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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.

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1.b. Last Insights on BA

Breaking News: Boeing Company shares rose after CFO Jay Malave presented at the UBS Global Industrials and Transportation Conference. Malave stated the company's recovery is "in full force" and provided delivery and cash-flow targets. Boeing plans to complete its acquisition of Spirit AeroSystems by the end of 2025. The company forecasts higher 737 and 787 deliveries in 2026. Malave noted November aircraft deliveries were "a little light". Some analysts have recommended buying the stock, citing a strong recovery.

1.c. Company Highlights

2. Boeing's Q3 2025 Earnings: A Mixed Bag

Boeing reported revenue of $23.3 billion, up 30% year-over-year, driven by improved operational performance across its business segments. However, the company's core loss per share was $7.47, wider than the estimated loss of $5.16. The core loss was primarily driven by a $4.9 billion charge on the 777X program. The company's EPS was negatively impacted by the charge, and the actual EPS came out at -$7.47 relative to estimates at -$5.16.

Publication Date: Oct -30

📋 Highlights
  • Revenue Surge: Revenue hit $23.3B (+30%), driven by 160 BCA aircraft deliveries and higher defense volume.
  • 777X Program Charge: $4.9B loss provision booked due to certification delays and revised production plans, pushing first delivery to 2027.
  • 737 Production Ramp: Stabilized at 38/month, with FAA approval to increase to 42/month, aiming for 47/month by mid-2026.
  • Free Cash Flow Recovery: Operations generated positive free cash flow for the first time since 2023, with Q4 exit rate expected to remain modest.
  • Backlog Growth: Defense and Global Services segments reported record backlogs exceeding $600B, with BGS revenue up 10% to $5.4B.

Segment Performance

The commercial airplanes segment delivered 160 airplanes in the quarter, the highest quarterly delivery total since 2018. Revenue was up nearly 50% to $11.1 billion, primarily reflecting higher deliveries compared to last year. The defense segment also performed well, with revenue growing 25% to $6.9 billion on improved operational performance and higher volume.

Operational Highlights

The company made significant progress in stabilizing its production systems, with the 737 production rate reaching 38 airplanes per month. The company also received approval from the FAA to increase production to 42 airplanes per month. Additionally, the company's service business continued to deliver strong results, with revenue up 10% to $5.4 billion.

Valuation Metrics

Boeing's current valuation metrics indicate that the market is pricing in a significant recovery. The company's P/S Ratio is 2.0, and the EV/EBITDA is -41.87, indicating that the market is expecting a turnaround in the company's profitability. The ROE is 209.82%, which is unusually high, but this is likely due to the company's recent losses. Analysts estimate next year's revenue growth at 11.5%, which could be a positive catalyst for the stock.

Cash Flow and Balance Sheet

The company's cash and marketable securities ended at $23 billion, while the debt balance ended at $53.4 billion. The company maintains access to $10 billion of revolving credit facilities, which remain undrawn. Boeing's free cash flow was solid in Q3, and the company expects positive core free cash flow in Q4 before the DOJ payment.

Outlook

The company's guidance for 2026 is positive, with a target to achieve breakeven or low to mid-single-digit inflow of cash. The company's focus on M&A, including the Jeppesen deal and the Spirit deal, is expected to drive growth and improve the company's competitive position. However, the 777X program remains a headwind, with expected cash flow usage of $2 billion in 2026.

3. NewsRoom

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What Has BA Stock Done For Investors?

Dec -04

Source: fool.com

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Boeing (BA) Stock Slides as Market Rises: Facts to Know Before You Trade

Dec -03

Source: zacks.com

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Boeing Elects Bradley D. Tilden to Board of Directors

Dec -03

Source: prnewswire.com

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Why Boeing Company Stock Is Falling Today?

Dec -03

Source: feeds.benzinga.com

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Boeing Ordered by FTC to Divest Spirit Assets Ahead of Merger

Dec -03

Source: wsj.com

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US FTC says Boeing must divest Spirit AeroSystems assets to proceed with merger

Dec -03

Source: reuters.com

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Dow Jones Today: Stocks Turn Higher as Investors Downplay Private Payrolls Decline, Report Microsoft Cutting AI Software Sales Quotas

Dec -03

Source: investopedia.com

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Boeing Stock's 10% Pop Is More Than A Rally — Is This The Turnaround Wall Street Missed?

Dec -03

Source: benzinga.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

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L3Harris

A-Score: 6.2/10

Value: 3.0

Growth: 5.7

Quality: 6.8

Yield: 4.0

Momentum: 8.0

Volatility: 9.7

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Northrop Grumman

A-Score: 6.0/10

Value: 3.5

Growth: 5.9

Quality: 6.6

Yield: 3.0

Momentum: 8.5

Volatility: 8.7

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Raytheon Technologies

A-Score: 5.4/10

Value: 2.3

Growth: 3.8

Quality: 5.0

Yield: 4.0

Momentum: 8.5

Volatility: 8.7

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Boeing

A-Score: 5.2/10

Value: 9.0

Growth: 0.7

Quality: 5.8

Yield: 0.0

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

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HEICO

A-Score: 5.0/10

Value: 0.5

Growth: 7.3

Quality: 7.1

Yield: 0.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

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GE

A-Score: 4.7/10

Value: 0.7

Growth: 3.4

Quality: 6.6

Yield: 0.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

201.89$

Current Price

201.89$

Potential

0.00%

Expected Cash-Flows