shares of The Boeing Company $BA

Feb -22

Source: defenseworld.net

Card image cap

The Boeing Company $BA Stock Holdings Increased by Bowen Hanes & Co. Inc.

Feb -22

Source: defenseworld.net

Card image cap

Weekend Morning Brew: Amazon tops Walmart; Meta--Nvidia pact

Feb -21

Source: gurufocus.com

Card image cap

Boeing and Lockheed's Space Joint Venture Is Falling Apart -- and Northrop Grumman Is the Reason

Feb -21

Source: fool.com

Card image cap

NASA Slams Boeing Starliner in Wakeup Call for Investors. What It Means for the Stock.

Feb -20

Source: barrons.com

Card image cap

Market Today: Amazon Overtakes Walmart; Blue Owl Rattles Credit; FDA Eyes Moderna Flu Shot

Feb -19

Source: gurufocus.com

Card image cap

NASA chief slams Boeing, agency failures in botched Starliner astronaut mission

Feb -19

Source: reuters.com

Card image cap

Boeing Receives Initial Qualification for 777-9 Training Devices

Feb -19

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (16.90%)

6. Segments

Defense, Space & Security

Expected Growth: 5.0%

The segment is expected to grow steadily due to increasing demand for defense and security solutions globally, driven by rising geopolitical tensions and the need for modernization of military equipment. Government budgets for defense are expected to remain stable, supporting growth in this segment.

Commercial Airplanes (incl. Boeing Capital)

Expected Growth: 7.0%

The commercial airplanes market is expected to recover from the pandemic-induced downturn, driven by increasing air travel demand and the need for more fuel-efficient aircraft. Boeing's strong order backlog and improving production rates will support growth in this segment.

Global Services

Expected Growth: 10.0%

The global services segment is expected to grow rapidly due to increasing demand for aftermarket services from Boeing's commercial and defense customers. The segment's growth will be driven by the expansion of Boeing's customer base and the increasing complexity of aircraft systems.

Unallocated Items, Eliminations and Other

Expected Growth: 3.0%

This segment's growth is expected to be moderate, driven by the elimination of intersegment transactions and the allocation of corporate expenses. The growth rate is lower compared to other segments, as this segment is not a primary driver of Boeing's revenue growth.

7. Detailed Products

Commercial Airplanes

Designs, manufactures, and sells commercial airplanes and related services

Defense, Space & Security

Provides defense and security solutions, including aircraft, missiles, and satellite systems

Global Services

Offers a range of services, including maintenance, engineering, and training

Boeing Capital Corporation

Provides financing solutions for Boeing customers

Network & Space Systems

Develops and integrates network-centric systems and satellite communications

Phantom Express

Develops and manufactures reusable space launch systems

KC-46 Tanker

Designs and manufactures aerial refueling tankers

P-8 Poseidon

Develops and manufactures maritime patrol aircraft

CH-47 Chinook

Designs and manufactures heavy-lift helicopters

8. The Boeing Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Boeing is low due to the high barriers to entry in the aerospace industry, including high capital costs and stringent regulatory requirements.

Bargaining Power Of Customers

The bargaining power of customers for Boeing is medium, as while there are some large and influential customers, such as the US military, there are also many smaller customers that have less negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Boeing is low, as the company has a diverse supplier base and is not heavily dependent on any one supplier.

Threat Of New Entrants

The threat of new entrants for Boeing is low, as the barriers to entry in the aerospace industry are extremely high, including high capital costs, complex technology, and stringent regulatory requirements.

Intensity Of Rivalry

The intensity of rivalry for Boeing is high, as the company competes with other major aerospace companies, such as Airbus, and there is a high level of competition for market share and contracts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 148.72%
Debt Cost 4.18%
Equity Weight -48.72%
Equity Cost 11.66%
WACC 0.54%
Leverage -305.25%

11. Quality Control: The Boeing Company passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Northrop Grumman

A-Score: 6.2/10

Value: 3.6

Growth: 5.9

Quality: 6.4

Yield: 3.0

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
L3Harris

A-Score: 6.0/10

Value: 2.8

Growth: 5.6

Quality: 5.4

Yield: 4.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Raytheon Technologies

A-Score: 5.5/10

Value: 2.3

Growth: 3.4

Quality: 5.0

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
HEICO

A-Score: 5.4/10

Value: 0.4

Growth: 8.4

Quality: 6.9

Yield: 0.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Boeing

A-Score: 5.0/10

Value: 9.0

Growth: 0.7

Quality: 5.8

Yield: 0.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
GE

A-Score: 4.8/10

Value: 0.7

Growth: 3.4

Quality: 6.8

Yield: 0.0

Momentum: 9.5

Volatility: 8.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

232.03$

Current Price

232.03$

Potential

0.00%

Expected Cash-Flows